While cryptocurrency prices have plummeted, some firms are still raising millions of dollars. Indeed, businesses like FalconX keep raising money for their cryptocurrency ventures. We could also bring up Magic Eden, which secured a $130 million series B round. Additionally, Binance Labs declared that it had $500 million available to support Web3.0 initiatives. Similar to this, the renowned fund Andreessen Horowitz (A16z) has unveiled a fresh cryptocurrency fund.
Startup investors are unfazed by the bear market in cryptocurrencies.
Despite the severe cryptocurrency crisis, money is still pouring into FalconX and many other companies in the sector. Figures pertaining to this industry have also been reported in a McKinsey report. They predict that by 2030, Web3.0 will be worth $5 trillion. They also discovered that 6 billion dollars have been raised overall since January 2022 for metaverse startups. A part of this dynamic is FalconX. It is a cryptocurrency platform, and after raising $150 million, it has increased its valuation to $8 billion.
The downturn in the market, a chance?
Raghu Yarlagadda, CEO of FalconX, believes that despite the current state of the industry, we must maintain optimism. Even more so, he perceives “quite good acquisition potential.” He does advise investors to brace themselves for severe volatility while waiting for the market to normalize. Sidney Zhang, co-founder and technical director of Magic Eden, also expressed similar sentiments. “There is no better moment to build than now,” I can assure you as a survivor of the bear market. An NFT marketplace based on Solana is called Magic Eden. A $130 million Series B fundraising round for the company was only recently closed. Its value increased to $1.6 billion with this funding.
Large investment funds monitor cryptocurrency startups
Investment firms view the assets that cryptocurrency startups share as a lucrative opportunity. This is the situation with Andreessen Horowitz (A16z), who has $5 billion available to invest in Web 3.0 ecosystem firms. With 600 million dollars, including 4.5 billion for businesses in the cryptocurrency space, A16z is focusing especially on blockchain games. There are enormous stakes. Binance Labs is also included. 500 million dollars have been gathered by the well-known Changpeng Zhao (CZ) cryptocurrency company and will be used to fund Web3.0 crypto initiatives. The CEO of Binance reaffirmed his optimism over the state of the cryptocurrency market at the moment.
Despite the market collapse, it has generally been a successful year for crypto project financing. Web3.0 is regarded as the wave of the future, and money is flowing. Crypto ventures continue to find the funding they need for their development despite a severe crisis and prices at their lowest. Even more astounding when you consider how difficult it is for entrepreneurs in all other industries to raise money this year. Indeed, venture capital funds (VCs) are considerably more demanding and cautious of their new investments today after having a year in 2021 with exorbitant values and a ton of fundraising. Many venture capitalists (VCs) regret the enormous sums they were able to spend in software businesses at a time when the Nasdaq market is falling (and no, it’s not just cryptocurrency). Startups in the cryptocurrency, finance, and cyberspace sectors are doing substantially better than the average during this turnaround.
