While some crypto-focused venture capitalists are bullish for 2023, others see it as a hazardous time.
“I think it’s going to be a fairly choppy year,” David Nage, venture capital portfolio manager at Arca, said to TechCrunch. “You’re going to have a pretty strong stomach for this over the next few years here. We’re trying to be healthy, mindful and have grounding out there and not let emotions affect us.”
You have to be an absolutely insane founder to go out and start a crypto company now. It was hard enough to start last year, but now there’s no money, no capital … who are your customers? Ed Sim, boldstart ventures
Many investors are trying to put last year’s chaotic market behind them and look forward to the future in a still investor-centric environment. But the competition in the market will heat up as investors write fewer checks and become more selective.
Internal sentiment among VCs is a “wait and see” game, Nage said. “We’ll wait and see how things roll out for the beginning of the year.”
The first quarter of 2023 may be slower than 2022. “I’d probably put money on that if I had to,” Nage said. “Rounds will also be fewer too; probably up to 50% less if I were to predict.”
