Crypto in for a ‘tumultuous year’ of sluggish capital deployment, say investors • MastStatus

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While some crypto-focused venture capitalists are optimistic for 2023, others see it as a dangerous time.

“I think it’s going to be a pretty choppy year,” David Nage, venture capital portfolio manager at Arca, told MastStatus. “You’re going to have a pretty strong stomach for this for years to come.” We try to be healthy and mindful and grounded and not let emotions affect us.

You have to be an absolutely insane founder to start a crypto company right now. Last year it was hard enough to start, but now there is no money, no capital… who are your customers? Ed Sim, ventures

Many investors are trying to leave last year’s chaotic market behind and look forward to the future in a still investor-oriented environment. But competition in the marketplace will increase as investors write fewer checks and become more selective.

Internal sentiment among VCs is a “wait and see” game, Nage said. “We will wait and see how the beginning of the year goes.”

The first quarter of 2023 may be slower than 2022. “I’d probably put money on that if I had to,” Nage said. “There will also be fewer rounds; probably up to 50% less than I would predict.”

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