Crypto in ‘Rumpy Year’ of Slow Capital Deployment, Investors Say

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

“I think it’s going to be a pretty hectic year” David Nage, venture capital portfolio manager at Arca, told TechCrunch. “You’re going to have a pretty strong stomach for that over the next few years here. We try to be healthy, aware and grounded and not let emotions affect us.

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Many investors are trying to put last year’s chaotic market behind them and look to the future in a still investor-centric environment. But market competition will intensify as investors write fewer checks and become more selective.

The internal sentiment among VCs is a “wait and see” game, Nage said. “We will wait to see how things go for the start of the year.”

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

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