As cryptocurrencies continue to take over mainstream finance, previously cautious investors around the world are reconsidering their stance on crypto as a bad investment. Due to the increase in funds from giant investors, this change of mind has led to higher market valuations for crypto businesses.
Citing this trend, Henri Arslanian, PwC’s cryptocurrency leader claim Larger players from venture capital, private equity, and pension funds are surpassing smaller boutique companies and family offices in participating in the latest innovations around crypto.
Arslanian is on the side of smaller venture capital firms because he shared an example, pointing out that a $10 million transaction now sees “large venture capital firms come in and offer higher valuations.” He believes:
“This situation often occurs in very early companies, such as $5 to 20 million-the price is inflating.”
As the crypto ecosystem continues to redefine the future of asset classes, Arslanian emphasized The number of cryptocurrency mergers and acquisitions has doubled recentlyHe emphasized how this year’s crypto companies can raise $3 billion in M&A value in 2020 in just three months.
“If your minimum investment is about US$50 million, there are not many companies with that status,” Arslanian explained: “If you are a large pension fund and you decide to make a crypto distribution, there are only 22 investable companies in the world , A company that is looking for capital and can absorb US$100 million. “
Similarly, Cointelegraph reported FTX’s recent record funding round 900 million US dollars. This funding increased the valuation of FTX from US$1.2 billion to US$18 billion, with participation of large venture capital firms including SoftBank, Sequoia Capital, Coinbase Ventures, Multicoin, VanEck and Paul Tudor.
Cointelegraph also reported on the investment of some of the largest blockchain VCs in Multiverse Labs, a company that provided funding for early blockchain and artificial intelligence projects. Some well-known investors include Samsung Next, Huobi Ventures and Arrington XRP Capital.
Multiverse’s valuation increased to 250 million U.S. dollars. In addition to expanding in Europe and Southeast Asia, it also pays more attention to engineering, research and marketing.