With crypto winter fueling FUD in the space, the industry hardly seems like an enticing space to back at the moment. According to reports, crypto startup funding in the second quarter of 2022 fell to its lowest level in a year.
Despite achieving a record US$9.85 billion in venture funds in the first quarter, private crypto funding declined 31% in Q2.
“Everyone is really hesitant on closing deals right now,” said PitchBook analyst Robert Le.
David Pakman, a managing partner at CoinFund said that seed valuations are “down about 20%, Series A valuations are down about 50%, and then Series B and beyond are down about 70%.”
“This is going to be a long-term down market,” he added. “It’s not going to come ripping back in a month.”
However, this hasn’t stopped Animoca Brands from drawing in US$75 million from a round including existing backers Liberty City Ventures, Kingsway Capital and 10T Holdings.
The round, which puts the Hong Kong-based game company at a US$5.9 billion valuation, is the second tranche of the US$358,888,888 fundraising in January.
Animoca said the funds will be used for further acquisition, investments, product development and IP licenses.
“There is no question that the fundraising environment has become more challenging, but at the same time the current crypto climate has also enabled some users to gain a better entry point to the open metaverse,” Yat Siu, cofounder and chairman of Animoca, said in an email.
“Of course, we have to be a bit more prudent, but we have a long-term vision for this space and are both committed and patient.”