A chart shows how expenses for a16z encoders have fallen dramatically

A chart shows how expenses for a16z encoders have fallen dramatically

The weather may be colder here in New York City, but it’s been icy cold in the crypto space for months.

whether you was reading Or scrolling through Twitter recently, you’ve probably noticed a slowdown in funding for crypto startups. But how much has the decline actually hit the industry?

If you look at the activities of the massive cryptocurrency investor Andreessen Horowitz, the recession looks very dramatic.

Although the company has Keep making dealsa16z encryption, which manages files $7.6 billion in boxes and Raised a huge fund of $4.5 billion in Mayparticipated in only seven crypto and blockchain VC deals in the third quarter of 2022, a significant drop from its peak of 26 deals in the fourth quarter of 2021, According to PitchBook The data, nearly 60% lower than the second quarter of this year. Meanwhile, the company’s investment value fell from roughly $2.4 billion in the first quarter of this year to about $600 million in the fourth quarter, according to PitchBook data. It is worth noting that the value of a16z cryptocurrency transactions in the third quarter of 2022 is still higher than the quarter of last year. (A spokesperson for a16z said the company could not confirm these stats due to deals that have yet to be publicly disclosed.)

It’s definitely not just cryptocurrency – an investment in risk is down Collectively over the past few months, as Jessica pointed out yesterday (Despite proof of seed funding More flexiblein encryptionvery).

A16z refused to chat with me. But former a16z partner Katie Haun is said to have been in no hurry to spread her new $1.5 billion fund for Haun Ventures either. For every recent story in the informationHawn told the outlet that her company still owns the “vast majority of our capital,” and that we were “taking it very slowly.”

My question is, if valuations are dropping a lot, and these companies have tons of cash to post, why not take the opportunity to snap up a lot of bargains at lower prices? I recently asked Grace Isford, a director at Lux Capital that focuses on investments in fintech and Web3, and she suggested that for VCs in general, “It’s hard to tell how active they’ve been lately because so much of their investment could have been cryptocurrency.” Isford notes that she has heard that some crypto funds are focusing more on liquid positions at the moment (meaning actual tokens versus stock investments) due to compressed market prices. She suggested “there may be some good hedge fund opportunities,” although Lux Capital is not involved in these hedge fund strategies. Meanwhile, a Recently Take Crunch Article – Commodity Suggest VCs are waiting until minimum evaluations.

Sure, many of these companies may have long posting schedules, so they may not be in a rush to spend their money at the moment. A lot of cryptocurrency companies raised a lot of money in 2021 or early 2022, and they probably wouldn’t be keen on further depreciating the coin and making a valuation cut (nor their investors). “A lot of companies don’t need capital right now,” Isford noted. Isford tells me she’s been less involved in Web3 over recent months, too.

We’ll have to see if the cooling in the cryptocurrency space, combined with a broader dip in venture capital funding, continues in the coming quarters — and whether big hitters like a16z remain satisfied with their slower pace. I bet things probably won’t get a lot more frothy anytime soon – but, these companies can’t wait forever to start spending their liquidity providers money.

Shouted: Are you a founder or investor in the crypto/Web3 space? I love to hear what you see and hear (and what you do!). Email me: anne.sraders@fortune.com or DM Tweet embed on Twitter.

happy vacation.

Anne Saraders
Twitter: Tweet embed
E-mail: anne.sraders@fortune.com
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Jackson Fordyce curated the deals section of today’s newsletter.

adventurous deals

banyana New York-based SKU data network, has raised $43 million in joint-led Series A funding Fin Capital And the M 13.

Hoxton FarmsLtd., a London, UK-based company that grows animal fats without animals, has raised $22 million in Series A funding. Cooperative Fund And the Fine Heckel Ventures Co-led the tour and was joined by investors among them Systemic CapitalAnd the AgFunderAnd the MCJ GroupAnd the Founders FundAnd the VC . appearedAnd the insight capitalAnd the CPT CapitalAnd the sustainable food projects.

Teliosa decision-making intelligence platform in Reston, Virginia, has raised $16 million in Series B funding. Bird Capital He led the tour and was joined by investors including Sands Capital VenturesAnd the Grotech VenturesAnd the Ferraz Investments.

Chip City Cookiesa New York-based cookie brand that has raised $10 million in funding from Informed Hospitality Investments And the Union Square Hospitality Group.

bookkeepinga New York-based accounting automation platform, has raised $6.6 million in seed+ funding. Fin Capital He led the tour and was joined by investors including TTV CapitalAnd the Argonautic VenturesAnd the LIER HYPOAnd the Haymaker Venturesand others.

Lithosa Seattle-based agricultural decarbonization company, raised $6.29 million in seed funding. Union Square Ventures And the Greylock He led the tour and was joined by investors including Bain Capital VenturesAnd the decarbonization partnersAnd the carbon withdrawal initiativeAnd the Fall Line CapitalAnd the Cavallo Ventures.

Story FitLtd., an Austin-based machine learning and audience insights provider, has raised $5.5 million in Series A funding. Project Refinery He led the tour and was joined by investors including TechstarsAnd the Elkstone PartnersAnd the Collective Capital VenturesAnd the Alumni projectsand others.

infertilitya Los Angeles-based company for egg donation, freezing and donor matching, raised $5 million in seed funding. start-up capital And the Offline projects Co-led the tour and was joined by investors among them Alliance PartnersAnd the Musa CapitalAnd the Arkitekt Venturesand other angels.

Bombaa retail automation platform in Lagos, Nigeria, has raised $4 million in seed funding. Base10 Partners He led the tour and was joined by investors including Plug and play projectsAnd the SHL CapitalAnd the magic boxAnd the Jedar capitalAnd the DFS LabsAnd the FirstCheck Africa AngelAnd the E62 . projectsAnd the 14 . clubAnd the fast Forward Ventures.

Hey peoplea HR startup based in Berlin, Germany, has raised $2.7 million in funding. the moonAnd the cherry projectsAnd the KapnamicAnd the Mediahouse Ventures Invest in the round.

LuckyTruckLtd., a remote trucking insurance company, has raised $2.4 million in initial extension funding. candid insurance investors He led the tour and was joined by investors including Markd’s Parker BeauchampAnd the Draper University projectsAnd the SiriusPoint.

Netmakera cloud-networking startup based in Asheville, North Carolina, has raised $2.3 million in funding that it co-led Lytical ProjectsAnd the Unlinked VKAnd the SaxeCap.

super advisora Toronto, Canada-based digital platform development firm for financial advisors, raised C$2 million ($1.45 million) led by Renault Ventures.

private property rights

KKR acquired a minority stake in Knife Spirit, a skin and body care company headquartered in Palo Alto, California. Financial terms were not disclosed.

Marcona Genstar Capital Portfolio Company, acquired Great Plains / Pool & Spa Products, a Houston and Kansas City-based company headquartered in Houston and Kansas City, is a distributor of bathroom and spa equipment and parts. Financial terms were not disclosed.

outdoor living supplya North American Triple Portfolio Company, acquired Bedrock landscape supplybased in Las Vegas Provider of natural stone, flooring, bulk materials and landscaping supplies. Financial terms were not disclosed.

Strata information groupportfolio company of Fort Point Capitalacquired Also known as “Karam”San Diego-based managed consulting, implementation, and support services for Salesforce and Conga in higher education, K-12, and nonprofit end markets. Financial terms were not disclosed.

IPOS

The best in parkingan Austrian garage and parking operator, is considering an initial public offering valued at more than 1 billion euros ($979 million), according to Bloomberg.

chief of medicineA developer of gene-editing therapies in Cambridge, Massachusetts, plans to raise $175.1 million by offering 10.3 million shares at $17.

Chests + Funds Funds

Sagemount mena private equity firm based in Dallas, New York and Palo Alto, has raised $2.5 billion for a fund focused on business growth with high recurring revenue.

group playera San Francisco-based venture capital fund, has raised $92 million for a fund focused on investing in early-stage ventures and B2B tech companies.

People

a16z encryptionleased the a16z crypto investment arm in Menlo Park, California Colin McCune As head of government affairs. Previously, he was with House Financial Services Commission.

AE Industrial PartnersHire, a private equity firm headquartered in Boca Raton, Florida Stephanie Sanford As first vice president. Previously, she was with ICBC Aviation Leasing.

stock growth guidelinea Boston-based growth stock company, has been contracted Nate Machado as operating partner and Taylor Doherty And the Reginald Siraight as Vice President. The company also promoted Steve Brown for Vice President. Previously, Machado was with Hebrew PartnersDoherty was with Hi Five Brandswas cerite with McKinsey & Company.


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