The rise in valuations of crypto startups has raised the barrier to participation in investment rounds for small investors. In an interview with Bloomberg, Henri Arslanian, a partner at PricewaterhouseCoopers (PwC), said.
The expert noted that as the digital assets industry matures, funding activity and startup valuations are rising. He attributes a leading role in the process to “giant investors”.
According to Arslanian, large players from venture capital, private equity, and pension funds are outstripping smaller boutique firms and family offices. Prices are often inflated early on, when a business is valued at roughly $5 million to $20 million.
The PwC partner also noted high M&A activity. According to him, the figure for 2020 had already reached $3 billion by the end of the first three months of the year.
«If you have $50 million on hand, you’ll have to work hard to find a current investment target. With twice that amount, there will be no more than two dozen such companies», the specialist said.
According to Crunchbase, in 2021 crypto companies accounted for 3% of the global venture investment volume.
Earlier, analysts at The Block calculated the funding volume in the blockchain and digital assets industry for the second quarter. They estimated the figure rose by 90%, to a record $6.2 billion.
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