2024 Recovery Hunt: Venture Funds Struggle with Tight Capital

Crypto venture capital funds are eyeing a recovery in 2024, but capital remains tight in the industry, according to industry insiders. Investors are looking for compelling stories and strong metrics before investing and are focusing on more liquid or pre-launch opportunities in startups. However, there may be a divergence between public and private markets, with public markets continuing to attract investment while venture capital funds see a reduction in available funding. Challenges still lie ahead for startups, particularly for early-stage ventures, as funds tend to look for businesses with proven models that are ready to grow. The gaming industry and the decentralized finance space are expected to have a positive year, with more institutional capital projected to flow on-chain. Startups are advised to be strategic in their fundraising approach, bringing in only the amount of money they need to reach their next phase of growth.