Venture Capital Valuations Allegedly Getting Affected by Cryptocurrency Bear Market

Founding partner of Future Perfect Ventures, Jalak Jobanputra mentioned that venture capital valuations have been intensely affected by the cryptocurrency bear market. Jobanputra made a remark on the present state of venture capital in the crypto ecosystem in an interview with Fortunes’ Balancing the Ledger on Feb. 11.

When asked whether there is a trend of cut-rate venture evaluations across the cryptocurrency ecosystem, Jobanputra mentioned that, given how much the volumes have dropped in the previous year, he wouldn’t be astonished if one is seeing valuations plunge on the secondary markets for some of the companies. A recent report indicated that shares of virtual currency finance firm Circle were trading at a 75% discount on secondary markets.

It is to be noted that Jobanputra also sits on the board of directors at digital foreign exchange BitPesa. She supposedly has invested in cryptocurrency and blockchain-related firms like Blockstream and Civic.

Jobanputra argued that they were exposed financially to the slump in the digital asset markets as well as from a technology standpoint, speaking about the company’s decision not to invest in the ICOs. She further added that a lot of her experience investing in the internet days informed an assessment to settle outside of the Initial Coin Offerings market.

Jobanputra further mentioned that crypto and blockchain companies are pivoting into the venture capital space, although earlier most Venture Capital funds were allegedly staying away from those markets. She added that it is essential for firms to find the latest methods to raise capital in order to stay alive in the present setting.

Future Perfect Ventures is a venture capital firm focusing on early-stage investments primarily in technology companies, including machine learning, the blockchain, and data analytics. It was founded in 2014 in New York.

Lately, Bloomberg published a report mentioning that in the middle of the 2018 market plunge, the launch of new cryptocurrency venture funds for the first time surpassed that of new hedge funds in the domain. Around twenty-five new cryptocurrency venture funds were allegedly launched in 2018, as compared with one hundred and fifteen new investment-oriented cryptocurrency hedge funds.

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CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin7,076.21 1.26 % 11.22 % 10.71 %
Ethereum230.07 1.22 % 13.34 % 31.56 %
XRP0.372 1.31 % 12.21 % 22.83 %
Litecoin85.66 1.52 % 11.81 % 10.95 %
Bitcoin Cash350.27 0.22 % 14.12 % 20.93 %