VC Salil Deshpande raises $315 million for new fund
Salil Deshpande, a venture capitalist, has successfully raised $315 million for his company Uncorrelated Ventures. This comes at a time when the global startup industry is facing challenges and declining funding.
About 80% of the funds will be used for early-stage investments in traditional infrastructure software, while the remaining 20% will support firms in the cryptocurrency space.
Funding situation in the crypto market
The crypto market has experienced a decline in funding over the past two years. Factors such as the FTX collapse, range-bound BTC, and Fed rate hikes have contributed to investor uncertainty and reluctance to invest in crypto startups.
However, there are signs of recovery as dented investor sentiments have started to improve. Salil Deshpande raised the funds without difficulty, although he underestimated the number of prospective investors.
Other positive developments include Swiss cryptocurrency bank Sygnum AG raising 35 million Swiss francs ($41 million) and cryptocurrency exchange HashKey raising $100 million.
Will the crypto market recover?
Crypto venture funds have struggled to raise money due to macroenvironmental factors and unrest in the cryptocurrency market infrastructure sector. The number of new cryptocurrency venture capital funds has decreased, and the size of funds has also seen a significant drop.
However, with the approval of Bitcoin ETFs and rising confidence in digital assets, there is hope for recovery. The upcoming year is expected to bring more strength to BTC prices post-Bitcoin Halving.
Hot Take: Funding challenges persist but recovery is possible
The funding situation in the crypto market has been challenging, but there are signs of recovery. Salil Deshpande’s successful raise of $315 million for Uncorrelated Ventures is a positive development, indicating that investor sentiments are improving.
While the market still faces obstacles, such as declining funding and investor reluctance, the approval of Bitcoin ETFs and growing confidence in digital assets provide hope for a turnaround. The upcoming year could bring more strength to BTC prices, contributing to the recovery of the crypto market.
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