Abu Dhabi-based Venom Ventures Fund Struggles to Make Investments
At the beginning of the year, Abu Dhabi-based Venom Ventures Fund announced plans to invest $1 billion into web3. However, as its first year in business comes to a close, the fund has made very few investments. It led a $20 million investment in Nümi Metaverse and announced a $5 million strategic investment in Everscale, but no other deals have been announced. There is no information about the fund’s portfolio on its website, and there are no records of it investing in any startups since January.
Meanwhile, Peter Knez, one of the fund’s leaders, has taken on new responsibilities as the chair of a conservation-focused fund named O.N.E Amazon. Venom Ventures and its leaders have not responded to requests for comment on the progress of the venture fund.
Middle East Becomes an Attractive Source of Capital for Crypto Startups
Venture funding for web3 startups has declined significantly over the past year, leading many crypto startups to turn to the Middle East for capital. Dubai has announced a “metaverse strategy” aimed at adding $4 billion to its economy by 2027. Former Binance CEO Changpeng Zhao went to Abu Dhabi seeking investment for a billion-dollar industry recovery fund. Saudi Arabia’s NEOM Investment Fund proposed a $50 million investment in Animoca Brands.
However, some crypto veterans believe that the hype around web3-friendly capital in the Middle East may be misleading. They argue that investors in the region are sophisticated and not easily swayed by naive pitches from tourist fund managers and startup founders.
Hot Take: Challenges and Opportunities for Crypto Startups in the Middle East
The Middle East presents both challenges and opportunities for crypto startups seeking capital. While the region has shown interest in investing in web3, it is important for startups to understand that Middle East investors are not easily swayed by flashy presentations and promises of easy money. They are sophisticated and discerning, and startups will need to demonstrate real value and potential to attract their attention. However, with Dubai’s metaverse strategy and other initiatives, there is genuine potential for crypto startups to find supportive investors in the Middle East.
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