VC financing slows down again in June, but experts say that rewarding projects will get money

"With increasing interest rates, investors will request a higher premium, and this means that the reviews may fall, it means that they will not see any ratings of several billion dollars in several $ 100 million rounds," said Rodrigo Vicuna, Chief Financial Officer from Prime Trust. "We will return to average or below and compensate for ourselves, everything is about balance and everything revolves around cyclicity."

Jenna Pilgrim, CEO of Rite Network, said Blockworks, her company has reduced his rating of 30 % to complete his last round of financing.

"What we see are investors who tie them to their thesis much more closely with every decline in market," said Pilgrim. "An investor in previous market conditions would not necessarily have invested outside his thesis, but would have been more flexible, they are less now."

Saurabh Sharma, Head of Investments at Jump Crypto, added that investors may be more careful when evaluating projects, but there will continue to be financing in this area.

"Very strong, high -quality entrepreneurs and persuasive projects are always in demand," said Sharma. "In general, I would think that the level would be lower, but in our view I think one of the greatest focus will be to find these very long -term, visionary entrepreneurs with convincing projects."

Prime Trust, a startup for the custody and infrastructure of digital assets, spoke to investors who look in the long term, said Vicuna. At the beginning of this month, the company completed its Serie B financing round of $ 107 million and plans to expand its product range and portfolio.

Vicuna said that the Prime Trust team, which began this year with the second round, "started to see the overall declining market" and added, "writing was a bit on the wall".

"This really prompted us to look at what we need to survive a multi -year cycle and to be scalable and efficient," said Vicuna.

Prime Trust has around 700 customers, including stock exchanges, wallet providers, broker dealers and banks, and offers cryptofocussed institutional products that finally reach private customers.

Investors in the series B round include the payment processing company FIS, FIN Capital, Kraken Ventures, Commerce Ventures and others.

"I think investors have the right feeling when it is hot, you grow, and when it is cool you build," said Vicuna. "Some may consider that to be a tired saying, I think it's just good business because you don't have to prepare for where the market is, but where the market can be."

Tushar Jain, managing partner at Multicoin Capital, said it was probably too early to say how the current market conditions will affect financing in the long term.

"The ratings on the private markets have not yet fully adapted because many teams and projects have collected money in the past 12 months or so and therefore have more than enough money," said Jain. "Many of these companies are in a very good position, which reduces the likelihood that we will see a re -evaluation of these business because they simply do not go on the market and do not have to receive a re -evaluation."

projects that want to start in the Baisse could tell a different story, said Jain.

"Then you can see how the public markets rate these assets," he added. "I think the start in a bear market is better for projects than starting in a bull market because it simply makes less noise and only the people who really take care of their projects."

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Post-VC financing slows down again in June, but experts say that rewarding projects will earn money is not financial advice.