In an interview with Cointelegraph at the Collision conference in Toronto, Yat Siu, the CEO of Animoca Brands, discussed the challenges faced by crypto venture capitalists in North America. Siu emphasized that the situation is not as dire as it may seem, but acknowledged the difficulties arising from macroeconomic and regulatory conditions.
While Web3 startups in the Middle East and Asia are thriving, North American entrepreneurs in the crypto space are encountering obstacles. Siu highlighted the disparities between different regions, noting that the overall environment is more favorable than it sounds.
Despite the hurdles, Yat Siu mentioned that venture firms are still willing to invest in Web3 startups. However, factors such as increased global interest rates and a decline in crypto asset prices have raised the bar for newcomers.
Yat Siu remained optimistic about the industry’s growth, stating that the number of builders, smart contracts, and people involved in the crypto space continues to increase. He also revealed that Animoca Brands has made nearly 60 investments in recent months.
However, recent data indicates a decline in the strength of the crypto industry. According to the PitchBook Crypto Report for Q1 2023, crypto companies raised $2.6 billion in 353 investment rounds. This represents an 11% decrease in deal values compared to the previous quarter, with total deal value decreasing by 12.2%.
Regulatory Landscape Shifts Following FTX Collapse: Siu Highlights Industry Impact
Siu’s remarks come in light of significant developments in the crypto space since the collapse of FTX in November 2022. In the United States, the Securities and Exchange Commission has initiated enforcement actions to regulate crypto firms. Conversely, Hong Kong and the United Kingdom have introduced licensing systems and approved legislation to oversee the digital asset markets.
Siu emphasized the disparity between North America and other regions, stating that the Middle East and Asia have vibrant crypto ecosystems. He attributed the regulatory challenges faced by Web3 companies to a lack of clarity, which creates fear and uncertainty.
According to Siu, the divergent approaches taken by countries reflect their national interests and agendas for emerging technologies. While the United States has taken a more restrictive stance, other nations have embraced the potential of Web3 technologies, allowing ecosystems to flourish.
Overall, Siu remains positive about the future of crypto venture capital, highlighting the resilience of the industry and its potential for growth in different regions worldwide.
