Cryptocurrency
Picus defies cooling Web3, crypto markets with new investment unit
December 7, 2022
German venture firm Picus Capital has launched a dedicated Web3 and crypto investment arm despite the current crypto slump.
The unit, dubbed Picus.xyz, will target pre-seed to Series A startups, providing both equity investments and tokens. The firm has already begun to back companies in the area with its portfolio companies including Nefta, a Web3 gaming platform, and Arda, a provider of risk-management services for digital assets.
Among leading seed and early-stage VC firms, appetite for Web3 and decentralized finance has remained steady this year compared to last year, but activity slowed from the second quarter of 2022. Within this limited subset of VC investors, 24 deals worth $879 million closed in Q3, down from 33 rounds totaling $2.3 billion in Q1, according to PitchBook's Q3 2022 Emerging Tech Indicator.
Web3 and crypto have gained popularity in the last few years, but 2022 has been rocky—to say the least—for the sector. Currencies such as Bitcoin and Ethereum are trading well below their highs, and the industry has seen multiple bankruptcy filings including crypto lenders Celsius Network and Voyager Digital. Countries across the globe have also been ramping up efforts to regulate the industry.
Perhaps the biggest challenge for crypto and Web3 was the implosion of exchange FTX, which has been described by some as a "Lehman moment" for the industry. The failure of one of the largest and most vaunted players has left many investors questioning the future of such technologies.
In light of the recent crashes, some investors have become more hesitant to pursue investments. According to a survey conducted by PitchBook and the Web Summit tech conference last month, 46% of investors interviewed claimed to be slowing their investments or pulling out entirely from Web3.
Picus.xyz will pursue investments in both Web3 infrastructure and consumer sectors, but the former is where many VCs are placing their bets. Companies offering backend technology are less exposed to trading fluctuations, and given that the Web3 is still considered to be in its infancy, some see plenty of potential for growth.
An earlier version of this article incorrectly reported the total value of Q3 deals. The total was $879 million, not $878.9 billion. (Dec. 7, 2022).
Featured image by Morocko/Shutterstock
The unit, dubbed Picus.xyz, will target pre-seed to Series A startups, providing both equity investments and tokens. The firm has already begun to back companies in the area with its portfolio companies including Nefta, a Web3 gaming platform, and Arda, a provider of risk-management services for digital assets.
Among leading seed and early-stage VC firms, appetite for Web3 and decentralized finance has remained steady this year compared to last year, but activity slowed from the second quarter of 2022. Within this limited subset of VC investors, 24 deals worth $879 million closed in Q3, down from 33 rounds totaling $2.3 billion in Q1, according to PitchBook's Q3 2022 Emerging Tech Indicator.
Web3 and crypto have gained popularity in the last few years, but 2022 has been rocky—to say the least—for the sector. Currencies such as Bitcoin and Ethereum are trading well below their highs, and the industry has seen multiple bankruptcy filings including crypto lenders Celsius Network and Voyager Digital. Countries across the globe have also been ramping up efforts to regulate the industry.
Perhaps the biggest challenge for crypto and Web3 was the implosion of exchange FTX, which has been described by some as a "Lehman moment" for the industry. The failure of one of the largest and most vaunted players has left many investors questioning the future of such technologies.
In light of the recent crashes, some investors have become more hesitant to pursue investments. According to a survey conducted by PitchBook and the Web Summit tech conference last month, 46% of investors interviewed claimed to be slowing their investments or pulling out entirely from Web3.
Picus.xyz will pursue investments in both Web3 infrastructure and consumer sectors, but the former is where many VCs are placing their bets. Companies offering backend technology are less exposed to trading fluctuations, and given that the Web3 is still considered to be in its infancy, some see plenty of potential for growth.
An earlier version of this article incorrectly reported the total value of Q3 deals. The total was $879 million, not $878.9 billion. (Dec. 7, 2022).
Featured image by Morocko/Shutterstock
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