Axios Pro: Fintech Deals
May 09, 2022
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Happy Monday, Fintech-philes.

Situational awareness: Founder's Fund closed two new funds for $5 billion in March.

  • "Have not invested a cent," general partner Keith Rabois tweeted Friday. The money will be deployed "when valuations reflect reality ... "

1 big thing: Pantera talks crypto funding

Pantera Capital GP Paul Veradittakit. Photo illustration: Aïda Amer/Axios.

Paul Veradittakit, general partner at crypto-focused Pantera Capital, is beginning to see signs of deceleration in the funding of crypto startups, he tells Lucinda.

Why it matters: This space was a bright spot for investors through the first quarter, while other tech segments saw a funding slowdown. Now, cracks are forming for startups and VCs.

State of play: "I've seen a little bit of a slowdown. We're probably seeing a little bit more of a slowdown in growth, both for companies and also for funds," says Veradittakit.

Background: Pantera — which has made investments in the likes of CoinDCX, Circle, Coinbase and FTX — possesses one of crypto's handful of mega funds that can invest from early stage to growth. It is now nearing the close of a $1.3 billion fund.

  • "Growth stage companies are going to have a harder time right now, especially because not many crypto funds can do growth right now," he says.

Details: Verradittiakt says the he believes that funding constraints are starting to affect even early-stage companies.

  • Seeing the macro environment, "companies [are] saying, 'Oh man, I have to bring down my valuation a little bit.'"
  • "Even though early stage investors are willing to invest right now," he adds, "they don't want to be investing at the same prices that they were a couple of months ago, so they're starting to apply some sort of discount right now, too."

Bottom line: Veradittakit says he believes expectations will adjust in the next two or three months and eventually go down.

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