The venture landscape may be on the ‘cusp’ of explosive growth after years of macro strain

The crypto venture landscape has fallen for the past six quarters in a row. But CoinFund’s managing partner and head of venture investments, David Pakman, thinks there might be a breakthrough soon for investors waiting on the sidelines to deploy funds and startups looking for capital.

“It’s been a challenging couple of years” for all venture capitalists, Pakman said on TechCrunch’s Chain Reaction podcast. “Let’s call it profitless companies: When interest rates go up, risk comes off companies that don’t make money, valuations fall, and we’ve been through this now for a couple of years. We seem to be maybe on the cusp of coming out of it. At least we think so, and the market seems to think so, too.”

With the possibility of interest rates coming down next year, it can provide more clarity to investors that things are moving again in the crypto venture and startup world. “Valuations will be able to increase, and there’ll be more capital flooding into early-stage venture investing,” he said.