NGC Ventures: The Bull in a Bear Market
The crypto bear market has sent many venture capital firms to oblivion, and many surviving firms have fallen into a state of inactivity. Large collapses like those of 3AC, Luna, and FTX have only heightened the hesitancy among firms, leading to a pullback in crypto venture investments. According to DeFiLlama, crypto venture investments in July 2023 totaled $283 million, a significant drop from the $1.16 billion invested in July of the previous year. Despite that, NGC has been more active than ever.
While other venture capital firms pulled back from investing, NGC Ventures doubled down, deploying capital in spite of market uncertainties. Data from Messari reveals that NGC Ventures ranks as the third most active fund in the crypto space this year. This proactive approach during the bear market has not only allowed us to seize opportunities at discounted valuations but has also positioned us to connect with relentless founders in the space who continue to build regardless of the current market conditions.
Heightened scrutiny from the U.S. Securities and Exchange Commission (SEC) has led many venture capital firms to retreat from the U.S. market. In contrast, NGC Ventures has expanded its global footprint, establishing a dedicated U.S. investment team. We continue to invest in U.S.-based companies, as we see abundant opportunities in the American market.
Our commitment to staying ahead of industry trends has never been more evident than in our intensified focus on research this year. Our team has delved deep, producing comprehensive papers on cutting-edge topics such as Maximal Extractable Value (MEV) and intent-centric architecture in blockchains. By going deeper into research than ever before, we are not just keeping up with the rapid advancements in the blockchain space, but also contributing to the body of research that leads to new ideas and new startups.
Despite the market volatility, increased regulatory scrutiny, and a sharp pullback broadly in crypto venture, NGC Ventures has never been more active on a global scale. We remain a dedicated partner to those who dare to innovate, no matter the state of the market.
