Foresight

Bitcoin

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 Foresight Ventures partner Tony Cheng said that most of the narratives like layer-2 solutions, zero-knowledge tech and nonfungible tokens have already "played out." 
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 Compared to 2022, where the first and second quarters of the year saw a combined $20.3 billion flow into the space through VC <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a>, 2023 has been significantly lacking.&nbsp; 
 Venture <a rel="noopener noreferrer nofollow" title="capital" href="https://thebittimes.com/tag/capital.html">capital</a> <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a> for the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> space has significantly declined this year. In the first quarter of the year, around $2.6 billion worth of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> VC deals were made. In Q2, the space saw around $2.1 billion across 292 <a rel="noopener noreferrer nofollow" title="funding" href="https://thebittimes.com/tag/funding.html">funding</a> rounds, which is one of the worst performances in terms of <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> fundraising.&nbsp; 
 Amid the current VC funding situation, Cointelegraph’s Zhiyuan Sun recently interviewed Tony Cheng, a partner at the crypto investment firm Foresight Ventures, to speak about how the lack of new innovations may be driving venture capital firms away from the space, how founders should act to survive the bear market and what companies should prioritize between user growth and profit. 
 According to Cheng, most of the narratives such as layer-2 solutions, zero-knowledge and nonfungible tokens (NFTs) have "largely played out.” The executive believes that these "kind of died down" with the lack of trading volume on exchanges and in decentralized finance (DeFi). He explained: 
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 “I think right now the biggest problem and obstacle for a lot of these people is the lack of confidence, mainly because we haven't really seen any new innovation in this space.” 
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 In addition, the executive said that due to the limited market activity and number of users, the space hasn't been able to "see too much traction in any direction." However, the executive remains positive that things can turn around when there's a better macro landscape and when people get more pumped about the next <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> cycle. 
 When asked if founders within the space should take funding offers even though the terms may not be as good as they would expect, Cheng said that the main thing to do at this point is to “survive.” 
 “If you are lacking in <a rel="noopener noreferrer nofollow" title="capital" href="https://thebittimes.com/tag/capital.html">capital</a>, if you don't have the runway to kind of get you through the next year or so, you should be taking <a rel="noopener noreferrer nofollow" title="capital" href="https://thebittimes.com/tag/capital.html">capital</a> and taking as much as you can get because that money might not be available anymore after maybe 2 or 3 months,” he explained. 
 The executive highlighted the importance of self-preservation for founders and staying in the game. Otherwise, the venture capital executive said that all the work that was done in the past few years would be gone. 
 Related: Bitget announces further $100M fund for ecosystem development 
 The executive added that in the context of the bear market, the "growth at all cost" approach does not make sense. Instead, companies should focus on being profitable. “You just have to make sure that you can survive. Like in any kind of downturn, surviving is priority number one,” he said. 
 Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in 
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Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/venture-capital-exec-says-lack-of-innovation-drives-funding-away-from-crypto-tbt62415.html">https://thebittimes.com/venture-capital-exec-says-lack-of-innovation-drives-funding-away-from-crypto-tbt62415.html</a>

Venture capital exec says ‘lack of innovation’ drives funding away from crypto

TheBitTimes

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