Several measures of inflation, including the Consumer Price Index and Personal Consumption Expenditures Index, have moderated in recent months, boosting confidence that US cost pressures are moderating and slowly returning to the Federal Reserve’s 2% target.
However, macroeconomic conditions are barely affecting the investment strategies of venture firms in the Web3 space. “We believe that when you’re investing in early-stage companies with a long investment horizon, you can’t really let macro dictate your investment pace too much,” Carlos Pereira, partner at BITKRAFT Ventures, told Cointelegraph.
According to Pereira, current economic conditions have less of an impact on seed rounds. Rather, they’re more likely to influence Series A rounds. “In worse markets, it can be a better time to be a later-stage, Series A type investor as it gets “cheaper” to act on incremental validation points, vs. in hotter markets, those businesses may be seen as closer to launching a token, and in turn get more expensive,” he said.
The partner said BITKRAFT Ventures’ crypto strategy is “inch wide, mile deep,” focused on the intersection of Web3 and interactive entertainment. Some of BITKRAFT’s recent investments include “cozy games” — less competitive and hard-core games — and the development of open-source AI models powered by blockchain technology.
