Advanced technology is no longer enough to get venture capital backing in the crypto world, which is constantly changing. Jeff Ren, founder of OKX Ventures, says that adapting to changing market conditions and user needs is just as important as having a strong tech foundation. CoinVentures (VCs) have stopped investing much money in crypto companies. In 2024, they only put $10 billion into 1,940 deals, down from $30.2 billion in 3,500 deals in 2022, according to data from PitchBook.
The OKX Ventures
OKX Ventures planned to invest more than $100 million in 60 crypto startups by 2024, mainly in the Bitcoin, Solana, Sui, Aptos, and TON ecosystems. Ren stressed that while having good technology is a must, startups must also show that they can work with OKX’s wallet infrastructure and give people real value.
Web3 gaming is an excellent example of this because OKX’s wallet can make it easier to buy in-game items and provide on-chain liquidity. If a GameFi company meets these requirements, OKX is ready to invest and work with them.
Crypto-VC scrutiny tightens
It is much harder to get startup capital now than it was during the boom years of 2020 and 2021. Startups can no longer get millions of dollars with just white paper and big claims. Keiran Warwick, founder of the GameFi company Illuvium, said that before investing, VCs now want to see gameplay, security audits, strong development teams, and long-term business plans.
Crypto Startup Future
Ren is looking forward to using AI to make dealing in decentralized finance (DeFi) better in the future. He also thinks managing intellectual property on the blockchain and investing in meme coin infrastructure are good ways to make money. Non-fungible tokens (NFTs) are still looking for the right market, but Ren is sure they will find long-term value.
Conclusion
If crypto startups want to get VC backing, innovation alone won’t be enough. OKX Ventures says that success now depends on adapting to new markets, integrating users, and making strategic relationships. As the investment market gets tighter, only those who change with it will be able to get the help they need to do well.
