At its inception, Venom Ventures was expected to play a significant role in meeting the industry’s financing needs for Web3 projects, which was projected to exceed $2 billion by the fourth quarter. However, there is no information on the fund’s website regarding new project financing, and there have been no recorded investments in any startups since January 2023, according to Block Research’s database.
The underwhelming results of Venom Ventures in 2023 highlight the challenges faced by digital asset market participants in attracting venture investors for innovative technological solutions. This has led experts to question the notion of Dubai as a Web3-friendly capital and consider the hype surrounding the region as nothing more than a publicity stunt.
Kenzi Wang, co-founder and general partner of Symbolic Capital, echoes this sentiment, emphasizing the sophistication of Middle Eastern investors and their discerning approach. Wang asserts that many startup founders mistakenly believe that investors in the region will readily support any project related to cryptocurrency and blockchain, whereas the reality is quite different.
Meanwhile, Bloomberg analysts have reported a decline of over 50% in venture investors’ interest in financing new cryptocurrency startups during the first half of 2023, reaching the lowest level in a year.