In accordance with the data released by the professional services firm PwC, the fundraising and crypto deals by companies have witnessed a rapid surge in valuations as large investors increase the prices. The crypto leader at PwC, Henri Aslanian, revealed in a telephonic interview that smaller venture capital firms are not happy. PwC Says Crypto Deals Appreciate Cryptocurrency Prices Henri Aslanian of PwC discussed the deal and said: “Let’s say they’re looking at a deal, and they believe it’s worth $10 million, and you’re seeing large VCs come in and put a bid in for a higher valuation. This is happening a lot with very early-stage companies, say, $5 million to $20 million — the prices are being inflated.” As witnessed in recent months, crypto deals have gathered a lot of attention, and as a result of this, there have been gains in digital currencies. In the year 2020, crypto M&A was about $3 billion, and a similar amount was probably raised in the last two to three months alone. Talking about crypto deals, in July, FTX, a derivatives exchange, raised $900 million from Softbank Group Corp. and others valuing the deal at $18 billion. Discounts in Regulatory Risks and Assession of Business Valuation Mentioning the challenges in the growth of the crypto industry, Arslanian addressed the fact that there is a lack of suitable assets to put your money on because many companies are not that big and well established as of yet. In addition to this, he said: “If your minimum ticket size is around $50 million, there aren’t that many companies that have that status yet.” Expanding the investment amount further and mentioning the number of options to invest in, he said: “If you’re a large pension fund, and you decided to make a crypto allocation, there are no more than two dozen companies around the world that are investable, looking for capital and could absorb $100 million.”
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