“Cratered” was the word Crunchbase used to describe the state of Web3 funding in 2023 when it recently published its annual roundup of the sector. Year-on-year funding fell a jaw-dropping 74 percent in the last 12 months, with less than $7 billion distributed over more than 1,500 deals. Compare that with 2022, when investors poured over $26.5 billion into nearly twice as many rounds.
The well-documented crashes of 2022 will no doubt have played a part in the funding drain, yet external forces could be as much to blame as the FTX bankruptcy. Startup funding across the board suffered over the past year, with U.S. investors pulling back by 30 percent compared to 2022. Even fintech, long the darling of VCs, hasn’t escaped unscathed.
Yet in the same timeframe, the race to dominate generative AI has ensured that as much as a third of available funding is being directed toward AI companies. The trend is no less prevalent in big tech, where firms including Snap, Microsoft, and eBay have reportedly slashed up to 34,000 jobs in 2024 so far alone, still a smaller number than those slashed in 2023 by Meta, Amazon, and Microsoft.
The crypto market is only weeks into the new year and the mood already feels markedly different. The bitcoin ETF news may have set the market alight and there is more than a spark of interest in digital assets from investors and analysts alike – a spark that’s receiving further oxygen from the excitement around the bitcoin halving due in April.
The mood shift is evident in the pace at which funding news has picked up in the first weeks of 2024, as well as the scale of investment involved. In January, news emerged of a new blockchain VC fund with an initial capital of $25 million ringfenced for investment in early-stage Web3 and crypto initiatives. The founders are a trio of Web3 investment veterans who have provided support to flagship projects, including Polygon, Polkadot, and Cosmos.
Digital asset bank Sygnum narrowly missed out on achieving unicorn status in a round announced in January. One of Switzerland’s regulated players, the bank raised $40 million in a round led by Italian asset management firm Azimut Holdings, which valued it at $900 million.
Staking infrastructure provider Kiln was another beneficiary of a substantial capital injection, with a successful $17 million raise announced in January. Staking became one of the few sustainable areas of interest during 2023 following Ethereum’s move to proof of stake the previous year, with the industry putting over 1.1 million ETH under Kiln’s management.
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While these are all important success stories for an industry craving VC liquidity, founders should avoid falling into the trap of thinking funds will flow as freely as they did before. Many investors believe the market will remain somewhat flatter, albeit more stable, than in previous bull markets. Michael Anderson of Framework Ventures told TechCrunch that valuations have come “back down to earth” and that the “investor class is thinking and behaving more rationally than before.”
What does this mean in practice? As well as more realistic valuations and a harder pitch, VC funds are also making changes to the way they manage and invest their capital in a bid to provide more reassurance to investors who may be deterred by the flagrant spending that was evident in 2021. Coinvesting, which focuses on the UAE and Middle East region, operates a co-investment strategy where every stakeholder, including General Partners, is also a Limited Partner. The fund states this approach aims to foster a shared commitment where GPs face the same opportunities and risks as LPs.
Others, such as ZXSquared, are taking a more cautious approach to volatility and returns. The crypto-centric fund deploys quantitative strategies with hedging instruments to dampen portfolio volatility down by as much as 70 percent compared to bitcoin.
Where VC Funds Will Be Flowing in 2024
According to things that are exciting a16z echoed by partners at NGC Ventures, expect fresh innovation and more efforts towards decentralization in areas such as DAO governance and fundraising, with developments in emerging fields such as DeSci.
DAO governance is still very much an area of experimentation, yet a16z highlights the fact that projects are operating in a “living laboratory” where they’re encountering many of the challenges, such as scaling governance, in reality. New projects can help to anticipate and avoid some of the most common pitfalls by leveraging the experience of incubators such as TDeFi, which offers a suite of support and advisory tools and services for Web3 founders.
Decentralized Physical Infrastructure (DePIN) was one of the most buoyant segments amid the liquidity drain of 2023, with analysts at Messari pinpointing it as the most resilient sector for on-chain revenues throughout the last cycle, losing only 20-60 percent from peak-to-trough, compared to 70-90 percent for the broader asset sphere. Not surprising that Van Eck also highlights continuing DePIN adoption as one of its 2024 predictions, creating a favorable funding environment for projects in this segment.
Alongside the market for DePIN networks is the rising demand for decentralized infrastructural services for the blockchain ecosystem itself. Pyth Network, a new oracle protocol squaring up to challenge Chainlink’s dominance with low-latency pricing data, created a substantial buzz in December after securing strategic investments from Castle Island Ventures, Multicoin Capital, Wintermute, and others.
There’s similar excitement around Subsquid, a peer-to-peer network for aggregating and delivering on- and off-chain data. The project sold out its token sale in under 20 minutes when it went live on January 18. With an increasing demand for Web3 infrastructure driven by institutions and enterprises, it seems likely that the trend will continue to roll over the coming year.
Amid the wider market downturn, AI was the standout success last year, attracting the “biggest of the big” deals, per Crunchbase, with OpenAI and Anthropic alone pulling in a staggering $17 billion. While this doesn’t directly benefit the Web3 sector, many believe that decentralized blockchain infrastructure is the key to avoiding many of the centralization and opacity risks currently being flagged by AI cautionaries.
A16z investors highlighted this as a key prediction for 2024, while partners at Multicoin Capital believe that decentralized GPU networks will help to meet the voracious demand for AI computing. With AI still one of the few segments to get investors excited, it’s a safe bet that projects joining the march to AI will continue to spike interest.
There is no sign of the return to the heady days of 2021 but a distinctly more optimistic outlook for investors and founders in 2024 compared to the depressed state of 2023. While innovators in uncharted waters may struggle to find investment, founders can expect to see capital concentrated in those segments that have previously demonstrated traction among users and proven more resilient against the market downturn.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
