Venom Ventures Fund, an Abu Dhabi-based initiative, made headlines in January when it announced a $1 billion investment in web3 startups. The fund, a collaboration between Venom Foundation and Iceberg Capital, was led by Peter Knez and Mustafa Kheriba, with plans to invest across the venture spectrum, including grants ranging from $25,000 to $200,000. However, as the year draws to a close, Venom Ventures has shown little activity, with only two investments announced early in the year and no subsequent deals or updates on its portfolio.
The fund's silence and lack of progress have not gone unnoticed, with no response to multiple requests for comment about its activities. This lack of transparency has raised questions about the fund's operations and effectiveness.
The broader context reveals a cooling trend in venture capital funding for crypto startups. The year has seen a significant drop in venture funding for web3, falling from $13.5 billion in Q1 2022 to an expected $2.7 billion in Q4. This downturn is attributed to declining token prices and high-profile collapses in the crypto industry, prompting startups to seek funding in the Middle East. Despite this, some industry veterans view the promise of web3-friendly capital in the region with skepticism, suggesting it may be more illusion than reality.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.