Crypto investment firm Cypher Capital, amidst a downturn in the crypto market, is finding fewer but qualitative Web 3 and blockchain startups to invest in India. Its Managing Partner and CEO Vineet Budki said the firm is looking to invest in projects that focus on building blockchain infrastructure that will be scalable as crypto adoption increases.
“We are looking at three to five startups in a month. When BTC was at $70,000, everybody was building a Web3 startup, but now in a bear market, we are finding fewer but qualitative projects. Additionally, with Indian founders shifting their base to Dubai and Singapore we are facing a problem with categorising them,” Budki told businessline.
Speaking about the effect of crypto regulatory changes in India, Budki said Indian Web 3 startups are still not clear about the government’s rules and regulations. This, he opines, is resulting in Indian founders shifting focus on figuring out regulatory moves, then building a product and getting adoption.“ Although the government is trying to understand the ecosystem, it has to fasten its pace in order to avoid brain and value drain,” he added.
Scalable infra
Cypher Capital is interested to invest in scalable blockchain infrastructure projects that will facilitate the widespread adoption of crypto. “We believe that in 10 years, around 10-15 percent of the population will adopt crypto, building infrastructure that can support forming of wallets, Defi, etc. becomes important. Going forward, exchanges, wallets, chain, and layer solutions, play to earn model startups will be the key focus areas for investment,” Budki said.
Currently the VC firm has three projects built out of India in consideration. “Investments of $4 - $5 million should emerge in the next two to three months. About 15-20 per cent of the fund will be invested,” Budki said. The UAE-based fund had earlier committed 40 per cent of its $100-million fund to Indian Web 3 and blockchain startups. So far, the firm has invested over $15 million in crypto startups globally.