CV VC, the Swiss-headquartered global blockchain investor reports distinct heating up in blockchain, as startups prove their utility benefit and positively impact the way the world transacts and interacts. CV VC has recently:
- Optimized its existing portfolio with new funding, such as in Proof of Impact which has just closed a USD 6m raise
- Opened CV Labs in Cape Town, South Africa, and will follow suit in Berlin, Germany
- Invested in 12 African startups that possess more utility in their applications than speculation
After years of record development related to valuations and volume of transactions, venture capital markets have not been unaffected by global macroeconomics. Venture capital totals are sagging in most geographies, and falling share prices for public tech companies of all sizes have soured sentiment on the future value of high-growth tech startups. The blockchain tech VC market, which has seen even higher valuations and stronger growth dynamics, is not altogether immune yet still attracts a strong inflow.
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CV VC considers the current blockchain VC dynamics a healthy correction of the much unjustified above-average valuation multiples for blockchain tech. As a result, CV VC anticipates blockchain venture capitalists approaching new transactions at more realistic levels as it relates to valuation, scaling, and funding.
Concurrently, the global blockchain sector pipeline of new projects remains strong. In addition, dedicated venture capitalists are working closely with existing startups throughout current and planned funding rounds and reserve ample capital for long-term, promising existing projects.
Olaf Hannemann, CIO at CV VC says “Our investment philosophy to focus on startups that use blockchain technology to build applications across a range of growth industries is paying off because the utility of what the startups are building is coming to fruition. Further, we are not directly exposed to crypto markets with most of our portfolio. The current performance of our VC portfolio, including “hidden reserves” (i.e., through fully funded convertible rounds with valuation upside but not yet reflected in equity price), remains fully intact. VCs by our instinct, fund young companies that we believe have strong growth potential. The international data now emerging suggests a solid faith in the crypto and blockchain tech, despite a bruising period of late.
Olaf continues, Our focus is on portfolio optimization, a careful review of new opportunities amid an attractive pipeline, and selective investor reach-out with a particular emphasis on long-term-oriented tech investors. After an active, successful first half of 2022, we have developed a priority list of projects currently being evaluated for VC investments. One such evaluation is complete and we are proud to further invest in one of our earlier ventures – Proof of Impact which has just closed a USD 6m raise, oversubscribed by USD2.5m”.
Since its inception, Proof of Impact (POI) is leading the evolution of business intelligence through its robust digital technology platform empowering companies to improve their ESG and impact performance. Since January of 2021, Proof of Impact expanded its client base, grew Annual Recurring Revenue (ARR) by more than 10,000% compounded monthly, and increased its total contract values by more than 130x. The platform operates in more than 30 different industries, and its client base of over 100 companies has grown to span six continents. Collectively, customers have entrusted Proof of Impact with over one billion ESG and impact data points that have been validated by its platform.
CV VC’s ethos is “By Founders for Founders” and when selecting a venture, the team is paramount. At Proof of Impact, the team is led by Fleur Heyns, CEO who is already listed as a Forbes Top 11 Purposeful Leaders impacting change.
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David Long, Head of Investments at CV VC concludes “Through our existing portfolio and our more recent African investments, we know that blockchain technology is having a huge impact and creating positive outcomes for many people. New markets and economies are unlocking. We recently facilitated a hackathon at the University of Johannesburg and were astounded with what students achieved with the tech, real solutions for real-life challenges such as HIV screening. Their expertise reminds us all that blockchain is a lot more than crypto, one of the first innings of the tech. The created solutions utilize the core fundamentals of blockchain tech – trust. This is blockchain tech’s unique capability. It helps build trust in systems, exactly what the world needs right now”.
Startups from CV VCs portfolio creating impact include:
- Utopia Music, Switzerland: “Fair pay, for every play.” Utopia leverages big data to enhance the global music industry and is considered the fastest-growing tech company in Europe.
- AdHash, Switzerland/Bulgaria: AdHash eliminates the majority of ad fraud vectors and delivers transparency & control to advertisers, publishers, and users.
- Agryo, USA/Brazil: Agryo is developing a complete infrastructure for the agribusiness space with ratings, risk assessment, lending, insurance, price protection, savings account and trade contracts.
- Xion, USA/South Africa: Xion makes it easy for retailers to utilize subscription models and engage with their customers to supply products globally.
- Blocksport, Switzerland: Blocksport is building the bridge between (e-)sport clubs and their fans by providing the technology to reach, activate, engage and monetize the fan community.
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