PwC Claims Crypto Deals Attract Big Players and Increase Prices

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.”