 | | (Boris Zhitkov/Getty Images) | | | Crypto tends to distort and intensify everything it touches.
The value of art is subjective. The value of an NFT defies explanation. Gaming companies make money off of users. Blockchain gamers make money off of each other. Day trading stocks is risky. Day trading cryptocurrencies is like base jumping in one of those flying squirrel suits.
So it should come as no surprise that crypto corporate venture capital arms are upending norms.
CVCs typically try to make money in a way that benefits the parent company's strategy. In that respect, crypto CVCs aren't all that special: They've made money and grown the ecosystem, to the benefit of all involved.
These startups-turned-investors are remarkably active. They back rivals and underwrite bailouts—and some are making a fortune along the way. Which makes them inescapably odd.
Crypto startups may simply be borrowing from the "coopetition" approach that gave the garage entrepreneurs of early Silicon Valley an advantage over tech conglomerates. They're just taking it up a notch, playing the role of both founder and funder.
Welcome back to The Weekend Pitch. I'm James Thorne and you can reach me at james.thorne@pitchbook.com or on Twitter @jamescthorne.
The ride together, die together approach of crypto CVCs fits the sector's collectivist culture. The blockchain experiment is still proving that it is not merely a solution in search of a problem, that decentralized tech will fulfill needs in ways that powerful platforms have failed. Coopetition may be the way to meet that challenge. | | | | | | | |
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| Preferred Return podcast: Democratizing venture capital investing | | How do you invest in high-growth startups? A chance to participate in the next unicorn …
Kjael Skaalerud, Chief Revenue Officer at Altvia, is joined by Matthew Klein, Co-Founder and Chief Experience Officer at Sweater Ventures.
As the Chief Experience Officer, Matthew is focused on giving retail investors courtside seats to the VC game. Not only will you learn more about the world of venture, but you'll also see the need for evolution and the democratization of alternative assets.
Sweater has 60k people on the waitlist, and at the end of this episode, you'll want to join too.
Click here to listen to this episode. | | | | | | | |
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 | | (Joey Schaffer/PitchBook News) | | | | Did you follow the private markets this week? Take our quiz to test your knowledge and catch up on what you missed. | | | | | | | | "The crisis in Ukraine is devastating, but I believe that the private equity asset class is flexible. At the same time, it is important that we are investing responsibly. During COVID, we saw the acceleration of the digitalization trend, and [we] may yet see other trends speed up, such as the adoption of renewables and reduced dependence on oil and gas."
—Karita Meling, head of PE at Finnish LP Elo Mutual Pension Insurance Co., on how the current macro-economic environment and geopolitical situation in Europe has impacted the firm's investment priorities.
Find out what else Meling had to say in our Q&A. | | | | | | Global M&A activity bifurcated for much of Q1 2022. Previously negotiated deals closed on time, while announced activity diminished due to the uncertainty created by Russia's invasion of Ukraine.
The financial services sector also played a pivotal role in Q1 M&A activity on several fronts. PE continues to account for a swelling proportion of deal activity, including a significant percentage of the largest deals. Eight of the 20 largest deals to close in the quarter were bought by financial sponsors.
Read more in our latest Global M&A Report, sponsored by Liberty GTS. | | | | | |  | | (fhm/Getty Images) | | | | ... That German VC investing has boomed over the last five years? Plentiful capital, low interest rates, an improved regulatory framework and government support for startups and founders are all working to create and sustain a vibrant startup culture.
HV Capital and Earlybird Venture Capital are just two of the most active German VC investors by deal count. Check out our list to see who else made the top 10. | | | | | | Infertility affects 15% of reproductive-aged couples worldwide, according to the World Health Organization. The problem isn't new, but only in the past couple of years have VCs really turned their attention to startups working to develop fertility-focused tech.
However, despite an increase of 273% in funding over the past five years, some startups in the sector are still feeling overlooked. | | | | | | When designing the Nakagin Capsule Tower in Japan during the 1970s, Kisho Kurokawa had a prophetic vision of buildings and cities that prioritized mobility. What happened to the original micro-apartments? [The New Yorker]
It's impossible to completely avoid the effects of climate change. But as temperatures rise and wildfires increase, one city in New York thinks it can become a climate haven of sorts. [Fast Company]
As the streaming wars heat up, Matthew Belloni, founding partner of media company Puck, discusses why analysts bear some of the blame and what he thinks is next for streaming services. [Wealthsimple]
Why Elon Musk is Silicon Valley's new hero—for better or worse. [The Information]
For Silo, a sustainability-focused restaurant in London, food scraps aren't something to be thrown out—they're the ingredients for a gourmet meal. [Bloomberg]
While New York legislators have taken some steps to protect nail salon workers from exploitative conditions, many business owners are still finding ways around the law. One workers-rights organization hopes to change that. [The Cut] | | | | | | This edition of The Weekend Pitch was written by James Thorne and Ryan Prete. It was edited by Chris Noble, Angela Sams and Sam Steele.
Were you forwarded The Weekend Pitch? Sign up at pitchbook.com/subscribe. | | | | | |
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| | Since yesterday, the PitchBook Platform added: | | 13 Deals | 135 People | 36 Companies | | | | | | |
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