Pantera Capital Bets Big on Mid-Stage Crypto Firms and Invests in Brine

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Investment firm – Pantera Capital has announced its intention to increase venture capital exposure to mid-stage cryptocurrency firms. While many investors are rushing toward the booming field of artificial intelligence, Pantera is sticking with crypto. 

AI vs Crypto

Right now, artificial intelligence companies are the darlings of the investment world, leaving crypto in the dust. “The artificial intelligence space has dominated conversations and captivated investors,” said Paul Veradittakit, Pantera’s Managing Partner. Funding data from PitchBook echoes Veradittakit’s sentiments—crypto venture funding sunk to its lowest levels since 2020 in Q2 this year.

Investing Outside the U.S.

While it might seem like the crypto world is spiraling, Pantera sees opportunity—especially outside the U.S. “A large part of our investible universe is currently outside the U.S.,” notes Veradittakit. Pantera’s Managing Partner is optimistic about the potential for mid-stage investments, even as valuations for series B and C rounds have declined more steeply than early-stage investments.

Asia offers not only a large retail user base but also a regulatory environment that seems increasingly crypto-friendly. “We’re seeing digital-asset businesses looking toward Asia for growth and regulatory stability,” said Veradittakit, who recently spoke at a conference in Singapore.

Regulatory Unclarity in the U.S.

Back home, the U.S. government can’t seem to make up its mind about crypto. This has created a messy situation that’s hard to navigate. Government agencies like the Securities and Exchange Commission are getting more aggressive, yet it’s still not clear what the rules are or will be.

The Real Deal: Investing in Brine

Pantera has led a $16.5 million Series A funding round for Brine Finance. Brine is unique because it allows for more direct trading between buyers and sellers and keeps trading details private until deals are closed. It’s a ZK-powered decentralized order book exchange that aims to compete with titans of centralized trading platforms.

“The technology behind Brine—developed by StarkWare—uses zero-knowledge proofs to keep trades private until executed. This prevents frontrunning, offers low fees, and makes it easier for institutions to transition.” – Pantera Capital Blog

The Black Swan in the Room

At a Bloomberg Invest conference, Dan Morehead, Founder & Managing Partner at Pantera, was asked about unexpected risks.

His response was rather prescient: “Regulatory clarity is the one thing nobody’s expecting.” With recent rulings involving XRP and Grayscale, he might be onto something.

Pantera Capital is making a bet. A bet that its new focus on mid-level crypto companies will pay off, even as the future remains uncertain. Let us wait and see whether this gamble brings big returns, or is Pantera headed for a fall!