In the past year, there has been no shortage of bad news in the cryptocurrency world. Prices have tanked, scams have been uncovered and projects have failed to live up to their hype.
But through all this, one corner of the crypto world has continued to thrive: investors acquiring companies and intellectual property (IP).
According to PWC's 2022 Global Cryptocurrency Mergers and Acquisitions and Fundraising Report, the average deal size is over $179 million as of January 2022. This is a stark contrast to the previous year, when the average M&A deal size was almost three times smaller. So, what’s driving this sudden interest in crypto M&A?
Web 3.0 M&A sphere is on fire
There are a few factors at play. For one, the bear market has forced many crypto start-ups to reevaluate their business models and find new ways to generate revenue. This has led to an increase in “acqui-hires,” where start-ups are acquired primarily for their talent rather than their technology.
Another factor is the maturing of the crypto industry. Start-ups are starting to see the value in acquiring established companies and technologies that can help them scale faster. Finally, we are seeing more traditional venture capitalists and private equity firms getting involved in crypto M&A as they look for ways to cash in on the Web 3.0 boom.
Does traditional M&A alpha remain a farfetched dream for the everyday person?
So, what does all this mean for the average crypto investor?
The vast majority of M&A activity happens behind closed doors and is carried out by a small group of well-connected insiders. Unless you have deep pockets and connections to the top dogs in the industry, it is unlikely that you will be able to get involved in these kinds of deals.
The world of M&A is often opaque and inaccessible to the everyday person. But with the rise of crypto M&A, that is starting to change.
Acquire.fi goes live in Q4, 2022
In the midst of what could be considered one of crypto’s worst seasons, a little-known project is undeterred in its quest to provide a better and more inclusive way to invest in digital assets.
Acquire.fi is a new and first-of-its-kind mergers and acquisitions (M&A) platform that leverages NFTs to complement a new wave of investment dynamics. The project is striving to be a backstage pass to exclusive unpublished deals and M&A alpha that even the average Joe can access.
The project's core team is made up of well-connected cryptocurrency veterans who aim to put the power back in the hands of the people.
There are many benefits to the crypto M&A ecosystem, including the low legal burden and streamlined processes. This provides for immediate settlement and avoids any potential delays that could occur in a traditional M&A negotiation. In addition, the use of blockchain enhances certainty and transparency during the transaction process. Consequently, both buyers and sellers can feel confident that they are getting what they agreed to in the deal.
Unlike traditional M&A, there is no need for expensive brokers or bankers. And because most crypto start-ups are bootstrapped, they are often more open to negotiation and creative deal structures.
By providing access to millions of dollars of revenue potential from tens of companies within their listing database, Acquire.fi is giving people the ability to participate in M&A alpha that was once only available to the wealthy and well-connected.
In a world where the rich keep getting richer, it is refreshing to see a project that is democratizing access to wealth creation opportunities.