Coinswitch, CoinDCX seek to invest up to $200,000 in crypto, Web3 startups

Indian crypto exchanges Coinswitch Kuber and CoinDCX are scouting for investment deals, seeking to infuse $100,000 -$200,000 in crypto and Web3 start-ups that need funding, according to people aware of the development. 

They plan to invest that much amount in each of the multiple deals they are seeking, the people said on condition of anonymity.

Both of the exchanges are in talks with founders of some crypto and Web3 start-ups, but the deals are still in an early stage and have not been formalised yet, said one of the persons cited above who has direct knowledge of the matter.

The companies are likely to announce investments in the coming quarters. Coinbase’s investment arm Coinbase Ventures is also entering the Indian market with plans to invest up to $1 million in Web3 start-ups.
The development comes at a time when investments in the Web3 and crypto space have soared over the past year, raising over $500 million. According to experts, funding in the space is likely to increase 5-6 times this year with more global venture firms looking at possible investments. Regulatory clarity will also boost investments significantly.

CoinDCX, India's first cryptocurrency unicorn, was valued at $1.1 billion last year when it raised $90 million in a funding round led by Facebook co-founder Eduardo Saverin’s fund B Capital.

Coinswitch earned the status of a unicorn later last year when it raised over $260 million in a funding round led by Coinbase Ventures and Silicon Valley fund Andreessen Horowitz (a16z), taking its valuation to $1.9 billion.
 Coinswitch and CoinDCX did not respond to specific queries about the initiatives. Coinswitch is looking to hire a person to head an investment initiative called Startup Partnership.

Last month, Moneycontrol reported that Nischal Shetty and Siddharth Menon, co-founders of WazirX, had done multiple investments as active angel investors in the ecosystem who back entrepreneurs with not only capital, but also mentorship and community building.

 Most Web3 start-up founders are looking for value addition, expertise and mentoring from investors. There’s also a shift in fundraising, with start-ups issuing token assets instead of equity stakes. At this juncture, majority of the Web3 startups are raising seed rounds of $1 million-$3 million which are mostly equity rounds.