Crypto startups need to have not only a strong tech infrastructure but have the “ability to read the market and pivot when needed” to be worthy of investment, according to the founder of OKX’s investment arm.
“For founders looking to work with us — yes, your tech needs to be solid, but we’re equally interested in how you adapt to what users actually need,” OKX Ventures’ Jeff Ren told Cointelegraph in a recent interview.
“Some of our best partnerships came from teams who pitched us early, weren’t quite ready, but came back stronger with solutions that perfectly matched where the market was heading.”
VC funding into crypto startups has fallen since the industry’s record year in 2022, with only $10 billion invested across 1,940 deals in 2024, compared to $30.2 billion in 3,500 deals, according to PitchBook data.
OKX invested more than $100 million in capital to fund 60 crypto startups in 2024, with a particular focus on the Solana, Sui, Aptos, TON and Bitcoin ecosystems.
Ren said that his firm analyzes market trends and user needs through its OKX wallet to support its VC investment decisions.
But when approached with an investment opportunity, Ren said OKX first considers whether it can integrate its wallet infrastructure to support and “create value” with those founders.
Ren took Web3 games as an example, noting that OKX’s wallet could assist a GameFi studio by facilitating the purchase of in-game assets or providing onchain liquidity for them.
“If that’s the case, we’re happy to create a position within your project and connect you with our wallet,” Ren said.
However, Ren noted that, like many VCs, OKX has expanded its checklist for funding and is carefully vetting crypto startups through a range of analytics tools.
Related: Crypto VCs reveal what they’re looking for in 2025
Shi Khai Wei, founder of cryptocurrency-focused VC firm LongHash Ventures, told Cointelegraph last April that it has been harder to obtain venture capital funding this cycle compared to 2020-2021, where some startups received tens of millions of dollars while having a few team members, a white paper and a few lofty promises.
Keiran Warwick, founder of GameFi studio Illuvium, attested to this, telling Cointelegraph last April that VCs have since expanded their checklists and want to see gameplay, artists, developers, security audits and more.
Looking ahead, Ren said he was most excited about leveraging AI to improve the decentralized finance trading experience.
He also sees opportunities in technology that moves intellectual property assets onchain to investing in memecoin infrastructure and is confident that non-fungible tokens will eventually find their market fit.
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