Crypto startups aiming to secure venture capital (VC) funding in the current climate must demonstrate more than just robust technology, according to Jeff Ren, the founder of OKX’s investment arm. Ren emphasizes the critical need for startups to “read the market and pivot when needed” to be considered worthy of investment.
“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,” Ren told Cointelegraph in a recent interview. He highlighted successful partnerships stemming from teams that initially pitched ideas and later returned with solutions aligned with market trends.
VC funding for crypto startups has decreased since the industry’s peak in 2022. In 2024, $10 billion was invested across 1,940 deals, a significant drop from the $30.2 billion invested in 3,500 deals that occurred in 2022, according to PitchBook data. Despite the downturn, OKX invested over $100 million in 2024 to support 60 crypto startups. The firm has a particular interest in the Solana, Sui, Aptos, TON, and Bitcoin ecosystems.
Ren explained that OKX analyzes market trends and user needs through its OKX wallet to inform their VC investment decisions. Furthermore, OKX assesses whether it can integrate its wallet infrastructure to support and “create value” for potential portfolio companies. Ren cited Web3 games as an example, noting that OKX’s wallet can assist GameFi studios by facilitating the purchase of in-game assets or providing on-chain liquidity. “If that’s the case, we’re happy to create a position within your project and connect you with our wallet,” Ren stated.
However, Ren noted that OKX, like many VCs, has expanded its funding requirements and employs analytics tools to carefully scrutinize crypto startups. Shi Khai Wei, founder of LongHash Ventures, a VC firm focused on cryptocurrencies, told Cointelegraph last April that securing funding is more challenging currently than in the 2020-2021 period, when some startups received significant funding with minimal infrastructure. Keiran Warwick, founder of GameFi studio Illuvium, echoed this sentiment, stating that VCs now demand evidence of gameplay, experienced teams, security audits, and more before investing.
Looking ahead, Ren expressed excitement about leveraging AI to enhance the decentralized finance (DeFi) trading experience. He also sees potential in technologies that move intellectual property assets on-chain, anticipates opportunities in memecoin infrastructure, and remains optimistic about the future of non-fungible tokens (NFTs).
