Happy Holidays!

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Season's Greetings from G1 Ventures!

2022 has been a challenging year for everyone, particularly for crypto. We’ve seen it all: military conflicts, uncontrolled inflation followed by monetary tightening, implosion of Terra, bankruptcy of 3AC and Celsius Network and the downfall of FTX and portfolios are down 80% as a result. No surprise that overall confidence has been dented. However, we are convinced that crypto and web3 industry will use the hard-earned lessons to evolve next year with a new cohort of projects that will enrich the infrastructure and create new applications through solving current problems.

Decentralised Social, Layer2s, privacy, non-custodial and cross-chain solutions will enable more efficient use of capital and new applications (such as undercollaterised lending over on-chain activities) that will build tangible economic value and make web3 a lot more useful for a wider audience. While regulatory improvements should give a green light to scale growth for compliant projects.

Now, as the market is cleaning itself from over-leveraged and mismanaged centralised actors, toxic liquidity and vaporware projects, signature feature of web3 community - collaboration built upon composability and censorship resistance - comes to the fore.

We are determined to continue our active support of early stage projects during these turbulent times.

In Q4 2022, G1 Ventures has led a $5.5 million Finery Markets seed round and invested in $20 million Nillion round. We have worked with both teams for at least a year before investing in the oversubscribed rounds.

Finery Markets solves one of the biggest institutional pain points by offering the best trade execution in the digital assets space and borderless on/off-ramp experience, that is becoming more than ever relevant for any corporate user.

Nillion opens an entirely new universe of web3 use cases through rapid SMPC based computations and storage of secured data, which is well aligned with G1’s investment focus on infrastructure layer with practical applications.

Our Portfolio

We firmly believe that 2023 (similar to 2019 and 2020) will be a great time for early stage venture investments at an investor friendly pace and terms.

We are keen to take full advantage of this opportunity by raising and actively deploying new capital so let us know if you have similar views as we are opening up conversations with interested parties. And if you are looking to broaden your perspective in the meantime, cannot recommend enough annual outlook piece by Messari, fresh out of press - expect to hear more on this from us.

Although current market headwinds are strong, venture investing is not about short term fluctuations and no winter lasts forever.

From everyone in G1 Ventures, we wish you a very happy and enjoyable holiday season and a successful year ahead!