The results of the 2024 US election have ushered in a new wave of optimism and activity within the Web3 and blockchain space. With regulatory uncertainty lifting, founders, builders, and investors alike are gearing up for major growth opportunities.
According to Andrea Perlak, founder and CEO of the Crypto Accounting Group, the last few days have been enormously consequential. As a leading blockchain accounting firm and active investor in crypto VC funds, Andrea has had a front row seat to the industry’s developments.
Boosting Fundraising and Deals
In the months leading up to the election, Andrea saw a slowdown in fundraising and deal-making. “My clients were literally holding their breath. Valuations were down, liquidity was down, it was not the time to fundraise,” she said. “That being said, they were all building like crazy and getting ready for Q1.”
Now, with the results finalized and regulatory direction clear, the floodgates have opened. As Andrea shared, “Everyone is immediately hitting go with both token launches and issuing SAFE agreements with groups wanting to invest.”
On the startup and venture side, the story is similar. “No one wanted to make the fundraising ask until uncertainty was taken out with the US elections,” Andrea explained. “But now everyone is starting to make those asks and we’re scheduling meetings like crazy to formally get funds in the door.”
Valuations Rebounding with Regulatory Certainty
Along with activity, valuations are also on the uptick according to Andrea. “Bitcoin and Ethereum have been at recent lows in the markets because DeFi and other interesting groups were held back by SEC regulations,” she analyzed. “Now that the SEC is going to change hands, Ethereum will blossom in the US.” Indeed, the promise of greater regulatory clarity and support from US agencies like the SEC is already being priced into top cryptocurrencies. Andrea sees particular promise for Ethereum and its broader ecosystem as regulatory roadblocks are removed.
Onshoring Talent and Innovation
An intriguing side effect Andrea has observed is the desire for US-based blockchain projects to return onshore. “It’s so interesting – from the builder side people are already starting to book their tickets back to the US,” she remarked. Many decentralized finance (DeFi) and blockchain organizations were considering overseas jurisdictions like Europe, the Cayman Islands, and British Virgin Islands. “Now everyone wants to build in the United States, so crypto is going to blossom here in the next 12-18 months,” Andrea predicted.
She believes this onshoring of talent and innovation will be a boom for the broader blockchain industry. With experienced builders and entrepreneurs focusing their efforts stateside, progress and adoption are poised to accelerate.
Advice to VC Investors: Act Quickly
For venture capital firms and crypto investment funds on the sidelines, Andrea suggests the time to act is now. “Any VC firm would be wise to hop into this market,” she advised. Of course, thorough due diligence is still required despite the promise and hype surrounding blockchain. But with an improved regulatory environment and motivated talent driving new blockchain use cases, Andrea believes exposure to this asset class is essential.
By capitalizing on the accelerated deal flow and improving industry dynamics post-election, VC investors can stake lucrative early positions in what Andrea and many others foresee as the next wave of foundational internet innovation. With the blockchain industry entering a new post-election expansion phase full of fresh opportunities, founders, builders, and investors would be wise to heed Andrea’s forward-looking guidance. Though risks and challenges remain, by making strategic moves today, stakeholders across Web3 can capitalize and help shape the still nascent blockchain revolution.
To learn more about Andrea Perlak and her approach, check out her LinkedIn profile or visit her website.
