CESS Review: Investing in data storage as a response to the "crisis of uncertainty"

2023 was a year of extremely cautious and very selective behavior of venture capitalists. Against the background of almost 70% reduction of cryptoindustry financing in some segments of the market, however, there was increased activity of large players. An illustrative example was the case of DeFi storage platform CESS.

Monitoring the activity of crypto funds, as well as analyzing the projects that aroused special interest of venture capitalists, can give clues as to trends and growth drivers in 2024.

The Incrypted team analyzed the CESS project in the context of the "infrastructure benefit" trend in the industry.

The snowdrops of venture winter

The global economic crisis, major bankruptcies and regulatory "surprises" have legitimately roiled venture capital. However, on the threshold of 2024, against the background of the general revival and activation of the crypto market, investors have noticeably added reasons for optimism.

However, none of the systemic factors that caused the "venture capital winter" seems to have been exhausted. This includes regulatory uncertainty and the prospect of new high-profile bankruptcies, not to mention the global crisis. That is why capital grouping and point "investment maneuvering" by the big players are becoming the most important aspect and marker.

In 2023, the main investor activity occurred in the first half of the year, focusing on mainstream segments (NFT, gaming and DeFi), with growing attention to the infrastructure and Web3 sectors.

Translated with DeepL.com (free version)