A&T Capital loses major financial backer in retreat from crypto
Ant Group, the Chinese fintech giant, is reportedly set to divest its investment in A&T Capital, marking a significant retreat from a $100 million venture central to its crypto strategy.
This announcement represents a step back from a $100 million venture that had been a key component of its strategy in the volatile digital asset landscape, as sources familiar with the situation have disclosed.
A&T’s crypto investments
Since April 2021, A&T has made notable investments into major crypto players, including Matrixport and Amber Group (the digital-asset lenders) and ConsenSys, the Ethereum software maker, which played a central role in the Ant Group’s entrance into the crypto space.
Following the announcement on Bloomberg, the venture firm has not confirmed if it would continue to operate or seek out a new investor. That said, as of Monday afternoon, the website was said to return a timed-out error.
While the decision follows trends in the market, it also comes when the venture has been dealing with operational changes. A&T’s founding partner, Yu Jun, who formerly held an executive role at Ant Group, resigned earlier in the year in March.
The departure was announced alongside an investigation into his workplace conduct, as several women accused him of sexual harassment, including several employees at A&T Capital.
Crypto venture funding is at its lowest
This announcement coincides with PitchBook data, highlighting that crypto venture funding is at its lowest point since 2020.
As a result, other major players have also cut their crypto funds over the last few months. One of these notable announcements was Sequoia Capital, which made a 65% cut in what is said to be a funding winter.
Although this report highlights a retreat from crypto, it is worth noting that it isn’t a complete pull-out.
One week earlier, the firm announced the launch of ZAN to provide blockchain development products to the web3 community, suggesting interest in the industry remains.
