Imperii Partners’ CEO Tony Scuderi predicts future billion-dollar crypto deals and highlighted the importance of infrastructure firms in M&A.
The landscape of mergers and acquisitions (M&A) in the crypto industry is evolving, marked by a cautious yet optimistic outlook. In a recent conversation, Imperii Partners’ CEO Tony Scuderi shared insights with Coinage host Zack Guzman, delving into the dynamics of deal-making, the prominence of infrastructure companies, and predictions for the future.
Guzman kicked off the discussion by noting the changes in the space beyond just venture capital (VC) deal-making. Scuderi responded by saying, “Deal making is off to a bit of a slow start relative to the bullishness we’ve seen.” He explained that while interest levels remain high, regulatory issues and the financial market’s current state have slowed activity. Many companies, having survived the past years, are now in a better position and are facing less pressure to sell.
Addressing the life cycle of crypto companies, Guzman noted the necessity of building infrastructure before meaningful deals can be made. Scuderi highlighted that the most valuable companies in crypto today are infrastructure companies. “Those tend to be our buyers today in the industry,” he said. He foresees significant M&A activity involving non-crypto companies acquiring crypto firms in the next few years.
When asked about the most exciting market segment, Scuderi emphasized the importance of infrastructure. He noted the intense competition in the layer-one (L1) and layer-two (L2) spaces of bitcoin. “We’re seeing all kinds of new projects, especially in layer-two, to optimize and create utility,” he said. However, Imperii Partners focuses more on companies enabling the use of blockchain protocols, undergoing venture funding rounds and preparing for M&A opportunities.
Guzman then probed the differences between VC and M&A in crypto versus traditional finance. Tony explained, “We’ve taken a VC approach to investment banking.” He described how Imperii Partners aligns its success with that of its clients, working closely to optimize exits that benefit investors.
The conversation then turned to the current deal flow, which Scuderi admitted is not as robust as expected. He mentioned recent significant deals like Forecaster’s $150 million round, indicating green shoots for future growth. Scuderi elaborated on the regulatory and implementation challenges faced by mainstream companies considering crypto acquisitions.
When asked about the oft-repeated statement that “we’re early” in crypto, Scuderi affirmed its truth. “It’s really real. We’ve built amazing frameworks, but we need to focus on the application layer to drive utility,” he said. The goal is widespread adoption where users might not even realize they’re using crypto-based systems.
Looking ahead to the rest of the year, Guzman asked for bold predictions. “We will see a crossover deal this year in the billions of dollars from outside our industry,” Scuderi said, adding that he expects non-crypto companies to make strategic acquisitions to establish a foothold in the crypto space.
With the industry’s infrastructure maturing, significant deals are on the horizon, according to Scuderi. As regulatory clarity improves and mainstream adoption grows, the crypto M&A landscape is poised for new developments.
