ResearchARK Venture Commentary, 11/29/2022

ARK Venture Commentary, 11/29/2022

Nov 29, 2022

Cascading Catastrophes in Crypto Markets

In a spectacle of mismanagement, misrepresentation and potential fraud, FTX, one of the world’s largest cryptocurrency exchanges, and its associated hedge fund Alameda Research declared bankruptcy. Major players across the cryptocurrency and venture capital space have been wounded by the loss of funds, confidence and liquidity. Reverberations are ongoing with additional bankruptcies likely and counterparty contamination unclear.

The entire crypto industry was caught wrong-footed by FTX’s dissolution, and many projects, protocols and risk-capital pools will never recover. In our view, there is no better demonstration, however, of the importance of the principles undergirding the public blockchain revolution: decentralized assets promise to eliminate the need for centralized intermediaries. That so much of the industry has been crippled by the failure of a central actor shows that many were taking shortcuts to growth at the expense of decentralization. We believe that the public blockchain ecosystem that emerges from the ashes of this de-leveraging will be more resilient, more decentralized, and ultimately more valuable than it would have been otherwise.

Tech Layoffs Accelerate

Twitter, Amazon and Meta headlined a tumultuous month for employees in tech as they each announced multi-thousand-employee layoff rounds. In aggregate, more than 45,000 employees have been let go from tech companies in the first 3 weeks of November, making this perhaps the worst tech layoff month in history.[1]

Though the overall numbers are striking, on a percentage basis the cuts are less impactful. The majority of announced cuts this month impact 15% or less of staff. Twitter is a notable exception, as it has nearly cut half of its workforce.[2] Between fallout from the FTX debacle, ongoing turmoil in the advertising ecosystem, and a potential inventory glut in ecommerce there may be much more to come. For scaling businesses, we believe this makes for a great time to source talent.

Unicorn Creation Slows as the VC Funding Slowdown Begins to Take Its Toll

The rate at which new $1+ billion dollar startups are minted has slowed to its lowest level since mid-2020. On a trailing quarterly basis there are now roughly 0.2 new so-called unicorns being created per day, down from 1.7 per day at peak.[3] The current pace of unicorn creation is still higher, however, than at any time prior to 2018.

It is clear and widely known that venture capital are slowing their investment pace in the face of macro-economic uncertainty and a challenging M&A and IPO environment. The rate of unicorn creation provides a quantification of this slowdown. Since there is a lag in data reporting for venture it is likely that the rate of unicorn creation will fall further though technology end-markets over venture fund lifecycles should remain robust.

  1. In May of 2020, the previous peak month of layoffs post-covid, nearly 26,000 employees were let go. During the dot-com layoffs, internet companies cut nearly 18k positions in May of 2001, the apparent peak workforce reduction. See


  3. Data compiled by CB Insights here and analyzed by ARK Invest. See graph here: Peak was April 2022.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of the ARK Venture Fund before investing. This and other information are contained in the ARK Venture Fund’s prospectus, which may be obtained by visiting The prospectus should be read carefully before investing.

To view the top 10 holdings in the ARK Venture Fund, click here. To view the most up to date portfolio, click here.

Cashflow is the total amount of money being transferred into and out of a business, especially as affecting liquidity.

An investment in the ARK Venture Fund is subject to risks and you can lose money on your investment in the ARK Venture Fund. There can be no assurance that the ARK Venture Fund will achieve its investment objectives. The ARK Venture Fund’s portfolio is more volatile than broad market averages. The ARK Venture Fund also has specific risks, which are described below. More detailed information regarding these risks can be found in the ARK Venture Fund’s prospectus.

Foreside Fund Services, LLC, distributor.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash


© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at 508 LaGuardia Place NY, NY 10012.