Sylvia To of Bullish Capital Management, director, said that crypto venture capitalists were reducing their risk appetite and avoiding trendy investments.
“VCs are a lot more careful now. It’s not just a narrative play. Before you could throw a check and say, Oh, there’s another L1 but it’s going to be an Ethereum killer,” To spoke to Cointelegraph in a sitting-down interview conducted at Token2049, Singapore.
“Then subsequently, you saw all these new chains forming,” “The market has fragmented,” she explained, adding that a great deal of funding was spent on layer 1s, new infrastructure and other things which are no longer viable.
“Who has been using it?” The question is, “What’s the answer?”
“We’re at a phase where you don’t have that luxury to just bet on these new narratives,” She said adding that investments now A much more critical eye is needed.
“You really have to start thinking, there’s all this infrastructure being built in the industry, but who has been using it? Are there enough transactions? Is there enough volume coming through these chains to justify all the money being raised?”
In 2025 there are many new projects. been raising funds At inflated, and sometimes unjustified, valuations that rely heavily on projected future cash flows.
“The potential revenue and the pipeline they’ve got aren’t solidified,” To add, it was said “a slow year.”
The funding of crypto startups declined by Q2 2025
Eva Oberholzer is the Chief Investment Officer officer at VC firm Ajna CapitalTo.
Oberholzer said to Cointelegraph that VC firms are becoming more prevalent on September 1. much more selective With the crypto projects, they invest in. This represents a significant shift from the prior cycle because of market maturity.
“It’s more about predictable revenue models, institutional dependency, and irreversible adoption,” Oberholzer stated that.
Related: Crypto VC firm Archetype closes $100M early-stage fund
Galaxy Research’s latest VC report showed that crypto and blockchain startups The second quarter of 2020 saw a total funding of 1,97 billion dollars across 378 different deals. That’s a 59% drop in funding, and a 15% decline in the number of transactions compared to last quarter.
The total investment in venture capital into cryptocurrency was $10.03 billion for the last three years. months ending June.
Strive Funds was the first asset manager to be founded, by American businessman and politician Vivek Ramaswamy. secured $750 million in May to establish “alpha-generating” Bitcoin purchases: strategies for maximizing your profits
Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
