ENCRYPT VC GROUP BRUSHES A SENSE OF PRESENCE AND THE MARKET STARTS TO BOUNCE BACK
Author: ChainCatcher
AFTER A LONG PERIOD OF SILENCE, ENCRYPTION VC HAS RARELY BEEN THE SUBJECT OF DISCUSSION IN RECENT DAYS, WITH MANY INDUSTRY PEOPLE TALKING AND COMMUNICATING ON PLATFORM X, WITH A MAXIMUM OF 1.41 MILLION PER POST。
The first discussion came from Varys Capital, investment manager Tom Dunleavy, who was on April 11thPosterIt is indicated that the shift in the pattern of encrypted monetary financing is insane。
"VC encryption used to promote your investment arguments through articles, podcasts, Space, etc., taking 10 trade-flowing calls a week to get a good project. Now, just a capital bill is enough. Tom Dunleavy says, "There are now less than 20 institutions in reality that actually spend money on pre-seed/seed rounds. There is basically enough time to do everything they want to do
A THOUSAND WAVES ARE RAGING, AND ACCURATE AND DRAMATIC DESCRIPTIONS QUICKLY RESONATE WITH A LARGE NUMBER OF ENCRYPTED VC INVESTORS, ALMOST HALF OF WHICH COME TO COMMENT ON THIS TWEET。
ENCRYPTION VCS ARE ACTIVE IN DISCUSSIONS
The collective sense of VC is not empty. Over the past few years, with many narratives perjured, a large number of start-ups that have valued high-level start-ups have successively broken. Since this year alone, many projects with a star VC background, such as Tally, MilkyWay, and Colony, have been shut down。
THERE ARE MANY INTERPRETATIONS BEHIND THE CONTRACTION OF ENCRYPTED VC MARKETS, SUCH AS THE OVERALL WEAKNESS OF ENCRYPTED CURRENCY, THE DIFFICULTY OF ENCRYPTED VC FUND-RAISING, THE LACK OF TECHNOLOGICAL INNOVATION AND NEW NARRATIVES, AND SO FORTH, WHICH HAS LED TO A SHIFT IN THE DOMINANCE OF ENCRYPTED-LEVEL MARKETS FROM “STEALING TO PICK-UP PROJECTS”。
Dragonfly management partner Haseb Qureshi has different views on why the encryption VC market is weak. “It is even more difficult to encrypt money because it is flourishing and more mature and large companies and products have emerged today. This makes it harder for existing enterprises to be shaken. Coinbase, Binance, Solana, Base, Polymarket, Circle, Tether — all of which are larger, stronger and more solid than they were a few years ago. This is the inevitable trend in industrial development.”
“At this stage, you must attack a strong opponent before you can occupy the territory, not just put a flag on the open ground. While there are still undeveloped areas, there will always be people who are truly innovative. But today there is greater competition in the area of encrypted currency, which means that creativity needs to be more sophisticated, teams need to be stronger, and the threshold is rightly higher than it was a few years ago. "Haseeb Qureshi thinks。
As a result of the increased interest in the article, investors in Coinfund, 1kx, Greenfield Capital, Blockchain Capital, Lattice, Big Brain Holdings, Frachtis, Maxim Frequency, others.fi Ventures, Hashgraph Ventures and others have indicated that they are still actively deploying funds and are seeking to invest in high-quality projects。
“The first quarter of 2026 was the busiest. Varrock added 3 investments. Usually, we do only 0 to 1 new investment per quarter (with a smaller and concentrated portfolio). "Varrock founder, a former general partner of 1 confiling Richard Chen。
HOWEVER, ATTITUDES ARE ATTITUDES AND ACTIONS ARE ACTIONS. AT LEAST AT THIS STAGE, THERE ARE STILL NO SIGNS OF RECOVERY AT THE DATA LEVEL IN THE ENCRYPTED VC MARKET, AND FEW OF THE CHANGES IN VC STRATEGIES HAVE HAD MINIMAL IMPACT ON THE ENTIRE ENCRYPTED MARKET. THERE ARE EVEN SEVERAL KOLS WHO THINK THAT THIS COLLECTIVE EXPRESSION IS MORE OF A SHOW。
“in fact, they themselves cannot raise any funds. many of the smaller venture capital companies have either gone bankrupt or failed to successfully raise new funds. this well-planned open show is nothing more than cheap public relations for future generations in case we get into trouble again."。
VC DEVELOPMENT STATUS OF DATA PERSPECTIVES
According to RootData's financing database, in the past year only 10 VCs have been publicly involved in more than 20 investment rounds, and 43 VCs have been publicly involved in more than 12 investment rounds. Among them, Coimbas Ventures, YZi Labs, Animoca Brands, Pantera Capital, Andressen Horowitz, GSR, Amber Group, Paradigm and Galaxy are among the top 10。
IF THE THRESHOLD FOR THE NUMBER OF INVESTMENTS HAS BEEN LOWERED TO TWO IN ALMOST A YEAR, AT LEAST 230 ENCRYPTED VCS MEET THE REQUIREMENTS, REPRESENTING MORE THAN 20% OF ALL VCS. IN OTHER WORDS, A LARGE NUMBER OF VCS, EVEN IF STILL ACTIVE, STILL MAKE LESS THAN FIVE HITS A YEAR。
Since this year, there have been only 11 VCs with more than five open investment rounds. Tether, along with Animoca, invested in Ark Labs, Utexo, Axiym, Dreamcash, LayerZero, t-0 NetworkGold.com8 projects。
Taisu Ventures is third in the ranking of investments, investing in six projects in GoSats, Unitas, Zoth, etc., and becoming a black horse in encryption VC。
According to the data, there is also a large number of encrypted VCs that have dropped significantly over the past year. The Spartan Group, Fenbushi Capital, IOSG Ventures, SevenX Ventures, Multicoin Capital, Foresight Ventures, P2 Ventures, Lemniscap, Folius Ventures, ConsenSys Mesh and others encrypted VCs with no more than 5 investments over the past year, compared to almost 100 cumulative investment figures。
In terms of fund-raising, RootData counted 21 encrypted VCs in the last year, and since this year ParaFi Capital, Hash Global, EV3, Dragonfly, the four encrypted VCs have been publicly funded。
AT THE SAME TIME, MANY VCS HAVE EMBARKED ON A DIVERSIFIED INVESTMENT STRATEGY, EXTENDING THEIR TENTACLES TO AI ON THE ONE HAND, AND INVESTING MORE MONEY IN ENCRYPTED SECONDARY MARKETS, STOCK MARKETS, ON THE OTHER, IN ORDER TO OBTAIN A MORE DEFINITE RETURN ON INVESTMENT。
FOR A LONG TIME, THE ENCRYPTION VC INDUSTRY, WHICH HAS SUFFERED FROM THE VAGARIES OF THE PAST DUE TO DELIBERATE INCREASES IN VALUATION, RANDOM SMASHING AND SO FORTH, HAS BEEN FORCED INTO A SHUFFLE OF THE ENCRYPTION VC MARKET, WHICH IS ALSO NECESSARY FOR THE INDUSTRY TO ENTER A NEW STAGE OF DEVELOPMENT。
BEHIND THOSE “POSITIVE STATEMENTS” THAT ARE ACTIVE ON PLATFORM X, WHO IS THE TRUE BOTTOM-COPYER AND WHO IS THE ZOMBIE AGENCY THAT STRUGGLES TO RAISE FUNDS, THE ANSWER WILL BE SOON。
