TechFlow News, April 20: According to The Block, the crypto venture capital sector is undergoing a structural shift. Investors now broadly require startups to demonstrate real users and revenue before committing capital—marking the end of the era where early-stage projects could raise funds easily. Token-based exit mechanisms have significantly declined in reliability; low-float, high-valuation token launches continue to underperform the broader market, prompting investors to revert to traditional equity-oriented thinking. Meanwhile, the rise of the AI sector has absorbed substantial LP capital and entrepreneurial talent, further intensifying fundraising challenges for crypto VCs.
Nonetheless, several investors note that reduced competition, more rational valuations, and an improved regulatory environment are expected to make 2026–2027 the strongest investment years since 2018. Future capital will focus on areas with clear business models—such as stablecoins, payments, tokenization, real-world assets (RWAs), and financial infrastructure—while the boundaries between crypto VCs and traditional VCs will accelerate toward convergence.
