TechFlow News, according to Cointelegraph, Adam Cochran, partner at Cinneamhain Ventures, said that venture capital investment in cryptocurrency has significantly slowed, as most VCs prefer to focus on trends that have already "broken through," rather than taking risks on early-stage projects.
Cochran explained that limited partners (LPs) in most venture capital firms primarily seek returns that outperform index funds. In the medium term, holding Bitcoin and Ethereum offers a return-to-risk ratio that can easily beat index funds. As a result, venture capital firms are choosing to avoid early-stage risks in the crypto sector and instead prefer to wait for more mature projects. Data shows that in three months of 2024, crypto VC funding exceeded $1 billion each month, yet remains far below the levels seen during the same period in 2022.
