TechFlow reports that Alva Xu, partner at IOBC Capital, shared observations from Token2049 on the X platform, highlighting significant shifts currently taking place in the cryptocurrency investment market, as reflected in the following aspects:
- Major Western funds are accelerating fundraising efforts, demonstrating through their manpower allocation and level of commitment a determination to aggressively compete for Asian limited partners (LPs). However, conversations with these funds were unexciting—Assets Under Management (AUM) have become the enemy of venture capital;
- Western funds are increasingly squeezing the operating space of Asian funds. LPs are becoming as valuable as top-tier developers, making investor relations (IR) increasingly critical;
- In today's shifting market, some general partners (GPs) are resorting to various tactics—buying OTC shares, rushing into secondary markets, or launching incubation projects—all aiming to prove they can outperform Bitcoin returns. Yet isn't the fundamental purpose of venture capital to support great companies at an early stage? Rather than gimmicks, returning to this original mission will be more compelling to LPs.
In response to the current landscape, this LP offers three recommendations for fund fundraising:
- Avoid emphasizing financial returns or DPI, as LPs can directly invest in ETFs or hold BTC;
- Become an explorer within the industry—demonstrating strong curiosity and possessing a distinct worldview will resonate more deeply with LPs. After all, the companies you choose to back reflect the kind of world you aim to build;
- Conduct thorough due diligence on each LP’s strategic plans. Understanding an LP’s strategic investment agenda is crucial.
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