Crypto VCs focus on later-stage deals while founding-stage funding lags, according to Varun Datta of Truth Ventures
Varun Datta argues that venture capital's shift toward companies with proven track records is a consensus trade masking a lack of discipline in early investment.
Varun Datta of Truth Ventures observes that crypto venture capital is retreating from earlier deals in favor of later-stage investments. He states that established companies accounted for 57% of capital deployed last quarter. Datta contends this trend represents a consensus trade disguised as strategic discipline. He believes returns will be found at the founding stage where current funding is lacking. The writer outlines three specific factors for identifying promising startups, though he does not list them in detail here. This analysis frames the market's avoidance of proven companies not as caution but as a collective failure to back founders early.
