How is Crypto VC Investment Trending in a Bearish Market?
Crypto VC investment is slowing in the bearish market, leading to lower startup valuations and a focus on fundamentals over momentum.Summary
Venture capital is crucial for Web3 and crypto startups, but the current bearish market, marked by Bitcoin's price drop since its $126,000 peak, has significantly impacted investment dynamics. Experts note that downward cycles lead to lowered startup valuations, as VCs become less willing to fund projects at sky-high prices, requiring entry valuations to be justified against potential future prices. While overall funding volume might decrease, major deals still occur, and the downturn forces investors to prioritize execution and product fundamentals over short-term momentum or hype. A key challenge unique to crypto VC is managing token lock-up periods, as investors must forecast market conditions years out to ensure profitable exits when tokens unlock. Looking ahead, optimism remains for 2026, with expected growth areas focusing on real utility in DeFi, and the intersection of AI/Blockchain and Real-World Assets (RWA)/Blockchain.
(Source：BeInCrypto)