here’s why its broken.
crypto vc has basically become a liquidity extraction game:
get in at a $50m fdv, launch at $2b, survive the dump, and still mark a 10x on paper even after a 75% drawdown.
over time it drains the market. Too much extraction in a zero-sum game eventually collapses the game itself.
The shift in the crypto fundraising landscape the past 6 months has been insane.
Crypto VCs used to have to constantly be networking/writing/podcasting/going on spaces/promoting your thesis/getting on 10 deal flow calls a week, to get into good deals...now it's literally enough to just have capital to write checks.
Deals are being pushed rather than dug out. Inbound if people know you have money is at an all-time high.
Most firms are either 1) Out of money 2) Moved to Series A and beyond or 3) Fundraising (with no success).
Deals that used to close in 2-3 weeks now close in 2-3 months.
Firms with questionable business models or copy pasta of the latest trend are getting zero primary or follow-on funding (Good news!).
There are now realistically <20 firms writing checks in pre-seed/seed.
VCs basically have the pick of any deal they want, with more time to do DD.
IMHO 25/26 are going to be historic vintages for those who stick around.