According to BlockBeats, being a limited partner (LP) in VC today is disappointing. Many well-known funds have emotionally withdrawn, the market has become complacent, and the hunger has been lost. Since 2021, the strategy has deteriorated and suffered a disastrous defeat.
There are dirty tricks associated with deals. Every second deal is incubated by other funds, with huge stakes in the early rounds, and GPs accepting personal checks to sell ahead of LPs, which is almost semi-criminal.
The chances of a complete exit are slim. Investments cannot flow, the time gap between tokens and liquidity is years, and there is a 5-year liquidity gap.
Web2 has power law diminishing returns. Equity backing and legal boundaries become more real, but returns can only be 2x at best. Holding mainstream coins is better than buying new tokens.
It will take 3-4 years of bear market to completely shake things up, or the user base to grow 10 times. The VC investment cycle is something that must be considered.