According to Cointelegraph, Adam Cochran, partner of Cinneamhain Ventures, said that venture capital firms' investment in cryptocurrencies has slowed down significantly. The reason is that most venture capital firms prefer to focus on trends that have already "broken through" rather than taking risks to invest in early-stage projects.
Cochran explained that most venture capital firms' limited partners (LPs) focus primarily on outperforming index funds, and in the medium term, the risk-return ratio of holding Bitcoin and Ethereum can easily beat index funds. Therefore, venture capital firms choose to avoid early risks in the crypto industry and prefer to wait for mature projects. Data shows that in three months of 2024, crypto venture capital funds exceeded US$1 billion, but were still far below the same period in 2022.
