According to PANews, Ether.Fi founder Mike Silagadze recently shared his experiences with crypto venture capitalists (VCs) during seed and Series A funding rounds. The following are some of the common issues he highlighted:

One recurring problem is the 'multiple first meetings' scenario. You might have a successful meeting with a partner or assistant, only to be scheduled for another meeting with a different partner who has no knowledge of your previous interaction. This cycle can repeat multiple times, leading to frustration.

Another issue is sudden changes in plans. A partner may express interest in your fundraising efforts and schedule a meeting, only to send a colleague in their place. This can happen repeatedly, adding to the complexity of the fundraising process.

Silagadze also mentioned encounters with anonymous VCs. These investors might show interest in your project and arrange a video call, only to appear anonymously, often using default avatars. This lack of transparency can be unsettling.

Disappearing VCs are another challenge. After multiple meetings and providing extensive data, financial statements, and roadmaps, the VCs might suddenly stop communicating, leaving you in the dark about their intentions.

The 'option' game is another frustrating experience. After weeks of meetings and due diligence, you might receive sporadic messages asking for updates, only to be left hanging again. This cycle can repeat, making it unclear whether the VC is genuinely interested or just keeping you as a backup option.

Self-promotion by VCs is also common. Some partners spend most of the meeting talking about themselves rather than focusing on your project, which can be a waste of time.

Another issue is being used as a 'bride's dress.' A fund might agree to meet and discuss strategies and technologies in-depth, only to disappear and later announce an investment in your competitor. This leaves you feeling exploited.

Silagadze also described meetings where the VC seemed to be under the influence of stimulants, becoming increasingly aggressive and argumentative. Despite this, they might still offer to help at the end of the meeting.

Some VCs are completely off-topic, trying to convince you to pivot to a different business model that has nothing to do with your current project. If they succeed, it can derail your original plans.

Lastly, Silagadze mentioned 'pseudo-experts.' These are young assistants with minimal experience, often limited to short internships or personal investments in meme coins. Despite their lack of expertise, they offer unsolicited advice during meetings.

These experiences highlight the various challenges crypto startups face when dealing with venture capitalists, emphasizing the need for better communication and transparency in the industry.