According to Cointelegraph, executives from Blockchain Capital, MetaGood, Dragonfly, Arche Capital, and Breyer Capital convened on August 21 to discuss venture capital strategies at the Wyoming Blockchain Symposium. Rob Hadick, a general partner at Dragonfly, highlighted the differences between traditional institutional investment approaches and those tailored for the crypto sector. He emphasized that the unique liquidity profile, development timelines, risk surface areas, and open-source nature of crypto assets require a broad understanding of the industry.
Bart Stephens, founder and managing partner at Blockchain Capital, elaborated on his firm’s long-term strategy of holding tokens and equity in crypto startups. He stressed the importance of nurturing these companies for organic growth rather than seeking short-term profits from pre-token sales. Bill Tai, co-founder and chairman of MetaGood, underscored the significance of selecting mission-oriented teams and projects. He warned against choosing projects solely based on technical talent without a clear overarching purpose, noting that mission-driven teams tend to be more productive.
Despite a quarterly decline in the number of crypto startup deals in Q2 2024, the total capital invested in these companies increased by 2.5%, reaching approximately $2.7 billion. Venture capitalist Adam Cochran attributed the slowdown in VC funding to the substantial price appreciation of blue-chip digital assets like Bitcoin (BTC) and Ether (ETH). Cochran explained that many institutional investors preferred to capitalize on these gains, which are significantly higher than the S&P 500, rather than taking on the additional risk associated with investing in startup projects.
