- Venture capital firms are now more selective when investing in crypto projects.
- Investment focus has shifted towards established projects with real business models.
- Institutional investors are looking for predictable revenue and yield in crypto ventures.
- Stablecoin and payment infrastructure projects are attracting greater attention from investors.
- Real-world asset tokenization platforms are gaining popularity due to their income potential.
Venture capital firms have begun to change their approach to crypto project investments, prioritizing established companies with proven revenue models rather than early, riskier startups. This shift is happening as the crypto market matures and follows familiar patterns seen in other technology sectors.
Ajna Capital Chief Investment Officer Eva Oberholzer said the current environment is leading VCs to focus on projects that show signs of sustained adoption and earnings. Oberholzer noted that today’s market is shifting away from short-term trends and speculative assets.
According to Oberholzer, maturing market conditions have slowed down pre-seed stage investments. She stated, “It’s more about predictable revenue models, institutional dependency, and irreversible adoption. So, what we see right now is that crypto is not driven by any memecoin frenzies or other trends, but it’s more about institutional adoption.” This transition reflects a move towards stable, income-generating digital asset businesses, a change from earlier cycles that were driven by price speculation, including in 2021.
Traditional finance investors, such as Wall Street firms and institutional funds, now prefer crypto projects with established and consistent earnings, Oberholzer explained. This trend has led venture capital to focus on stablecoin initiatives and payment infrastructure capable of generating revenue through transaction fees.
Platforms that manage real-world asset (RWA) tokenization are also attracting investor interest, due to the revenue opportunities from minting and managing these blockchain-based assets. The continued growth of the tokenized RWA market is highlighted by platforms like RWA.XYZ.
Matt Hougan, Chief Investment Officer at Bitwise, commented that investor demand for yield has encouraged Wall Street to invest in Ethereum. He explained, “If you take $1 billion of ETH and you put it into a company and you stake it, all of a sudden, you’re generating earnings. And investors are really used to companies that generate earnings.” The Ethereum blockchain supports most stablecoins, RWA platforms, and decentralized finance projects, all of which generate consistent revenue for participants.
For further insights into private fundraising among blockchain startups, see the details provided by ICO Analytics.
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