Crypto Venture Capitalists are exhibiting a more careful approach to investments, shifting away from chasing fleeting narratives. According to Sylvia To, director at Bullish Capital Management, the days of throwing money at the next “Ethereum killer” are over. During an interview at Token2049 in Singapore, To highlighted this shift in strategy.
To explained that the market once saw a proliferation of new chains, but that kind of speculative investment isn’t viable today. “Who has been using it?” she asked, emphasizing the need for a more critical lens on investments. The focus is now on the practical usage of new infrastructure and whether there’s enough transactional volume to justify investment.
By 2025, projects had been raising funds at inflated valuations, heavily relying on optimistic future cash flow projections. However, the lack of solidified revenue streams has led to a more cautious approach. “The potential revenue and the pipeline they’ve got aren’t solidified,” To noted, marking 2025 as “a slow year” for crypto investments.
Crypto Venture Capitalists and Market Maturity
Echoing this sentiment, Eva Oberholzer, chief investment officer at Ajna Capital, confirmed that VC firms are now more selective with crypto projects. This shift signifies a maturation of the market. “It’s more about predictable revenue models, institutional dependency, and irreversible adoption,” Oberholzer mentioned.
Galaxy Research’s VC report supports this trend, revealing a 59% decline in funding and a 15% drop in deal count for crypto startups in Q2 2025. Total venture capital in crypto amounted to $10.03 billion for the three months ending June, showcasing a more discerning investment landscape.
Investment Trends: A Cautious Approach
Leading this cautious approach, Strive Funds, an asset manager founded by entrepreneur Vivek Ramaswamy, secured $750 million in May for Bitcoin-related investment strategies. This move reflects a broader trend toward “alpha-generating” strategies within the crypto investment space.
The evolving strategies of crypto venture capitalists underscore a significant shift in the landscape. With a focus on sustainability and realistic revenue models, the industry is navigating toward a more mature and stable investment environment.
