VC: There may be fewer than 20 VCs in the industry that can still invest in seed rounds

Odaily News Tom Dunleavy, Head of Venture Capital at Varys Capital, posted on X, stating that the funding environment in the cryptocurrency market has undergone dramatic changes over the past six months. Previously, VCs had to continuously network, create content, appear on podcasts, participate in Spaces, promote their investment theses, and make countless calls every week to secure good projects. But now, simply having capital available is enough. Projects are now "pushed in front of VCs" instead of VCs having to actively seek them out. As long as others know you have funds, projects will come to you proactively.

Most VC firms are currently in one of three states: they have run out of money, have shifted to later-stage investments (Series A and beyond), or are fundraising (but not smoothly). Fundraising that used to take 2–3 weeks now often drags on for 2–3 months. Projects with questionable business models or those that simply copy the latest trending narratives can no longer secure new funding or follow-on investments (which is a good thing). In reality, there may be fewer than 20 institutions still actively investing in pre-seed / seed rounds. VCs can now calmly select the projects they want to invest in and have more time to conduct due diligence. The investment cycle of 2025 and 2026 is likely to become a historic "golden opportunity," but only if VCs can persist and stay in the game.