Odaily News Adam Cochran, partner at venture capital firm Cinneamhain Ventures, wrote on X: "Venture capital has greatly slowed down its investment in cryptocurrencies, including a series of very subtle reasons." Most venture capital firms have LPs, and LPs are mainly interested in outperforming index fund returns. But in the medium term, the risk-return ratio of just holding Bitcoin and Ethereum can "easily beat" index funds. This allows venture investors to earn returns only through position strategies, waiting for safer and more profitable opportunities, rather than taking so many early risks on Web3 startups as in other industries. Cochran explained: "Usually in an industry, you have more venture capital firms making early investments because the idle returns provided by BTC/ETH do not exist in these markets." He said that in the last crypto cycle (2020 to 2024), venture capital firms were keen to invest in "already-exploded" applications because they hoped to "get a lot of returns with consumers in the later stages." Cochran added: “We’ve also been through several recent narrative trends (NFTs, AMM forks, DeFi, L2), and it’s not quite clear what’s going to happen next.” According to RootData, crypto VC funding exceeded $1 billion in three months of 2024: March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion). This is a significant increase compared to last year, when this level was only reached in November 2023 ($1.29 billion). However, this is still much lower than two years ago, when crypto VC funding exceeded $4 billion in each of the first four months of 2022. (Cointelegraph)