There are a lot of emerging encryption companies that priced themselves from financing investment capital by chasing assessments that exceeded their revenues, according to Dan Turbo, CEO of 10T Holdings that focus on encryption.
“For some reason, the founders and executive managers believe that they should raise capital from 50 to 80 times of revenue. This makes it difficult for us to return to our liquidity providers,” Tapero said during his talk in a discussion at the consensus conference in Toronto in Toronto in Toronto.
“That’s a lot of these deals that we are going through almost automatically, and even the companies we really love, we will not invest in them if the price is not reasonable at first.”
10T Holdings has been transferred to more than 200 companies for similar reasons, including Now FTX linear, Blockfi and Celsius, said Tapeiro.
TAperoo said that 10T Holdings is looking for encryption projects that exceed $ 400 million to $ 500 million with an evaluation rate to 10x or less.
VCS often prefers fewer assessments because it provides more bullish capabilities with lower risk.
Often real assessments are made Funding trips to follow -up More attractive to investors while simplifying the exit process.
“The evaluation is very important,” said Tapeiro.
Despite TAPEIRO’s comments, it seems that startups in Crypto did not have a problem in attracting them VC moneyThe Pitchbook said on May 13 that the total value of the investment capital deals for encryption More than 100 % quarter of a quarter increased To $ 6 billion in the first quarter of 2025, while the number of deals increased only by 8.8 %.
VCS must diversify his bags
He also speaks alongside Tapero Pantera Capital and Morehead CEO, Who said more VCS should choose to have a mixture of private stocks and symbols when investing in startups.
“Everyone has positives and negatives, then they go in these wild pendulum fluctuations where the distinctive symbols are sometimes expensive and cheap projects. Sometimes it is the opposite.”
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“As an investor, I always defend people who invest in a wide range of symbols and projects.”
Morehead’s Pantera has followed a more aggressive approach than 10T possesses over the years and has witnessed great success, as it achieved a return on 86 % of the startups in which they invested, with 22 of those who reach the position of unicorn (Companies of $ 1 billion in reviews).
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