Many crypto startups are struggling to secure venture capital due to excessively high valuation-to-revenue ratios. Dan Tapeiro, CEO of 10T Holdings, noted in a panel at the Consensus conference that some founders expect to raise funds at 50 to 80 times their revenue, which complicates returns for investors. As a result, 10T Holdings has rejected over 200 companies, including notable names like BlockFi and Celsius, due to unrealistic pricing. Tapeiro emphasized the importance of having valuations below $500 million with a ratio of 10x revenue or less to attract investment. While Tapeiro's firm remains cautious, PitchBook reported that crypto venture capital deals reached $6 billion in Q1 2025, indicating a thriving investment environment, albeit with caution regarding valuations. Panelist Dan Morehead advocated for VCs to diversify their investments across both private equity and tokens, showcasing a broader approach to mitigating risks in fluctuating markets.

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