Crypto startups are deterring venture capital funding due to high valuations, with some seeking 50 to 80 times revenue.
10T Holdings, a crypto-focused VC firm, has passed on over 200 companies for similar reasons, targeting projects with valuations around $400-500 million with a 10x or less valuation-to-revenue ratio.
VCs prefer realistic valuations for higher upside potential and simpler exit processes, contrary to the trend of startups seeking inflated valuations.
Pantera Capital suggests VCs diversify investments by combining private equity and tokens, with their firm achieving success with an aggressive investment strategy.