<ul><li>As a startup or crypto founder, understanding VC math is crucial to navigating the high-stakes world of venture capital.</li><li>VCs have distinct motivations and incentives that drive their actions.</li><li>In traditional VC, Limited Partners invest capital into the fund with the hope that General Partners will turn their investments into substantial returns.</li><li>GPs in crypto VC funds invest in projects and receive tokens in exchange, rather than equity.</li><li>VCs make money in two primary ways: through exits and appreciation.</li><li>In crypto VC deals, tokens are rarely given to VCs all at once.</li><li>Liquidity events, such as token listings on exchanges, allow crypto VCs to sell portions of their tokens for cash.</li><li>VCs need to demonstrate to LPs that they’re generating value. They do this using a few key metrics.</li><li>In both traditional and crypto VCs, a small percentage of investments drive the majority of returns.</li><li>While traditional and crypto VCs look for different things, there’s a lot of overlap in their core criteria.</li></ul>

VC Math for Startups: Navigating Traditional and Crypto Funding with Confidence

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