Crypto Long & Short: Crypto VCs are mistaking consensus for discipline
Venture capital firms in the crypto sector are increasingly avoiding early-stage risks in favor of later-stage, proven companies, according to a recent analysis. The author argues that this 'consensus trade' behavior undermines the original purpose of venture capital, which is to support visionary, unproven ideas.
Why it matters
This critique highlights a significant shift in investment philosophy that could stifle innovation in the emerging technology and blockchain sectors.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc., CoinDesk Indices or its owners and affiliates.
This is your institutional newsletter, Crypto Long & Short. This week:
By Varun Datta , venture capitalist and CEO of Truth Ventures
Venture capital likes to think of itself as a risk-taking industry. The pitch decks and panel talks all say the same things: we spot visionary founders early, back unproven ideas, sit with uncertainty long enough for it to pay off. At least, that's how the industry portrays itself.
However, the data tells a different story.
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