Dragonfly managing partner Haseeb Qureshi said crypto venture capital may be approaching a “last vintage funds” phase as mature networks become harder for startups to challenge. He argued this does not mean the crypto industry is disappearing. Instead, scale, liquidity, and network effects are becoming more concentrated on a small number of established platforms.
Qureshi said that by 2030, many of the most important companies in crypto may already have been built. Large platforms could still expand, but the room for new entrants to overturn the market may be limited. In his view, investors may be underestimating the possibility that growth in the crypto market will not necessarily keep producing investable startups.
Data from Cryptorank shows that as of July 28, only 150 independent venture firms took part in crypto funding rounds during July, the lowest level since November 2020. That figure is well below the peak of 1,177 active investment firms recorded in May 2022, a drop of about 87%. Qureshi also said he is cautious on startups built around a single financial product on platforms such as Hyperliquid, arguing that if the platform controls distribution, those companies look more like distributors than durable businesses.
Dragonfly managing partner Haseeb Qureshi said crypto venture capital may eventually enter a “last vintage funds” phase as mature networks become harder for startups to challenge.
He said that does not mean the crypto industry is disappearing. His point was that scale, liquidity, and network effects are becoming more concentrated in a small number of established platforms.
Qureshi sees fewer openings for new disruptors by 2030
Qureshi said that by 2030, many of the most important companies in crypto may already have been built. Large platforms may continue to grow, but the room left for new entrants to disrupt the market could be limited.
He added that investors may be underestimating the possibility that growth in the crypto market will not necessarily keep producing investable startups.
Cryptorank data shows sharp drop in active VC participation
According to Cryptorank, as of July 28, only 150 independent venture capital firms participated in crypto funding rounds in July. That was the lowest level since November 2020.
The figure was far below the peak of 1,177 active investment firms recorded in May 2022. Based on the numbers provided, that marks a decline of about 87%.
Caution on startups tied to single products on Hyperliquid
Qureshi also said he is cautious about startups built around a single financial product on platforms such as Hyperliquid. He said that if Hyperliquid controls distribution, those companies are closer in nature to distributors than to durable businesses.
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