45% of VC-Backed Crypto Projects Shut Down, Polychain Capital Leads in Failures
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Nearly 45% of venture capital-backed cryptocurrency projects have ceased operations, according to a study by Chainplay and Strorible. The analysis, which reviewed 1,181 projects funded between January 2023 and December 2024, highlights that 77% of these projects generate less than $1,000 in monthly revenue. Polychain Capital stands out with the highest investment failure rate, as 44% of its projects have shut down and 76% fail to produce significant revenue.
Other major venture capital firms also report high failure rates, with Yzi Labs at 72%, Circle at 38%, Delphi Ventures at 33%, and Consensys at 30%. The study further reveals that projects raising over $50 million tend to have a lower failure rate, whereas over 33% of projects that raised under $5 million have either failed or ceased operations.Source:Show Original
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