A former crypto venture capital general partner has disclosed significant financial losses, amounting to tens of millions of dollars, over a three-year period. The investor, who led 55 direct investment deals and participated in nine funds, reported that 27 of these investments resulted in losses, with 15 projects going to zero. The most affected sectors included NFTs and GameFi, with infrastructure projects also suffering substantial devaluation.
The VC highlighted the challenges faced by early-stage investors, including long lock-up periods and difficulties in exiting investments. Despite investing in top-tier Western funds, the returns were modest due to slow token vesting and poor market liquidity. The investor emphasized the need for better exit strategies and expressed skepticism about the current cycle being favorable for venture capital, despite increased institutional interest and regulatory clarity.
Crypto VC Reveals Multi-Million Dollar Losses Over Three Years
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