According to Huoxing Finance, Tom Dunleavy, Head of Venture Capital at Varys Capital, posted on X that the fundraising environment in the cryptocurrency market has changed dramatically over the past six months. Previously, VCs had to constantly network, create content, appear on podcasts, participate in Spaces, and promote their investment thesis—spending countless calls each week—to secure access to promising projects. Now, all it takes is having capital available. Projects are being brought directly to VCs, rather than requiring VCs to actively seek them out; simply being known as a fund with money will cause deals to come knocking. Most VC firms today fall into one of three categories: they’ve run out of capital, have shifted focus to later-stage investments (Series A and beyond), or are currently raising funds—but with little success. What used to take 2–3 weeks to close now often stretches to 2–3 months. Projects with questionable business models or those merely copying the latest hype narratives are no longer securing new funding or follow-on investments (which is a good thing). In reality, there may be fewer than 20 firms still actively making pre-seed or seed investments today. VCs can now afford to be selective, choosing which projects to back and taking more time to conduct thorough due diligence. This upcoming investment cycle in 2025 and 2026 could become a historic “golden opportunity”—but only if VCs stay the course.
Varys Capital CIO: Fewer Than 20 VCs Are Still Actively Investing in Seed Rounds
MarsBitShare
Summary
Varys Capital CIO Tom Dunleavy said the crypto fundraising landscape has shifted dramatically in six months. Most venture capital firms are out of capital, shifting to later-stage rounds, or struggling to raise new funds. With fewer than 20 VCs still backing pre-seed or seed rounds, projects are now seeking out investors with available capital. On-chain data shows more selective due diligence, while new token listings face heightened scrutiny.
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