ChainCatcher report: Tom Dunleavy, Head of Venture Capital at Varys Capital, posted on X that the fundraising environment in the cryptocurrency market over the past six months has changed dramatically. Previously, VCs had to constantly network, create content, appear on podcasts, participate in Spaces, and promote their investment thesis—making countless calls each week—to secure access to good 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 to you. 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 struggling to do so. 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, fewer than 20 firms are 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. The upcoming investment cycle in 2025 and 2026 is likely to become a historic “golden opportunity”—but only if VCs stay in the game.
Varys Capital CTO: Fewer than 20 VCs Are Still Actively Investing in Seed Rounds
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Summary
Varys Capital CTO Tom Dunleavy said fewer than 20 venture capital firms are still investing in seed rounds, as most have run out of capital or are shifting to later-stage deals. On-chain data reveals a tighter fundraising environment, with active VCs able to be more selective. Dunleavy views 2025–2026 as a potential golden window for VCs, and altcoins to watch may emerge from this more disciplined investment cycle.
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