VC Industry Entering a 'Weeding Out' Phase Amid Market Downturn

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VC industry faces a 'weeding out' phase as **investor sentiment** turns cautious amid a prolonged **crypto market** downturn. A former VC investor notes that while some firms have failed, the sector remains resilient, undergoing a cleansing similar to the 2000 dot-com crash. Key factors include the lingering effects of the 2022 Luna collapse, a disrupted four-year crypto cycle, and longer token vesting periods. VCs are still vital for early-stage innovation, with projects like Hyperliquid and Polymarket showing real user growth and revenue.
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