What Do Crypto VCs Know that You Don't?

Insights from Sachi Kamiya from Polygon Ventures, Etiënne from TRGC, along with an anonymous angel investor, and Jaimin, a founder of Caddi.

Take a look at the chart below.

The correlation between BTC price and fundraising amount in the crypto market is truly fascinating. As the price of Bitcoin dropped, the fundraising amounts also decreased.

Interestingly, despite BTC and ETH prices being higher than during the peak of the 2018 bull market, fundraising has returned to pre-2020 level. BTC has actually recovered from 2022 lows yet fundraising amounts have been continuously grinding down.

It got me thinking.

Venture capitalists are often perceived as market leaders, making informed and forward-thinking decisions. Why then does it seem that VCs are following the general market trend rather than setting it?

And while the market has slightly recovered, the fundraising amounts are down to 2018-19 levels. Do they know something that we, mortal retail, don’t know? Shouldn’t they ‘buy the dip’ and invest right now, when valuations are low? Especially since lock ups prevent VCs for selling right away and some might end up selling int…