Venture Capital (VC) companies have become more selective in the crypto projects they are investing in, which represents a transition from the previous cycle due to market maturity, according to Eva Oberholzer, chief investment official in VC firm Ajna Capital.
“This is more difficult because we get to a different stage in the crypto, just like every cycle we’ve seen for other technologies in the past,” Oberholzer told Cointelegraph.
He added that the maturation in the market slowed the pre-seed investment, as the VCS pivoted their attention to established projects with clear business models. Oberholzer said:
“It’s more about unpredictable revenue models, institutional reliance, and irreversible adoption. So, what we see today is that crypto is not driven by any memecoin frenzies or other trends, but it’s more about adopting institutional.”
Moving to VC activity reflects the wider trend of Institutional crypto investment And the focus on businesses that make up the digital asset income, compared to the speculative price that has pushed investment in previous crypto cycles, including the 2021 Bull Market.
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The traditional financial world is demanded by yield and income that makes crypto businesses
Traditional financial investors, including Wall Street companies, venture capitalists, and institutional funds, are increasingly demanding crypto projects that provide established, predictable revenue flows.
VC companies focus on Stablecoin projects and investment in other forms of payment infrastructure that can generate fees, Oberholzer said.
Real-World Asset (RWA) tokenization platforms is also on the radar of VC companies due to revenue models associated with the Minting and Management of tokenized RWWA Onchain.
Matt Hougan, the Chief Investment Officer (CIO) in the investment firm, recently told Cointelegraph that the search for the harvest was Driving Investment on Wall Street in Ether (Eth).
“If you take $ 1 billion of ETH and you put it in a company and you keep it, all of a sudden, you make up revenues. And investors are really used to companies that make up revenues,” Hougan said.
The smart contract layer-1 blockchain hosts most of the stablecoin, RWA market, and decentralized financial activity (DEFI) that generates stable income through fees and other forms of financial rent for its owners.
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