Crypto VCs May Be Mistaking Consensus for Discipline

Crypto venture capital’s shift toward later-stage investments may reflect consensus rather than disciplined allocation, according to Varun Datta of Truth Ventures in CoinDesk’s latest “Crypto Long & Short” column. Datta points to the concentration of funding among established companies, which captured 57% of crypto venture capital in the last quarter. He argues that the reduced focus on founding-stage businesses could represent a gap for investors seeking future returns. The column outlines three factors Datta says investors should examine when assessing opportunities at the earliest stage of company formation. His analysis centers on the difference between following proven companies and identifying businesses before they become widely accepted by the market. The commentary offers a perspective on current crypto venture funding patterns rather than a forecast for any specific digital asset.