VC focus on later-stage crypto deals is squeezing returns, columnist says

Crypto venture capital firms may be increasing market risk by crowding into the same safer bets to avoid risk, CoinDesk columnist Varun Datta said. Datta said 57% of crypto VC funding deployed in the first quarter went to later-stage deals with proven revenue and performance, while just 19% went to idea-stage startups, drying up funding for new innovation projects. As funds chase the same later-stage companies, valuations are being pushed unnecessarily higher and investment returns are declining, according to Datta.