Crypto startups are struggling to attract venture capital due to their high valuation-to-revenue ratios. Dan Tapeiro, CEO of 10T Holdings, revealed these startups often seek funding at valuations of 50 to 80 times their revenue, which deters potential investors.
10T Holdings has passed on over 200 investment opportunities because of these inflated valuations, including notable bankruptcies like FTX. Tapeiro emphasized that valuations should ideally sit between 400 million USD and 500 million USD with a maximum ratio of 10x revenue.
Despite high valuations affecting some startups, PitchBook reported that crypto venture capital funding surged to over 6 billion USD in Q1 2025, showcasing a significant increase even with fewer deals.
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