Crypto startups scaring away VCs with 80x valuations: 10T Holdings
Crypto startups are struggling to secure venture capital due to inflated valuations, often seeking 50 to 80 times revenue, according to Dan Tapeiro, CEO of 10T Holdings. This approach makes it challenging for investors to achieve returns, leading 10T Holdings to pass on over 200 companies, including FTX and BlockFi. The firm prefers projects valued between $400 million and $500 million with a valuation-to-revenue ratio of 10x or less. Realistic valuations enhance follow-on funding attractiveness and simplify exits. Despite these concerns, PitchBook reported a 100% increase in crypto venture capital deals to $6 billion in Q1 2025. Pantera Capital's Dan Morehead advocates for diversifying investments between private equity and tokens, noting the fluctuating value dynamics in the market. Pantera has achieved returns on 86% of its investments, with 22 startups reaching unicorn status.
