Analyst: Number of new crypto funds hits five-year low, total fundraising from 2023 to 2025 is only close to the full year of 2022

According to Odaily, crypto KOL Edgy posted on X that by 2025, 85% of token issuance projects will be operating at a loss. Projects backed by venture capital firms are only able to break even in trading, with some even suffering significant losses. Galaxy Research charts show that in Q2 2022, crypto venture capital firms raised nearly $17 billion through over 80 new funds in a single quarter; however, now, the return on investment for venture capital firms has been continuously declining since 2022, the number of new funds has hit a five-year low, and last quarter’s fundraising was only 12% of Q2 2022. The $8.5 billion invested by venture capital firms last quarter was not new capital, but rather leftover funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equal to the amount raised in 2022 alone. The model of raising funds, issuing tokens, and selling to retail investors is coming to an end. As the influence of venture capital firms wanes, projects with real users and revenue will prevail. In the future, there will be fairer issuance methods, fewer insider sell-offs, and more developers focusing on product optimization rather than fundraising.