Crypto founders and VCs alike unconsciously underestimate the time needed for startups to work

Startups are hard and it’s common for time horizons to be 5-10 years until a liquidity event

Because liquidity could be achieved before PMF (ie. prematurely) in crypto, mindsets became warped and disconnected from reality

I suspect we’re returning to a phase of more realistic liquidity timeline expectations and incentives aligned towards long term value creation.

👇

Principal at Cobalt Ventures. Write @ TheItinerant.io ; BenErsing.com Host: /venturecapital /finance /adventures

I wouldn’t hold my breath.

It could be because it’s a bear market rn so it’s unlikely early liquidity will deliver the desired return.

The real test is if you feel the same way when the bull market is back.

Wish we could remindme bot in this way

Working on building zkTLS infra/products. A ruthless empiricist and meme connoisseur.

http://opacity.network

Does the state of the market fully determine the long term potential of these startups ?

Also do you agree that when VCs funds projects, it might have its positives but often leads to mediocre, unsustainable and low value-adding projects, as compared to projects with internally generated revenue ?

Art enthusiast, passionate about mental growth, and an ever-learning individual

If there’s more money than good projects to invest into, shouldnt that be enough incentive for builders to prioritize long term value creation and addition ?

Also, Isn’t this bloated valuation counter productive, and startups might lack motivation to keep improving since they are gauatanteed funding ?

In crypto, there is a lot more money than good projects to invest into.

When a good one comes along it’s extremely competitive for investors to get in.

This leads to bloated valuations for projects that are still early.