{"id":129268,"date":"2025-05-15T01:22:08","date_gmt":"2025-05-15T01:22:08","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129268"},"modified":"2025-05-15T01:22:08","modified_gmt":"2025-05-15T01:22:08","slug":"crypto-startups-scaring-away-vcs-with-80x-valuations-10t-holdings","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129268","title":{"rendered":"Crypto startups scaring away VCs with 80x valuations: 10T Holdings"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsToo many crypto startups are pricing themselves out of venture capital funding by chasing valuations far exceeding their revenues, according to Dan Tapeiro, the CEO of crypto-focused venture capital firm 10T Holdings.<br \/>\n\u201cFor some reason, founders and CEOs think that they should be raising capital at 50 to 80 times revenue. So that makes it very hard for us to make a return for our liquidity providers,\u201d Tapeiro said while speaking in a panel discussion at the Consensus conference in Toronto on May 14.<br \/>\n\u201cSo a lot of those deals we just pass almost automatically, even businesses that we really like, we won&#8217;t invest in if the price isn&#8217;t reasonable in the beginning.\u201d<br \/>\n10T Holdings has passed on over 200 companies for similar reasons, including the now-bankrupt FTX, BlockFi and Celsius, Tapeiro said.\u00a0<br \/>\nTapeiro said 10T Holdings looks for crypto projects that have valuations above the $400 million to $500 million range with a valuation-to-revenue ratio of 10x or less.<br \/>\nHost of Crypto In America Eleanor Terrett (left) moderating a discussion with Pantera Capital CEO Dan Morehead (middle) and Dan Tapeiro (right) at the Consensus conference. Source: CointelegraphVCs often prefer lower valuations because they offer more upside potential with less risk.<br \/>\nRealistic valuations often make follow-on funding rounds more attractive to investors while also simplifying the exit process.<br \/>\n\u201cValuation is very important,\u201d Tapeiro said.<br \/>\nDespite Tapeiro\u2019s comments, it appears that crypto startups have had no problem attracting VC funds,  as PitchBook reported on May 13 that the total value of crypto venture capital deals rose over 100% quarter-on-quarter to $6 billion in Q1 2025, while the number of deals only increased by 8.8%.<br \/>\nVCs should diversify their bags<br \/>\nAlso speaking alongside Tapeiro was Pantera Capital CEO Dan Morehead, who said more VCs should opt to receive a mix of private equity and tokens when investing in crypto startups.<br \/>\n\u201cEach one has their pros and cons, and then they go in these wild pendulum swings where sometimes tokens are really expensive and ventures cheap. Sometimes it&#8217;s the opposite.\u201d<br \/>\nRelated: Crypto VC deals drop in Q1, but funding more than doubles: PitchBook<br \/>\n\u201cSo as an investor, I always advocate people investing in a wide spectrum of tokens and ventures.\u201d<br \/>\nMorehead\u2019s Pantera has taken a more aggressive approach than 10T Holdings over the years and seen considerable success, making a return on 86% of the startups it invested in, with 22 of those reaching unicorn status (companies reaching $1 billion valuations).<br \/>\nMagazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee<a href=\"https:\/\/cointelegraph.com\/news\/crypto-startup-80x-valuations-push-away-vc-funding?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsToo many crypto startups are pricing themselves out of venture capital funding by chasing valuations far exceeding their revenues, according to Dan Tapeiro, the CEO of crypto-focused venture&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129268"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129268"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129268\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129268"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129268"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129268"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}