2026-01-17 07:30:41

Rapid Reversal of Investment Institution Attitudes

Here's some data that’s quite sobering. A leading market maker and investment institution’s performance in 2025 has been released—scanning about 600 projects throughout the year, they only invested in 23, with an approval rate of less than 4%. Even preliminary due diligence projects only accounted for 20%. The founder openly stated that the era of "investing first even without understanding" in 2021-2022 is completely over.

This is not an isolated case. The entire crypto VC scene saw a sharp decline in deal numbers in 2025—dropping from over 2,900 in 2024 to just over 1,200. Although the total amount of money remains, with global crypto VC investments reaching as high as $4.975 billion, the problem is that this money is increasingly concentrated in a few projects. Mid- and late-stage funding took 56% of the share, while early seed rounds hit a historic low.

The situation in the US is even more extreme: deal count dropped by 33%, but the average investment amount surged 1.5 times to $5 million. What does this indicate? VCs are now more willing to bet on a few dark horses, rather than casting wide nets.

**The Underlying Logical Shift**

This contrast fundamentally reflects the industry’s transformation from a broad, extensive approach to a more refined, precise one. Investment institutions are now genuinely concerned with the fundamentals of projects, rather than being driven solely by hype and concepts. The market’s cool-headedness in 2025 is forcing everyone to reevaluate what truly constitutes a worthwhile bet.

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TokenVelocityTrauma

· 11h ago

4% pass rate, this is the real cooling down --- Early squeeze to the bottom, the difficulty of financing this wave has skyrocketed --- The "invest first, then talk" logic from 2021 is completely dead, it's painful --- Average $5 million per deal, VCs are really starting to be selective, no more reckless investing --- Money is still there, but it’s flowing into top projects, making it even harder for retail investors --- From screening 600 projects down to only investing in 23, the filtering is intense --- The seed round financing environment is indeed harsh, everyone is banding together for warmth --- Refined operations sound good, but small and medium projects suffer --- A 50% cut in the number of transactions is no small matter, understand what it means yourself --- Prefer to go all-in on a few dark horses rather than spreading money everywhere, clear strategy shift

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WhaleWatcher

· 11h ago

Early projects are truly being neglected --- 4% approval rate? How many project teams are getting slapped in the face --- No wonder fundraising is so difficult now, everyone is holding their money together --- From broad casting to precise targeting, this is how VC should behave, right? --- Seed investors are probably now trying to buy the dip and scoop up bargains --- Honestly, no more pretending. The previous tricks of deceiving and misleading are completely ineffective now --- Starting investments from 5 million USD? Small entrepreneurs are crying in the bathroom --- Suddenly becoming more rigorous is a good thing, better than blind investing --- This is called market self-correction, the inevitable path of survival of the fittest --- Pushed to new lows early on, this cycle probably means another change in strategy

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AirdropHunter007

· 11h ago

A 4% approval rate indicates that people are really starting to look at the essence of the project.

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BlockchainRetirementHome

· 11h ago

4% approval rate, now that's true clarity --- Early projects pushed to historic lows, small project teams are really having a tough time --- NGL, the projects that survive this round of screening are probably the real deal --- Selecting 23 out of 600 projects, are VCs finally starting to use their brains? --- Money is stacked in later-stage projects, what does that say? The early funding environment is much worse than in 2021 --- I just want to know what those projects that didn't pass the 4% screening are doing now --- The cost of refined investing is that newcomers have no chance

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ForkInTheRoad

· 12h ago

4% approval rate? Early projects are really dead now.

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SigmaValidator

· 12h ago

A 4% approval rate? Now that's the normal approach. --- Early-stage projects are really struggling to make ends meet now. --- Basically, it's shifting from an all-in concept to an all-in narrative; essentially, it's still gambling. --- Funds are being poured into later stages, and early entrepreneurs deserve to be washed out by half. --- Over there in the US, investments start at $5 million? Here at home, getting a million in funding is already considered a big win. --- This data hits close to home. Last year, I thought having many projects was an advantage; this year, I realize they're all trash. --- They'd rather go all-in on dark horses than cast a wide net. This is when the Matthew Effect begins to consume small-town youth.

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