1confirmation founder: Early funding size is negatively correlated with entrepreneurial success. It is advisable to bet on those focused and capable "dark horses."

DeepTechFlow News: Nick Tomaino, the founder of the cryptocurrency venture capital firm 1confirmation, recently shared his entrepreneurial investment experience. Tomaino stated that for early-stage startups, there is a negative correlation between the initial funding size and long-term success. He pointed out that 46 projects invested in by 1confirmation with funding of less than 10 million USD are still operational, with many performing well; whereas 3 failed projects raised over 10 million USD before product-market fit.

Tomaino believes that obtaining a large amount of funding too early can lead to distractions and lack of motivation. With excessive funding, companies may over-hire, invest in too many areas, and lose focus.

This experience has led Tomaino to prefer investing in focused and capable "dark horses" rather than the "front-runners" who become complacent due to early fundraising success.