10T Holdings: Many Crypto Startups Scare Off Venture Capital Firms with 50x to 80x Valuations

On May 14, Dan Tapiero, CEO of crypto venture capital firm 10T Holdings, pointed out at the Consensus conference in Toronto that too many crypto startups are pursuing valuations far exceeding their revenue, making it difficult for venture capital firms to generate returns.

Tapiero stated, "For some reason, founders and CEOs think they should raise funds at 50 to 80 times their revenue. This makes it very difficult for us to create returns for liquidity providers."

Tapiero revealed that his firm has rejected over 200 projects due to excessive valuations, including the bankrupt FTX, BlockFi, and Celsius. 10T Holdings' investment criteria require a company valuation of over $400-500 million, with a price-to-sales ratio of no more than 10x.

Despite concerns about a valuation bubble, PitchBook data shows that crypto venture capital deal value increased by over 100% quarter-over-quarter in Q1 2025, reaching $6.00 billion. Dan Morehead, CEO of Pantera Capital, who was also at the discussion, suggested that venture capital firms adopt an "equity + token" combination investment strategy. 86% of the projects invested in by his firm have been profitable, and 22 have become unicorn companies.