Analysts: Number of new crypto funds hits 5-year low; total funds raised from 2023 to 2025 will only be close to the total for 2022.

According to ME News, on February 17th (UTC+8), crypto KOL Edgy published an article on the X platform stating that 85% of token issuance projects will be unprofitable by 2025. Venture capital-backed projects are barely breaking even, with some even incurring significant losses. A chart from Galaxy Research shows that in the second quarter of 2022, crypto venture capital firms raised nearly $17 billion through over 80 new funds in a single quarter; however, the return on investment for venture capital firms has been declining since 2022, with the number of new funds hitting a five-year low, and the amount raised last quarter only 12% of that in the second quarter of 2022. The $8.5 billion invested by venture capital firms last quarter was not new capital, but rather surplus funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equivalent to the total amount raised in 2022. The model of raising funds, issuing tokens, and dumping them on retail investors is coming to an end. As the influence of venture capital firms diminishes, projects with real users and revenue will prevail. The future will see fairer issuance methods, less insider selling, and more developers focusing on product optimization rather than fundraising. (Source: ME)