Crypto Industry Must Prioritize Efficiency in Fund Allocation
Michael Anderson from Framework Ventures emphasized the need for efficiency in crypto funding during a recent podcast discussion. Key points include:
- The current investment climate presents challenges for founders, despite a bullish outlook on crypto.
- Valuations remain high, and venture capital allocations are decreasing annually.
- Founders should maintain at least 24 months of financial runway and develop clear monetization strategies.
- Historical examples, such as Facebook's initial lack of a monetization plan, highlight the importance of understanding revenue models.
- As the crypto sector matures, clearer monetization paths will emerge with increasing user engagement.