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seed

Varys Capital's venture capital director: There may be fewer than 20 VCs in the industry that are truly still making seed round investments

Varys Capital's head of venture capital, Tom Dunleavy, posted on X that the financing environment in the cryptocurrency market has changed dramatically over the past six months. Previously, VCs had to constantly network, write content, appear on podcasts, participate in Spaces, promote their investment logic, and make countless calls every week to invest in good projects... But now, as long as there is money to spend, that's enough. Current projects are being "pushed in front of VCs," without VCs having to actively dig for them; as long as others know you have funds, projects will come knocking.Most VC firms are now in one of the following three states: they are out of money, they are shifting to later stages (Series A and beyond), or they are fundraising (but not smoothly). Fundraising that used to take 2-3 weeks now often drags on for 2-3 months. Projects with questionable business models or those that simply replicate the latest hot narratives can no longer secure new funding or follow-on investments (which is a good thing).Currently, there may be fewer than 20 firms that are still making pre-seed/seed investments. VCs can basically choose the projects they want to invest in at their leisure and have more time to conduct due diligence. The investment cycle in 2025 and 2026 is likely to become a historically significant "golden opportunity," but the premise is that VCs can hold on.

On-chain private credit startup Valinor has completed a $25 million seed round financing, led by Castle Island Ventures

According to Fortune, Valinor, a blockchain private credit startup co-founded by former Blackstone employees, announced the completion of a $25 million seed round financing. This round was led by Castle Island Ventures, with participation from the crypto division of Susquehanna, Maven11, and the founder of TeraWulf, a Bitcoin mining company transitioning to artificial intelligence.Valinor's core business is to put the private credit process on-chain. Traditional private credit institutions rely on manual verification and spreadsheet collaboration when handling revolving credit lines and other businesses. Valinor plans to replace these processes with smart contracts to achieve automated routing of funds and condition-triggered execution.Both co-founders have traditional finance backgrounds, having worked in banks and the private credit division of Blackstone before transitioning to the crypto industry in 2022. Initially, Valinor focuses on providing loans to crypto companies, and later plans to introduce blockchain technology into the loan process to enhance efficiency. Currently, the company has completed lending for several fintech and crypto companies through blockchain technology.The funds raised in this round will be used to expand the loan scale, broaden the customer base, and increase team personnel, with the current number of employees at 6.
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