MV Global Partner: No project in the industry requires more than $10 million in financing

Odaily Planet Daily News MV Global partner Tom Dunleavy wrote in X that no project in the cryptocurrency industry needs more than $10 million in financing. The reason why projects such as Berachian, Monad, Abstract, and Movement can complete huge financing is entirely because VC needs to give them so much money. When VC completes fundraising of more than $300 million, unless it continues to make some more than $20 million, it will not be able to effectively allocate these funds. Even if you make $5 million each time, you must invest in 60 projects, which means you need to due diligence more than 1,000 projects. With extremely low marginal fixed costs and the continuous development of AI productivity, what project actually needs $20 million in funds? VC is actually providing these newly established companies with more than 5 years of operating funds, and these projects can also obtain additional funds when tokens are issued, which creates a terrible incentive mechanism for the project parties. Tom finally called for no more financings exceeding $10 million and no more valuations exceeding $100 million.