Source: Cointelegraph
Original: “10T Holdings: Crypto Startups Scare Off VCs with 80x Valuations”
Too many crypto startups have lost opportunities for venture capital funding by pursuing valuations far exceeding their revenues, said Dan Tapeiro, CEO of crypto-focused venture capital firm 10T Holdings.
“For some reason, founders and CEOs think they should raise funds at valuations of 50 to 80 times revenue. This makes it difficult for us to provide returns to our liquidity providers,” Tapeiro said during a panel discussion at the Consensus conference in Toronto on May 14.
Dan revealed that 10T Holdings has already abandoned over 200 companies for similar reasons, including the now-bankrupt FTX, BlockFi, and Celsius.
Dan also stated that 10T Holdings is looking for crypto projects with valuations in the range of $400 million to $500 million, and a valuation-to-revenue ratio of 10 times or less.
Venture capitalists generally prefer lower valuations as they offer greater upside potential while also reducing risk.
Reasonable valuations often make subsequent funding rounds more attractive to investors and simplify the exit process.
“Valuation is very important,” Dan said.
Despite Dan's comments, crypto startups seem to have no problem attracting venture capital funding. PitchBook reported on May 13 that the total value of crypto venture capital deals in the first quarter of 2025 increased by over 100% quarter-on-quarter, reaching $6 billion, while the number of deals only increased by 8.8%.
Also speaking alongside Dan was Dan Morehead, CEO of Pantera Capital, who stated that more venture capital should opt for a hybrid form of private equity and tokens when investing in crypto startups.
“Each method has its pros and cons, and they will change in extreme swings; sometimes token prices are very high while company valuations are cheap, and sometimes it’s the opposite.”
“Therefore, as an investor, I always advocate for people to invest in a broad range of tokens and companies.”
Over the years, Morehead's Pantera has taken a more aggressive approach than 10T Holdings and has achieved considerable success, with 86% of the startups it invested in generating returns, including 22 that reached unicorn status (companies valued at $1 billion).
Related: The Virtual Value: The Economy Driven by Ownership of Intangible Assets
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