Dragonfly Capital Partner: The FTX Collapse Has Sounded the Alarm for Venture Capitalists

ChainCatcher news, cryptocurrency venture capital Dragonfly Capital partner Tom Schmidt stated on CoinDesk TV on Monday that the collapse of FTX has sounded the alarm for venture capitalists. Schmidt mentioned that, regarding FTX, due to the impact of the financing environment, cryptocurrency startups find it easier to obtain early-stage "low-interest" financing, with a large influx of funds into the VC market, which may lead venture capitalists to overlook some warning signs of projects. "When there are more bidders than opportunities, prices naturally rise, which shortens due diligence time and reduces the negotiating power and influence of venture capitalists in these discussions." (CoinDesk)