Ten Common Issues with Crypto VCs Revealed by Ether.Fi Founder
Today, Mike Silagadze, the founder of Ether.Fi, shared insights on social media regarding the bizarre behaviors encountered with crypto venture capitalists (VCs) during seed and Series A funding rounds. Here’s a summary of his observations:
1. Repetitive First Meetings
You meet with a partner or assistant, and the meeting goes well, only to have them set up another meeting with a different partner who knows nothing about you or your project. If this happens three times or more, it becomes even more frustrating.
2. Sudden Change of Plans
A partner reaches out to you, eager to meet about your fundraising, but on the meeting day, they send a colleague instead. If this occurs multiple times during your fundraising journey, it adds to the confusion.
3. Anonymous Encounters
After being introduced to a VC who seems interested, you schedule a meeting, only to find that they remain anonymous on the video call, even using a generic profile picture. It’s peculiar how some prefer anonymity while wanting to be listed as investors.
4. Vanishing Act
After several meetings where the VC asks for more data and updates, suddenly, they go silent. It’s perplexing and leaves you wondering what went wrong.
5. The “Options” Game
You spend two weeks engaging with a firm, answering questions and providing due diligence materials. Then, after a period of silence, they reappear asking about your fundraising progress. This cycle repeats, leaving you questioning whether they are genuinely interested or just keeping their options open.
6. Self-Promotion
In a 30-minute call with a partner, 25 minutes are spent listening to them talk about their achievements, leaving little room for your project discussion.
7. Being Used
A firm agrees to meet, discussing your strategy in detail, only to later announce an investment in a competitor. It feels like you’ve been used to tailor their approach.
8. Aggressive Behavior
Within 30 seconds of a meeting, you suspect the VC may be on stimulants, as they become increasingly aggressive and challenge every point you make, yet end the meeting asking how they can help.
9. Off-Topic Discussions
A partner seems entirely unaware of your project and spends the meeting trying to persuade you to build a completely different business. If they succeed, it adds another layer of frustration.
10. Pseudo-Wisdom
You find yourself speaking with a 22-year-old assistant whose only experience is a brief internship at Goldman Sachs and gambling on meme coins. They confidently dispense advice, despite their lack of real-world experience.
These insights shed light on the often perplexing dynamics between startups and venture capitalists in the crypto space.