Risk capital (VC) companies have become much more selective with cryptography projects in which they invest, which represents a change in the previous cycle due to market maturation, according to Eva Oberholzer, investment director of the Risk capital firm, Ajna Capital.
“It is more difficult because we have reached a different stage in cryptography, similar to each cycle we have seen for other technologies in the past,” Oberholzer told Cointelegraph.
He added that the maturation of the market has slowed the investment prior to the seeds, since the VCs turn their attention to projects established with clear commercial models. Oberholzer said:
“These are more predictable income models, institutional dependence and irreversible adoption. So, what we see at this time is that the crypt is not driven by any frank of memeƱo or other trends, but it is more about institutional adoption.”
The change in the VC activity reflects the broader trend of institutional cryptographic investment and the focus on digital asset businesses that generate income, in opposition to pricing speculation that promoted investment during previous cryptographic cycles, including the 2021 upward market.
Related: VC Roundup: Bitcoin Defi increases, but tokenization and stables gain steam
The traditional financial world requires performance and cryptographic companies that produce income
Traditional financial investors, including Wall Street companies, risk capitalists and institutional funds, are increasingly demanding cryptographic projects that provide established predictable income sources.
Risk capital are concentrating on Stablecoin projects and investing in other forms of payment infrastructure that can generate rates, said Oberholzer.
Real world asset tokenization platforms (RWA) are also at the radar of risk capital companies due to income models associated with minting and management of Rwas Tokenized Rwas.
Matt Hougan, Investment Director (CIO) of Bitwise investment firm, recently told Cointelegraph that the search for performance is promoting Wall Street investment in Ether (ETH).
“If you take $ 1 billion ETH and you put it in a company and the bet, suddenly, you are generating profits. And investors are really accustomed to companies that generate profits,” said Hougan.
The intelligent contract 1 -contract block chain houses the majority of Stablecoin’s activity, RWA Market and Dentralized Finance (Defi) that generates stable income through rates and other forms of financial rental for its owners.
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