Over the last few quarters, we’ve watched entrepreneurs shift their fundraising focus from token-based protocols to the relative safety of equity-capitalized, cash-flow extracting businesses. Within crypto, if 2017 deal-flow was 75% token-based, 25% equity-based, then 2019 has been the inverse, and the token-based deals are continuing to slow [1].

Long run, we expect there to be thousands of equity-capitalized businesses making use of each successful protocol, which means there will be more companies than protocols, and the noted inversion of deal-flow is rational. …

Chris Burniske

partner @placeholdervc, twitter @cburniske, formerly led @ARKInvest’s crypto efforts. Co-author of “Cryptoassets” 👉 bitcoinandbeyond.com

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