Bitcoin VC-Backed Projects Face 45% Failure Rate with Majority Earning Under $1,000 Monthly

Recent data from Bitcoin.com highlights a challenging landscape for venture capital-backed crypto projects, revealing that nearly 45% have discontinued operations. The comprehensive analysis, spanning 1,181 projects funded between January 2023 and December 2024, underscores that 77% of these initiatives generate less than $1,000 in monthly revenue, signaling widespread financial underperformance. Among leading investors, Polychain Capital exhibited the highest project attrition rate at 44%, with 76% of its portfolio failing to achieve meaningful revenue benchmarks. Other prominent firms such as Yzi Labs, Circle, Delphi Ventures, and Consensys also reported significant failure rates, ranging from 30% to 72%. The study further emphasizes the correlation between funding size and project viability, noting that ventures receiving upwards of $50 million demonstrate markedly improved survival rates, whereas over one-third of projects with less than $5 million in capital ultimately cease operations. This data provides critical insights into the risk dynamics within the crypto venture ecosystem.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.