Escaping the Cycle: Why VCs Should Look Past The Narrative Trap

The final panel at ETHDenver Demo Day brought together investors Robert Le (Supermoon Ventures), Michael Bosworth (CoinFund), and Simão Cruz (Lightshift), moderated by Anna Shakola (Cointelegraph). The group shared a sharp and candid look at what VCs expect from founders in 2025 and beyond.

VCs in crypto are shifting. Investors are more selective, backing projects with long-term growth potential—not just quick token plays. Robert warned founders to consider what kind of capital they’re accepting: “If your VC is running on a three-year fund cycle, they need liquidity fast—that means pushing you to launch a token and exit early. If you don’t understand their timeline, you could be forced into moves that hurt long-term success.” The message: choose investors with care.

Go-to-market strategy is still the biggest blind spot. “A lot of founders prioritize building tech, but if you don’t have users, your product doesn’t matter,” said Simão. Unlike traditional startups with 7–10 year visions, crypto startups often expect results in two, which leads to short-termism. Trends like AI and DeFi can derail founders from solving meaningful problems. Michael added: “Founders often focus too much on building infrastructure and not enough on actual demand. You need to solve an urgent problem—find where the need is real and build toward that.”

Founders should ask for help—but do it smart. “The best founders use every bit of leverage available to them,” said Simão. “They know exactly what they need and who to ask. The red flag is when a founder expects the VC to set their direction for them.” VCs aren’t looking for superheroes—they want clarity, vision, and adaptability.

The biggest opportunities? Bridging TradFi and crypto. “Every major financial institution is pouring money into blockchain infrastructure right now. The projects that bridge these two worlds will be the ones that dominate the next cycle,” said Robert.

The panel wrapped up with a clear message: founders who focus on sustainable growth, clear market fit, and long-term strategy will be the ones that last. As Michael put it: “Long-term, sustained value is highly rewarding—somebody's urgent problem wants to be fixed, and the founder who’s looking to fix that, that's what we tend to favor.”