Dragonfly Partner Haseeb Qureshi: Crypto VC May Enter 'Last Batch of Funds' Stage
Dragonfly Managing Partner Haseeb Qureshi stated that as mature networks become harder for startups to challenge, crypto venture capital may eventually enter the 'last batch of funds' stage, with scale, liquidity, and network effects becoming more concentrated on a few mature platforms.
He mentioned that by 2030, most important companies in the crypto space may already be established, and while large platforms will continue to grow, there will be limited disruption space for new entrants; investors may underestimate that market growth does not necessarily lead to the availability of investable startups. According to Cryptorank data, as of July 28, only 150 independent venture capital firms participated in crypto financing in July, the lowest since November 2020, far below the peak of 1,177 in May 2022.
Qureshi is cautious about startups built around single financial products on platforms like Hyperliquid, suggesting that if a platform controls the distribution channels, related companies are closer to being distributors rather than sustainable businesses.
Source: Public Information
ABAB AI Insight
As a managing partner at Dragonfly, Haseeb Qureshi has long observed the competitive landscape of crypto startups and platforms; his judgment of the 'last batch of funds' continues to emphasize the importance of network effects and control over distribution, comparing the shrinking entrepreneurial space in crypto to that of early social media platforms after they became established.
In terms of capital pathways, the number of active VCs has significantly declined from its peak, indicating that funding is shifting from a broad approach to concentrated investments in platforms that already have scale and liquidity; new funds that cannot find disruptive entry points into mature networks will face a reduction in investable opportunities and declining return expectations, with resources leaning towards projects that control users and distribution.
A similar trend can be seen in social networks and cloud computing: after platforms like Facebook and AWS matured, the entrepreneurial space around them quickly narrowed, with capital flowing more towards the platforms themselves or a few players that truly control independent distribution. The current crypto space is still in an 'accelerated platform consolidation' observation period.
This essentially reflects capital concentration: as network effects and liquidity concentrate at the top, the structure of investable startup opportunities decreases, and pricing power and long-term returns shift towards a few mature platforms.
ABAB News · Cognitive Laws
- Once network effects are solidified, the window for disruption closes.
- Market growth does not equate to a continuous emergence of investable startups.
- Whoever controls distribution defines the ownership of the value chain.