- Competition between crypto and AI
- Valuation concerns for AI projects
- Opportunities for crypto startups
As interest in artificial intelligence grows, venture capitalists are starting to lose interest due to unrealistic valuations and unmet expectations. A partner from Dragonfly Capital shared his perspective at the Token2049 conference in Singapore.
Competition between crypto and AI
At the Token2049 conference in Singapore, a partner from Dragonfly Capital noted that crypto and AI are currently competing for talented professionals. He mentioned that professionals are increasingly choosing AI as it is a new technological field. "If you ask a new graduate or founder where they want to build, many would choose AI. And that's where the competition lies," he noted.
Valuation concerns for AI projects
The Dragonfly Capital partner also noted that venture capitalists are growing disenchanted with AI due to high project valuations and unmet expectations. "There is a lot of concern about certain valuations and whether the revenues can match up with expectations," he said. The executive also added that the current risk levels are comparable to 2021, standing at 5%.
Opportunities for crypto startups
When asked if the current situation in AI could create opportunities for crypto startups, the Dragonfly Capital partner confirmed this. He explained that cryptocurrencies provide an alternative asset class for venture capital. However, he also emphasized that not all companies need venture funding and can build profitable businesses independently.
The Dragonfly Capital partner concluded that the current conditions make venture funding for AI less attractive, which might open new opportunities for crypto projects.
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