0/ In the past 2-3 weeks, there has been a visible uptick in the valuation of post seed pre-launch DeFi projects. This is a function of more capital being raised by funds and deployed to fund these early stage projects.
1/ While $40-60M was the range 3 months ago, it is now $100-300M for projects that have some traction and are raising their second funding round. These rounds are getting filled and often oversubscribed.
2/ We have even encountered projects raising their seed round with only a deck and asking for $100M valuation. This is a hard sell ATM unless they have a team of rock stars.
3/ We have clearly reverted to a market where founders have more sway than investors vs in 2019-2020 when it was the other way around. This is the stage where we start to see more opportunistic founders launch projects because the fund raising is a lot easier now than before.
4/ This dance is symptomatic of bull markets and will likely carry on for at least 6-12 months until valuations get to nosebleed levels and investors start to balk at overpriced deals. ATM, most investors are still able to accept these less favorable terms.
5/ This step change in valuation will also have spillover effects for the public markets further propelling the valuation of listed DeFi tokens as investors weight the risk reward of early stage private startups vs proven publicly listed platforms for DeFi exposure.
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