Hoskinson says VCs prefer to deploy capital into FTX and Terra than Cardano.
It is common knowledge that Cardano has not received much Venture Capitalists (VCs) support like other blockchain projects. Cardano’s lack of VC support has prompted discussions across various social media platforms.
In a recent tweet, Paula Manuel, COO of Cardano-based Pavia Metaverse, disclosed that VCs have consistently refused to invest in Pavia because it is built on the Cardano blockchain.
“I’ve had a number of conversations with VCs over the last few months. When we mention we are building on #Cardano, they winced and said ‘Eww, no thanks. We may be in the business of risk, but not risk on risk!” Manuel said.
Patrick Tobler, the founder of Cardano-based Web3 infrastructure NMKR, corroborated Manuel’s claim. According to Tobler, he received a mail from a VC explaining that it will not invest in any project related to Cardano.
Responding to these comments, Cardano founder Charles Hoskinson noted that these Venture Capitalists would rather deploy their capital into collapsed cryptocurrency projects like Terra (LUNA) and FTX exchange.
I guess they'd rather deploy capital into Luna and FTX? https://t.co/dMbxcOWGY0
— Charles Hoskinson (@IOHK_Charles) November 23, 2022
Despite Cardano’s massive growth and stability, the project has not been able to attract VC investments. Hoskinson has commented on the development on numerous occasions. In January, Hoskinson said Cardano does not need VC backing because the blockchain project has built one of the largest Venture Capitalists while referring to Cardano Treasury.
I can't help but recall the old scene from Back to the Future where the doc says, "Where we are going, we don't need roads," about Cardano and VCs. Where we are going, we don't need VCs because we have already built one of the largest 🙂 pic.twitter.com/9DXPXN9yoy
— Charles Hoskinson (@IOHK_Charles) January 3, 2022
Cardano Treasury holds a total of 1.06 billion ADA coins, worth about $332 million at the current exchange rate.
After the collapse of the Terra ecosystem in May, Hoskinson took to Twitter to ask why VCs hate Cardano but love other altcoins. He shared the Mike Novogratz, CEO of Galaxy Digital investments, left arm photo, where Novogratz tattooed the Luna logo.
“I’m always wondering why VCs and crypto media love certain alts and hate on Cardano. Just can’t figure it out,” Hoskinson quizzed.
Although Cardano has not received as much VC support over the years, Hoskinson expressed optimism that VCs will flood the network by 2024 when decentralized applications start getting multi-billion dollar valuations.
“So where they get involved is when you see multiple Cardano dApps start getting multibillion-dollar valuations. Because there is something for them to invest in, there is something for them to connect to. So probably 2023, 2024,” Hoskinson said in an interview at Mainnet 2022 Cardano event.