Framework Ventures Co-Founder Sees Intense Competition in Crypto VC

On September 18th, at the TOKEN2049 conference, Vance Spencer, co-founder and general partner of Framework Ventures, spoke during the "Investors Roundtable: Navigating Crypto's Changing Landscape." He shared his perspective on the current state of the crypto venture capital landscape, noting the fierce competition and the absence of breakout funds.

Spencer stated that if he were starting a fund from scratch today, he would focus on a specific region or sector. "I would likely move to India, China, or Hong Kong," he said. "We started in 2019 with that approach, focusing on a specific area." He believes this strategy would be crucial in a market saturated with funds.

He pointed out that no fund has yet emerged as a standout player in this cycle, achieving a significant 1000x return on investments and securing a "top dog" position. While he acknowledges that this outcome might be unrealistic in the current environment, he sees the period from 2018 to 2022 as a unique period in the history of the industry.

Spencer believes that not every fund will be able to grow from a $10 million fund size to billions of dollars in this landscape. The intense competition makes it challenging for new funds to stand out and achieve substantial growth.