Crypto investors should not judge seed startups by recurring revenue, Truth Ventures CEO says

Truth Ventures CEO Varun Datta has urged crypto investors not to demand recurring revenue from seed-stage companies, as RootData has listed 99 crypto projects that closed, entered bankruptcy, or became inactive in 2026. Summary RootData listed 99 crypto projects as closed, bankrupt, or inactive by late July. Galaxy recorded $4 billion across 355 crypto venture deals in the first quarter. Datta said seed startups should be assessed through founder knowledge and their path to a viable business. US-based companies received 70.2% of crypto venture capital during the first quarter. RootData listed 99 crypto projects that had announced closures, entered bankruptcy, or remained unavailable for long periods by late July, according to a recent crypto.news report. The database includes several types of inactivity, meaning its total should not be presented as 99 insolvencies. As companies disappear from several parts of the market, investors are examining whether crypto products can retain users and support operating costs without depending on rising token prices. Datta told crypto.news that such tests may be suitable for established businesses but could produce the wrong assessment when appl...