Lattice VC: More than 80% of crypto startups that announced seed round financing in the 2022 bear market are still under construction

More than 80% of crypto startups that announced seed rounds in 2022 are still building today, according to a new report from Lattice VC. In the turbulent months of 2022, VCs poured more than $5 billion into 1,200 teams that announced their seed rounds, 2.5 times more than in 2021. With so much money pouring in in 2022, it was natural to expect a higher failure rate, but that wasn’t the case, said Lattic co-founder Mike Zajko. Among the projects of the same period, Eigen Labs led the way, with its proposed restaking laying the narrative that many startups in Ethereum and beyond built on two years later. But such success doesn’t tell the whole story. Lattic said only 1% of teams found product-market fit, and only 12% of teams raised follow-on rounds. According to Lattic, startups in the 2022 era have issued significantly fewer tokens than teams in 2021, at just 15% of 2021. Zajko said this could be due to the team missing the “bull window” and CEXs becoming “picky” about which assets they list. (CoinDesk)