Varun Datta, Truth Ventures CEO – Web3’s Funding Boom Is Over. That Could Be Good News for Founders

Varun Datta, venture capitalist and CEO of Truth Ventures, said Web3 fundraising has become more selective even as crypto venture investment reached about $5.7 billion in the second quarter of 2026, a 31% increase from the previous quarter, according to Galaxy Research. Galaxy data showed nearly 80% of that capital went to later-stage companies, only five new crypto venture funds were recorded, and startup valuations had fallen from their late-2025 highs. FinDaS recorded $1.05 billion across 48 Web3 funding rounds in September, compared with a prior 12-month monthly average of $2.01 billion and almost 67 rounds. Datta argued tighter conditions push founders to prove customer demand and revenue earlier, since token incentives can obscure genuine market fit.