Funding onchain teams is hard because the failure rate is extremely high. There are teams that are great on paper but do horribly when building onchain products. Sometimes it’s a mismatch with the user base and culture, but more importantly, onchain products have to get a lot right. If they don’t, things can implode and people can lose a lot.
Or they get lucky, become successful and start printing revenue quickly. Then ego gets tested, and many times people fail that test.
In many ways, building onchain requires a very specific understanding of culture and onchain mechanics, but most importantly, you have to check your ego and stay humble if you start to win.
Very different from non onchain startups where it takes years to get to $100m in ARR and the founders have had to grow along the way and earn the right. With onchain, it can happen in a few months and it takes a very specific founder to understand this responsibility. Which is why very few win long term in this space.