Cardano CEO Hoskinson Argues VC Money Will Flood to Ecosystem by 2024

cryptonews.com:

Charles Hoskinson, co-founder of Ethereum (ETH) and co-founder of Cardano (ADA), said that venture capital (VC) funds will come “organically” when Cardano decentralized apps (dapps) start seeing million-dollar valuations.

During Mainnet 2022 in New York, USA, in an interview moderated by Ryan Selkis, co-founder & CEO at Messari, Hoskinson basically argued that ‘if you build it, they will come’.

He said that VCs will come to Cardano and that they’ll get involved “organically, because greed is their thing,” and it’s their fiduciary obligation to their limited partners (LPs – investors, be it companies or individuals, who supply the capital).

“So where they get involved is when you see multiple Cardano dapps start getting multibillion dollar valuations. Because there is something for them to invest in, there is something for them to connect to. So probably 2023, 2024.”

The CEO did note, however, that Cardano has their own VC in the ecosystem, Catalyst – which has $500m worth of ADA and emits about $60m-70m per year, he said.

When asked if he thought that VCs currently overlook the Cardano ecosystem, Hoskinson replied that “some do, some don’t,” but that it depends on the location and the type of company.

However, a big reason some are not interested in it, claims Hoskinson is,

“Because we didn’t have any Ponzinomics for them. Let’s just be honest here. The cast majority of VCs […] the way they approach it is: liquidity.”   

What VCs look for, he argued, is quick and short-term profits, which could be gained through unfair token distribution, with early investors then dumping coins on retail holders who end up losing a lot of money in the inevitable price crash.

Cardano CEO claimed that, while some layer 1 projects’ insider