Crypto hates VCs but for strong altcoin season we need VC money.

VC money funds salaries, operations, and VERY importantly, market making.
When tokens launch, teams and airdrop farmers sell into liquidity partly backed by VCs.
Key point is that $1 of VC money creates more than $1 of market cap for the whole industry.
And because most tokens are held and not sold, so small inflows move market caps disproportionately.
I couldn’t find an exact multiplier for alts, but for BTC, Bank of America calculated a 118x multiplier in 2021.
Back then, $93M of inflow moved BTC’s market cap by $11B.
For alts the multiplier MUST be much higher due to thinner order books, more supply locked in vesting and staking etc.
$5M into a $50M MC shitcoin with 90% supply locked pumps the price way more than $5M into Bitcoin.
Of course, in a bearish market and when VC money dries up, altcoins dump the most.
Problem is that this bull run we got ~50% less VC money ($26B) vs $66b in 2020-22.
At the same time, projects raised at all time high valuations $37M USD.
So:
-> less money for similar number of projects at way higher valuations.
-> Every project ended up getting a smaller cash injection but listed at a super high FDVs.
-> More tokens competed for less liquidity and the multiplier had less impact this cycle.
Low float high FDV launches were bad for retail but in the short term it created a wealth effect in crypto that made you feel rich on paper, so you ended up getting greedy, trade memecoins and maybe lost a lot :((
VC also served as exit liquidity for airdrop farmers ... who sold their airdrops.
In any case, VC capital is what funds the industry...
It's especially needed now when so many crypto projects are shutting down.