Valhalla Ventures GP drops truth on why chasing hot sectors is a death trap:
"Day one knife fight. Every early-stage startup burning capital competing with clones. Just a way to incinerate money."
This is the VC game in 2025. Everyone piles into AI agents, restaking, or whatever Binance lists next. Result? 10 teams building the same thing, all bleeding runway, none getting escape velocity.
Smart money finds whitespace. Crowded = compressed multiples + war of attrition. You want asymmetry, not a Battle Royale with 15 other seed-stage projects.
If you're building in a hot category rn, ask yourself: what's your actual moat when 3 other teams just raised on the same thesis?
"Day one knife fight. Every early-stage startup burning capital competing with clones. Just a way to incinerate money."
This is the VC game in 2025. Everyone piles into AI agents, restaking, or whatever Binance lists next. Result? 10 teams building the same thing, all bleeding runway, none getting escape velocity.
Smart money finds whitespace. Crowded = compressed multiples + war of attrition. You want asymmetry, not a Battle Royale with 15 other seed-stage projects.
If you're building in a hot category rn, ask yourself: what's your actual moat when 3 other teams just raised on the same thesis?