A recent industry debate highlighted contrasting views on venture capital (VC) within the technology and crypto sectors. IOSG founder Jocy used a compelling analogy, comparing VC’s role in tech innovation to ‘cathedrals,’ highlighting their transformative impact, versus ‘casinos’ where risk-taking is paramount. Though only representing 1% of global investment today, VC has a long history of fostering technological advancement, backing giants like Amazon, Cisco, Google, and Tencent for decades. This success stems from their reputation, networks, and strategic insight, demonstrating the connection between technology and societal progress. However, the crypto sector presents a unique challenge to traditional VC models. Many investments lack the spirit of innovation often associated with VC, prioritizing quick profits over genuine growth. The focus on exploiting information asymmetries has diminished the role of crypto VCs in this space. This shift is reflected in the rise of memes and ‘fair launches’ – an industry response to perceived greed and short-term thinking. While speculative VCs have stumbled, a more purifying process is underway. The future of VC in crypto lies in its ability to evolve. Just as genuine believers survived the internet bubble, the crypto sector is undergoing a ‘survival of the fittest’ phase, demanding visionaries who provide ‘smart money’ rather than simply quick profits. This isn’t the end for VC but a necessary evolution, encouraging it to focus on risk-taking innovation and societal progress.