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Crypto startups boost valuations as investments pick up
Crypto startups are putting valuations in the fast lane with an aggressive form of fundraising that reflects the digital asset industry trend recovery as well as the desire to put among venture funds money to work.
This approach involves open-ended fundraising that keeps cash coming in and rapidly raises valuations, as opposed to the traditional venture capital model of discrete rounds spaced out over a number of years. An open-ended funding round rewards earlier investors as they benefit from a rapid increase in a startup’s value, thanks to commitments from later backers.