Enterprise capital traders have heightened the scrutiny of crypto danger, says B2 Ventures founder Arthur Azizov.
Abstract
- October crash spooked not less than some Enterprise capital traders
- VCs now prioritize infrastructure over crypto merchandise
- Larger rates of interest and market maturity imply that traders are extra selective
After October’s crypto crash erased billions in worth and rattled investor confidence, enterprise capital is taking a step again from danger. Larger charges, tighter liquidity, and shaken sentiment have pressured traders to focus much less on token bets and extra on the infrastructure protecting the system operating.
For Azizov, a long-time fintech founder and investor, this retrenchment marks a turning level. In an interview with crypto.information, he defined that VCs are more and more turning to infrastructure performs that energy the core tech of the ecosystem, and that may face up to the following crash.
Crypto.information: The crypto market lately suffered a crash, with $19 billion in liquidations. How are institutional traders reacting to the crash? Did it make traders reassess danger?
Arthur Azizov: Undeniably, the October flash crash was a wake-up name for the market. From what I’ve noticed, the instant response from most institutional traders was a pointy enhance in danger scrutiny — the standard of collateral, liquidity sources, and the mechanics of liquidations, not to mention leverage. Since then, we’ve seen a transparent pause in risk-on habits, with many funds tightening publicity, elevating inner danger thresholds, and demanding extra transparency from venues and counterparties.
Some VCs have slowed deployment, prioritizing startups with sturdy danger programs or direct infrastructure impression over speculative purposes. In the meantime, probably the most seasoned establishments view this as a chance to double down on builders who can deal with stress cycles. In brief, there’s now a lot better concentrate on capital effectivity, stress testing, and real-time danger analytics, on each the funding and product sides.
CN: What themes are forward-looking crypto VCs specializing in proper now, and the place will the following funding wave go?
Azizov: From the place I stand, probably the most forward-looking VCs are transferring past narratives and switching their consideration from “crypto merchandise” to “crypto infrastructure.” I anticipate this pattern will proceed to outline 2026. We’re already seeing sturdy momentum in tokenized real-world belongings, market-neutral yield methods, and middleware that connects conventional finance with on-chain liquidity.
There’s additionally a rising concentrate on information and danger intelligence — tasks that assist establishments measure publicity, collateral, and execution high quality in actual time. On the identical time, the AI funding wave isn’t fading. In Q2 alone, 5 U.S. AI startups raised over $1 billion every, whereas AI general accounted for 35.6% of deal rely and practically two-thirds of U.S. VC deal worth in 2025.
In that sense, the following wave might be about scaling what already works — usually by experimenting and iterating with AI, relatively than reinventing use instances from scratch.
CN: VC investments are additionally turning into extra consolidated, with fewer companies touchdown the most important offers. In your opinion, is that this an indication of maturation, danger aversion, or one thing else totally?
Azizov: I discover this consolidation to be the results of pure market evolution. It’s tempting to name it simply “danger aversion,” however in actuality, it displays a maturing market. The early days of widespread funding have been about trying to find breakout concepts; in the present day, the bar is far larger. Traders are backing groups that may successfully tackle regulatory bottlenecks, ship institutional-grade merchandise, and present traction in powerful circumstances.
It’s additionally a matter of belief and experience. Bigger funds with actual area data are higher positioned to evaluate deal alternatives and help founders by means of durations of volatility. Because of this, we’re seeing capital focus round confirmed managers and infrastructure tasks with a transparent path to scaling. Total, I believe that is wholesome.
CN: You talked about that in the present day’s bar is far larger for groups searching for funding. How do you personally determine what tasks to put money into, each on the stage of particular person groups and corporations?
Azizov: For me, it at all times begins with a workforce’s capacity to execute underneath stress and adapt to drastically altering market or regulatory realities. I search for founders who’re obsessive about their product, but in addition humble sufficient to iterate or study shortly. Operational self-discipline and readability of imaginative and prescient are non-negotiable.
On the corporate and trade stage, I’m taken with options that compound liquidity or infrastructure effectivity — areas like danger engines, cross-market connectivity, tokenized belongings, or information analytics. To me, sectors that create actual utility, even in difficult circumstances, at all times stand out.
In different phrases, my filter is straightforward: “Will this venture nonetheless matter if the market will get tough?” If the reply is “sure,” and the workforce can ship, it’s price backing. Every thing else is simply noise.
CN: Are there any alternatives or developments within the blockchain and Web3 trade that almost all institutional traders are overlooking?
Azizov: Completely. Many institutional traders nonetheless lean towards high-profile narratives or “headline-worthy” use instances, however, as I discussed, a few of the most impactful alternatives are out there’s plumbing. Take perpetual futures, for instance. Perps have develop into the spine of danger switch in digital belongings, making a steady, liquid venue for hedging, enabling unified collateral administration, and setting new requirements for danger engines.
The broader market usually underestimates their function in compressing fragmentation, driving effectivity, and laying the groundwork for institutional adoption. However I believe this can change quickly — perps already account for over 68% of derivatives buying and selling in Bitcoin, and I’m positive that share will solely develop as extra establishments notice their significance.
CN: To conclude, how does enterprise capital reply to the macro components that affect the crypto trade? How do financial and commerce insurance policies issue into VC funding selections?
Azizov: Macro components at the moment are entrance and middle for each severe VC. For a very long time, crypto felt disconnected from world cycles, however that has modified. As we speak, financial coverage, actual yields, and even geopolitical commerce tensions head instantly into deal stream and venture viability. Larger charges have made traders extra selective, switching consideration from “development at any price” to clear enterprise fashions and sustainable unit economics.
This new setting means solely probably the most adaptable groups and probably the most resilient infrastructure will entice capital, as volatility now isn’t an exception anymore — it’s a given. That’s why I’m satisfied that when you can flip that uncertainty into an edge, you’ll be each surviving the cycle and constructing the foundations for what comes subsequent.
