Decoding the Truth of VC Projects: Investors Must Learn to Make Independent Judgments

Many novice investors often ask, what exactly is a VC project. In fact, a VC project is simply an abbreviation for venture capital project, which in English is called Venture Capital, literally meaning risk capital. The core logic of this investment model is: investing funds into startups or technological innovation projects with high growth potential in exchange for company shares or future profits, while bearing the corresponding investment risks.

Why Do VC Projects Frequently Fail

Currently, there is a serious phenomenon in the market: many VC projects regard listing on certain top-tier exchanges as their only goal, and this approach itself should be approached with caution. If the project team only focuses on the endpoint of going public, they often overlook the value creation of the product itself, ultimately leading investors to face the risk of being “harvested.”

Even more concerning is that these projects usually target retail investors who have insufficient understanding of the market. Once the listing is completed and the project’s popularity declines, the capital providers cash out and leave, leaving later investors holding the bag.

How Investors Can Save Themselves

Honestly, as ordinary investors, we cannot directly change the decisions of project teams, but we can change our own mindset. The only solution at this point is: continuous learning and building your own investment framework.

Specifically, you need to do the following:

Deepen your knowledge reserves - Conduct in-depth research on each project you want to invest in, understand its technical foundation, team background, and market positioning, rather than blindly following trends. During the research process, you can refer to reputable analysis articles within the industry, but the final judgment must be your own.

Find the right track for yourself - Different VC projects involve different fields, from application layers to infrastructure layers, each with different risk-reward ratios. Investors should choose relatively controllable tracks based on their risk tolerance and knowledge reserves.

Build an independent investment logic - This is exactly what the letters DYOR (Do Your Own Research) intend to convey. Follow your own investment path and make decisions that can withstand scrutiny.

Investment Philosophy After the Bitcoin Era

We have entered the post-Bitcoin era, where the market has become increasingly complex, and the number of projects continues to grow, but not all projects are worth investing in. True investment ability is not about following big influencers’ market predictions, but about independently researching and finding undervalued opportunities with real value.

In other words, learning to say “no” is more important than learning to chase the rally.