1Confirmation Founder: There is a negative correlation between the popularity of the seed round and the success of the project product

On April 29th, Nick Tomaino, founder of 1confirmation, wrote on X that there is a negative correlation between the popularity of the seed round and the success of the project. Participating in a hot round of financing is indeed exciting: the amount of financing is high, the competition is fierce, there are big-name investors, and there is a lot of media coverage. However, participating in such hot projects before the product-market fit is clear rarely leads to truly outstanding results. At 1confirmation, some of the hottest projects we have invested in have been the worst performing investments.
Here are a few reasons: · Creating market buzz is a skill, but it is a very different ability from building useful products. · Founders who are crowned too early tend to feel like they have succeeded and lose their killer instincts. · Too much funding often leads to distraction and a lack of focus. I would choose founders who are focused and responsible, rather than respected founders who are busy working all day.