Are VC funds entering the Web3 market?

In addition, larger and well-established funds like Tiger and Sequoia, which had historically shied away from crypto, are aggressively entering the market through late-stage equity. As more institutional capital flows into the Web3 ecosystem, expect valuations to get bid-up and competition among VC funds to intensify.

What is Web3 & how does it work?

Web3 is a new decentralized form of the internet where users become owners. Today’s internet, Web 2.0, is largely controlled by centralized players who capture much of the monetary value created on the internet. Web3 replaces these centralized players with decentralized networks that distribute the value to developers, creators and users.

How much money did early-stage investors invest in Web3?

Early-stage investors poured around $94 billion into Web3 companies between 2016 and 2022, most of it in the last two years, with investment peaking at $13 billion in the first quarter of 2022. This corresponds to Bitcoin’s plunge in price after hitting its all-time high of nearly $69,000.

Is Web3 the financialization of everything?

In an interview on the podcast The Dig, reporters Edward Ongweso Jr. and Jacob Silverman characterized the whole system as an elaborate upward transfer of wealth. Writing in The Atlantic, investor Rex Woodbury called Web3 “ the financialization of everything ” (and not in a good way).