Current Web3 Venture Landscape and Investment Opportunities Recap
On March 17, 2022, I led an investor training on the Web3 Landscape and Investment opportunities. Here’s a link to the recording and below is a recap.
To understand the monumental shift occurring, it’s helpful to look back at the evolution of the internet and the technologies underlying it.
When we refer to Web3 we’re talking about a foundation built on decentralized technologies. In all previous eras, it was only possible to engage and share online through the use of intermediaries.
We know these as the platforms we use and applications we download. There’s always been a centralized controller sitting between the creators of value and the users that gain from it.
The Evolution of Web3
In Web1, the internet was read-only. In this era, which spanned from ~1990–2000, you could consume information but not engage with it. When it was recognized that people wanted to read and write, Web2 began taking shape.
Web2 is often referred to as the platform economy and it’s where we sit today. Software platforms like Twitter, Facebook, Medium, and Spotify enable users to create content that can be shared and allows users to interact with each other.
While this has opened up massive opportunities for the exchange of information, it poses some serious privacy and ownership issues.
For example, Facebook and other social platforms have all been caught spying on users and collecting data to sell to third parties without the consent of users.
The Adoption of Web3
As far as ownership, in Web2 there is none. If you post a picture to Instagram, Instagram owns it- not you. If you build an audience on YouTube, they own the email addresses and names of your members- not you. And if they change their algorithm or decide to shut down your channel- there’s nothing you can do.
You’re not in control as the creator, and this is the reason Web3 technologies have the fastest adoption rate of any technology in human history.
With Web3 technologies like Blockchain, NFTs, and DAOs built on top of a Blockchain layer- members all share in the equity of the creation, which provides everyone with ownership instead of one single company at the core.
Why is Web3 a Lucrative Investment Opportunity?
When users are owners, they have decision-making power and this is the reason so many forward-thinking investors and innovators, including Untapped Ventures, are betting big on Web3 technologies.
Untapped is a Venture Studio dedicated to creating products and services to help people live their best lives. Web3 unlocks so many of these opportunities because creators and users get to share in the upside of the value they bring to the internet table.
For all of these reasons, it’s clear that Web3 is going to win. It’s the natural evolution of the internet and investors are doubling down on funding innovative technologies built using these decentralized frameworks.
For context on what these technologies are, the graphic below, produced by CB Insights in March of 2022, shows a variety of categories and themes.
According to Pitch Book, “VC bet big on crypto startups in 2021, investing ~$30 billion globally as of late November across 1,278 deals.” This funding rate isn’t slowing down either.
Untapped and Web 3.0
As a Venture Studio and group of entrepreneurs, we are excited about Web3 technologies and will continue to invest in startups using these tools to help people live the best versions of themselves.
One of our recent investments, Fitcoin, is doing this by helping anyone monetize their fitness data. Calories burned equals Fitcoin earned, as CEO Alex Tima likes to say!
Earlier last week (March 2022) Untapped’s founder George Bandarian gave an illuminating talk detaining many of the above points and more.
He sheds light on the evolution of Web3, goes into detail on NFT and DAO basics, explains why investors are investing in startups using these technologies, and how entrepreneurs should think about capitalizing on this moment in history.
You can watch the webinar recording here
If you’re interested in getting involved with Untapped, here are some ways to engage with us:
Click here to catch the Web3 Investor Training replay and then feel free to reach out anytime via our website or drop an email to say hello!
