Web 2.0 Investors Aren’t Cut Out for the Web3 World

In Web 3, companies achieve liquidity early via ‘tokenomics’ and other novel mechanisms to raise capital from users (often highly speculative in nature), and build the necessary technical infrastructure to create an alternative internet: decentralized servers, identity-management ‘wallets’, token exchanges allowing easy movement among various ecosy... See more

On a recent Acquired episode, Multicoin Capital VC Kyle Samani points out why VCs have far greater risk-tolerance to make moonshot bets with tokenized web3 companies than they do with non-tokenized web2 companies: web3 VCs can always sell off the tokens, typically after a vesting period of a year. Where traditional VCs see most of their struggling ... See more

The arrival of blockchains over the past decade created a new option for impatient VCs. Companies in the Web 2.0 era produced only goods and services, whose value was always denominated in dollars or other national currencies. But companies in the web3 era offer a third product — tokens — and the value of those tokens is far less tethered to realit... See more

Similarly, web3 spent its first decade or so as a playground for researchers, coders, and degens. People bought drugs with crypto, too. Last year, corporates started dipping their toes by buying Bitcoin with their balance sheets. Over the past month or so, though, it really feels as if web2 companies are waking up to the fact that they need to figu... See more