Forbes: What is Web3 Venture Capital doing in 2021?

Web3 has slowly evolved from a new community to a new market, and 2021 is an important year for Web3.

Over the past year, we've marveled at how technology and capital have flowed into the Web3 ecosystem. The result is a radical change in the technology of management and consumer products that affects the economy, money and the Internet itself.

Above: Trading company Andreessen Horowitz is now a leader in the cryptocurrency industry. In 2018, he raised $ 300 million to develop his first specialized cryptocurrency fund, then invested in two larger companies, including Fund III, a $ 2.2 billion cryptocurrency fund set up. This year.

Web3 rau venture capital opportunities

Web3 is primarily about the Internet, created by developers, users, and writers. With tokens and decentralized technology output, Web3 puts information in the middle. Cryptocurrencies, decentralized financial instruments (DeFi), and non-homogeneous tokens (NFT) were the first applications launched, and these applications were closely related to the product and were supported by users.

However, there is still a long way to go before Web3 technology becomes widely available. Less than 10% of the world's population still owns their own cryptocurrency. Additionally, financial management systems now hold up to $ 100 billion in assets, which is still a small difference from traditional financial systems. The Web3 app, on the other hand, already has tens of millions of users, but remains unreliable compared to the millions of users using the Web2 app.

Soundwise developer Tascha said the recent use of technology and the leadership brought by the internet and mobile phones could help applications reach a larger market if Vital technology can reach millions of users. Use it wider. In contrast, it currently only has 180 million Ethereum addresses, and it will take 5 years to reach 1 billion of current growth as the base of Web3.

Above: Number of Internet users (in billions)

The use of Web3 is still in its infancy.

From the current perspective, the third phase is the first phase of developing the best technology since the advent of the Internet, which created the largest investment in the history of business investment.

Some high-level metrics coming to the industry in 2021:

1. By 2021, global companies will invest more than $ 30 billion in cryptocurrency startups.

2. There are now over 65 unicorn crypto companies, over 40 new ones in 2021, and nearly 50 crypto startups that raised over $ 100 million in 2021.

3. The Cryptocurrency Exchange Company Announces Over $ 3 Trillion

Overview of Web Venture Capital 3

In 2021, VCs invested in cryptocurrency startups, and since November the total global investment has reached $ 30 billion and the market cap is 1,278. The average daily income to start a blockchain business in 2021 is $ 20 million, and the average income from seed production has increased from $ 1.5 million in 2020 to $ 3.3 million.

Above: Global venture capital investment in cryptocurrency and blockchain companies by end of November 2021

We can see that many investors around cryptocurrency are looking for money. Of these, a16z made a $ 2.2 billion cryptocurrency investment in June, and Paradigm made a $ 2.5 billion cryptocurrency investment in October. Additionally, large and mature funds like Tiger and Sequoia have in the past avoided cryptocurrencies, but have now entered the market later through asset trading.

Above: According to data from Crunchbase, Coinbase Ventures has made over 100 investments this year and contributed $ 3.7 billion in market capitalization.

As companies invest in the Web3 ecosystem, the value of this domain will increase and the competition for capital will increase. As competition from venture capitalists intensifies, the stages (early and late), geographic area (west and east) and added value (trading, management, token production, convenience, etc.) are critical for companies. cryptocurrency businesses. will earn money.

Getting started with Web 3

Depending on the frequency of payments, at least 65 crypto / blockchain startups are now worth more than US $ 1 billion, of which more than 40 are entering the Unicorn Club in 2021 alone.

Above: Unicorn Index of the blockchain industry

Nearly 50 crypto startups will raise more than $ 100 million by 2021. In the past, cryptocurrency and blockchain financial instruments have always been derived from exchanges, fintech companies, and online services. . FTX, Celsius, Gemini and Fireblocks are also the most important houses this year.

Above: Biggest Crypto Web3 Equity Funding in 2021 - Powered by FTX

But we are also seeing more and more people starting to pay close attention to consumers. This can be seen in the major investments of Sorare, Moonpay, Forte and Dapper Labs. Without exception, these companies are focused on one thing: bringing the next billion users into their digital heritage ecosystem.

Where are we going in the future?

Indeed, it is understood that the Web3 ecosystem is now the melting pot of talent (developers and entrepreneurs) and capital (companies and organizations). Combined with this cutting-edge technology (blockchain / cryptography), you have everything you need to innovate and create value. With the rapid development of technology and technology and the huge push of Metaverse, Web3 will become the first choice of heavy users.