Vessel Capital, a venture capital firm, declares that it has $55 million in funds to invest in Web3 infrastructure and applications, particularly in promising new projects.
“We want to meet new founders who might not already be in our network,” Vessel Capital co-founder, Mirza Uddin states.
It’s Not Just About The Money
According to the report, Vessel Capital intends to allocate the funds in Web3 over a span of five years. It hints at the possibility of further expanding the capital pool.
Uddin believes that VCs who don’t understand web3 can’t properly help many startups with great ideas. “Oftentimes, [VCs] don’t have expertise in the things they’re investing in,” he states.
According to Uddin, the secret to a successful VC relationship with a startup is the ability to share industry knowledge:
“The world has enough VCs, but what’s actually missing is actual guidance and advice. Most times you’ll get a nice check, a pretty logo on your website, but other than that VCs don’t help much aside from intros from time to time.”
Uddin is particularly interested in partnering with fresh founders in the industry. He believes there are many new and valuable ideas that could use investment.
“A lot of giant funds are getting raises, but the VCs themselves don’t have a lot of skin in the game when it comes to using their own capital.”
Furthermore, Uddin points out a shift in the web3 industry landscape, and the firm intends to explore funding opportunities beyond the United States:
“Crypto has become more global, so it’s not the same circle and group you might have seen in 2018-2020, and we want to be able to help more people.”
To learn how to get into the Web3 industry, read BeInCrypto’s guide: A Comprehensive Guide to Starting a Career in Web3
Recent VC Funding In The Web3 Sector
In recent times, many believe that the prolonged crypto winter might be influencing web3 funding from venture capitalists.
According to Pitchbook data, crypto and web3 startups raised just $2.34 billion across 384 deals in Q2 2023.
This marks the fifth consecutive quarter of declines since the initial three months of 2022, during which $12.14 billion had been invested.
Rumors are circulating that VCs are also delving into artificial intelligence (AI), potentially leading to reduced funding for web3 and crypto projects.
On May 26, reports indicate that Paradigm is considering an expansion of its investment focus beyond crypto and blockchain to also include AI.
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