VCs have been sitting on Billions, investing in the next generation of web3 Keeping up with their investments can help you spot the next Hot Space Here are projects that the top investors are betting (Including a database of recent raises & investments) 🧵
I’ve looked at the recent investments by crypto VCs Keep reading to understand: • What these projects do • The problems they seek to solve • And thoughts on them Here’s a database with investments made this month (not exhaustive, will add more): https://covduk.notion.site/August-VC-investments-8bf4ba234ded446e98d4663113b40cd9
@Satellite_im | A decentralized chat platform $10.5M seed led by Multicoin & Framework The problem with current chat platforms: 1. Tracking & Stealing data 2. There is no web3 native platform Data breaches & theft, limits on quality, censorship, the list is endless
What is Satellite? Satellite is a decentralized, web3 native messaging platform with a strong focus on security & privacy. Messages are fully encrypted & do not depend on a centralized servers This means that your data isn’t stored & no one (including Satellite) can look at it
Core Features • Hyper focus on Security • Open Source: Users can build on top of it & create custom bots • High Quality Video & Audio: 4K steaming, send 246mb files & 4gb of free storage • Web3 native: Leverages decentralization & trustlessness
My thoughts We've all been waiting for better messaging platform I like projects that solve irl problems. Mass adoption of crypto is going to happen through solving such problems. The team seems solid & from what I’ve seen so far, it’s promising
@datawispio | No code data analysis $3.6M seed led by CoinFund. Data is an incredibly powerful tool. But accessing, using & interpreting data requires specific knowledge that most people do not have. Datawisp is trying to make data (both web2 & web3) more accessible
What is Datawisp Datawisp is a no-code data platform that allows users use & visualize data without technical knowledge. How it works: • You import a data source • Use simple blocks to customize & visualize it • Set KPIs & datawisp helps make the data useful for you
My Thoughts There’s so much data in web3, but a lot of it is: • Hard to make sense of • Locked behind technical barriers Bubble, a no code app building platform, saw a lot of success for similar reasons Breaking these technical barriers is good for the ecosystem.
@GunzillaGames | AAA battle royale with in-game item NFTs $46M led by Republic Cap Video games have a natural synergy with NFTs & crypto. However, most games right now either: • Focus on P2E & not on the game itself • Look boring as hell
What is Gunzilla Games? Guzilla games is a games studio making a cyberpunk battle royale called Off the Grid A central part of the game will include crafting, customizing & trading in-game item NFTs The teaser looks pretty good https://www.youtube.com/watch?v=x6InNyCE2Rc&t=1s
My thoughts: Web3 games are going to make big waves. Right now, however, gamers hate NFTs & crypto games. Overcoming this will be challenging. Also, the BR genre is quite saturated It’s all going to come down to how fun the game is & how seamlessly NFTs fit into the game.
Good games are hard to make Web3 Games are not just competing with each other. They're competing with Blizzard, EA, & other big names. And that takes years & millions. No gameplay is out yet but the team seems solid & so far it's pretty promising.
@debtdao | financing for DAOs & protocols $3.5M raise led by Dragonfly Debt can be a powerful financing tool. But DAOs & protocols rarely use debt, because their options are limited: • Overcollateralized Loans require lots of capital • Undercollateralized loans require KYC
What is Debt DAO? Debt DAO provides trustless, revenue based financing. Their initial focus is on DAOs & protocols with on chain revenues
How it works 1. Their contract, Spigot, secures a portion of the borrower’s on chain cashflows. This cannot be changed by the borrower 2. A portion of the revenue is escrowed 3. The interest & principal is automatically paid back from escrowed revenue
My thoughts DAOs are struggling: coordinating 1000s of people in a decentralized way that works is tough. For them to work, we need good tools & infrastructure. Giving DAOs that generate revenue a financing option without the need to sell tokens will be beneficial for growth
@joincreatordao | Invest in & support creators $20M seed led by a16z A 9 year old kid playing with toys on Youtube made $200M in 2019. We’ve seen a huge surge in the number of creators, platforms & $$ in the space. The nature of work is shifting.
What is CreatorDAO CreatorDAO aims to be like YC for creators. The DAO will: • Enable members to invest in creators • Provide creators support & mentorship from top creators • Be a community for creators to meet other creators, receive help & support
My thoughts Investing in creators is not the same as VC For many, having support, mentors & a solid community > getting capital This sort of DAO structure is interesting because it addresses the other forms of support that other ‘invest in people’ platforms do not.
Boosting the creator economy. Crypto has great synergy with creators If done right, could be a powerful boost for the creator economy. As a crypto creator & someone who used to work in VC, this is really exciting. https://creatordao.com/blog/why-i-founded-creatordao-2/
Dragonfly acquires MetaStable Metastable is one of the oldest crypto funds founded by @naval in 2014 It has over $400M in assets under management & was an early investor in Ethereum, Cosmos & StarkWare.
Dragonfly Capital (if you don’t know them) is a prominent web3 VC. • In April, they closed a $650M fund (they’re rich) • Before this acquisition, they’d ~$2-3B AUM This is pretty big news. Dragonfly now added MetaStable’s 400AUM, making it a lot more expansive.
“Crypto is Dead” Despite the bear market & crashes, Investors are sitting on top of piles of money. Builders have been building A new wave of solutions & projects is upon us. https://twitter.com/milesdeutscher/status/1559729861736169472
We're in some exciting times We're witnessing the future being build from the ground up. There were more interesting projects that I didn’t cover. If you enjoyed this & would like to see more, let me know by: • Giving this a Retweet! • Following me @Cov_duk for more!