TLDR:
– Lack of central hub for crypto may be holding back innovation in venture capital.
– Concentration of VC in Bay Area vs. decentralized nature of crypto.
Crypto’s Venture Capital Gap
The article discusses how the lack of a central hub for crypto, compared to other tech movements, may be holding innovation back in venture capital. While in Web2, the concentration of venture capital in the Bay Area created a clear hub, today’s top builders in Web3 are scattered globally, making it difficult for promising innovators to access the resources they need to scale their companies.
This decentralization presents challenges in scaling projects globally without established networks or relationships, particularly for builders in regions like South America, Africa, and Southeast Asia. The article emphasizes the importance of building hubs of innovation to connect top builders with venture capital that could fuel their ideas.
While some believe that venture capitalists are not funding projects due to being seen as caricatures of capitalism, the article suggests that the issue could lie in builders not having access to the necessary resources. Various initiatives, such as pop-up cities, network states, hackathons, and scholarship programs, aim to onboard global builders into Web3 and tackle the challenges of scaling the industry.
The key takeaway from the article is that funding those on the ground doing the hard work is essential for accelerating the pace of adoption in Web3. Venture capitalists are encouraged to fund initiatives that bring builders together, onboard new talent, and address the real challenges of scaling in the crypto space.
