Web3 startups are the future of the Internet. In ten years, the Internet as we know it won’t exist.
The Internet we all use today, built on Web2 (or Web 2.0) foundations, will have been replaced by a hyper-connected world, some are calling the Metaverse. Web3 startups are integral to building that future.
Ethereum Co-founder, Gavin Wood, coined the term Web3 in 2014, describing it as “a trustless, permissionless, and decentralized internet that leverages applied blockchain technology.” Web3 “gives users full ownership over their content, data, and assets via blockchains. It empowers users to read-write-own.”
In a way, the closest we have, in sci-fi terms, is Ready Player One. Or the Holodeck, from Star Trek TNG. Or perhaps the various virtual meta-realities mentioned in Ian M. Banks Culture novels. Is that the future currently being created?
Maybe in the same way as sci-fi technology has become reality, such as smartphones, smartwatches, tablets, nanotechnology, blockchain, cryptocurrency, and numerous other inventions, one day art and reality won’t be that far apart.
Investors certainly think so. Investors are betting big money on a Web3 future.
Why are Web3 startups the future?
Some of the world’s largest investment firms and accelerators are going big on Web3, Blockchain, Crypto, and NFT-based projects. And we expect that trend to accelerate in 2022 and beyond, with billions raised in funds for future investments.
Let’s prove this statement with some valuable statistics.
- In 2021 around $30 billion was invested in the Web3 & creator economy landscape.
- According to a Forbes article in January 2022, Andreessen Horowitz (a16z), raised a new fund for crypto and Web3 investments, with $2.2 billion ready to be deployed.
- Paradigm, another prominent VC firm, raised a $2.5 billion fund.
- Tiger and Sequoia are yet to raise Web3/crypto-specific funds, but they’re getting into this market through late-stage equity deals.
- Coinbase Ventures put $3.7 billion into Web3/crypto deals in 2021, with that being spread across 100 deals, according to Crunchbase data.
- Already, there are over 65 companies in the Web3/crypto space that have reached unicorn status, with valuations over $1 billion.
- Taking into account the relative newness of this sector, that’s impressive. Although crypto isn’t completely mainstream, the market cap of that sector is north of $3 trillion and 10% of the world’s population has used it in some way.
Considering the foundational and integral role of crypto and blockchain in the creation of Web3 startups and the Metaverse, this is a good sign. It’s also a positive indicator for future growth in this area. As crypto and applied blockchain business ideas become more mainstream, that will support the accelerated adoption and use of Web3 startups. One will support the other.
A Forbes contributor believes that: “The Web3 ecosystem is currently a melting pot of talent (developers & entrepreneurs) and capital (VCs & institutions). Combine that with a new technology primitive (blockchain/ crypto) and you have all of the ingredients required for an explosion of innovation and value creation.”
Rahul Rai goes on to say, “As decentralized technologies and applications mature, and tailwinds such as metaverse adoption kick in, mainstream consumer adoption of Web3 will become inevitable.”
Other prominent VC firms investing in the Web3 space include Sequoia Capital, Tiger Global, Pantera Capital, Ribbit Capital, Blockchain Capital, Digital Currency Group, Slow Ventures, and numerous others. This is alongside an active global community of angel investors, plus anyone who puts money into ICOs and other investment opportunities in this space.
Not only that, but some of the world’s largest tech firms, such as Facebook, Google, Microsoft, and others worldwide, including Chinese tech giants, are investing billions in Metaverse and Web3 projects.
Get into the Web3 startup space with DEIP!
If you are active in the crypto/blockchain community and wondering how to get involved, there’s never been a better time.
Now is the time to build and launch a Web3 startup, especially as part of the content creator economy. Provided you are doing it for the right reasons, and have a problem that needs a Web3
solution, then as you can see, there’s more than enough investor money to support these types of companies. We are experiencing a boom time for this sector.
Given our experience in this sector, we have created a solution to help founders overcome some of the challenges of building Web3 startups. We have developed a tool, known as Casimir, to support founders through every stage of creating, launching, growing, and scaling Web3 startups.
DEIP is a creator economy protocol exclusively for intangible assets, derivatives, and Web3-based projects. Our Casimir tool is a Web3 startup builder, giving founders everything they need to start building and scaling Web3 startups.
As with any startup, you need to get the basics right first. Follow these steps:
- Identify a problem that needs a solution. Does it need a Web3 solution?
- If the answer is yes, then validate your idea. Build in public.
- Start growing and building a community. In almost every case, Web3 startups need a community, making marketing an essential element of the early-stage growth formula.
- Build an MVP: Use the data to test the theories behind your Web3 startup, and then test them further to ensure it’s worth pursuing.
- Assuming this idea is worth pursuing, keep developing the technology, growing your community, team, and aim to source investment to drive it forward faster.
That’s it. Hurry up and take your place in the Web3 market!