Where’s Web3 going? An investor's perspective


The conversation features three notable speakers: Haseeb, a managing partner at Dragonfly; Vanessa, a general partner at Ugly Ventures; and Avichael, a successful entrepreneur and co-founder of Electric Capital. Each speaker brings their unique experience and expertise to the discussion.

Current Landscape of Web3

The discussion begins with an overview of the current state of Web3 and the types of pitches that investors are encountering. ZK (Zero Knowledge) technology is identified as a popular trend, with many projects focusing on infrastructure and applications. However, it’s noted that not all applications in the Web3 space are of high quality, indicating a need for better product-market fit.

Trends and Challenges

The speakers highlight some trends and challenges they observe in the Web3 landscape. ZK technology, particularly ZK Hardware, is identified as an area where many talented individuals are currently focusing their efforts. Incremental and small-scale ideas are also prevalent, but the speakers emphasize the importance of tackling big problems and taking significant strides to drive substantial value creation.

Scalability and User Experience

Scalability is identified as an ongoing challenge in Web3, with work still needed to improve existing solutions like layer two scaling. Despite scalability concerns, the user experience (UX) is not considered a significant bottleneck for mass adoption. However, UX improvements are acknowledged as crucial for broader user acceptance and adoption.

Importance of Solving Big Problems

The speakers stress the need to solve significant problems that open up new possibilities in the Web3 space. They caution against making Web3 too accessible too quickly, as it may result in negative consequences, such as widespread financial losses. Instead, they believe that addressing critical issues and gradually expanding user adoption is a more sustainable approach.

Evaluating Investments in Web3

When evaluating potential investments in Web3 projects, the speakers share their perspectives. While team competence is traditionally valued in the startup world, the speakers caution against overemphasizing team pedigree when it comes to Web3. They mention that many successful Web3 projects were founded by individuals with little prior experience in crypto.

Tokenomics and Value Capture

The discussion touches upon tokenomics and the challenges associated with capturing value through tokens. The speakers note the regulatory constraints surrounding token development and emphasize the importance of building real value and utility in a project first. Tokenomics should complement the fundamental value and unit economics of a project rather than be the primary focus.


The panel discussion provides valuable insights into the current state of Web3 from an investor’s perspective. Key takeaways include the significance of addressing big problems, the need for scalability improvements, the role of user experience in adoption, and the balance between tokenomics and value creation. By understanding these trends and challenges, investors can make informed decisions when navigating the evolving Web3 landscape.

Remember, the Web3 space is constantly evolving, and staying up-to-date with the latest developments and industry trends is crucial for successful investments and participation.