Web 2.0 Investors Aren’t Cut Out for the Web3 World

In Web 3, companies achieve liquidity early via ‘tokenomics’ and other novel mechanisms to raise capital from users (often highly speculative in nature), and build the necessary technical infrastructure to create an alternative internet: decentralized servers, identity-management ‘wallets’, token exchanges allowing easy movement among various ecosy... See more

But many of the web 3.0 advantages are hard to adopt as a large, existing, web 2.0 company. The big ideas: ownership, collaboration, and community are new foundational principles.

On a recent Acquired episode, Multicoin Capital VC Kyle Samani points out why VCs have far greater risk-tolerance to make moonshot bets with tokenized web3 companies than they do with non-tokenized web2 companies: web3 VCs can always sell off the tokens, typically after a vesting period of a year. Where traditional VCs see most of their struggling ... See more