First published on Outlier Ventures. 2020 has been a turbulent year with no middle ground in business. Tech has generally done alright as an industry
First published on Outlier Ventures Blog August was more active than ever in Web 3 world. Continuing the tradition I am looking into the fundraising data
We are 50 days into lockdown in the UK and the economy on pause is taking its toll on the tech and startup world. Continuing the tradition I am looking into the fundraising data for April to get a comprehensive view of the state of web3. I am doing this every month to see how the true effect of COVID-19 unravels in the web3 world in near real time.
We have looked at the March funding numbers in Web3 Funding: March in numbers. Now it’s time for a breakdown. Fintech & DeFi are still accounting for over a third of the deals in web3 in March 2020. Although they have been out-funded by Identity by $2m, the category still attracted $41m in total funding. Who was funded?
Equity fundraising can be tricky for first time founders, especially in the early stages and building in a non-hyped market. The VC industry is notoriously secretive and until about a decade ago it was largely contained within the Bay Area. Then the macroeconomic trends helped shift the concentration of VC money to less explored places like Europe, the Midwest, Latin America, South and East Africa and South-East Asia.
Web 3 is coming. Slowly but surely. Piece by piece. Protocol by protocol. But there are some familiar barriers holding back the coming wave. Bitcoin, blockchains and the broader ‘crypto’ industry is still in the early adoption phase. Using the diffusion of innovation model and Geoffrey Moore’s Crossing the Chasm, we need to move from enthusiasts and early adopters to a different customer group: the ‘early majority’. Technical debates around performance, standards, and security should continue to be vigorously debated, but other questions now need to be asked. How will cryptonetworks get Web 2.0 users to use the products? How will they get users to come back regularly? How will they build trust in the products?