A framework for Web 3.0 investing by Mapleblock Capital

  • Mapleblock Capital is a rapidly growing digital assets investment firm based out of Asia and the Middle East. The firm has over 120 blockchain investments and has backed leading projects across all blockchain sub-sectors such as DeFi, Infrastructure layers, Gaming, NFTs, and DAOs.
Mapleblock Capital
Mapleblock Capital
Published on Apr 05, 2022 06:35 PM IST
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ByHT Brand Studio

Dubai - 2021 was the biggest year in the history of blockchain fundraising. More money was raised at higher valuations in more rounds than ever before. The Mapleblock Capital team has been part of the crypto funding ecosystem for over 3 years and has cumulatively participated in over 100 rounds of investments. With this experience, the team has developed their frameworks that apply to Web 3.0 investing allowing them to spot some promising crypto projects very early in their life cycle.

Summarizing their take on some key factors to note while investing in a Web 3.0 start-up here:

The team

Along with the sudden surge of interest in Web 3.0 the volume of startups looking to raise money has increased manifolds. In such an environment it is extremely likely to run into teams building on incorrect premises. Web 3.0, before the technology, was built on a philosophy and belief centred on openness, experimentation, and freedom. Launching a token does not equate to decentralization without a well distributed supply and governance system.

The problems

Many teams in the Web 3.0.0 world are rushing to build the first Web 3.0 version of a popular web2 product. This isn't necessarily a great problem to solve, the main problems with Web 3.0 still lie in the technology being new and requiring sufficient upgrades to support the user experience necessary for the masses. This means that for the foreseeable future most of the alpha lies in solving big infrastructure gaps with new technology and not dapps that mirror Web2.0 applications. Thus, the problem statement that a team picks to work on impacts the chances of a Web 3.0 start-up's success in major ways.

The community

Web 3.0 is still a very small space and successful projects require strong communities to succeed. Typically Web 3.0 ventures go public much sooner than their Web 2.0 counterparts, this means companies ‘IPO’ before an actual product. Due to the lack of pure users in the ecosystem, most early investors are also the only users a project has, these early investors/users form the core community that ultimately determines the success of the project. Thus the success of a project is closely tied to the success of its early community in many ways. This has implications for transparency, valuations, and engagement that a team must maintain for their project to succeed in the long term.

About Mapleblock Capital

Mapleblock Capital is a rapidly growing digital assets investment firm based out of Asia and the Middle East. The firm has over 120 blockchain investments and has backed leading projects across all blockchain sub-sectors such as DeFi, Infrastructure layers, Gaming, NFTs, and DAOs.

 

Disclaimer: This is a company release. No HT journalist is involved in creation of this content.

 

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Thursday, May 19, 2022