Early-stage investors still betting on Web3 solutions

Early-stage investors still betting on Web3 solutions
Despite the bloodbath in the cryptocurrency market and scepticism around the utility of web3 solutions, early-stage founders from India in this sector continue to attract funding from investors.
Last week, CoinSwitch Kuber launched a $10-million Web3 Discovery Fund. It will cut checks between $25,000-$250,000 for services, products, and infrastructure startups in the sector, Ashish Singhal, cofounder and CEO of CoinSwitch Kuber, told ET.
The fund would also provide these startups access to marquee investors, including Tiger Global, Sequoia Capital, Ribbit Capital, and Coinbase Ventures.
“This time is very crucial to look at companies that are solving long-term problems,” Singhal said. “Even though the market has come down and FOMO (fear of missing out) has reduced, no longer it is about who is raising what amount; it has become about building for the users and solving actual problems.”
Early-stage investor Elevation Capital, a partner for the discovery fund, plans to expand the team evaluating this sector and continues to have a “high capital commitment” for Web3 startups, said Vaas Bhaskar, principal at the fund that has backed Polygon and announced six investments in the last 12 month.
Early-stage investors still betting on Web3 solutions
Proof of customer traction
As valuations correct and FOMO dies down in the market, venture capitalists are focusing on Web3 startups with some proof of customer traction. The sobering down of sentiments and funding has impacted the wider tech industry, as reported by ET in July.
But for Web3, at least half a dozen financing deals are in the works across infrastructure, analytics, and gaming that would see participation from crypto native and traditional funds.
Spheron Protocol, a startup that provides web hosting and other services to both web2 and web3 companies to utilise decentralised infrastructure, is in talks to raise $6-7 million, people aware of the matter said. Spheron Protocol did not respond to ET’s query seeking comment till press time Tuesday.
“A bear market is like a stress test on the entire ecosystem,” said Pranav Sharma, founding partner at Woodstock fund. “With every bear market, the whole industry goes to the next orbit. In 2017, it was white papers, and then after that, technical architecture became a lot more robust to attacks. Now it is more about looking at user traction and user experience.”
With customer experience and user traction taking centre stage, tooling and infrastructure startups have also attracted funding in recent months. DAOlens, a business-to-business (B2B) decentralised autonomous organisation (DAO), raised $5 million (about Rs 39 crore) led by Nexus Venture Partners. Samudai, another DAO platform for building and managing communities in the Web3, closed a $2.5-million funding round from FTX Ventures, Sino Global Capital and Coinbase Ventures.
Early-stage investors still betting on Web3 solutions
Trust deficit and market movement
The collapse of Terraform Lab’s UST stablecoin in May had a cascading effect on the market. ET reported on May 16, that the after-effects of Terra’s collapse Indian venture capital firms that had exposure to the Terra ecosystem have also taken a hit.
“There is a lot of learning about risks in this cycle which we didn’t think about very deeply, at least from some angles. The cycle that follows will lead to a lot of innovation; there will be a lot of learning from what went wrong and what we did not think through, and that will spur a new generation of companies and protocols,” said Bhaskar of Elevation Capital. “Second, I think we also learned that infrastructure, tooling and middleware was not ready. This cycle will push those innovations, and we are seeing a lot of deal flow with such companies,” he said.
The fall of crypto institutions like Three Arrows Capital and others in the last few months has led to massive losses for retail investors. Singhal said the trust deficit in the system might slow down adoption in the short term.
“There is definitely a bit of hesitance seeing the failure of these institutions. It reduces the adoption in a way,” said Singhal of CoinSwitch Kuber. “So, if you were forming a company, say, one year ago, you would have seen a huge adoption, but now the increase in the number of users adapting to the technology would slow down a bit, but that would not deter founders from creating solutions.”

News Related


Do multimillion-dollar dinosaur auctions erode trust in science?

At the turn of the 20th century, museums started funding excavations to unearth dinosaur bones. Credit: Museum Wales Dinosaurs are in the news these days, but it’s not just for ... Read more »

Native Americans' decades-long struggle for control over sacred lands is making progress

Mauna Kea Observatory, Hawaii, United States. Credit: Unsplash/CC0 Public Domain Who should manage public land that is sacred to Native Americans? That is the question that the United States government ... Read more »

WazirX fires 50-70 employees amid ED probe, dipping trade volume

IANS Indian crypto exchange WazirX fires 50-70 employees Cryptocurrency exchange WazirX fired about 50-70 employees on September 30 amid declining business, people familiar with the matter said.Employees from business development, ... Read more »

Startup of the Week: t2

 t2 was founded in 2021 Mengyao Han. The startup focuses on the curation value users contribute with their attention. t2 is a decentralised world for publishing and reading. Website: https://www.t2.world/ ... Read more »

YouTube Could Hide 4K Videos Behind a Paywall

ElenaR/Shutterstock.com Last year Google added an extra fee for YouTube TV subscribers trying to stream TV in 4K, and now it looks like the company could be ready to do ... Read more »

Black Panther: Wakanda Forever trailer 2 shows the new Black Panther

Marvel released the first emotional Black Panther: Wakanda Forever trailer during Comic-Con in July, giving us a few teasers of what’s to come in the sequel. We haven’t seen any ... Read more »

Flying under the radar: Multi-drug-resistant bacteria hides among gut bacteria of asymptomatic human carriers

A 3D representation of the human gut microbiome where CPE and diverse bacteria reside. Credit: A*STAR’s Genome Institute of Singapore Scientists from A*STAR’s Genome Institute of Singapore (GIS) have discovered ... Read more »

A better way to find RNA virus needles in database haystacks

Graphical overview of the pipeline starting with the RNA Virus MetaTranscriptomes (RVMT) database to uncover the expansion in RNA virus diversity. Credit: Simon Roux A zoo once offered a coloring ... Read more »

Internet cable reveals the source of underwater vibrations

Credit: Pixabay/CC0 Public Domain Scientists have harnessed Internet-transmitting fiber-optic cables to overcome a long-standing geophysical challenge: identifying where seismic noise in the ocean originates. Tiny vibrations of Earth called microseisms ... Read more »

A high-performance catalyst that dissolves polyester and realizes chemical recycling

Catalyst development not only for efficient conversion of plant oils (FAEs) to value added chemicals (fine chemicals) and raw materials for polymers, but also for efficient depolymerization (chemical recycling) of ... Read more »

Opinion: Why we need to ban gas in New York State buildings

Credit: Pexels I would never smoke in my apartment, but for my entire adult life I have been polluting my home by cooking and heating with gas. A 2020 report ... Read more »

Success in synthesizing biodegradable plastic materials using sunlight and CO2

Visible light-driven 3-hydroxybutyrate production from acetone and CO2: Utilizing sunlight and biocatalysts, Osaka Metropolitan University scientists synthesized 3-hydroxybutyrate, a biodegradable plastic material, from acetone and CO2. Mimicking natural photosynthesis, the ... Read more »

Flexible solid electrolytes for all-solid-state lithium batteries

Photographs of ultrathin Li6.4La3Zr1.4Ta0.6O12-based film. Credit: Qingya Guo, Ningbo Institute of Materials Technology and Engineering Garnet-type solid electrolytes are attracting great interest due to high ionic conductivity and excellent electrochemical ... Read more »

Uncovering the secrets of materials degradation in a lithium-ion battery

Schematic diagram of KIST battery analysis platform. Credit: Korea Institute of Science and Technology (KIST) Amid global efforts towards carbon neutrality, automakers all over the world are actively engaged in ... Read more »

Investigating the impact of new energy efficient streetlights on insects

Credit: Pixabay/CC0 Public Domain New energy efficient streetlights are playing a major role in influencing insect behavior, says NIWA. The discovery comes from a four-year study investigating Ōtautahi—Christchurch city’s switch ... Read more »

National Cinnamon Roll Day Is Tomorrow: Freebies at Cinnabon, Cinnaholic and More

Don’t miss out on BOGO cinnamon rolls. Cinnabon While you’re out grabbing your morning or afternoon coffee, don’t forget to pick up a cinnamon roll tomorrow. Tuesday, Oct. 4 is National ... Read more »

Combining 3D printing and sensors for safer, cheaper flying

Credit: Frank Peters, Shutterstock The aeronautical industry has transitioned to the use of advanced composite materials because of their lightweight properties, strength and durability. Together with increased aircraft productivity and ... Read more »

European observatory NOEMA reaches full capacity with twelve antennas

Observations of unprecedented quality: the NOEMA observatory uses its antennas to scour the universe in the radio range. Credit: Jérémie BOISSIER / IRAM The NOEMA radio telescope, located on the ... Read more »

Cosmic ray protons reveal new spectral structures at high energies

Observation of Spectral Structures in the Flux of Cosmic-Ray Protons from 50 GeV to 60 TeV with the Calorimetric Electron Telescope on the International Space Station. Credit: Waseda University Cosmic ... Read more »

What is a wetland? An ecologist explains

Credit: Unsplash/CC0 Public Domain Wetlands are areas of land that are covered by water, or have flooded or waterlogged soils. They can have water on them either permanently or for ... Read more »

How cells turn independent and regulate functions

Credit: Pixabay/CC0 Public Domain With his thesis, Jacob Lewerentz, Department of Molecular Biology at Umeå University, contributes to the knowledge about how cells regulate their protein level and adapt to ... Read more »

Do plants have a microbiome?

Credit: A3pfamily, Shutterstock Our bodies are home to trillions of invisible microorganisms, including bacteria, fungi, viruses and miniscule animals. These live on our skin, in our mouths, even within our ... Read more »

New Tai Chi Skilled Robot is Built on Human-Centered Intelligence

As part of her assistive technology research, an assistant professor of biomedical engineering created a sophisticated humanoid robot. (Photo: Jerhard Janson/Pixabay)Robot Action Figure Humanoid Robot Skilled in Tai Chi The ... Read more »

Allcargo opens 100 acre logistics park in Malur

Agencies According to company’s chairman Shashi Kiran Shetty, Allcargo Logistics’ record performance is a result of sustained strategic initiatives over last few years. Publicly listed logistics solution provider Allcargo Logistics ... Read more »

Supreme Court to scrutinize US protections for social media

ReutersThe US Supreme Court on Monday agreed to hear a challenge to federal protections for internet and social media companies freeing them of responsibility for content posted by users in ... Read more »

Apple loses second bid to challenge Qualcomm patents at US Supreme Court

ReutersThe US Supreme Court on Monday again declined to hear Apple Inc’s bid to revive an effort to cancel three Qualcomm Inc smartphone patents despite the settlement of the underlying ... Read more »

IT Consumption can’t be stopped, but it can be more sustainable

Written by Simon Young, Director and VP Sales, UK and Ireland for CHG-MERIDIAN UK business leaders face a triple-headed challenge. As well as dealing with a challenging economy, and environmental ... Read more »

Tesla’s First Robot Demo Was Very Disappointing

Tesla Friday was AI Day 2022 at Tesla, and the company revealed an actual Optimus humanoid robot prototype. Last year the company simply brought on a man in a robot ... Read more »

How planting trees in some areas could actually increase atmospheric warming

Net equivalent carbon stock change obtainable from the afforestation of suitable nonforested drylands.(A to G) NESC outcomes calculated as the net difference between the carbon sequestration potential (ΔSP) and the ... Read more »

Using AI to target a laser for killing roaches

Summary diagram of the laser setup: 1—transparent box containing cockroaches, 2—Pi cameras, 3—Jetson nano, 4—laser, 5—galvanometer, 6—laser beam, L—distance between laser device and target. Credit: Oriental Insects (2022). DOI: 10.1080/00305316.2022.2121777 ... Read more »

7 Qualities To Look For In An eLearning Course Development Software

Photo : fauxels Among the factors that promote effective learning is the use of an eLearning authoring tool to produce good training content. Despite the abundance of commercially accessible learning ... Read more »

Alternative earnings disclosures are high-quality if women are on board

Credit: Pixabay/CC0 Public Domain Firms are likely to be more transparent about their alternative earnings if there are at least three women on their board, new research published in the ... Read more »

Not enough: Protecting algae-eating fish insufficient to save imperiled coral reefs, study concludes

Turbinaria algae coat the corals, foreground, at a north shore reef on the French Polynesian island of Mo’orea. Turbinaria is a genus of brown algae found primarily in tropical marine ... Read more »

Artificial enzyme splits water more efficiently

Enzyme-like water preorganization in front of a Ruthenium water oxidation catalyst. Credit: Würthner group / University of Wuerzburg Mankind is facing a central challenge: It must manage the transition to ... Read more »

There was one person who didn’t embarrass himself in the Elon Musk texts

Agencies The text by Musk was in response to the micro-blogging platform’s decision to seek information from the SpaceX boss on how he planned on acquiring the money for the ... Read more »

Disney Channels Like ESPN, FX Restored to Dish, Sling TV After Blackout, Report Says

Disney and Dish made a temporary deal as they work on a contract extension. Read more »

The promising impact of Web3 on data privacy and security

As we continue to enjoy user-generated content (UGC) and applications enabled by the current Social Web (Web 2.0), we cannot ignore the imminent rise of Web 3.0 (Web3). Dubbed the ... Read more »

Hospitality tech start-up hires ex Novus Marketing Director as Chief Marketing Officer

Ambl – the brand-new platform set to transform and build recovery for the hospitality industry by matching people with real-time availability – has announced the appointment of Simon Gaske as ... Read more »

New forensic analysis of electronical devices unveils dangers of inadequate data disposal for individuals and businesses

Thousands of sensitive documents recovered from the laptops purchased online which their owners believed to have been ‘wiped’. Personal data found across 80% of devices searched. 366 files recovered contained ... Read more »
Breaking thailand news, thai news, thailand news Verified News Story Network