The article discusses the differences between traditional venture capital (VC) investing and investing in cryptocurrency and web3 companies. Some key points include:
- Ownership structure: Web3 companies often have a more collaborative feel, with multiple investors on the cap table, whereas traditional VC firms typically aim for majority ownership.
- Value-adds: Crypto companies require different skills and expertise from VCs, such as guidance on token design, cryptocurrency taxes, and economy design.
- Investment approach: Traditional VC firms may need to adapt their investment strategies to succeed in the web3 space, including being comfortable with liquid tokens and more collaborative deal-making.
- Hype and valuations: The article notes that web3 companies are currently experiencing a period of high hype, which may contribute to inflated valuations.
Overall, the article suggests that investing in cryptocurrency and web3 companies requires a different set of skills and approaches than traditional VC investing.