Web3 VCs have a differentiation problem

Web3 venture capital firms face a significant differentiation problem, as most pitches sound identical, claiming deep relationships and value-add beyond capital, which has rendered these statements meaningless to LPs. Emerging managers, despite often outperforming established funds, struggle to articulate a unique value proposition, causing capital to concentrate on established brands. The article highlights TBV's approach of building a people-centric deal engine through events, generating data and relationships at scale, which feeds into their AI-driven deal engine. Other firms like Outlier Ventures focus on accelerators, and Paradigm contributes technically to protocols, demonstrating that successful next-generation managers build products with utility beyond capital. The key is to build something that makes the value proposition self-evident, rather than relying on unquantifiable claims about networks and relationships.

(Source：CoinDesk)