Ep 18 - On The Evolution of VC in Web3

Hello!

In the latest episode, we dive deep into the mind of Tomasz Tunguz. He is a venture capitalist who’s been in the game for over 15 years. As a General Partner at Theory Ventures and former Managing Director at Redpoint Ventures, Tomasz has witnessed the evolution of venture capital firsthand. From his early days at Google trying to monetise social media to his current focus on data-driven investments - Tomasz offers a zoomed-out and nuanced perspective on the industry.

He shared insights that resonated deeply with me over our conversation. His key idea? That the only enduring moat is brand!

He draws parallels between the growth of private equity, venture capital, and Web3. Tomasz predicts that Web3 will follow a similar path. For instance, sources of capital like PE funds and hedge funds ballooned from 8% to 81% of raises during the mania in 2021. VCs played a small, but crucial role in terms of amount of capital deployed.

A key highlight of our conversation is Theory Ventures' investment in Allium. It is a company that provides Web3 data solutions for financial institutions. As the venture capital ecosystem in the U.S. expands from $8 billion to $175 billion deployed annually, the demand for Web3-compatible financial infrastructure has never been greater. Allium serves that gap today.

Today’s episode with Tomasz Tunguz offers a masterclass in the evolution of venture capital and makes a compelling case for why the future of finance might be built on blockchain. Enjoy listening!

Signing out,Saurabh Deshpande

Related Reading:

- Ep 21 - On Navigating Crypto Cynicism, Liquid Ventures, and DeFi’s Evolution

- The Data Wars