See More

Vessel Capital Plans to Splash $55M in Web3 Industry

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Vessel Capital plans to allocate funds in Web3 over five years, with potential for capital pool expansion.
  • Mirza Uddin emphasizes how important it is for VCs to understand Web3 to effectively assist startups.
  • Uddin notes a shift in the Web3 industry, with the firm looking to fund opportunities beyond the US.
  • promo

Vessel Capital, a venture capital firm, declares that it has $55 million to invest in Web3 infrastructure and applications. In particular, the firm wants to fund fresh web3 entrepreneurs.

“We want to meet new founders who might not already be in our network,” Vessel Capital co-founder Mirza Uddin stated.

Vessel Capital Looking Beyond Just the Money

According to the recent report, Vessel Capital intends to allocate the funds in web3 over a span of five years. It hints at the possibility of further expanding that capital pool in the future.

Uddin intends to find founders that he can work with from the beginning to grow their companies. The primary focus of the $55 million fund will be on backing “application-specific infrastructure,” while remaining open to considering other areas as well.

He believes that forging a relationship between a VC who has a grasp of web3 and a startup from the outset is the road to success.

Uddin expresses that VCs who don’t understand web3 can’t properly help many startups with great ideas. “Oftentimes, [VCs] don’t have expertise in the things they’re investing in,” he states.

According to Uddin, the secret to a successful VC relationship with a startup is the ability to share knowledge and insights:

“The world has enough VCs, but what’s actually missing is actual guidance and advice. Most times you’ll get a nice check, a pretty logo on your website, but other than that VCs don’t help much aside from intros from time to time.”

To learn how to get into the Web3 industry, read BeInCrypto’s guide: A Comprehensive Guide to Starting a Career in Web3

He is particularly interested in partnering with fresh founders in the industry. He explains that this can prove to be a more profitable partnership for VCs, too.

“A lot of giant funds are getting raises, but the VCs themselves don’t have a lot of skin in the game when it comes to using their own capital,” Uddin states.

Furthermore, Uddin highlights the significant expansion in the web3 industry. He alludes to the firm’s plans to venture into funding opportunities beyond the United States.

“Crypto has become more global, so it’s not the same circle and group you might have seen in 2018-2020, and we want to be able to help more people,” he declares.

Recent VC Funding In Web3 Sector

In recent times, many believe that the prolonged crypto winter might be influencing web3 funding from venture capitalists.

Crypto VC Deal Count And Capital Invested 2016-2023. Source: Galaxy Digital
Crypto VC Deal Count And Capital Invested 2016-2023. Source: Galaxy Digital

According to Pitchbook data, crypto and web3 startups raised just $2.32 billion across 456 deals in Q2 2023.

This marks the fifth consecutive quarter of declines since the initial three months of 2022, during which $12.14 billion had been invested. However, the deal count for Q2 2023 saw a minor uptick from the preceding quarter at 439 deals. This rise was attributed to a slight increase in Series A deals.

Rumors are circulating that VCs are also delving into artificial intelligence (AI), potentially leading to reduced funding for web3 and crypto projects.

On May 26, reports indicated that Paradigm is considering an expansion of its investment focus beyond crypto and blockchain also to include AI.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

ciaran-lyons-avatar.png
Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
READ FULL BIO
Sponsored
Sponsored