Web3 VC Panel Reveals New Funding Dynamics and Blockchain’s Future Amidst AI Advancements
The Web3 revolution is gaining momentum, and with it comes a shift in funding dynamics for blockchain start-ups. A recent panel discussion held during San Francisco Tech Week 2023 shed light on the changing landscape of Web3 investments, as well as the role of blockchain in the face of advancing technologies such as AI.
The 6-member panel, comprised of industry experts including Chris Kelly, Christian Hasker, Shuchi Rana, Yaroslav Ivanov, Paige Xu, and Manmeet Singh Bhasin, delved into the evolving standpoints of Web3 venture capitalists, investors, and angels. Each panelist brought their unique experiences and perspectives to the table, offering valuable insights into the current state and future trajectory of the industry.
Chris Kelly, a prominent investor and co-owner of the NBA team Sacramento Kings, spoke about his venture into Web3 through his investment in the development platform Alchemy. As the former General Counsel and VP of corporate development at Facebook, Kelly understands the potential of blockchain technology and its impact on various sectors.
Christian Hasker, the CMO of Swirlds Labs, the marketing arm of HederaHashgraph, emphasized the importance of blockchain in a world increasingly reliant on AI. Hasker highlighted the use cases where blockchain can address issues of trust and data transparency in AI applications.
Shuchi Rana, the Chief Strategy Executive at ServiceNow Ventures and a member of the governing council of Hedera blockchain, brought her expertise as a venture capitalist to the conversation. Rana stressed the changing dynamics of Web3 investments, noting that VC funding is no longer based solely on the promise of an idea but requires demonstrated progress and tangible solutions to real-world problems.
Yaroslav Ivanov, CEO of Alta, a blockchain laboratory and accelerator, shared his extensive experience in the blockchain industry. Ivanov emphasized the need for increased computing power in the face of cryptographic computations and the importance of establishing robust security measures around blockchain technology.
Paige Xu, an investment manager at OKX Ventures, focused on the evolving funding landscape in Web3. Xu pointed out that while raising money was relatively easy in the past, investors now seek start-ups that can provide substantial user growth and solve real-world problems.
Manmeet Singh Bhasin, founder and managing partner of Punja Global Ventures (PunjaVC), provided his insights as a seasoned entrepreneur with investments in ten blockchain projects. Bhasin highlighted the need to balance blockchain innovations with advancements in AI, data science, and quantum computing to ensure the scalability and security of the technology.
The panelists reached a consensus that Web3 investments now require start-ups to demonstrate ongoing, accelerated progress to secure funding. Gone are the days when funding was granted based solely on the potential of an idea. Investors now seek tangible solutions that can address real problems and deliver value to users.
While concerns have been raised about blockchain being overshadowed by other technological advancements, such as AI, the panelists reiterated the unique value proposition of blockchain. By providing trust, transparency, and decentralized solutions, blockchain can complement and enhance AI applications rather than being overshadowed by them.
Christian Hasker highlighted the potential of blockchain in addressing the data transparency and bias issues associated with AI. By leveraging blockchain’s immutable and auditable nature, it is possible to ensure the truthfulness and integrity of large language models. Additionally, blockchain can enable the monetization of AI outputs and protect intellectual property rights.
The panel also acknowledged the need for increased computing power to support the cryptographic computations involved in blockchain. As advancements in AI and quantum computing demand greater computational resources, the industry must be prepared to meet these challenges while maintaining robust security measures.
In conclusion, the Web3 VC panel discussion shed light on the changing dynamics of blockchain investments and the future of the technology amidst AI advancements. While funding criteria have become more stringent, opportunities abound for start-ups that can demonstrate real-world solutions and accelerated progress. Blockchain’s role in addressing trust, transparency, and data integrity in AI applications remains vital, ensuring its prominence in an ever-evolving technological landscape.
