Investing in Web3: Building Through Bull and Bear Markets
Introduction
In the ever-evolving landscape of Web3, building a successful project isn't just about riding the highs of bull markets. It's about enduring the lows and continuing to innovate through bear markets. This episode of "Web3 with Sam Kamani" features Mike Zajko, General Partner at Lattice Fund, a prominent Web3 venture capital firm. Mike shares insights on the importance of resilience, adaptability, and long-term vision for founders in the Web3 space.
The Journey into Web3
Mike's introduction to the world of Web3 began in 2013 during the rise of Bitcoin and Silk Road. Despite initially treating Bitcoin as a side interest while working at Facebook, a chance encounter with Ethereum in 2015 at Burning Man significantly deepened his involvement in the space. By 2018, amidst the ICO boom, Mike fully transitioned into the Web3 industry by joining CoinList, a platform for token sales.
Investing in Web3
Lattice Fund, co-founded by Mike Zajko and Regan Bozman, focuses on early to mid-stage Web3 projects. The fund's investment thesis revolves around identifying founders who demonstrate the ability to build through multiple market cycles. The aim is to back those who can consistently innovate and adapt, regardless of market conditions.
Building Through Bull and Bear Markets
Mike emphasizes that the key to success in Web3 is longevity. He describes it as "building a house on quicksand," highlighting the rapid and often unpredictable changes in the market. Founders need to be committed to their vision and willing to reinvent their projects to stay relevant. This adaptability is crucial, as projects can fall out of favor quickly if they fail to capture and maintain attention.
The Role of User Engagement
An interesting trend Michael notes is the importance of user engagement in determining a project's success. Applications with a strong user base can leverage this advantage by expanding their services and infrastructure. For instance, projects like Galaxy, which has a significant user base, can potentially deploy their own blockchain infrastructure, thereby creating a more integrated ecosystem.
Challenges in Web3 Investment
Starting a new venture fund comes with its own set of challenges. Establishing a strong brand is crucial, as it helps attract high-quality projects and provides a halo effect that can aid in further fundraising and recruitment. Mike acknowledges the competitive landscape, with numerous established funds vying for the best projects. However, Lattice Fund focuses on building a solid reputation by backing visionary founders and projects.
The Importance of Events
Mike highlights the role of events in the decentralized Web3 industry. Unlike traditional tech hubs, Web3's decentralized nature makes conferences and retreats vital for networking and business development. These events foster a sense of community and collaboration, crucial for the industry's growth.
Conclusion
The Web3 space is dynamic, with rapid changes and evolving narratives. For founders, the ability to adapt and persist through various market conditions is paramount. For investors like Lattice Fund, identifying and supporting such resilient founders is key to driving innovation and long-term success in Web3.
Connect with Us
You can connect with me, Sam Kamani, on social media or reach out directly. My DMs are open, and I’m always eager to engage with fellow innovators.
This episode covered the exciting development in the world of Web3. You can listen to it here .
Stay tuned for more episodes where we dive into the world of Web3. Thank you for your support and best of luck in building your startups and projects.
