Web3 is revolutionizing the way we think about startups and investment. At the Paris Blockchain Week 2023, a panel of experts gathered to discuss the impact of Web3 on the startup and investor landscape. The panelists explored the opportunities and challenges presented by this new paradigm, which represents a fundamental shift from the traditional Web2 model.
Different Cultures, Different Ecosystems
Web3 startups are not the same as Web2 startups. The panelists noted that different cultures shape and affect the various ecosystems. Laurenz Apiarius, founder and managing partner of Blockwall Digital and Blockwall Capital, pointed out that while there have been impressive milestones achieved by Web3 entrepreneurs, some entrepreneurs overestimate their valuation, which can lead to negative effects. This harms investors who lose money in the process, and it undermines the credibility of the Web3 narrative.
Investing in the Right Way
Amos Meiri, founding partner of Node Capital, emphasized the need for investors to understand the technical, legal, and marketing aspects of the projects being built. Meiri noted that it is crucial for investors to support entrepreneurs in the right way, helping them navigate the challenges of the Web3 landscape. This requires a deep understanding of the technology and legal frameworks involved, which can be daunting for many entrepreneurs.
DAO: A New Model of Startup Governance
Igneus Terrenus, head of partner relations of BitDAO, spoke about the decentralized autonomous organization (DAO) model of Web3 startup governance. DAOs are organizations that operate through rules encoded as computer programs, with decisions made through a consensus mechanism. Terrenus noted that while the DAO is not a perfect model, it offers exciting opportunities for startups and investors. DAOs can help to reduce the need for intermediaries, increasing efficiency and reducing costs.
However, the success of DAOs depends on incentivization and education of stakeholders. DAO stakeholders need to be incentivized to participate in the decision-making process and educated about the rules and processes involved.
Navigating the Web3 Landscape
Web3 startups require a deep understanding of technology and legal frameworks, which can be challenging for many entrepreneurs. The lack of clear regulatory frameworks for Web3 startups can make it difficult for entrepreneurs to operate in a compliant manner. Despite these challenges, the panelists were optimistic about the potential of Web3 to transform the business landscape.
The Rise of Decentralized Finance
The emergence of Web3 has led to a renewed focus on building community resilience to crises through mutual aid. The Web3 paradigm emphasizes decentralized, peer-to-peer networks that enable individuals and organizations to collaborate and support each other. This can be seen in the rise of decentralized finance (DeFi) platforms that allow individuals to lend, borrow, and invest in a decentralized manner, without the need for intermediaries.
In conclusion, the panel discussion highlighted the exciting opportunities and challenges presented by the Web3 revolution. With its disruptive potential and new opportunities for startups and investors, Web3 represents a major shift in the way we think about business and innovation. While there are challenges to navigate, the potential of Web3 to transform traditional business models and provide new opportunities for startups and investors cannot be ignored. The future of business and innovation is here, and it is in the form of Web3.
