A16z is monopolizing Web3 and Sequoia Capital is catching up

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Since Facebook changed its name to meta, the word "meta universe" has become a popular word for a while, and has also determined the next development direction for the Internet. When people study how to achieve the vision of the meta universe, the concept of Web3 has been put forward again. Its main direction is to use the decentralized and non-homogeneous token of blockchain, combined with fields such as defi, to construct applications that meet users. Web3 aims to subvert the web2 era represented by traditional centralization. It has not only become more and more popular, but also attracted more participants to enter the Web3 wave.

A16z is one of the most influential funds in the field of encryption venture capital. In the web2 era, it has invested in Facebook, twitter, instagram, airbnb, GitHub and other platforms. In the Web3 era, it has its own investment logic.


Introduction to a16z investment logic


At the beginning of this year, a16z revealed that it would launch a $4.5 billion encryption fund to invest in start-ups at each stage of Web3. Meanwhile, the investment in Web3 will include Web3 games, defi, decentralized social media, layer1& Layer2 infrastructure, bridges, Dao, NFT, creator economics, renewable finance, ZK certification, decentralized content and story creation, and many other areas.

According to reports, the total size of the cryptocurrency Fund led by the company has exceeded US $7.6 billion, becoming the largest fund of its kind. A16z said that the decision to fully pledge Web3 was based on the fact that we are entering the golden age of the next Internet iteration. The progress of programmable blockchain has enabled tens of millions of users of various applications.

For this bear market, the process of Web3 has been slowed down. A16z partner said that a bear market is often the best opportunity. In a bear market, people are more able to focus on building technology and will not be disturbed by short-term price fluctuations. Although our investment pace has been very fast, we continue to invest only in top founders.


A16z which Web3 companies to invest in


According to public information statistics, a16z has invested in more than 90 companies or projects in the Web3 field, including almost all Web3 tracks such as public chain, layer2, defi, NFT, Web3 games and metauniverse. The following foresight logs out according to public information statistics.

After sorting, it is found that since the beginning of the year, a16z has invested in 32 Web3 projects, and nearly a week in two live Web3 projects, including social media, NFT, Web3 games, infrastructure and other popular tracks. Among these projects, 26 were led by a16z. At the same time, a16z also participated in the ecological construction fund of flow and nym.

It is worth noting that a16z has also led and invested in the following projects with other well-known investment institutions, including FTX, paradise and Softbank: for example, leading and investing in Web3 interactive media metatheory with FTX and Pantera, leading and investing in lightspark with paradise, and leading and investing in chain game m with Softbank ยฒใ€ Led the investment of distributed wireless communication company helium with tigerglobal, and led the investment of layerzerolabs with FTX and Sequoia Capital.


Sequoia Capital's investment in Web3


As mentioned above, a16z has participated in various major Web3 projects with many well-known investment institutions, among which Sequoia Capital has to be mentioned. Since shennanpeng, global executive partner of Sequoia Capital, shouted: allincrypto (encryption field)! They feel that Sequoia Capital is in a hurry about the Web3 project. Since October last year, various leading investment Web3 projects, such as certik and arrow, have been invested in a total of 17 Web3 companies at the rate of one a week from January to April this year.

If you think about it, Sequoia Capital's "anxiety" is not without reason. The halo that dominates the web2 era is gradually being broken up by a16z. After all, Sequoia Capital has just started to invest. A16z has been deployed in the Web3 field for nearly ten years, and a16z has raised a total of $12.5 billion in the past three years. No wonder some big men say: "a16z is like a madman, aggressively interfering in every (Web3) transaction."

Then Sequoia, the overlord who once ruled the web2 era, was challenged by Silicon Valley upstart a16z whether it could retain its current position or be beaten down. At present, a16z ranks third in the latest ranking of top investment institutions in Silicon Valley, second only to Sequoia and accelpartner. Judging from the current situation, if the next Internet outlet is Web3, a16z at the moment has few competitors.


Query on Web3


Almost every builder participating in Web3 advocates that Web3 and blockchain technology will bring earth shaking changes to mankind.

However, what we have seen so far is that all kinds of hype and tokens are rampant in the exchange. Other people will create colorful application scenarios on the blockchain. When we look at these applications calmly, it seems that they are also token trading and wealth harvesting. The recent market turmoil has exposed the gap between Web3 and the current reality, which makes many web2 entrepreneurs have doubts and doubts.

In China, our daily life is almost covered by several super applications, and the soaring data concentration and user acquisition costs of these super applications have made it difficult for some innovative companies to appear in the past few years, which is not only not conducive to social development, but also makes these super application enterprises become the object of anti-monopoly supervision. In view of various reasons, many web2 entrepreneurs are inspired, that is, start a business based on decentralized network and use tokens to bind interests with users.

However, when we look back, most of the existing Web3 applications cannot be popularized for users on a large scale. Even in the field of Web3 games, it has not been proved whether users are motivated by the token of the game or like the game. Even before. Sandbox, decentraland and other virtual world games have been highly hyped. Relevant data show that as of April this year, the daily life of these two games is only about 1000 people. Compared with web2 games, it is simply not an order of magnitude comparison.

Therefore, we can judge from this that the current Web3 applications are still in the hype stage, which means that the Web3 field is still in its early stage and has great development potential.


Web3 revolution will take place in China


In China, people have been spreading the idea that "all things are interconnected", that is, integrating Internet applications into the real economy of real life and promoting the development of animal networking. At present, China has the largest number of Internet of things devices in the world, such as smart phones, computers, air conditioners, new energy vehicles... Each device can become a Web3 computing "node" through the distributed network.

The most attractive thing about Web3 is token reward. It is precisely this token that hinders Web3.0's path to changing the human vision. Gambling, pornography, live broadcast rewards, etc. in the previous web1 or web2 era have triggered human inner desires. Web3 now has not only financial attributes, but also encryption attributes, which makes people unable to extricate themselves. It's hard to think about what will happen in the future.

From this perspective, the "de monetization" of Web3.0 will continue in China. It is not difficult to understand why the Chinese government has issued various policies to severely crack down on the issuance and trading of domestic cryptocurrencies, but also to encourage the exploration and application of blockchain technology.

If you also think that Web3 is not only a token, but a collection connecting complex social systems, business and transaction contracts, you should realize that our Internet of things is rarely integrated into Web3, which will create more application scenarios.

Do you believe that the Web3 revolution will take place in China in a completely different form. It is not a decentralized practice of financial derivatives, but an application of "decentralized" blockchain technology. Finance will play a role, but that is not the whole story.

For example, even if Web3.0 did not appear, "x2e", as a Web3 business form, has already appeared in China. The well-known "ant forest" can be understood by Web3. You can get a certain amount of green energy by walking, online payment, online registration and other low-carbon behaviors. You can water the saplings and be in charge to a certain extent, and you can get real trees in reality. You see, this is Web3.

In fact, the Internet in China and the United States has diverged in the web2 era, moving in two different directions. I believe that in the Web3 era, there will be different results. It does not matter whether it is good or bad, or even has nothing to do with values.


Write at the end


In 1995, a host interviewed Bill Gates. He asked, "what the hell is this' Internet '?" But Web1.0 makes Bill Gates the richest man in the world. In 2000, when you were still asking "is it reliable to buy things online?". However, Alibaba and jd.com have become the two major e-commerce giants in China, and their market value is more than just how much. A few years ago, we still thought that blockchain technology was a scam. Today, the market value of the blockchain industry exceeds US $2trillion. Therefore, web2 to Web3 must be an important trend, and the future will also be the Web3 era.


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