Companies are investing heavily in Web3, the next wave of digital transformation, to prepare for mass adoption. On Tuesday, Delaware-based early-stage venture capital firm Dispersion Capital announced the launch of a new $40 million fund aimed at enabling the development of cutting-edge Web3 infrastructure.
Bridging Large-scale Investment and Creative Startups
Patrick Chang, a seasoned Web3 investor who previously led Samsung Next Ventures, founded Dispersion Capital in 2021. Chang and his team invest in startups contributing to the “Dispersion Economy” in infrastructure reinvention. Dispersion Capital focuses on Web3 infrastructure, platforms, fintech, gaming, and more, bridging large-scale investment and creative startups. Dispersion Capital raised funds from Ripple, HashKey, Wemade, Circle Ventures, Alchemy Ventures, Cherubic Ventures, Forte, and NGC.
Chang sees immense potential for the technology, with the goal of “getting Web3 to a level similar to cloud computing.” Inadequate infrastructure hinders developers who possess the skills to create innovative applications. Dispersion Capital’s investments aim to provide the necessary support for fully realizing the potential of Web3.
Dispersion Capital’s Launch Reflects Confidence in Web3’s Future
The announcement of Dispersion Capital’s launch comes at an interesting time in Web3’s journey. VC investment in the crypto industry reached $2.6 billion in Q1 2023, slightly lower than the $2.9 billion in 2020. These lower numbers mark the fourth consecutive quarter of declining investments. PitchBook’s report identifies promising markets in 2023, such as privacy, data management, and security for Web3 protocols. Dispersion Capital’s recent launch reflects a strong belief in the future potential of Web3 technology, signaling a bright future ahead.
Shift in Investor Landscape during Crypto Winter
According to HashKey Capital’s Investment Director Xiao Xiao, the main synergies in the Web3 space come from finance and technology. Xiao believes blockchain can diversify financial portfolios, and investing in a fund offers easy access to the space. He also noted that the crypto winter has seen a shift in the type of investors who are entering the space and that projects with real-life use cases are highly sought after.
Web3 is already proving to be a revolutionary technology, and with the launch of Dispersion Capital’s new fund, it is clear that investments in the space continue to remain strong and optimistic. Keep an eye out for the potentially groundbreaking applications that could come out of this partnership, as the future of Web3 is looking brighter than ever before.
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