Current Web3 Investment Thesis - II
Intract hosts regular Twitter AMAs featuring Web3 leaders, crypto experts, and top VCs to discuss the latest industry trends and insights.
We held our bi-weekly AMA session on Twitter, featuring a panel of esteemed venture capitalists from the crypto space. We had Sanat from Dragonfly, Abhishek from P2 (earlier called Polygon Ventures), Roland from Mechanism Capital, Rapolis from Zee prime Capital.
The conversation revolved around the impact of market cycle highlighting that VCs tend to be more enthusiastic in bull markets despite better valuations in bear markets.
Here’s are the key highlights of what the respective speakers had to say -
Abhishek from Polygon Ventures “Bear market valuations are much better, but the number of high quality deals I would say could be lower in bear markets because just people are more enthusiastic to start companies in a bull market. Another thing that happens in the bull market that affects capital flow or like I would say the capital flow is cascading your LPs in a bull market when quantitative easing is happening are giving more money to VCs and then VCs have bigger pockets to deploy.”
Sanat from Dragonfly “I think thematically we as a fund are always excited by stablecoins. We're significant investors in both Athena and Agora, both of which are doing super well on the infrastructure side. I think the trend that I'm paying a lot of attention to is just like the growth of Solana has led to a lot of development in high performance chains and it feels like more and more users want low latency, high quality UX experiences”
Rapolas from Zee prime Capital, “It seems like the most successful ideas that are actually being having recognition and the ideas that are being used are all coming from the founders who did it in the open market and didn't go the VC route, didn't raise big rounds and then waited two years to launch a token”
Roland from Mechanism Capital, “You also have the AI agents which essentially went from zero to a couple hundred million or a billion dollar plus valuation recently. The biggest misses, at least for me in the last, let's say month or two would have definitely been all of the AI agents which are extremely hard to catch on the VC side. I've looked at maybe, I don't know, a lot tens, maybe 100 AI agent protocols”
Sanat from Dragonfly, “I think payments, especially AI payments, is something that is interesting because there used to be a saying that if you want to make a billion dollar company, build a product that will impact a billion users. And I think in the next 10 years we'll have a lot more AI agents than people in the world”
The discussion also touched on missed opportunities and lessons learned by the VCs. The panelists acknowledged that while they have seen various cycles in the crypto market, adapting to changing conditions and recognizing emerging trends are critical for them to understand.
Click here to listen to the full Twitter AMA.