Current Web3 Investment Trends and Advice for Founders
Insights from Nick (Standard Crypto), Naman (Big Brain Holdings), and John (Outlier VC)
Introduction
Our 4th VC panel discussion brought together insights from Nick (Standard Crypto), Naman (Big Brain Holdings), and John (Outlier VC). The discussion centered around the overlooked trends in Web3 and the key qualities VCs seek in founders. Here are the highlights:
What’s One Trend in Web3 That Everyone Is Overlooking?
Nick aka Tracecrypto from Standard Crypto:
"I think the biggest trend right now is all the AI agent stuff and AI coins, but one that’s underrated is the interesting activity on Forecaster. They’ve got this new app store integrated into the Warpcast interface, where you can play around with little DeFi apps and crypto minigames built directly into the social media platform. It’s one of the coolest experiments in crypto social, with a lot of smart builders involved—but not enough people are paying attention to it."
John G. from Outlier VC:
"Instead of looking at everything thematically, like DeFi, DePIN, or RWAs, we should view all of this as part of the future of the Internet, unified by an agentic layer. The web as we know it is going away—we call it the thin web. People are shifting away from typing into browsers and will interact more with agents. This agentic layer, powered by blockchain and AI, is what enables all these once-separate verticals to converge into a seamless ecosystem."
Naman Kapasi from Big Brain Holdings:
"Honestly, I think one of the biggest things people are overlooking is DeFi in general, especially regulated DeFi. With better regulation, there’s room for KYC DeFi to live on-chain for efficiency purposes, even if it’s not entirely about decentralization.
Another overlooked area is DeSci. Projects in this space are tackling groundbreaking challenges, like curing cancer with AI or replicating chemical reactions using latent compute. Within a couple of years, I think we’ll see these use cases really blossom."
Advice for Web3 Founders
Nick aka Tracecrypto from Standard Crypto:
"One underrated sign of a good founder is being well-calibrated about what aspects of their business matter most for the protocol’s success. For instance, if a founder building a new L2 spends all their pitch time talking about their programming language or virtual machine, even if it’s great, it’s worrisome if they don’t address other key factors like hiring or go-to-market strategy.
We look for founders who understand the balance between tech, go-to-market, and team construction—those who don’t overrate or underrate any aspect. That holistic understanding is critical for success."
John (Outlier VC):
"The most important factor is whether the founders are coachable. At this stage, when hard times hit, do they have the humility to recognize what they don’t know, accept feedback, and adapt? Or do they put their heads down and ignore the signals? Flexibility and resiliency are absolutely key."
Naman (Big Brain Holdings):
"We look for founders who are genuinely committed to making their vision work and are stubborn—but not blindly so. They should deeply understand their industry and what they’re building.
A red flag is founders who chase trends and change their focus every week. It’s important to stick with what you believe in and push through, even if others doubt you. That’s how many crypto AI projects succeeded—they stuck with their vision when no one else believed in the vertical."
Conclusion
From exploring overlooked trends like Forecaster’s app store and regulated DeFi to emphasizing qualities like adaptability and conviction, this panel highlighted what’s driving the Web3 space forward. Founders with a balance of vision, resilience, and openness to feedback are best positioned to thrive in this evolving landscape.
Stay tuned for more insights from future panels!