The crypto market is weakening the industry, but it hasn’t stopped the venture company Variant. Variant announced Thursday that it has raised $ 450 in two funds targeting Web3 and decentralized financial startups.
Variant is an early crypto-focused investment fund founded by Andreessen Horowitz veterans, including Decentralized Cryptographic Exchange Uniswap, Decentralized Non-Fangible Token Marketplace Magic Eden, Ethereum Scaling Project Polygon, etc. He has supported well-known Web3 and crypto projects.
The money is part of the Variant Fund III, which aims to “invest in user-owned web builders,” Variant partners Li Jin, Spencer Noon, and Jesse Walden wrote in a statement. ..
The fund is divided into two parts. The remaining $ 300 million for a $ 150 million seed fund designed to support startups and a project opportunity fund within Variant’s own portfolio that has demonstrated its value.
“What we have learned over the last few years strengthens our theory that user-owned networks are larger, grow faster, and have more favorable economic conditions for users than traditional centralized networks. I did, “the partner wrote. “Beyond that, ownership is a vast design space, and it also shows that we have experience ranging from community participation to financial exposure to governance.”
The fund specifically targets new forms of ownership such as DeFi projects, blockchain computing, consumer Web3 projects, and non-fungible tokens.
Web3 is the monica that computer experts have given to the next evolution of the World Wide Web. Also known as the decentralized web, you can conduct peer-to-peer financial transactions via blockchain technology. These transactions are managed by smart contracts that execute transactions without the need for intermediaries or central authorities, allowing developers to create software that allows the community to control their own resources.
This is the basic philosophy behind DeFi, or decentralized finance, that uses blockchain technology to create a crypto token economy. All of these economies have been used to recreate traditional diversified versions of finance, including stock exchanges, interest generation, lending, etc., using crypto assets.
Web3 has also helped enable virtual ownership of digital assets through non-fungible tokens. It says Jin is also focusing on Fortune Variant. Most NFTs are digital collectibles and artwork, but they can also represent items such as video games, music, videos, documents, concert tickets, and other virtual consumer items.
“Web2 is digital feudalism and Web3 is digital capitalism,” she said. “Web3 is a paradigm shift in introducing capitalism to the Internet. It introduces the ability of people to actually own capital and become capital owners of their own products.”
NFTs can be used to give users incentives by giving them ownership of assets in the ecosystem, such as game items, collectibles, and avatars in the virtual world. The token model is worth earning tokens because it can be used not only by users for goods on the platform, but also as part of a loyalty system that allows them to redeem money in the external market. According to Jin, these new and other use cases combine social and economic systems in ways that legacy systems cannot.
Variant has raised $ 22.5 million and $ 110 million in two previous funds.
Partners said the small size of the fund was intentional. It aims to enable companies to maintain close relationships with portfolio companies and guide them. They added that the next three to five years will be important to the crypto and Web3 industry, and what’s happening now foresaw its future.
Image: pixabay
Join the expert Cube Club and Cube Event community to show your support for our mission. Join the community, including Andy Jassy, CEO of Amazon Web Services and Amazon.com, Michael Dell, Founder and CEO of Dell Technologies, Pat Gelsinger, CEO of Intel, and many other celebrities and experts.
..
