Like it or not, the Web3 revolution is upon us, a grand movement toward decentralization, community, and empowerment. Let’s face it, at this point, it’s chiefly helping the helpers. Unfortunately, the current landscape threatens to replicate the same inequities we have in the analog world with cooler technology. We can't let that happen. Crypto VCs are immensely powerful players with vast sums of capital. Their involvement is now more important than ever to ensure Web3 truly lives up to being inclusive. 2025 is right around the corner. Here's how they can step up.
Invest in Untold Stories, Not Echoes
We see the same narratives funded again and again: DeFi protocols, NFT marketplaces, layer-2 scaling solutions. Important, yes, but where are the projects addressing such complex issues as street safety or air quality for our underserved communities? Where are the dApps developed by and for the citizens of third world countries? From improving access to clean water to supporting fair trade and microfinance, these applications address important causes.
Imagine a VC firm, instead of chasing the next Bored Ape derivative, actively seeking out startups using blockchain to empower female farmers in Africa, providing them with transparent supply chains and access to global markets. Or perhaps you would like to fund a project that uses NFTs to provide verifiable educational credentials to refugees. This transformative effort opens new doors for their employment and inclusion. That's awe-inspiring.
It’s not simply altruism, but the simple reality that greater engagement is a dramatic area of untapped potential. These are markets too often ignored by the incumbents of traditional finance and ready for innovative, agile new Web3 solutions to disrupt. In order for this to happen, VCs will have to be on the hunt for these opportunities and further outside the typical Silicon Valley echo chamber. Meet founders and investors at conferences in emerging markets, collaborate with local incubators, and hear from the communities on the ground.
Diversity Starts From The Inside Out
Roughly how many women or people of color are partners at any of the major crypto VC firms? Look around. The answer is depressingly low. Without diversity among their ranks, decision-makers who control such investments all too frequently make short-sighted decisions with long-term repercussions. This perspective can often cause them to miss out on the best ideas from underrepresented founders.
VCs must do a better job of recruiting and elevating people of color through intentional engagement. Develop mentorship initiatives, produce pathways to internships, and disrupt the unconscious biases that allow the unacceptable to continue. It’s more than just a tick the box exercise. It’s not just that this leads to better investment decision and a more inclusive portfolio – it’s about building the teams that bring those perspectives.
A study found that startups with diverse founding teams are more likely to be successful. It’s not only the right thing to do, it’s the smart thing to do.
Redefine "Profit" Beyond Token Price
The current fixation on the short-term profit maxing & risky speculative pump and dumps that these tokens enable is actively destroying the longterm future of Web3. We must reorient incentive structures towards projects that deliver actual benefit to the public, rather than just line the pockets of initial stakeholders. This means that VCs should invest in projects where rigorously defined social impact metrics can be achieved. They need to define success not by the price of their token, but by the amount in people they empower, the issues they address, and the impact they evoke.
Think about a VC firm that invests in a decentralized renewable energy platform, providing affordable and sustainable electricity to rural communities. The ROI is more than just monetary benefits. Those benefits include reduced carbon emissions, improved health outcomes, and increased economic opportunity for disadvantaged communities. That's a legacy worth building.
This requires a fundamental shift in mindset. You need to be willing to take risks on projects. While these initiatives sometimes don’t produce near-term returns, the social impact they help create lasts a lifetime. It means valuing purpose over pure profit. It means asking hard questions about the ethical implications of every single investment.
Investors are more and more insisting that companies provide evidence of company credibility with respect to environmental, social, and governance principles. Crypto VCs now have an opportunity to be leaders here, proving just what a responsible model of investing looks like in the digital age.
2025 is our deadline. Crypto VCs should stop chasing the hype. It’s past due. We’re all set to actually create a Web3 that lives up to the principles of decentralization, empowerment, and inclusivity. Require stakeholders to do better and ask for more from the projects you’re investing in. Champion diversity within your firms. Redefine what "profit" truly means.
The future of Web3 depends on it. And frankly, so does our collective conscience. To do that, we need to ensure this revolution works for all of us, not just the rich and powerful. So fund those projects, those partnerships, those plans that are truly breaking ground on building a more equitable and sustainable world. Hold accountable and be transparent with the VCs who are building Web3’s future.
The future of Web3 depends on it. And frankly, so does our collective conscience. Let's make sure this revolution benefits everyone, not just a select few. Support projects that are actively building a more equitable and sustainable world. Demand transparency and accountability from the VCs shaping the future of Web3.
The power is in your hands. Use it wisely.
