The cryptocurrency market has experienced a recent slowdown, but this has not deterred investors from backing promising projects, specifically within the Web3 infrastructure sector. One such example is the launch of a $40 million fund by new crypto-focused venture capital firm, Dispersion Capital. The fund is primarily focused on pre-seed and seed investments in Web3 infrastructure projects, and has garnered support from notable limited partners such as Circle‘s venture capital arm, Ripple, and Alchemy‘s investment division.
With the crypto bear market in full swing, it could be argued that this is not the ideal time to launch such a venture. However, Web3 infrastructure projects have shown remarkable resilience in the face of market challenges. Patrick Chang, founder and managing partner of Dispersion Capital, believes in supporting teams that are “bridging today’s infrastructure gaps and building new standards for decentralized tech layers.” These efforts are intended to pave the way for the creation and launch of multi-chain, multi-currency, and multi-platform applications.
Chang revealed that Dispersion Capital has already allocated about 10% of the fund. While the crypto ecosystem experienced an influx of venture capital funding in 2021, much of the attention was focused on the application layer of Web3. Decentralized applications (dapps), such as those for non-fungible tokens (NFTs) and decentralized finance (DeFi), were instrumental in introducing users to this new segment of the market. However, as the bull market succumbed to the bear, it became evident that the underlying crypto infrastructure was not fully equipped to handle the increased demand.
According to Chang, “Web3’s foundational layer wasn’t (and still isn’t) ready for billions of users.” This highlights the importance of continued investment in Web3 infrastructure projects to ensure a solid foundation for future growth and adoption. Dispersion Capital’s decision to back ventures in this area demonstrates a commitment to long-term crypto market success.
Patrick Chang’s background includes experience in both the Web2 and Web3 sectors, having headed blockchain investments for Samsung Next, and invested in a variety of crypto firms as an angel investor. Some of his notable investments include Alchemy, Dapper Labs, and Space and Time.
In conclusion, despite the recent downturn in the crypto market, it is clear that there remains strong support for ventures exploring and developing Web3 infrastructure. With firms like Dispersion Capital dedicated to investing in projects bridging the gaps in decentralized tech layers, the future of multi-chain, multi-currency, and multi-platform applications looks promising. While the bear market may present challenges, persistence and continued funding in the crypto ecosystem will likely lead to a stronger, more resilient future for decentralized technology.
Source: Coindesk
