Vessel Capital’s Bold $55M Fund for Web3: Stabilizing Crypto Start-ups or Risky Bet?

A turbulent seascape at sunset, symbolizing Vessel Capital's venture into Web3 infrastructure. The sea is filled with encrypted codes, representing crypto. A far-off lighthouse emits a guiding beam, reflecting the fund's advisory role. Dark storm clouds loom overhead, hinting at the venture capital downturn, but the vibrant colors of the setting sun transmute the scene into an audacious but appealing riskiness. The mood is one of bold cautious optimism mixed with ambiguous expectations.

Venture capital firm Vessel Capital is making waves in the crypto scene, with a recently announced $55 million fund earmarked for the Web3 infrastructure and applications sphere. This move has taken the crypto world by storm because, according to reports, the focus of this fund is not to inflate the scale but to lend support to crypto founders working on early-stage start-ups.

Mirza Uddin, one of the co-founders of Vessel Capital, stated that crypto has truly expanded on a global scale and that this fund is intended to help a broader range of individuals in the industry. Guidance and advice are what are truly sought after in the industry right now, rather than just simple monetary investments. He believes their fund’s approach can fill this void, given their own experience as startup founders.

However, the announcement does come during a downturn in crypto venture capital. Data shows a 29.73% decline in investment deals in the last month, with only $779.32 million garnered from 62 transactions. Furthermore, VC giant Sequoia Capital has recently downsized its cryptocurrency fund significantly, from $585 million to only $200 million.

In spite of this, Web3 infrastructure remains a risqué yet attractive investment target. Binance Labs, venture capital arm of Binance, made its own strategic move this week by investing in Delphinus Lab’s zero-knowledge WebAssembly virtual machine, which aids with zero-knowledge proof computation.

In the grand scheme, this funds injection could present significant progress in the Internet economy through redefinition via Web3 infrastructure and applications. It would fundamentally push towards a more decentralised world, and it promises to create efficient utilisation of capital, whilst maintaining the true innovative spirit the Internet was first conceived with.

But is this optimistic view of the Web3 infrastructure the reality that will unfold? There is no definitive answer. Whilst some believe that this will create a more decentralised, more democratic arena, others may counter that the potential for misuse, as well as uneven distribution of resources, might mean we are merely trading one set of problems for another. However, as we continue to explore this brave new world of decentralised networks, only time will truly reveal the outcome.

Source: Cointelegraph

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