The world of crypto venture capital is teeming with anticipation and risk as more investors delve into the nascent blockchain space. One such venture capital is Shima Capital, founded by Yida Gao, which as of 2023, has invested in almost 100 cryptocurrency projects. But the journey of Gao is marked by an adventurous risk-balancing act.
Navigating the rocky terrains of crypto investment requires startup founders to efficiently secure venture capital funding, keeping their new ventures afloat during the critical incubation period. Being a recent entrant into the venture capital domain does not deter Shima Capital from choosing promising crypto projects for investment. Gao, who is also an adjunct professor at MIT, stressed the significance of the founding team’s vision, market potential, and product innovativeness in their investment decisions.
Just like any other industry, crypto businesses also carry inherent risks. Addressing this, Gao pointed out that the intelligent integration of Web3 and finance, backed by his decade-long experience in the sector, has been pivotal in convincing some of the top-notch investors to step into the world of blockchain. However, industry skeptics argue that recent volatility in the crypto market showcases the need for stronger regulations to prevent high-profile fiasco cases involving companies like Celsius, 3AC, Alameda Research and FTX.
Contrary to popular opinion, Gao opines that constant good faith efforts by the stakeholders can make the crypto industry not just survive, but thrive, regardless of presence or lack of official regulations. Gao advocates for a mutually beneficial co-existence between regulators and the Web3 industry. He holds optimistic that the crypto world will continue to innovate and grow, provided the regulations don’t become excessively restrictive.
A common critique often associated with the crypto world is the scarcity of mainstream use cases. It also bears a notorious association with illicit activities such as money laundering and terrorism financing. Gao is hopeful that decentralized finance advancements and potential projects in gaming and consumer verticals can change this perception. He anticipates that small steps like this can contribute to crypto’s image makeover from shadowy subtext to credible mainstream narrative.
The vision of future finance seems multifaceted, with the co-existence of traditional and blockchain-based financial systems. Mr. Gao believes clear regulations in industry-leading nations will unlock mainstream popularity and propel blockchain. However, it seems clear that the world of blockchain and venture capital is a dance between immense potential and great risk. It requires careful stepping, intuitive leads, and skillful partnership between investors and founders to strike a perfect choreography.
Source: Cointelegraph
