Web 3.0 is changing the models of venture capital and accelerator

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Panos

Founder of DigitalGen Financial Services. Focus on financial and crypto education.

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Venture capital has played an important role in helping startups gain traction, but this process has had a success rate of around 1% when it comes to launching unicorns. So, there has to be a better way for startups to break the ceiling.

This led to the development of a series of business incubators, such as venture studios and startup accelerators that have successfully supported nascent startups to higher valuations for years.

Adventure studios have been around since 1996, when Idealab was first launched. Since its inception, Idealab has had a 70% success rate, with 5% of its startups achieving unicorn status.

Venture Studios build startups from the ground up, from idea stage to launch and hopefully towards a lucrative exit.

Recently, venture capital studios have become increasingly popular, and the global startup studio network has measured 625% growth in startup studios over the past seven years.

When ideas have become reality and startups want to scale, they can turn to an accelerator to help them take them to the next level.

Y Combiner, first launched in 2006, stands out as one of the most successful accelerators to date, and is responsible for helping projects become household names like AirBnB, Dropbox, and Reddit.

The combined valuation of the projects that have worked with Y Combinator amounts to more than $ 300 billion.

Most of the tech unicorns that started or developed through studios and accelerators are part of what’s called Web 2.0, and these platforms depend on the Internet to deliver their services.

Like the centralized technology on which they depend, the Internet, these Web 2.0 unicorns are centralized services which are giving way to the decentralized services of the future.

The next step in the web’s evolution, Web 3.0, promises to deliver a new storehouse of services powered by blockchain technology and the enhanced security and programmability provided by these blockchains. Web 3.0 opens the door to a future where users and machines can interact without the need for third parties.

Web 3.0, the decentralized applications (dApps) that power it, and the dominance of blockchain technology that makes it all possible are growing at a phenomenal rate.

For example, Ethereum, worth over $ 400 billion, facilitated the birth of dozens of other unicorn projects built on its network, and a few of those projects, like Uniswap, Chainlink, and Polygon, have achieved valuations in excess of $ 10 billion.

An innovator in the blockchain space, Blockzero Labs, is taking the next logical step in the further development of blockchain technology by decentralizing the type of services championed by Idealabs and Y Combinator into an international, 24-hour, and inclusive consortium for creating the next generation of unicorns.

What is Blockzero Labs?

Blockzero Labs is a decentralized venture capital fund, lab, studio, and accelerator operating as a Decentralized Autonomous Organization, or DAO. According to Blockzero, blockchain technology is like a universe ripe for exploration, and its combined services provide the tools to probe deeper into this universe than ever before.

A DAO does not have a CEO or board of directors directing the decisions of the organization, so the community behind a DAO like Blockzero has the power to make decisions on behalf of the organization.

Holding Blockzero’s governance token, XIO, gives its community the right to vote on proposals, determine how funds will be spent, and participate in the platform’s success.

Decentralized technologies are opening doors for millions of people to participate in a new wave of value creation based on merit rather than connections and the luck of the draw. Blockchain technology allows platforms to operate seamlessly on open source coding that level the playing field for everyone involved.

Sources:

  1. https://www.cbinsights.com/research/venture-capital-funnel-2/
  2. https://theworldwecreate.net/insights/the-venture-studio-business-model-explained
  3. https://hbr.org/2016/03/what-startup-accelerators-really-do
  4. https://coinmarketcap.com/alexandria/article/what-is-web-3-0
  5. https://blog.blockzerolabs.io/y-combinator-vs-blockzero-labs-the-astronomy-of-a-decentralized-accelerator-fcf295d9e0a5
  6. https://www.youtube.com/watch?v=Ll7ZQVdlHmg
  7. https://www.forbes.com/sites/cathyhackl/2021/06/01/what-are-daos-and-why-you-should-pay-attention/

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