How Web3 is changing venture capital
GM, we take the most important / interesting Web3 news and translate it into plain old English. Here’s what you can find in today’s edition:
Africa onboards new Web3 and crypto infrastructure
Crypto 'plays vital role in Ukraine's defence'
How Web3 is changing venture capital
Africa onboards new Web3 and crypto infrastructure
This might sound a little boring at first, but hear us out:
The crypto exchange, FTX, has collaborated with AZA Finance to expand the adoption of cryptocurrencies throughout Africa.
Ok, so a crypto exchange is expanding to another continent...?
Here's why expansion like this is important: a healthy economy needs many things, not the least of which are a stable currency and easy access to financial services - and many African countries have seen their currencies massively devalued over the last decade.
Web3 infrastructure is quicker to implement than legacy financial systems, offers access to stable digital currencies without any crippling foreign exchange rates, and provides financial services at the click of a button.
While the partnership between FTX and AZA Finance isn't a miracle cure, it's certainly a step in the right direction.
"This continent is the future of global, digital economies. We know that the next generation of users, creators and builders for the Web3 economy is undoubtedly African"
- Elizabeth Rossiello, Founder / CEO of AZA Finance
Crypto 'plays vital role in Ukraine's defence'
Did you know crypto wasn't legal in Ukraine until yesterday? Well, it wasn't illegal, but was in a grey area.
Legislation passed on Wednesday has since painted that grey area black & white.
Given that the country has recently experienced the benefits of cryptocurrency as a medium of exchange, with many civilians using it to get their money out of the country, and the Ukrainian government accepting over $100M in crypto donations as they continue to fight the Russian invasion - the legislation makes sense.
(p.s. this is an affiliate link )
How Web3 is changing venture capital
There're A LOT of buzzwords in this article, so here's the simplified message:
Investing in private start ups isn't easy for the everyday person. You need to be an accredited investor (which requires a 200K p/y salary or a net worth of $1M+) and you need to have good 'deal flow' (aka know the right people).
Web3 technology is changing that through the use of DAOs (see translation), which allows anyone to buy in to a company - accredited or not.
DAO's give investors voting rights on company decisions, proportionate to their dollar contribution, and allow individuals to sell their shares (aka tokens) in the company on the open market - all while the company is still technically private.
This is something traditional venture capital investments can't offer.
The benefits of this new system have not been lost on founders, with the number DAOs exploding to 4,832 this year, and the total value of the first 216 assets under management totalling a value of $9.1 Billion - with a B!