The Web3 VC Differentiation Conundrum

The typical Web3 venture capital pitch has become all too familiar. Phrases like 'deep relationships across the ecosystem' and 'adding value beyond capital' have lost their significance due to overuse. Liquidity providers have grown weary of these generic pitches, and the industry continues to repeat the same formula. A well-designed logo, vague investment thesis, and a few bullet points about 'value add' are no longer enough to impress. For most emerging managers, their track record is still in its infancy, making it challenging to secure funding. My colleagues and I at TBV have spent considerable time reflecting on what sets us apart from others. The answer was humbling: not much. So, we decided to create something unique. Studies have consistently shown that emerging managers outperform established funds, delivering higher returns on average. However, they struggle to communicate their value proposition to clients, resulting in capital flowing to established brands rather than potential. When building TBV, we decided that our pitch had to be a tangible product, not just a promise. We focused on what our fund could own, such as events, data, and platform value for founders. Connections are not defensible, but what we've built is. We developed a people-centric deal engine by creating events that bring together founders and investors. In 2025, our event series attracted over 43,000 attendees and more than 100 partners, generating valuable data and relationships that feed into our AI-driven deal engine. Other VC firms, such as Outlier Ventures and Paradigm, have also rethought their approach, focusing on building platforms and contributing to protocols. What these models share is that the fund itself is a product with utility beyond capital. The question is no longer 'how do we tell a better story?' but 'how do we build something that makes the story self-evident?' The good news is that there isn't just one answer, and the next generation of managers will focus on building real infrastructure. Those who do will be difficult to displace, while those who rely on generic pitches will find themselves left behind.