Web3 Venture Capitalists Need to Diversify

The typical Web3 VC pitch has become all too familiar. Phrases like "deep relationships across the ecosystem" and "our network is our edge" have lost their impact due to their widespread use. Liquidity providers have grown tired of hearing the same pitch, which often includes an impressive logo, vague investment thesis, and a track record that may not yet exist. At TBV, we questioned what truly set us apart from others. The answer was humbling: not much. So, we decided to create something unique. Data has consistently shown that emerging managers tend to 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 we could own, build, and create for founders, rather than just relying on connections. This led us to develop a people-centric deal engine through events. Web3 conferences have become a crucial part of the ecosystem, with founders and VCs alike attending to network and find opportunities. We wanted to flip this model by building our own environment, owning the data, and creating relationships at scale. This approach has been successful, with our event series drawing over 43,000 attendees and more than 100 partners in 2025. Our events and AI-driven deal engine, TBX, are deeply connected, feeding into each other to create a unique value proposition. We're not the only ones rethinking the traditional fund model. Other VCs, such as Outlier Ventures and Paradigm, have taken different approaches, from building accelerator models to 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 likely find their own unique approaches. Those who build real infrastructure now will be well-positioned for the future, while those still relying on unproven relationships and unmeasurable value will find it increasingly difficult to compete. I'm excited to see what other models emerge and how competition in this space will drive innovation.