The Web3 VC Differentiation Conundrum

The typical Web3 VC pitch has become a cliché. Every fund boasts about its extensive networks and strong relationships, rendering these claims meaningless. Liquidity providers have grown tired of hearing the same pitch, and the industry continues to replicate the same formula. A sleek logo, vague investment thesis, and three bullet points about 'value add' no longer impress. For most emerging managers, their track record is nonexistent, making it challenging to secure funding. My colleagues and I at TBV realized we had to think differently. We asked ourselves what set us apart, and the answer was humbling: not much. So, we created 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 to focus on creating a product, not just making promises. We asked ourselves what a fund truly owns, beyond its connections. We developed a people-centric deal engine, leveraging events as a means to create a defensible platform. Web3 conferences are a crucial component of the industry, with founders and VCs alike attending to network and secure deals. Instead of paying for access, we built our own environment, generating data and creating relationships at scale. This approach has been deliberate and successful, with our event series drawing over 43,000 attendees and more than 100 partners in 2025. The events and our AI-driven deal engine, TBX, are intertwined, feeding into each other to create a robust infrastructure. 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 about telling a better story but about building something that makes the story self-evident. There isn't just one answer, and the good news is that the next generation of managers will have the opportunity to create their own unique models. Those who build real infrastructure now will be well-positioned for the future, while those who rely on unmeasurable relationships and value will find it challenging to compete.