The Differentiation Dilemma in Web3 Venture Capital

The typical Web3 VC pitch has become predictable and lacks distinction. Phrases like 'deep relationships across the ecosystem' and 'our network is our edge' have lost their impact due to overuse. Liquidity providers have grown weary of these generic pitches, which often lack substance and rely on vague promises rather than tangible value. At TBV, we recognized the need to differentiate ourselves and create something unique. We discovered that emerging managers often outperform established funds, yet struggle to articulate their value proposition and attract capital. To address this, we focused on building a product rather than just a pitch. We asked ourselves what a fund truly owns and what defensible value it can offer founders. Our answer was to create a people-centric deal engine through events, which has allowed us to develop a unique platform and generate valuable data. In 2025, our event series drew over 43,000 attendees and more than 100 partners, demonstrating the potential of this approach. Other VC firms, such as Outlier Ventures and Paradigm, have also found success by rethinking the traditional fund model and focusing on building genuine platforms of support and technical expertise. The key to success lies in creating a fund that offers utility beyond capital and has a self-evident story to tell. As the Web3 space continues to evolve, managers who build real infrastructure and focus on doing something different will be well-positioned for long-term success.