The Differentiation Dilemma in Web3 Venture Capital

The standard Web3 VC pitch has become all too familiar, with claims of deep ecosystem relationships and value-added services, but these statements have lost their impact due to their widespread use. Liquidity providers have grown weary of hearing the same pitch repeatedly, with its generic promises and lack of substance. In response, my colleagues and I at TBV have focused on creating something distinctive. The data suggests that emerging managers often outperform established funds, delivering higher returns on average, but they struggle to communicate their unique value proposition to clients. To address this, we decided to develop a product-based pitch, rather than relying on promises. We asked ourselves what a fund can truly own, beyond its network, and how it can create defensible value for founders. Our answer was to create a people-centric deal engine through events, which has allowed us to build a unique platform and generate valuable data. In 2025, our event series attracted 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 developed innovative models that focus on building genuine platforms and contributing to the ecosystem. These models share a common thread - they prioritize creating utility beyond capital, making the story self-evident. The good news is that there is no one-size-fits-all solution, and the next generation of interesting managers will likely develop their own unique approaches. The key takeaway is that Web3 VC funds must focus on building real infrastructure and creating measurable value, rather than relying on generic pitches and unproven relationships.