The Web3 VC Differentiation Dilemma

The typical Web3 venture capital pitch has become all too familiar. Claims of extensive networks and strong relationships have become meaningless as every fund makes the same assertions. Liquidity providers have grown weary of these generic pitches, and the industry continues to replicate the same formula. To differentiate ourselves, my colleagues and I at TBV focused on creating something distinct. We realized that emerging managers often outperform established funds, delivering higher returns, but struggle to articulate their unique value proposition. This led us to develop a product-based approach, rather than relying on promises. We concentrated on building tangible assets, generating data, and creating platform value for founders. Our solution was to create a people-centric deal engine through events, which has evolved into a self-sustaining flywheel. In 2025, our event series attracted over 43,000 attendees and more than 100 partners, providing valuable data and connections that fuel our AI-driven deal engine. Other VC firms, such as Outlier Ventures and Paradigm, have also developed innovative approaches, from accelerator models to technical contributions. These models share a common thread - they offer utility beyond capital, making the story self-evident. The key takeaway is that emerging managers must build real infrastructure to succeed, rather than relying on unverifiable claims of relationships and value. Those who do will be well-positioned for the future, while those who don't risk being left behind.