The Web3 VC Differentiation Challenge

The typical Web3 VC pitch has become cliché. Phrases like 'deep relationships across the ecosystem' and 'our network is our edge' have lost their meaning as every fund makes the same claims. This has resulted in a situation where liquidity providers have become desensitized to these pitches, and the industry continues to replicate the same formula. A notable logo, vague investment thesis, and a few bullet points about 'value add' have become the norm. However, this approach often lacks substance, particularly for emerging managers who are still building their track record. My colleagues and I at TBV realized that we didn't have anything unique to offer, which led us to create something different. Research has consistently shown that emerging managers outperform established funds, delivering higher returns on average and reaching top-quartile performance more frequently. The issue lies in their ability to communicate their value proposition effectively, causing capital to flow towards established brands rather than potential. When building TBV, we decided to focus on creating a product rather than making promises. We asked ourselves what a fund can actually own, beyond just its connections. The answer lies in what it has built, the data it has generated, and the platform value it creates for founders. This is what sets us apart. We chose to develop an events-based model, creating a people-centric deal engine that would allow us to own the data and build relationships at scale. This approach has been 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 interconnected, feeding into each other to create a unique value proposition. Other VC firms, such as Outlier Ventures and Paradigm, have taken different approaches, from building accelerator models to contributing to protocols. What these models have in common is that the fund itself is a product with utility beyond capital. The key is to build something that makes the story self-evident, rather than just telling a better story. There isn't just one answer, and the good news is that the next generation of interesting 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 continue to rely on unproven relationships and unmeasurable value will find it increasingly difficult to compete.