1. 2024 Q3 Investment Strategy
This quarter, Web3Port Foundation's core investment strategy continues to focus on supporting revolutionary Web3 projects, especially innovative technologies that have long-term potential and can significantly change the industry landscape. We believe that Web3 is not only an innovation at the technical level, but also a key force in promoting creativity and changes in production relations. Therefore, Web3Port Foundation is still making layouts in multiple tracks such as Defi, AI, DePIN, and Payment. We believe that by empowering projects that can lead the industry and provide real value, we will promote the development and progress of the entire Web3 ecosystem.
2. Overall Data Performance
Web3Port Foundation scanned and screened a total of 650 projects in the third quarter; 212 projects passed the initial screening, accounting for 32%; after in-depth investment research and comprehensive investigation, 34 projects were discussed at the IC meeting, accounting for 16%; and finally 19 projects were successfully invested, accounting for 8.9%, with a total investment amount of US$10.1 million.
The overall heat of the Web3 primary market declined in the third quarter, and the market sentiment was relatively low. Although industry VCs were very interested in the project, they chose to wait and see cautiously due to the overall uncertainty. This market cooling has caused some entrepreneurs and investors to have some anxiety. However, Web3Port Foundation has always been firmly optimistic about the development opportunities of the Web3 industry in the long term, and continues to maintain a high frequency of investment and investment amount. We firmly believe that the transformative potential of Web3 technology is still immeasurable, and real innovation and breakthroughs will come from projects that dare to move forward in the face of challenges. Therefore, we hope that Web3 entrepreneurs can maintain their fighting spirit, not be afraid of difficulties, and persist in pursuing breakthroughs in cutting-edge technologies and applications.
The distribution of projects listed still reflects W3P's investment strategy, which is to focus on early pre-Seed/Seed projects and mid-to-late high-quality pre-listing projects. The overall certainty runs through the whole, gradually forming a pyramid-shaped layout with a head-to-tail response.
Web3Port Foundation divides all projects into three categories: Infra: Provides the necessary technical architecture, hardware and tools for web3, such as L1/L2 (Movement, Bitlayer), AI computing power (Aethir), ZK technical services (Zerobase) Middleware (app/Dapp): Connects infra and applications, provides support for upper-layer applications, and enables upper-layer applications or users to share information, resources and liquidity of different infrastructures. Such as Defi three-piece set Jupiter, Echelon, Trusta. Cosumer: The core business model is to serve C-end users, and C-end users contribute their greatest commercial value. UXLINK, Wildforest.
- The projects that will be listed are mainly Infra, Middleware and other projects with higher technical barriers and higher market ceilings.
- Based on the natural financial attributes of Web3, Defi projects are still the main track for listed projects, followed by AI, DePIN and Gamefi projects.
Notes on the figure above: All curves in this figure are abstracted into "heat trend values" by multiple values in proportion, and the dotted lines after Q3 are all predicted values
- Investment activity is composed of data sets such as the investment enthusiasm of Web3Port Foundation, the number of investment projects, and the amount;
- Market Investment Amount is the actual investment and financing amount and number of investment and financing projects in the Web3 primary market, which is compiled through public data;
- Listed Projects is a weighted average of the actual listed project data from 5 major exchanges (Binance, Okx, Bybit, Kucoin, Bitget).
3. Thoughts and sharing on some tracks
About AI:
Regarding the market expectations for next year, most T1 VCs have a consensus that the track with higher expectations is the AI track. Since some AI projects have been launched this year and some projects have raised funds for investment in high-quality targets, various projects that are riding on the popularity and trading have emerged in the primary investment field. However, there are no projects in this track that are truly related to the blockchain itself or that are different from traditional AI. The market is looking for the concept of real implementation of decentralization, and the market has handed in some answers, such as combining decentralization with computing power distribution; combining token economics with the market end of AIGENT; providing a better soil for AI applications, building a more suitable AI infrastructure public chain, etc. This thinking has not stopped, and more ideas and creativity are budding. More thinking is now focused on binding AI AGENT with personal characteristics, payment transfers between AI AGENTs, verifiability of AI paths, AI-specific distributed storage environments, etc.
About DePIN:
The DePIN track implements the logic of Web3 using decentralization and transparency to enhance the scalability and efficiency of infrastructure. It eliminates the problem of large-scale capital investment by a single entity through crowdsourcing resources. It has many potential applications in various industries and is easier to realize Real Business. With the evolution of each round of DePIN projects, we have seen that the DePIN track is no longer a pure mining machine logic. Projects such as Aethir and Akash have begun to have considerable business income. The income can not only feed back the tokens, but the dual superposition of mining machine sales and business income has reduced the project's dependence on investment funds. Products with self-sustaining functions are more popular with investors and exchanges.
The DePIN project is no longer confined to the single aggregation of resources, but is gradually developing towards complex resource aggregation protocols, such as storage and computing integration, such as bandwidth sharing and computing acceleration. At present, it is still mostly concentrated in the infrastructure field, often appearing as the upstream of AI. The outbreak of AI narratives will also drive related DePIN tracks; DePIN general infrastructure, middleware, EdgeAI combined with AI, and DePIN consumer products such as wearable devices are all potential tracks. The commonality of DePIN track projects is that they all need communities and ground-based networks to sell mining equipment. In the layout process, gradually internalizing these distribution networks into our capabilities is a direction that can be explored.
About Ordinary Investors & Meme:
The core demand of ordinary investors is to get returns. After ICO and Defi summer, there is no good return range, but there are always stories of getting rich quickly in the market, just like there will never be a lack of gamblers in a casino. This year's popularity is focused on the meme based on pump.fun and the zero-cost knock knock to earn airdrop gameplay of the TG ecosystem. Going to VC and CEX to do bureaucracy also reflects the real inner thoughts of retail investors. But we believe that the professional vision of VC can also bring projects that make ordinary investors money to the market, and we hope that Web3Port Foundation will work hard to achieve this.
The Meme track has gradually seen the emergence of a decentralized "conspiracy group" centered on project parties, market makers, KOLs, early discoverers and disseminators. The proportion of Meme tokens dominated by conspiracy groups has increased significantly; Meme is no longer a simple on-chain PVP asset target. For projects whose main narrative is not Meme, Meme has begun to become a medium for brand communication and a tool to increase community popularity. The operating methods of conventional projects will be more closely integrated with Meme.
Conclusion:
In Q3, we adhered to our original intention and provided the market with all possible help, focusing on supporting AI, Defi, and infrastructure tracks and reaching in-depth cooperation with multiple public chains. We also planted the seeds for potential explosive projects in the future. We firmly believe that the future market will bring more possibilities.
Now that the US election is over, we are excited to see that policy guidance and market hot money are beginning to flow back to Web3. We are confident about Q4 and will continue to provide all-round support, including but not limited to funding, to potential and valuable projects. Welcome to contact us.
