From the perspective of retail, it can be hard to get a handle on what blockchain VCs do on the daily. You hear their names mentioned when they’ve written a pre-seed check for the latest Layer 2 chain, but the rest of the time? It’s a mystery to many. Needless to say, they’re not resting on their laurels. From supporting hackathons to trawling through pitch decks, web2 venture capital firms are kept busy around the clock. Especially during bull markets, when every startup wants their blessing.
However, just as the quality of crypto startups varies greatly, the same holds true of VCs. While they all broadly share the same goal – accelerating web3 adoption while earning generous returns for their investors – the best VCs aren’t just in it for the exit: they’re here to make a real difference. The following 10 have been doing their part to ensure that web3 becomes the new web: everywhere and used by everyone. They’re also adept when it comes to DD, so when they put their name to a round, there’s a good chance the startup is going places.
Animoca Brands
A heavy hitter whose name should be familiar to web3 natives, Animoca Brands specializes in GameFi, metaverse, and NFTs. In addition to investing in early-stage companies, Animoca isn’t averse to the odd merger and acquisition. It’s also bought out web2 companies that have seen better days but whose IP is still precious and helped them adopt web3 to bring their licensed content to a new generation.
Based in Hong Kong but involved in every major global region and market, the Animoca name is synonymous with web3 gaming. It’s hard to conceive of another VC that’s as bullish on GameFi as Animoca or that’s done more to support the sector through investment, marketing, sponsorship, and much more.
Shima Capital
If nothing else, Shima Capital warrants an award for greatest VC slogan ever conjured: “We run through walls for our founders.” Hopefully they’re of the drywall rather than rebar variety. The San Francisco-headquartered VC was founded in 2021 and has made hundreds of investments in the years since, with a particular focus on DeFi, Gaming, and Infra.
Shima is particularly interested in consumer-facing products that will bring entertainment to web3 while forging passionate and highly engaged communities. Its investments include such names as Pudgy Penguins, Earn Network, and Parcl. Shima Capital has its fingers on the pulse of web3 and its founders understand what makes the retail side tick.
Big Brain Holdings
If Shima wins best slogan, Big Brain Holdings can lay claim to best name. As its moniker suggests, the Big Brain VCs are au fait with crypto lingo and more importantly have a handle on what the industry needs. Like most of the VCs on this list, its speciality is early-stage investments because that’s where there’s the most upside (not to mention risk) and it’s where BBH can make the greatest difference.
Its portfolio reads like a who’s who – or rather what’s what – of web3 with such stellar names as Solana, Pump.Fun, Tensor, and Wormhole. Its founders have a deep understanding of web3 architecture from base layer to consumer side, which is why they’ve been able to make such astute investments while doing their bit to support industry growth.
DWF Labs
Modern blockchain VCs like to have a finger in many pies and DWF Labs is no exception. While its primary business is investing in the next generation of game-changing startups, it also specializes in market making. This, in VC terms, is what you call a value add: not only can it invest in early stage projects pursuing a pathway to tokenization, but whe as n they get there it can help them obtain the liquidity and volume to maximize success.
But it’s on the investment side where DWF has forged its reputation as one of the industry’s best all-round venture capital firms. Yes, it identifies talent and writes checks but it also provides the sort of complementary services that will accelerate the startups it incubates. From advisory to partner network introductions, DWF Labs gives ambitious web3 startups the best possible start.
LD Capital
Blockchain VCs tend to be broadly split along East/West lines, leaving it to the firms originating in Asia to lead investments within their region. This makes sense given the localization challenges involved with penetrating the Asian market, whose culture remains markedly different from that seen in the West. LD Capital is one such VC leading investment in the Asian market.
The firm, which was founded in 2016, is primarily interested in DeFi, GameFi, Infra, and AI, but it’ll consider anything that can be bundled into the web3 bracket. LD Capital doesn’t just write checks and then take a back seat: it’s active in DAOs and invests in primary and secondary crypto markets as well as supporting global meetups from events to hackathons.
NGC Ventures
Singapore’s NGC Ventures is a major investor in blockchain technology and is particularly interested in the building blocks of web3. Think L2s, data layers, DePIN, multichain, storage, and AI. Founded in 2017, the firm now has over $500M AUM. While headquartered in Singapore, team members can also be found in the US, UK, and China, giving it access to global dealflow.
Like any self-respecting VC, NGC is keen to emphasize its hands-on approach. It provides ongoing support and mentoring for its portfolio companies, helping them with such tasks as go-to-market strategy and recruitment. Just to further burnish its credentials, NGC Ventures is a major sponsor of web3 research and has made numerous grants and donations to academic institutions.
Exnetwork Capital
The Philippines doesn’t stand out as a venture capital hotspot but it’s on the map at least thanks to Exnetwork Capital. The web3 investment fund has been incubating East Asian startups for more than five years and knows the local market better than most. Led by tech veteran Eric Su and serial entrepreneur Dric, Exnetwork’s superpower is its research capabilities: it dives deep into the companies it’s considering investing in so that by the time the first meeting comes around, they know the startup inside out.
Exnetwork’s name appears on many of the most prominent web3 raises, attesting to both its reach and its nous. From Frax Finance to Thorchain, Exnetwork’s portfolio is diverse and global. Its speciality, however, remains East Asian web3 startups and there’s no shortage of promising candidates for the firm to pick from in this innovative region that’s ripe with talent.
Sequoia Capital
“We help the daring build legendary companies,” proclaim Sequoia Capital, which is quite the rallying cry. This legendary California investment firm should need no introduction, having invested into unicorns and IPO’d companies across fintech, healthcare, and SaaS. When it comes to crypto, Sequoia is no slouch either, with a portfolio that includes Fireblocks, Filecoin, and LayerZero.
While Sequoia is not as immersed in web3 as some of the other VCs on this list, it knows a compelling pitch deck when it sees one. For web3 startups, securing the backing of Sequoia Capital is right up there with being endorsed by a16z or Coinbase Ventures.
Paradigm
Paradigm is a VC that believes the bulk of its work should be done before it’s even engaged with a potential investment. It researches hard and long to identify startups that might be suitable for supporting. Led by Fred Ehram and Matt Huang, Paradigm is a major player that startups are only too eager to court. It’s invested in the likes of Blast, dYdX, and friend.tech.
The Paradigm team isn’t just comprised of suits: it’s got its share of degens who’ve spent serious time in the crypto trenches. They know what retail wants and needs, and they know the teams working to engineer solutions to facilitate this, having backed the outstanding candidates across multiple verticals from gaming to DeFi.
EnigmaFund
Just as there are crypto companies big and small, the same holds true of web3 VCs. Enigma is a lesser-known name, but what its team lacks in might they make up for in ambition. Its founders are hungry for success and put in the time required to identify outstanding web3 projects. In addition to direct investment, EnigmaFund specializes in advisory, guiding projects through everything from document creation to tokenomics.
Enigma is particularly interested in finding early pre-revenue startups as well as more mature companies that have just begun generating revenue. 70% of its funds are reserved for the companies it accelerates, with Enigma reserving the remainder for direct web3 deals including OTC token vesting and other assets. For tokenized projects with a cash shortfall, Enigma is the VC to see.
