Everyone in web3 is familiar with names like Andreesen Horowitz, Coinbase Ventures, and Binance Labs. But outside of the big venture capital firms, there are hundreds more that undertake the same work, funding and supporting startups and advocating for web3 adoption.
From this long tail of web3 VCs, a few names stand out. Not only are their founders knowledgeable and their hunger for success palpable, but they demonstrate an earnest desire to help the industry realize its full potential. The following VCs are ethical, multidisciplinary, and intent on helping not just themselves but their portfolio companies achieve the success they warrant. Take a note of these names cos you’ll be hearing a lot more from them in the years to come.
GBV Capital
Founded in 2020, GBV Capital is a Hong Kong-based web3 fund. It has no LPs, with its founders instead using their own funds to back the startups it believes have an outsized chance of going the distance. Having invested in the likes of Canto, Pendle, Pyth, and Zerolend, it’s fair to say the GBV team know their DeFi and infra plays.
The firm is particularly active across the multichain landscape, investing in protocols emerging to bring liquidity and DeFi tooling to L2s. GBV takes an open-minded approach to investing, considering submissions from pseudo-anon teams as well as more conventional startups. It “gets” crypto culture and embodies the WAGMI spirit, making it an ideal partner to support crypto projects that dare to think outside the box.
DWF Labs
DWF Labs is an ambitious web3 VC that’s eager to find the most talented early-stage projects. It invites submissions from startups that meet its investment thesis and is only too happy to give them the time of day. When the firm commits to an investment, it gives it 100%. Not just funding but also mentoring, networking, and every other weapon in its extensive arsenal.
Because DWF Labs also runs a market-making and OTC trading desk, it’s an ideal fit for tokenized projects. While its initial value-add is in terms of financing, later its complementary services prove invaluable in providing the liquidity required to ensure a successful TGE. DWF Labs knows the industry inside out and its work ethic has helped make it one of the fastest-rising web3 VCs.
Side Door Ventures
Side Door Ventures is run by an extremely smart team that’s interested in moon shots. It’s not seeking yet another L2 or data layer: it wants founders with grander aspirations. Side Door’s own founders have a background in fields ranging from life sciences to space – no wonder they’re so hungry for moon shots. Its web3 investments have included Ether.fi and Mysten Labs and it’s constantly scouting for new opportunities.
While Side Door Ventures, like any good VC, is extremely selective about the companies it backs, when it does commit, it commits fully, furnishing them with all the tools they need to succeed. Its digital asset fund provides checks of up to $300K for web3 startups, giving them the fuel to advance their concepts into a working onchain reality.
First Minute Capital
Headquartered in London, First Minute Capital is focused on the European market where it’s funded a host of fintech and crypto startups. Founded by serial entrepreneurs, it’s seeking founders who share the same mindset, ambition, and vision. Or as VCs are apt to put it, they invest in people. Founded by Spencer Crawley and Brent Hoberman in 2017, First Minute is “sector-agnostic” so doesn’t just limit itself to web3.
Companies to whom it gives the thumbs up can expect seed or pre-seed funding ranging from £250K to £3M. First Minute Capital loves a good founder story, the sort driven by an individual or team inspired to create a product that solves a pain point they’ve first-hand knowledge of. For founders with the ambition to match their grand vision, First Minute is the VC to approach.
Lunar Capital
Part of ecosystem growth firm Lunar Strategy, Lunar Capital is a Lisbon, Portugal-based incubator and accelerator. It’s an investor whose star is very much in the ascendancy, having just wrapped up a whirlwind H1 2024 that’s seen it writing checks, co-hosting EthCC, raising over $4M and accelerating its mandate to support the startups that are intent on transforming web3 over a long time horizon.
Lunar Capital specializes in seed round and Series A/B funding, but its services don’t just end there. Once projects reach the public investment stage, typically in the form of a TGE, Lunar gets hands-on, assisting with everything from marketing to post-IDO strategy. It also works closely with KOLs to help projects attract the influencers who can broadcast their message to the masses.
1confirmation
Founded by Nick Tomaino (ex-Coinbase), 1confirmation is an early stage venture fund investing in the decentralized web. It’s particularly focused on Ethereum-native startups that align with its philosophy and that are working to make the EVM ecosystem more accessible to developers and end-users. Its portfolio includes OpenSea, Polymarket, and Maker.
1confirmation is highly active on Twitter, where it uses its brand to support its portfolio companies and evangelize the latest blockchain breakthroughs that are unlocking new use cases and onboarding new users at scale. 1confirmation is also heavily invested in the macro landscape, with its regular newsletters to LPs providing analysis of the market outlook and making multi-year projections about where the industry is headed next.
CoinFund
CoinFund is a Berlin-based web3 VC that prides itself on identifying emerging trends and new metas before the rest of the industry has caught on. Founded in 2015, it now boasts over 100 portfolio companies including the likes of Neutron, LI.Fi, and Gensyn. An experienced founder team, led by Jake Brukhman, has a collective background in investing, engineering, computer science, law, and emergent technologies.
One of the smartest teams operating out of Europe, CoinFund also provides market insights and research into web3 sectors ranging from DeFi to DePIN. Its founders are adept at joining the dots to identify trends that will shape the future of web3. These skills feed into its investment strategy, equipping CoinFund to identify the startups that are likeliest to succeed within their respective web3 verticals.
KR1
Based in London and founded in 2016, KR1 invests in major players within specific web3 sectors. While a lot of its funding is directed towards digital assets, it’s also on the lookout for startups that are doing something different and whose tech has a strong defensive moat. This year, it’s supported Mode Network, Avail, and Tanssi, while former investments include StarkNet wallet Argent and Superchain.
The KR1 team is seeking true entrepreneurs who will stick at it through good times and lean, and who possess the qualities to turn an idea into a multi-billion dollar company. It’s particularly interested in decentralized networks and protocols that offer something different to what’s gone before. While selective about the startups it funds, when it does write a check, it follows up with ongoing support and mentoring.
First Round Capital
As its name suggests, First Round Capital is seeking early stage startups that are intent on changing the world for the better. It has a broad remit spanning enterprise, healthcare, fintech, and crypto. While already a major player in venture capital, First Round has a lower profile within web3 – but that’s starting to change.
First Round might not invest frequently in web3, but when it does, it tends to be on the money. It’s backed startups such as web3 social platform Farcaster, crypto bank Abra, and Dynamic wallet. One of the best things about First Round Capital is that it’s great at communicating what it looks for in startups and providing educational content to help founders navigate the dark art of fundraising. Even if you’re not planning on sending First Round your deck, they’re a great resource for getting to grips with what VCs are after.
Outlier Ventures
Outlier Ventures is a VC that has many aptitudes and interests. Despite having been founded a decade ago, the London-based firm has kept a relatively low profile for most of its lifespan. But to those who know, Outlier is one of the best in the biz. Crypto startups that are intent on building products that reinforce the core principles of blockchain – decentralization, open access, security – know to make Outlier Ventures top of their pitch list.
As a web3 incubator, Outlier doesn’t just fund startups: its team likes to roll up their sleeves and get their hands dirty, doing the work of supporting DAOs, mentoring projects, and helping crypto companies achieve rapid growth while retaining true to their principles. When you partner with Outlier Ventures, you gain a friend for life that will support your startup through bull markets and bear. That’s the mark of a good VC.
