In an official release, Uniswap Labs, the group behind the decentralized finance (Defi) system Uniswap, has formed its venture capital arm for Web3 initiatives.
The investment vertical of Uniswap Labs Ventures intends to invest in various phases of web3 projects. According to the group, it would examine all initiatives, from infrastructure to developer tools to consumer-facing applications.
“As a crypto-native studio with deep expertise in the area, we are uniquely capable of supporting our portfolio firms as they scale their operations.”
The VC arm will also “actively participate in on-chain and off-chain governance.” The team also stated that they are already members of the MakerDAO, Aave, Compound, and Ethereum Name Service governance systems. According to the press release, Uniswap Labs has invested in 11 companies so far, as well as a few additional Web3 native protocols.
The Shark Tank at VC
Uniswap Labs is entering the Web3 VC arena, which has exploded in popularity in recent years.
According to Crunchbase, 200 venture capital agreements worth approximately $4 billion were closed in the first two months of 2022. This represents 22% of the total witnessed in the entire year of 2021, which was a spectacular record-breaking year.
Meanwhile, Teo Leibowitz has been named as the Ventures Lead at Uniswap Lab. The funding vertical will be led by Leibowitz and MC Lader, the Chief Operating Officer. According to Leibowitz’s statement to The Block, all VC investments will be made directly from the Uniswap Labs balance sheet.
As a result, the new business is also surrounded by existing criticism. There is an ongoing argument about whether Web3 investment arms have gained an unfair edge in a supposedly “decentralized” market.
Do Venture Capitalists Control Web3?
Former Twitter CEO Jack Dorsey expressed his disgust with this last year on the social media network.
In another case, the Financial Times previously reported that the crypto exchange Coinbase is benefitting from agreements done through its investment arm, Coinbase Ventures. In a statement made shortly after, the corporation, however, rejected the allegations.
Despite this, big exchanges, banks, and tech businesses are already making significant investments in the Web3 arena.
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