Web3 Investment: Safeguarding Against Disruption, According to Corporate VC

Unlocking the Power of Web3: Corporate VC Views it as a Shield against Disruption

During the Proof of Talk conference, Martin El-Khouri, a seasoned director at Bertelsmann Investments, shared his insights on the current state of VC investments in Web3. Amidst regulatory uncertainties and a challenging market environment in the crypto space, investors continue to show confidence by supporting new ventures. Recent data reveals a remarkable 120% surge in venture capital funding for European decentralized finance startups in 2022 alone.

As a major player in the VC investment landscape, Bertelsmann Investments has deployed approximately 1.7 billion euros across 400 companies worldwide. El-Khouri emphasized that the firm’s BDMI fund entered the Web3 arena as early as 2016, enabling them to navigate through the present market climate and distinguish between substance and superficial hype.

By investing in Web3, El-Khouri considers it a prudent “hedge against disruption.” However, he acknowledged the challenges faced in convincing executive leadership within large global corporate entities to pay attention to Web3, given the industry’s reputation for volatility. Nonetheless, he highlighted the positive impact of regulatory frameworks, as they provide clarity and assist investors in assessing the feasibility of various projects.

El-Khouri also shed light on the increasing interest in generative artificial intelligence (AI) and AI startups. Market research indicates that the AI market is projected to reach a staggering $407 billion by 2027, a significant rise from the $86.9 billion revenue recorded in 2022.

Despite this shift towards AI, El-Khouri emphasized that the significance of blockchain and crypto is bound to increase. The unique value propositions of Web3, he noted, are further amplified by the advent of generative AI. In particular, he highlighted the role of blockchain in addressing the “double-spending problem” in AI content creation, eliminating the need for intermediaries and establishing digital asset provenance.

In conclusion, El-Khouri believes that Web3 holds immense potential and encourages investors to recognize its intrinsic value amidst market fluctuations. By leveraging blockchain technology and embracing the transformative power of Web3, businesses can safeguard themselves against disruption while tapping into the promising prospects offered by the AI landscape.