{"id":72203,"date":"2023-01-03T17:53:47","date_gmt":"2023-01-03T15:53:47","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72203"},"modified":"2025-09-08T13:36:45","modified_gmt":"2025-09-08T10:36:45","slug":"fred-wilson-web3-investors-will-need-nerves-of-steel-in-2023","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/fred-wilson-web3-investors-will-need-nerves-of-steel-in-2023\/","title":{"rendered":"Fred Wilson: Web3 investors will need nerves of steel in 2023"},"content":{"rendered":"<p>Fred Wilson, co-founder of venture firm Union Square Ventures, warned investors about the serious potential risks of investing in projects related to the next-generation internet.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What Will Happen In 2023 <a href=\"https:\/\/t.co\/DT7tNZqw10\">https:\/\/t.co\/DT7tNZqw10<\/a><\/p>\n<p>\u2014 avc (@avc) <a href=\"https:\/\/twitter.com\/avc\/status\/1609576851336216579?ref_src=twsrc%5Etfw\">January 1, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Although <a href=\"https:\/\/u1f987.com\/en\/news\/what-is-web3\">Web3<\/a> has compelling values, I\u2019m not sure it is yet safe to wade back into the river if you don\u2019t have nerves of steel and you\u2019re not oriented toward a very long time horizon,&#8221; Wilson wrote in his blog.<\/p>\n<\/blockquote>\n<p>He added that last year was &#8220;painful for most and destructive for many.&#8221;<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The capital of our family has been hit hard. The book value of assets under management at Union Square Ventures halved this year,&#8221; the entrepreneur emphasized.<\/p>\n<\/blockquote>\n<p>According to him, the Web3 sector remains highly vulnerable compared with the broader tech sector.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;There are insolvent structures that have not been restructured. There are funds that are so unprofitable that they may be liquidated. These activities will continue to pressure Web3 tokens at least through the first quarter of 2023,&#8221; Wilson warned.<\/p>\n<\/blockquote>\n<p>The investor expects problems for many traditional startups as well. In his view, the tech sector will return to the &#8220;new normal&#8221; of 2015. Back then, the amounts raised in Series A rounds ranged from $15\u201325 million.<\/p>\n<p>However, Web3 startups with solid tokenomics and a strong value proposition will attract investors\u2019 attention, Wilson believes.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;I am personally more optimistic about Ethereum, because it has the best economic model among all Web3 assets,&#8221; the entrepreneur shared.<\/p>\n<\/blockquote>\n<p>Union Square Ventures (USV) invested in well-known platforms such as Twitter, Coinbase and Etsy.<\/p>\n<p>In early 2021 USV <a href=\"https:\/\/u1f987.com\/en\/news\/union-square-ventures-to-invest-about-75-million-in-cryptocurrency-startups\">announced<\/a> its intention to invest in crypto startups about $75 million. Soon after this announcement, the company <a href=\"https:\/\/u1f987.com\/en\/news\/union-square-ventures-backs-ethereum-layer-2-solution-zksync\">led<\/a> a funding round for the startup Matter Labs, which is developing Ethereum-<a href=\"https:\/\/u1f987.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">layer-2 solution<\/a> zkSync.<\/p>\n<p>In early 2022, Wilson&#8217;s firm <a href=\"https:\/\/www.usv.com\/writing\/2022\/04\/usv-2022-funds\/\">raised $625 million<\/a> in two funds focused on Web3 and traditional-market technology solutions.<\/p>\n<p>For details on how the next-generation internet is developing, read in our exclusive feature:<\/p>\n<p>Read ForkLog\u2019s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fred Wilson warned investors about the serious potential risks of investing in Web3 projects.<\/p>\n","protected":false},"author":1,"featured_media":72204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1133,1110],"class_list":["post-72203","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-venture-investments","tag-web-3-0"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=72203"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72203\/revisions"}],"predecessor-version":[{"id":72205,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72203\/revisions\/72205"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/72204"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=72203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=72203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=72203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}