Evolving Web3 Investment Strategies and Trends: CoinSwitch Ventures

Venturing into the world of Web3 and blockchain technology can be a thrilling yet complex journey. Several countries and governments are standing out with their unique approaches to embracing innovation native to this groundbreaking tech space.

At Coinfest Asia 2023, TheNewsCrypto met Parth Chaturvedi, Investment Lead of CoinSwitch Ventures, to discuss the rapidly evolving Web3 space and its investment landscape. He shares key insights on the challenges and opportunities it presents and the unique initiatives driving its growth. 

Discover why LevitateX, CoinSwitch’s Web3 scaling program, is turning heads, and gain a deeper understanding of the global and India-specific dynamics of this transformative industry. 

Developers and builders are proactive in bringing numerous innovative projects to the evolving Web3 space. Challenges and problems are rapidly evolving in parallel. What kind of project solutions capture significant attention on the radars of investors and venture capitalists?

Parth Chaturvedi (PC): Right now, we are witnessing a dynamic shift in the Web3 landscape. Despite some recent slowdown in venture funding, certain themes within this space have captured investors’ attention. One notable theme that I can highlight is real-world asset (RWA) tokenization. This goes beyond just tokenizing real estate; it includes financial assets like bonds, equities, and funds. The potential for retail users to access these traditionally exclusive assets is a compelling prospect.

Another focus area is enhancing the onboarding experience for newcomers entering the Web3 realm. This has been a challenge due to factors such as managing private keys and the recovery phase. However, recent technological innovations such as multi-party computation (MPC) and account abstraction have made it easier for users to navigate this space.

Additionally, during bear markets, infrastructure companies that are building the underlying framework for users tend to attract investments. These include projects building validator networks, wallets, and the foundational frameworks necessary for mass adoption.

Can you highlight more about the Web3 scaling program, LevitateX, that CoinSwitch Ventures launched in the Web3-positive month?

PC: So, we recently partnered with GravityX. I was also part of their incubator before, which was called Graviton. But what we’re seeing right now is that more than early-stage companies, even companies that have raised money are not able to scale. So, think of “LevitateX” as a scale-up program. Money to grow to the next stage. This includes commercializing products, revenue generation, marketing strategies, legal assistance, and various support services.

One thing that we are trying to focus on is ecosystem funds. Many blockchain projects, including layer one and layer two solutions, have ecosystem funds that provide grants and support. By collaborating with these funds, we are trying to tap into that market because VC funding has slowed down, at least for this phase of the market.

While CoinSwitch’s focus is primarily on India, what’s your perspective on the global Web3 landscape and the opportunities it presents?

PC: CoinSwitch Ventures’ primary focus is on India and projects with relevance to the Indian market. We support the nation’s founders in building projects not just in India but also in other regions, such as Dubai and Singapore. If a product has a huge market in India, we can be strategic partners for its distribution.

Globally, there are numerous Web3 funds, but India-specific funds are relatively scarce. We are trying to be pioneers in India-focused Web3 investments.

What’s your perspective on what could be the best advice for startups to commercialize their ideas and become market-ready? 

PC: Right at the top of my mind, you need to focus a little bit more than broader ideas. You can’t just have a DEX. You need to figure out if your DEX is going to focus on perps. to focus on options. So try to focus on one particular segment of the market, because there are a lot of bigger players who have taken the lead for an all-out offering. If you’re working with wallets, your gaming community or you want to target like Metaverse or NFTs, just target that. I think something that will help startups in this particular market.

India is a protagonist in blockchain and Web3, but an antagonist in the context of cryptocurrencies. What’s your take on this?

PC: We know that there are a lot of users of crypto in India. When regulatory clarity emerges, the government is taking a very slow and steady approach trying to build global consensus using the G20. Once that happens, I think there’s going to be an explosion of adoption for Web3.

We already have the third-largest developer base. India is one of the leading players in web3 developers and we saw that last year at ETHIndia, 4000 developers turned up and built 400 projects in one day. So I think we have the talent pool. If we start getting the right frameworks in place, capital is going to flow.

Lastly, in your view, what’s that one solid reason why Web3 players should not miss attending events like Coinfest Asia 2023?

PC: CoinFest Asia 2023 offers a unique opportunity for attendees on multiple fronts. Personally, Personally, for me, there are three primary aspects. First, it’s a chance to connect with startups that may create products beneficial to Indian users. Second, it’s a chance to network with venture capitalists (VCs). At CoinSwitch Ventures, we’re working on establishing a partner VC network to share deal flow and garner more attention for early-stage projects. Lastly, there’s the ecosystem component I mentioned earlier, which involves discussions with ecosystem funds.

We have a lot of presence, such as ICP, Aptos, and Algorand. So, basically talking to the foundations to set up operations in India operations would help Indian startups in their scaling missions.

Disclaimer: The information provided in this interview article is for informational purposes only. It is not intended to be, nor should it be construed as, investment advice, financial guidance, or a recommendation to make any specific decisions. Readers are encouraged to conduct their own research.