Uniswap Labs sets up an investment division to expand into Web3

Uniswap Labs Ventures is focusing on investments in different Web3 projects. The investment division of Uniswap (UNI/USD) will focus on projects dealing with infrastructure, developer tools and other applications focused on consumers.

Uniswap Labs Ventures focuses on Web3

In the announcement, Uniswap said that “As a crypto-native studio with deep knowledge of the space, we are uniquely capable of supporting our portfolio companies as they scale their operations.”

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This investment decision will also be active in on-chain, and off-chain governance and the team has announced that they are already involved in the governance framework of leading DeFi projects such as Aave, Compound, Ethereum Name Service and MakerDAO.

Uniswap Labs has invested in 11 companies and other Web3 native projects. Teo Leibowitz will be the new lead of Uniswap Labs, while MC Lader will be the Chief Operating Officer. Leibowitz noted that each investment made through this VC division will be done directly from Uniswap Labs’ balance sheet.    

Controversy with Web3         

VC projects are paying keen attention to crypto and blockchain projects, with a recent report estimating that almost $4B worth of VC deals were closed in the first two months of 2022. While this volume of investments is a good sign of the sector’s growth, it has shed a negative light on the much-hyped Web3.        

There has been an ongoing debate about the heavy investments being poured by venture capitalists into Web3. This has created controversy over the level of decentralization that the Web3 sector will achieve, given that investments come from centralized entities.

Last year, the former CEO of Twitter, Jack Dorsey, expressed his criticism over the concept of Web3 giving control to the people. At the time, Dorsey said that Web3 would be owned by venture capital firms and not offer the kind of decentralization being advertised.

The Financial Times has also released a report saying that Coinbase Ventures, the investment division of the Coinbase exchange, is carefully selecting the firms to invest in. However, Coinbase released a statement in January denying these allegations. Despite the controversy, the Web34 hype remains alive.