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1H2023 Market Review & Outlook
L2 Iterative Ventures (“L2IV”) is pleased to present you our first 1H2023 Market Review and Outlook report. This document offers a thorough analysis of the current market landscape and highlight our views on future opportunities in Web3, covering various dimensions from macro conditions to fundraising activities and our portfolio company updates. We hope that this report will provide you with valuable insights in this dynamic and evolving industry.
Time to Invest:
Asset prices are on a recovery trajectory as the tightening cycle is poised to ease, enhancing market sentiment and valuation
While 2023 witnessed a drop in fundraising deals and amounts, figures remain above 2020 levels, indicating sustained market expansion over a bullish cycle
Regulatory landscapes show a divide between the East and West, with the former showcasing a more accommodating stance
The moment is ripe to back pivotal innovators broadening the horizons of Web3 applications and audience engagement
Layer 2 (L2s) scaling solutions for Ethereum are approaching full development and are transitioning to the mainnet
Active development is underway for Privacy Layer 1s (L1s) & L2s incorporating Zero Knowledge Proof (ZKP)
Account abstraction is becoming ubiquitous, significantly enhancing user experience
The blockchain spectrum is growing with the emergence of alternative L1s, like Move-based blockchains
The advent of modular blockchains paves the way for enhanced adaptability and security measures, inclusive of Ethereum re-staking
Expanding Use Cases:
Liquid Staking Derivative/ Tokenfi (LSD/Tfi) is unlocking substantial economic potential for Ethereum
Solutions spanning crosschain and omnichain aim to unify fragmented liquidity pools
Innovations in options, perpetual futures, and DEXes are optimizing market dynamics and user experience
SocialFi is on an aggressive expansion trajectory, featuring a slew of new dApps and tools for wholly decentralized social platforms
GameFi is bolstering its arsenal with advanced tools and infrastructure, championing the cause of fully on-chain gaming
ZKML & AI are pioneering the realms of decentralized, authenticated computation & AI
To access a comprehensive analysis of L2IV’s findings, we kindly request you to download the full report from the link provided below.
L2 Iterative Ventures (“L2IV”) is the Web3 arm of L2 Capital Management, focusing on blockchain technologies, specifically in early-stage projects around zero-knowledge proof and modular, multi-chain Web3 infrastructures. Our globally distributed team across Silicon Valley and Asia incubates technical founders and provides them with resources to scale from ideation to category-defining companies.
We capitalize on the higher crypto adoption rate in emerging markets, deriving crucial insights to shape our infrastructure investments. Our investment focus predominantly lies in the pre-seed and seed stage, while also participating in Series A rounds as follow-ons. Our investment philosophy is reinforced by an in-house team of industry-leading zero-knowledge cryptography experts and computer scientists, which ensures rigorous technical foundations and cutting-edge research.
We provide a comprehensive platform for Web3 innovators, operating an array of engineering bootcamps, hackathons, and incubation programs in partnership with esteemed entities like Google GCP, Developer DAOs, University blockchain communities, and layer 1 protocol teams. As such, we aim to catalyze the growth of the Web3 ecosystem and accelerate mass adoption by empowering builders with the necessary financial, technical, and human capital.
If you are a builder with a passion for Web3 as we do, feel free to reach out to us!
The information contained in this post (the “Information”) has been prepared solely for informational purposes, is in summary form, and does not purport to be complete. The Information is not, and is not intended to be, an offer to sell, or a solicitation of an offer to purchase, any securities. The Information does not provide and should not be treated as giving investment advice. The Information does not take into account specific investment objectives, financial situation or the particular needs of any prospective investor. No representation or warranty is made, expressed or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of the Information. We do not undertake to update the Information. It should not be regarded by prospective investors as a substitute for the exercise of their own judgment or research. Prospective investors should consult with their own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that they deem it necessary, and make any investment decisions based upon their own judgment and advice from such advisers as they deem necessary and not upon any view expressed herein.
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