The document discusses the top 10 trends in Web3 and crypto venture investment according to Edith Yeung, a general partner at Race Capital. The trends are: 1) Web3 is a new architecture and generation of the internet; 2) Big tech companies like FAANG are trying to catch up; 3) The rise of crypto hedge funds; 4) Investors' love/hate relationship with DeFi; 5) NFTs driving crypto mass adoption; 6) Emergence of "Web 2.5"; 7) Governments' complex relationship with crypto; 8) Growing interest from Wall Street; 9) Founders wanting to stay anonymous; and 10) Investment opportunities being global. The document provides supporting data and examples

1. LET’S BEGIN!
Edith Yeung
Race Capital
2022 State of
Web3 and Crypto
Venture
Investment

2. Edith Yeung
GENERAL PARTNER, Race Capital
Selected as one of the 10 Most Powerful Investors in
Crypto by The Information, Edith is a General Partner at
Race Capital - an early-stage Silicon Valley venture
capital fund investing in all things infrastructure. Edith is
the seed investor in Solana (has been dubbed one of the
best venture investments of all time), FTX, Lightning
Network, Agora.io, Placer.ai, RapidAPI, and 60 other
amazing startups.
Prior to Race Capital, Edith was a partner at 500 Startups,
the world's most active early-stage fund and incubator
which invested in Twilio, Credit Karma, Grab, and 2000
more companies. Before 500, Edith was the general
manager at Dolphin Browser, a Sequoia Capital - backed
mobile browser with over 150 million installs worldwide.
Edith also worked with many Fortune 500 companies such
as Siebel, AMS, AT&T Wireless, and Autodesk.
She frequently speaks on Crypto, China and Silicon Valley
technology and investment landscape. She is also a
frequent guest lecturer at Berkeley and Stanford and
commentator on BBC, CNBC, Wall Street Journal,
Bloomberg, SCMP, Techcrunch, etc
@edithyeung
2

3. Disclaimer
• This session is purely for knowledge sharing.
• I am not a lawyer or
fi
nancial advisor.
• I cannot give you any investment or legal advice.
• Crypto and token investments are extremely risky.
• Please DO NOT invest in anything you don’t understand.

4. 4
Crypto Market by the Number

5. 5
Total Cryptocurrency Market Capitalization Hovers Around $1 Trillion
Source: Coinmarketcap

6. 6
Bitcoin’s Market Capitalization at $415 Billion. Bitcoin Makes Up 39.1%
of Overall Market Capitalization
Source: Coinmarketcap

7. 7
Top 10 Cryptocurrencies - September 2022
Source: Coinmarketcap

8. 8
Top 10 Crypto Exchanges - September 2022
Source: Coinmarketcap

9. Top 10 Web3/Crypto Venture Investment Trends
1. Web3 is a New Architecture and Generation of the Internet
2. FAANG Are Trying to Catch Up
3. The Rise of Crypto Funds
4. Investors Love / Hate Relationship with De
fi
5. NFT Drives Crypto Mass Adoption
6. Web2.5 is Happening
7. Governments’ Love / Hate Relationship with Crypto
8. Wall Street Loves Crypto
9. Founders Want to Stay Anonymous
10.Investment Opportunties Are Global and Everywhere

10. 10
Trend One:
Web3 is a New
Architecture and
Generation of the
Internet.

11. 11
Web 1.0
(1995 - 2005)
Web 2.0
(2005 - Now)
Web 3.0
(2005 - Now)
Platforms
User Experience Read-Only Read + Write + Social
Read + Write + Social +
AI + Ownership
Infrastructure
Client / Service
Architecture
Cloud Infrastructure
Cloud + Distributed
Infrastructure
Value Accrued Company based Company + Community
Company +
Community +
Individual
Information
Economy
Platform
Economy
Ownership
Economy
Web3 is a New Architecture and Generation of the Internet
Source: Race Capital

12. 12
Crypto Market by the Number

13. 13
Web 1.0 Web 2.0 Web 3.0
Industry Defining Companies Come Out for Different Cycles.

14. 14
Trend Two:
Internet Platform
Giants Are Trying to
Catch Up

15. 15

16. 16
Internet Platform Giants
Are Trying to Catch Up.

17. 17

18. 18

19. 19
Trend Three:
The Rise of Crypto
Hedge Funds

20. 20
Source: CBInishgts

21. 21
Source: CBInishgts

22. 22
Source: CBInishgts
The Largest Crypto Funds Raised Over $18 Billion

23. 23
Source: TheInformation

24. 24

25. 25

26. 26
Trend Four:
Investors ❤ 😡
Relationship with Defi

27. 27
Source:Defi Llame
Combined Defi Top Value Locked Reached $60 Billion

28. 28
Source: CBInishgts

29. 29
Source: CBInishgts

30. 30
Source: Race Capital Blog

31. 31
Source: Race Capital Blog

32. 32
Trend Five:
NFT Drives Crypto
Mass Adoption

33. 33
Source: CBInishgts

34. 34
Source: CBInishgts

35. 35
Source: CBInishgts

36. 36
Source: Messari

37. 37
Trend Six:
Web 2.5 is
Happening

38. 38
Source: Phemex News

39. 39
Source: serotinin.co

40. 40
Source: Notifi

41. 41
Source: Solana

42. 42
Source: Zeet

43. 43
Trend Seven:
Governments’
Love / Hate Relationship
with Crypto

44. 44
Source: FT
China’s Love / Hate Relationship with Crypto

45. 45
Source: CIR
China is No Longer the Leader in Crypto Trading and Bitcoin
Mining

46. 46

47. 47
Source: CIR
China’s Digital Currency Electronic Payment (DCEP) Trials
Under Way with Over 24M Wallets Opened

48. 48

49. 49
Source: Brookings

50. 50
Source: Brookings

51. 51
Trend Eight:
Wall Street Loves
Crypto

52. 52
Source: CNBC

53. 53
Source: Reuters

54. 54
Source: J.P. Morgan

55. 55
Source: CNBC

56. 56
Trend Nine:
Founders Want to
Stay Anonymous

57. 57
Source: NYTimes

58. 58
Source: Twitter

59. 59
Source: Twitter

60. 60
Trend Ten:
Opportunties Are
Everywhere

61. 61
Source: FT

62. 62
Source: FT

63. 63
Source: MarketingWatch

64. 64
Source: FT

65. 65
Source: CNBC

66. 66
Source: Bitcoin Magazine

67. 67
Source:TechinAsia

68. 68
Source:CNBC

69. Top 10 Web3/Crypto Venture Investment Trends
1. Web3 is a New Architecture and Generation of the Internet
2. FAANG Are Trying to Catch Up
3. The Rise of Crypto Funds
4. Investors Love / Hate Relationship with De
fi
5. NFT Drives Crypto Mass Adoption
6. Web2.5 is Happening
7. Governments’ Love / Hate Relationship with Crypto
8. Wall Street Loves Crypto
9. Founders Want to Stay Anonymous
10.Investment Opportunties Are Global and Everywhere

70. 70

71. 71
• Twitter @edithyeung
• Newsletter https://www.silicon.news/
• Web 2.0 Investors Aren’t Cut Out for the Web3
World
• Defi Market Map
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