"Why Web3 Matters | Future: What We Look for in Founders"

"Why Web3 Matters | Future: What We Look for in Founders"

We are now at the beginning of the web3 era, which combines the decentralized, community-governed ethos of web1 with the advanced, modern functionality of web2. Web3 is the internet owned by the builders and users, orchestrated with tokens. It fixes the core problem of centralized networks, where the value is accumulated by one company, and the company ends up fighting its own users and partners.

In web3, ownership and control are decentralized. Users and builders can own pieces of internet services by owning tokens, both non-fungible (NFTs) and fungible. Tokens give users property rights: the ability to own a piece of the internet. This aligns network participants to work together toward a common goal - the growth of the network and the appreciation of the token.

The shift from web2 to web3 signifies a change in the relationship between network participants. In web2, the relationships were positive-sum, where everyone benefited from the growth of the network. However, when web2 platforms hit the top of the S-curve, their relationships with network participants change from positive-sum to zero-sum. To continue growing, these platforms often resort to extracting data from users and competing with their former partners.

Web3 offers a solution to this problem by creating an environment where ownership and control are distributed among the community. This not only allows users and builders to have a stake in the network's success but also ensures that the value generated by the network is shared more equitably.

Now, let's shift our focus to what we look for in founders in this web3 era. While intelligence is important, what matters most is determination. Starting a startup comes with numerous obstacles, and it's crucial not to get demoralized easily. The world of startups is unpredictable, and founders need to be able to modify their dreams on the fly.

Imagination is another key trait we seek in founders. It's not about solving predefined problems quickly but rather about coming up with surprising new ideas. In the startup world, many good ideas initially seem bad. Founders need to have the ability to think outside the box and challenge conventional thinking.

The most successful founders tend to have a piratical gleam in their eye. They're not afraid to break rules, as long as those rules don't matter. They understand the importance of innovation and pushing boundaries.

Additionally, empirical evidence suggests that starting a startup with just one founder is challenging. Most of the big successes have two or three founders. The relationship between founders also plays a crucial role. They must genuinely like one another and work well together. While arguments are inevitable, there should be no unresolved tension between them.

In conclusion, web3 represents a significant shift in how the internet is owned and controlled. It offers a more equitable and decentralized model where users and builders can have a stake in the network's success. In the web3 era, determination and imagination are key traits we seek in founders. Founders need to be resilient, adaptable, and possess the ability to come up with innovative ideas. Additionally, strong relationships between founders are vital for startup success.

Actionable advice for founders in the web3 era:

1. Embrace decentralization: Understand the power of decentralized networks and how ownership and control can be distributed among community members. Consider incorporating blockchain technology and tokens into your startup model.
2. Foster a culture of innovation: Encourage your team to think outside the box and challenge conventional thinking. Emphasize the importance of coming up with surprising new ideas and iterating on them.
3. Build strong founder relationships: Choose co-founders who you genuinely like and can work well with. Nurture a healthy and open communication environment to resolve conflicts effectively.

With the rise of web3 and the changing dynamics of the internet, founders who embody determination, imagination, and strong relationships have a higher chance of navigating the challenges and building successful startups in this new era.