The world of challenging Web3 and blockchain technologies can be an exciting yet complex journey. Several countries and governments have stood out in unique ways by embracing innovations in this breakthrough technology sector.
At Coinfest Asia 2023, TheNewsCrypto interviewed Parth Chaturvedi, Investment Lead at CoinSwitch Ventures, discussing the rapidly evolving landscape of Web3 and its investment outlook. He shared key insights into the challenges, opportunities, and unique initiatives driving its growth.
Discover why CoinSwitch’s Web3 expansion project, LevitateX, has garnered attention and gain deeper insights into the global and India-specific dynamics of this transformative industry.
Developers and builders are actively bringing many innovative projects into the ever-evolving Web3 space. Challenges and issues are also developing in parallel. What types of project solutions are attracting significant attention on the radar of investors and venture capitalists?
Parth Chaturvedi (PC): “We are currently witnessing dynamic shifts in the Web3 space. Despite recent slowdowns in venture capital, certain themes within the sector are capturing investor interest. One notable theme I can mention is the tokenization of Real World Assets (RWA). This involves not just tokenizing real estate but also financial assets such as bonds, stocks, and funds. The potential for retail users to access these traditionally exclusive assets is a compelling prospect.
Another focal area is improving the onboarding experience for newcomers to the Web3 space. Managing factors like private keys and recovery phrases has always been a challenge. However, recent technological innovations such as Multi-Party Computation (MPC) and account abstraction are making it easier for users to navigate in this domain.
Additionally, infrastructure companies that build foundational frameworks for users during bear markets often attract investment. These projects include building validator networks, wallets, and the infrastructure needed for widespread adoption.”
Could you provide more details about CoinSwitch Ventures’ Web3 expansion project, LevitateX, launched actively in recent months?
PC: “So, we recently collaborated with GravityX. I have previously been involved in their incubator project called Graviton. But what we’re seeing now is not just early-stage companies, even funded companies struggle to scale. So, ‘LevitateX’ is seen as an expansion plan. Funds are allocated to achieve the next stage of growth. This includes product commercialization, revenue generation, marketing strategies, legal assistance, and various support services.
We are focusing on ecosystem funds. Many blockchain projects, including Layer 1 and Layer 2 solutions, have ecosystem funds that provide grants and support. By partnering with these funds, we aim to enter this market as venture capital has slowed down, at least at this stage.
While CoinSwitch’s primary focus is India, what are your views on the global Web3 space and the opportunities it presents?
PC: “CoinSwitch Ventures primarily focuses on India and projects relevant to the Indian market. We support Indian entrepreneurs in establishing projects both in India and other regions like Dubai and Singapore. If a product has a significant market in India, we can be its strategic distribution partners.
There are many Web3 funds globally, but relatively few focus on India. We are aiming to pioneer Web3 investments focused on India.”
What are your thoughts on how startups can commercialize their ideas and prepare for the market?
PC: “Firstly, I think you need to focus more on broader ideas. You can’t just have a decentralized exchange (DEX). You need to figure out if your DEX will focus on perpetuals or options. So, try to focus on a specific area of the market because there are already many big players offering comprehensive services in that regard. If you’re dealing with wallets, your game community, or you’re targeting the metaverse or NFTs, focus solely on that area. I think this will help startups succeed in that specific market.”
India plays a protagonist role in blockchain and Web3 but is adversarial in the context of cryptocurrencies. What are your thoughts on this?
PC: “We know India has a lot of cryptocurrency users. The government is slowly and steadily trying to leverage the G20 to establish global consensus once regulations are clear. When that happens, I believe adoption of Web3 will explode.
We already have the third-largest developer community. India is a leading player among Web3 developers, with 4,000 developers participating and building 400 projects in a day at ETHIndia last year. So, we have a talent pool. If we start building the right frameworks, capital will flow.”
Finally, why do you think Web3 players shouldn’t miss events like Coinfest Asia 2023?
PC: “CoinFest Asia 2023 offers unique opportunities for participants on several fronts. Personally, there are three main aspects. Firstly, it’s an opportunity to interact with startups that could create beneficial products for Indian users. Secondly, it’s an opportunity to network with venture capitalists (VCs). At CoinSwitch Ventures, we are striving to build a network of partner VCs to share deal flow and attract more attention to early-stage projects. Lastly, as I mentioned earlier, there are ecosystem components involving discussions with ecosystem funds.
We have a significant presence in India, such as ICP, Aptos, and Algorand. So, discussions with these foundations and setting up operations in India will aid in the mission to expand Indian startups.”
Disclaimer:
The information provided in this interview article is for informational purposes only. It does not constitute investment advice, financial guidance, or recommendations for any specific decision. Readers are encouraged to conduct their own research.
