This is an interview with Sarah Tavel, a partner at Benchmark, a venture capital firm. The conversation revolves around the changing landscape of web3 and the potential for consumer-facing products to emerge from this space. Here are some key takeaways:
- Bifurcation: Tavel mentions that there’s a bifurcation happening in the investment world, where investors are focusing on either protocols or consumer-facing products. She believes that investing in protocols is a specialized domain, and creating enduring consumer companies is its own unique discipline.
- Web3 vs Crypto: Tavel distinguishes between web3 (a broader concept that encompasses decentralized technologies) and crypto (specifically, blockchain-based assets). She’s focused on web3, but not directly involved with investing at the protocol level.
- Consumer products in web3: Tavel sees potential for consumer-facing products to emerge from the web3 space, citing examples like Sorare and OpenSea as promising developments.
- DAOs and Decentralization: Tavel mentions DAOs (Decentralized Autonomous Organizations) as a key aspect of web3, where decision-making is decentralized and community-driven.
- Fund restructuring: Tavel discusses the possibility of Benchmark restructuring to become a Registered Investment Advisor (RIA), which would allow them to invest more freely in tokens and participate in the growing web3 space.
The interview highlights Sarah Tavel’s interest in the potential for consumer-facing products in the web3 space, her emphasis on investing in enduring companies rather than protocols, and the possibility of Benchmark adapting its structure to navigate this new landscape.