Fred Wilson’s venture capital firm Union Square Ventures (USV) plans to increase investment in the Web3 industry amid growing pressure from US regulators.
“When [власти] forbid, I double the bet. The most powerful technologies spread waves of fear among the establishment. When you see that fear in their eyes, invest in its cause,” Wilson wrote.
Back in 2014, the New York State Department of Financial Services (NYDFS) sued USV in connection with the firm’s investment activities. Then the head of the company noted that the difference between the US and China lies in the “respect for freedom of innovation” on the part of the States.
“Invest in everything that China prohibits,” he said during the speech.
USV has been sponsoring Web3 startups for a long time. The company’s first crypto deal in 2013 was the funding of the Coinbase exchange. The organization has since supported over 25 projects in this area, including Uniswap, Polygon and Helium.
In 2021, USV announced plans to invest about 30% of its $250 million fund in the cryptocurrency industry.
Despite a challenging 2022, USV has raised $625 million for two of its venture capital firms.
In January 2023, Wilson stated that Web3 investors would need “a very strong stomach and a long time frame” despite the attractiveness of prices during a bear market.
Recall that in the first quarter of 2023, the volume of venture investments in crypto-startups within 353 funding rounds amounted to $2.6 billion. The indicator reached a minimum over the past three years.