Union Square Ventures Founder: Web3 Investors Will Need Very Strong Nerves This Year

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Fred Wilson, co-founder of venture capital firm Union Square Ventures, has warned investors about the serious potential risks of investing in projects related to the next generation Internet.

He has said:

“While Web3 has compelling values, I’m not sure it’s safe to go back into the river just yet unless you have strong nerves and are focused on a very long time horizon.”

He has also said that the past year has been “painful for most and devastating for many.”

He has added:

“The capital of our family has suffered greatly. The book value of assets managed by Union Square Ventures has halved this year.”

According to him, the Web3 sector is still highly vulnerable compared to the broader technology sector.