1/ Topic: Going from Web 2 to Web 3 - “Your take rate is my opportunity” 🧵
2/ Jeff Bezos famously said "your margin is my opportunity" referring to the way Amazon took market share by lowering prices and eating into competitor margins.
3/ What Amazon did in commerce is what the internet did more generally. Lowering prices and redistributing value back to users has been the internet’s core economic dynamic since the 90s.
1/ New technologies often arrive with flaws: toy-like, expensive, janky, lacking clear applications, etc.
To predict how they’ll develop, it’s important to dig deeper. Here are a few common ways new technologies can be misunderstood 🧵👇
2/ “It’s just a toy.” 🚂
This was the mistake made early on about breakthrough technologies like the telephone, personal computers, and social media. cdixon.org/2010/01/03/the…
3/ When the telephone was first invented, incumbents like Western Union dismissed it, as the sound quality was poor and it only worked at short distances. They failed to imagine how quickly those things would be improved.
2/ We got to know Arianna through her fund Autonomous, and we continued running into Arianna as a co-investor in projects like @CeloOrg, @dapperlabs, and @MakerDAO. We kept hearing amazing feedback from founders that she went above and beyond for them.
3/ Arianna has been writing and video blogging about crypto for over seven years—long before most people were paying attention.
1/ Topic: The internet treats bad business models as defects and routes around them. 🧵👇
2/ Let’s start with this fascinating chart (from matthewball.vc) which raises the question: why has the video game industry grown alongside new technologies, while the music industry has not?
3/ For a long time, video games and music had the same, straightforward business model: charge money for a perpetual license to the base content — the game or music itself.
3/ NFTs platforms generally have low take rates, ranging from 2.5% to 15% (blockchains shift power to users -> low switching costs -> low take rates). This means most of the $2.5B went to creators and collectors.
1/ Today we’re announcing Crypto Fund III, a $2.2 billion fund to continue backing visionary crypto founders and help accelerate crypto into its next phase a16z.com/2021/06/24/cry…
2/ We’re also announcing new members to the team that come from crypto and tech (Alex Price, @RachaelRad) as well as heavy-hitters from the world of policy and regulation.
3/ Bill Hinman, Brent McIntosh, and @TomicahTD have each made significant contributions to crypto from within government and have been critical in helping to establish early rules of the road for our industry. I’m excited to have them onboard to support our portfolio companies.