Hello everyone,
I wanted to share a thought with you and hear your perspective on it.
I think it’s great that the Draper Dragon Orion Fund is strengthening the RWA and Bitcoin DeFi sector. At the same time, I’m wondering whether we might also benefit from a stronger VC network in other areas.
Would it perhaps make sense to bring in an additional VC focused on consumer apps? This could help us build long‑term revenue sources for stakers and the treasury. At the moment, less ADA is flowing back into the treasury through transaction fees than we are spending — so growth in multiple sectors might be helpful.
Of course, this wouldn’t need to happen right away, but maybe it’s something worth keeping in mind for the future.
I’m not a professional in this field, but I wanted to share this idea and would love to hear what you think about it.
Kind regards,
Rene
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Yeah I’m working on BTC DeFi myself & I’ve thought about this a good deal. Working with Draper has been really cool & the ecosystem would absolutely benefit from getting more VCs of their caliber involved, but consumer DeFi on Cardano is simply uninteresting to most VCs because the market is too small & unproven.
The BTC DeFi on Cardano narrative is attractive to investors because it has:
- A clear, significant (>$1B) market
- A clear advantage over alternatives in the market
- A clear proof of concept/feasibility
If we can do the same with other sectors I think more investment will come, and there’s no shortage of markets we can do this in. The difficult part is funding #3. IOG was able to create the splash needed to get the BTC DeFi sector really going, but most companies don’t have the funds to do so. IMO this is the most important thing to be using treasury money on.
I think 5am.earth is the closest thing we have to this outside of BTC DeFi right now. I hope they get funded - if they can find some good momentum we might start to see a new agricultural sector spring up around them & some investors getting interested.
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