Why did Uniswap need a special venture capital wing for Web 3 investments?


Having a particular venture capital wing would allow the crypto exchange to focus on its core operations

Popular decentralized crypto exchange Uniswap has announced the creation of a venture capital fund Uniswap Labs Venture (ULV), focused on projects and companies engaging in Web 3 related innovations. There is no milestone specific in which a company can invest; instead, the company would invest at any stage of development in different projects or technologies, infrastructure, consumer applications and development tools related to Web 3 as an area of ​​focus.

Uniswap has invested in around 11 companies, and Web 3-related protocols include decentralized money market platform Aave, a well-known Decentralized Autonomous Organization (DAO) that backs DAI stablecoin – MakerDAO, and LayerZero, a blockchain bridge protocol. In the announcement, the crypto exchange expressed its intention to look for interesting projects to fund, although it did not reveal any other projects to invest in.

The announcement marked that the company has also focused on investing in projects that are closely aligned with life values, long-term construction, open collaboration with communities and putting users first. Uniswap founder Hayden Adams, in an announcement on a Twitter thread, said that ULV intends to participate in the governance of the project in which it invests. In addition to this, they reveal the plans for participating in Aave governance systems with Compound Finance, MakerDAO, and Ethereum Name Service. However, no details were disclosed on the amount of capital from Uniswap’s venture capital fund under management.

Uniswap has named venture capital fund manager Matteo Leibowitz, who will heal with chief operating officer Mary-Catherine Lader. Leibowitz had served as head of strategy for the decentralized exchange and had been founder and editor of the “Crypto Chat” newsletter and research analyst at The Block.

It seems that crypto companies are diversifying through venture capital firms. Centralized cryptocurrency exchange FTX launched a $2 billion crypto fund in January to invest in Web 3-related businesses; on the other hand, NEAR Protocol conducted a funding round of $350 million for the same cause.

Capital firms’ interest in crypto is on the rise, as several researches show and have reported an increase of around 144% in capital inflows into this sector between 2020 and 2021, where DeFi has proven to be the most favored for investment. However, there was no immediate comment from Uniswap in response to several questions posed.

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