Shima Capital, Yida Gao Focus On Web3 Business Investing
September 20, 2022
Investment and venture capital firms specialize in different areas to find success. For Yida Gao, he launched Shima Capital in 2021, focusing on investing in Web3 founders and businesses. After taking a particular interest in the industry, he feels there is a lot of potential moving forward.
Many investors still don’t know much about Web3 (also called Web 3.0). While Yida Gao has focused a lot on bringing in investors with a history in the industry, there will be opportunities down the road for others to join in.
What Are Web3 Companies?
To better understand Web 3.0, it’s best to understand past versions of the internet. Web 1.0, retroactively, focused on reading. There was very little a person could do online, so most of it consisted of consuming information and reading whatever was posted.
With Web 2.0, the focus was more on people participating and contributing in their ways. Most people are familiar with Web 2.0 since it’s been around for a while. Currently, most of the internet is still very much Web 2.0.
Web 3.0 focuses on tailoring content for each consumer. The focus companies have is that the internet will be able to process information much more accurately and human-like with the help of machine learning. This makes a more connected web experience for users everywhere.
Companies focusing on Web3 are hoping to do so in a user-friendly way. This means still offering plenty of ways for users to create, connect, and share content. With the help of artificial intelligence, blockchain, digital realities, and more, it can be a much more decentralized internet.
What Are The Benefits Of Web3 Companies To A Business?
There are many benefits for Web3 companies from a business perspective. Evolution is meant to build on the positives of the past while making it even better in the future. Yida Gao knows and understands this; he is committed to finding investments in the Web3 industry.
1. Saving Money
There is no need for third-party service providers working with blockchain networks, decentralized applications, and other Web3 options. This is one less bill to pay in many instances for businesses hoping to keep everything moving along.
Not only does the elimination of third-party services help, but the infrastructure to run Web3 is more affordable than the current web infrastructure. The savings can be pretty minor in some cases, while other companies will notice a sizeable change.
2. Better Supply Chain Management
Thanks mainly to transparency, businesses will have the opportunity to monitor and track their supply chains at all times. This means a more streamlined process to figure out any issues, leading to no wasted time and less wasted cost.
3. Innovation
Innovation can open up new opportunities for business owners. NFTs seem to be the rage for innovation. It’s a way to market digitally and create hype around a product. When used correctly, it can lead to more sales.
Selling virtual versions of products as well as physical products can only help out with raising money overall. Many supporters of Web3 feel that Web2 is reaching maximum capacity for innovation. This opens up many more opportunities that wouldn’t otherwise be there.
4. Trust and Transparency
Activity on the blockchain is visible to everyone else on the chain. It’s also unchangeable, meaning that any company has better trust and transparency. Being able to comply with any requirements is much easier with Web 3.0.
There’s a sense of trust in the security of Web3. It’s hard for sensitive information to be accessed. Yes, it can happen, but blockchain data can’t be changed in any way. This eliminates the opportunity for data theft.
More trust and transparency exist when everything is secured and safe. This will help customers feel confident buying products and supporting businesses overall. Instead of being left in the dark, Web3 turns the lights on.
Why Is Yida Gao So Drawn To Web3 Companies?
Venture capital firms can invest in virtually anything. Thanks to a background in cryptocurrency and blockchain, Yida Gao felt that his firm could focus specifically on this industry.
To get even more specific, Yida Gao wants Shima Capital to be a global go-to source for Web3 startups. This means companies that might be looking for funding to get everything off the ground.
By working with companies early on, the Shima Capital team can assist every step of the way. This is particularly great for business owners who might not have the experience to handle every part of the process. Shima Capital comes equipped with plenty of experience to maximize potential.
Success With Web3 Companies After One Year
When Shima Capital launched in 2021, it quickly picked up steam by bringing on established investors. Bill Ackman and Andrew Yang are just two big names providing significant support for the Shima Capital Fund I.
Currently, there are dozens of companies receiving assistance from Shima Capital. The team is constantly looking for great investment opportunities that make sense for them and the business. Having a great hands-on approach the entire way can help with consistency.
There are already plans to grow more and more with Shima Capital. Yida Gao believes it is already one of the top options in the Web3 industry. While there might be other investment firms helping out companies further along in the process, they want to be there early on to see success stories all the way through.
Yida Gao and the Shima Capital team constantly update the website to reflect all the current investments they have with businesses. They want to be very transparent with anyone who comes across their firm to show how they are influencing Web 3.0.
The evolution continues online, and Shima Capital wants to be a significant part of it. Helping companies do new and exciting things with untapped potential can only motivate industry growth along the way.
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