Safary is a trip
... Ha!
It's a club for Web3 Wannabes
(because we all still are just that)
Join the community. They dig Gratitude.
Enjoy lots of well-written opinion and data-supported insights...
Safary's "State of Web3 Growth 2024" provides an in-depth analysis of the current landscape of the Web3 growth sector, highlighting key trends, challenges, and opportunities.
Below is a summary...
But first, their "What’s next... in the next 2-year cycle:"
Firstly, we anticipate significant innovation in incentive programs, including referrals, quests, and loyalty systems. Companies will experiment with new formats and mechanics, aiming to create more engaging and rewarding user experiences.
Secondly, the integration of social elements into messaging platforms will become essential. Web3 social apps are likely to evolve into the primary messaging layers, pushing traditional web3 messaging platforms to incorporate social features to remain relevant.
Lastly, we expect a wave of bold, unconventional ideas that will push the boundaries of what's possible in web3. While some concepts may seem far-fetched today, they could define the next phase of this rapidly evolving industry.
The web3 growth landscape is on the brink of transformation, driven by innovation and a willingness to explore uncharted territory. Those who can adapt and lead in these areas will shape the future of digital engagement and media.
Summary:
Funding Landscape
- Over **$1 billion** has been raised by **101 Web3 growth and social startups**.
- **$277 million** in new funding has been secured by **23 startups** since the previous year, with a notable decrease in new first-round investments as VCs focus on established ventures.
- The most significant funding has been directed towards Attribution/Analytics, Loyalty, and Social startups, which collectively accounted for 80% of the capital raised.
Industry Insights
- The Web3 growth stack is seen as an inevitable evolution, with **over 160 companies** currently building within this emerging digital media industry.
- The industry is compared to the rise and fall of digital marketing in the 2010s, emphasizing the challenges faced due to privacy regulations and the shift towards community-centric marketing.
Category-Specific Trends
1. Ad Networks:
- The category is crowded with **19 teams**, but faces challenges like competition and the need to attract premium publishers.
- New ad networks must innovate to create demand and supply effectively.
2. Publishers & Social Platforms:
- Comprising **32 platforms**, this category has raised **$400 million**. However, new social apps struggle with user retention beyond initial engagement.
3. Attribution & Analytics:
- **14 companies** are focused on providing insights into user behavior, but many have struggled to pivot effectively to meet market needs.
4. Affiliate & Referrals:
- This category has seen a significant contraction, with only **9 companies** remaining. Challenges include the need for an established user base and the inadequacy of rewards.
5. Quests:
- Platforms are evolving from simple tasks to more complex engagement strategies that focus on genuine user interaction rather than superficial metrics.
6. Loyalty Programs:
- The number of loyalty platforms has decreased significantly due to a pivot away from crypto-focused strategies, with a need for unified data layers to enhance customer engagement. Some of you may remember the Hospitality Loyalty projects we designed beyond NFT investments and into access and experiences.
7. Community Tools:
- There are **19 community tooling companies**, which face challenges in proving their value and measuring impact on revenue.
8. Messaging:
- **15 messaging platforms** exist, but they struggle with user engagement as messages often go unnoticed due to a lack of reliable communication channels.
Conclusion
The report emphasizes that while the Web3 growth industry is promising, it faces significant challenges that require innovative solutions and adaptations to succeed.
The focus is shifting towards creating meaningful user engagement and leveraging blockchain technology to redefine community interactions and marketing strategies.
Contact me to discuss you specific options... and actions...
David
Growth Strategy & Actions
www.TruthRefinery.com
617-331-7852
david@davidcutler.net
www.DavidCutler.net
Safary's list of 25 Web3 Growth Leaders are from these sectors:
- Decentralized Finance (DeFi):
- Hashflow (Andrew Saunders)
- Angle Protocol (Mariam Kouanda)
- Premia Finance (Kseniia Baziian)
- Centrifuge (Bhaji Illuminati) - specifically in Real World Assets (RWA)
- Perpetual Protocol (0xHsing)
- Sushiswap (Alex Shefrin)
- Web3 Gaming:
- Big Time (Michael Migliero)
- Sky Mavis (Quinn Campbell)
- Yield Guild Games (Angel Pui)
- Treasure DAO (Sambino)
- NFTs and Digital Collectibles:
- Magic Eden (Tiffany Huang)
- Web3 Infrastructure:
- Monad (Intern)
- Berachain (Yogi)
- Biconomy (Rohan Garg)
- Thirdweb (Catty Berragan)
- Crypto Exchanges and Wallets:
- Kraken (Matthew Howells-Barby)
- Zerion (Alexander Guy)
- Web3 Social:
- Avara (Christina Beltramini)
- Content Creation and Education:
- Several independent content creators focusing on Web3, gaming, and Bitcoin (Elisa, Marc Baumann, Thomas Pan, Dan Held)
- Ecosystem Development:
- Trader Joe (Blue) - also involved in Arbitrum ecosystem
- Hansa Network (Louis Dharma) - growth accelerator
- Marketing and Growth:
- Hype (Emily Lai) - marketing for Web3 brands
Other patterns observed:
- Many influencers work across multiple Web3 sectors.
- A focus on growing and nurturing Web3 communities.
- Many are involved in creating educational content to onboard new users to Web3.
- Emerging technologies: Some are working on cutting-edge areas like Layer 2 solutions and blockchain interoperability.
While not explicitly mentioned, it's likely that some of these influencers are also involved in areas such as Enterprise Blockchain.