Speaking to a large (>$500M AUM) VC yesterday who is bearish on web3 consumer (gamefi, socialfi) in this market. Strong preference for infrastructure and middleware.

Who strongly agrees/disagrees?

Jazzed about web3 🎷 

Building web3 mobile gaming (Unite, Superlayer)

Why are they bearish on gamefi?  Gamers are still going to play games despite what’s going on in the markets.

Investing @ Steel DAO | VP @ Graph Paper Capital & Mindfulness Capital | Scout @ Alliance DAO. https://nf.td/st100

Rationale was the sector isn't mature enough to given them confidence it would survive the bear market. I think that's overly conservative.

Got it, i understand.  What are your thoughts on the Gamefi market?

Optimistic, but looking forward to sustainable business models and experiences that can reach web2 scale

And the current web3 market is tiny. It needs a platform dynamic to enable network effects across apps to make user acquisition more efficient - like how Zynga used Facebook to reach a tipping point (https://techcrunch.com/2011/12/12/zynga2009/) https://i.imgur.com/IcBswg4.png

Zynga’s revenue, for example, includes a large portion from advertising, which grew faster yoy than its transaction-based revenues. 

I don’t know if gamefi projects that have significant ad revenues (if you know, please share). https://i.imgur.com/t4pOkO2.jpg