Venture Capital 3.0 refers to the evolution of the venture capital industry, particularly in response to changes in technology, market dynamics, and investor expectations.

While there isn’t a universally agreed-upon definition, Venture Capital 3.0 typically encompasses several key trends and shifts in the industry.

Here’s a few you should be aware of, and why it’s time to say hello to Venture Capital 3.0

Technology-Enabled Market Creation

Technology-enabled market creation refers to the process of leveraging technological advancements to identify, create, and capture value in new or existing markets.

This concept revolves around using innovative technologies to address unmet needs, disrupt traditional industries, and generate demand for novel products or services.

While many will argue that this is nothing new, the major shift is how the leading founding teams are leveraging new technologies and the latest on-demand capabilities to seek out new customer sets, serve those niches, and scale rapidly with limited team expansion.

At Nobody Studios, we’re building a new breed of startup, one where small, specialized teams can leverage technology to create and capitalize on opportunities within specific, often narrow market segments.

For example, for many of our portfolio companies, such as Ovationz, Webdelics, or other businesses we’re building, began with a smart set of entrepreneurs tying together ChatGPT, Canva, Shopify, and a NoCode product development platform then suddenly they can have a business on the Internet in minutes with minimum cost and high margin potential from a newly minted customer base.

Now extrapolate that further to technology-enable entrepreneurs that are building GPT Agents that plug numerous GPT services together to form an entire value stream from idea to prototype to product-market fit and it gets very exciting.

We believe the one-person unicorn may only be around the corner should more and more AI and automation capabilities be readily available to them. 46% of Developers already now use GitHub Copilot to automatically generate new code.

But remember, investors aren’t interested in “I’m building an AI-company” (whatever that is).

They’re interested in teams creating a new market, by leveraging new technologies to source, sign up and scale services for specific customer niches.

That is our focus on Nobody Studios, and the focus of the 100 companies we want to create over the next 5 years.

Technology-Informed Investment Strategies

Venture Capital 3.0 leverages advanced data analytics, machine learning, and data processing to identify promising investment opportunities, optimize portfolio performance, and enhance decision-making processes.

One example of technology that can support investors, VCs and GPs in our portfolio is Evalify, this revolutionary platform allows investors to streamline the process of evaluating startup investment opportunities from just a pitch deck.

Evalify uses AI precision to enhance decision-making. It is the only global tool that quickly generates a robust data point identifying intellectual property (IP) risks and opportunities within tech startups from pitch decks in minutes.

You’re ready to go in three simple steps:

  • Submit: Upload your pitch deck
  • Search: Evalify analyzes almost 200M patents across 170+ jurisdictions
  • Score: Receive a preliminary freedom-to-operate score and report in minutes

This leverage of technology helps make investors more efficient, more informed and confident of what pitch deck and teams to focus on in minutes for the mountain of deck they get each week. All for a fraction of the costs they would have to make an IP lawyer group.

As with entrepreneurs, the ability of investment teams to leverage generative-AI and other new technologies will determine their success in the future.

Globalization of Venture Capital

With advancements in communication technology, rise of remote work and the increasing interconnectedness of global markets, venture capital has become more international.

While Silicon Valley in California has historically been the epicenter of venture capital activity, other regions around the world such as London, Shanghai, Bangalore, Singapore and Dubai have emerged as prominent venture capital hubs.

I still remember in 2021 when we started the Studio so many people told us it was impossible to build a remote-first venture firm. “Culture couldn’t be built remotely”, is what we were constantly told. “You need all the talent in the same room. You’ll be too slow, too misaligned, too .”

Well here we are, over three years on and a pandemic later and we’re only getting started!

Venture capitalists are now actively seeking investment opportunities beyond traditional hubs like Silicon Valley, exploring emerging startup ecosystems worldwide.

I live in the Philippines, where Philippine startups experienced a 16% increase in deal volume last year. Global startup investment in 2023 reached $285 billion — marking a 38% decline year over year and is only now coming out of its shell.

Asia is exploding with new business opportunities while other areas of the world regressed last year.

VCs, investors and family offices here are looking for the next company to change the world, all over teh world.

It’s now a global playing field, and it’s exciting to see.


Rise of Alternative Financing Models

Venture Capital 3.0 has seen the emergence of alternative financing models such as crowdfunding, initial coin offerings (ICOs), and equity crowdfunding.

These platforms provide startups with additional sources of capital outside of traditional venture capital firms, democratizing access to funding.

Equity crowdfunding was a core strategy of our at Nobody Studios to create an activity engaged crowd to infusing their talent, influence and capital into the Studio.

Our campaign brought over 1,000 retail investors, now owners, into the Studio from 55 countries around the world. All bringing new ideas, skills, relationships and networks that are actively benefiting the Studio.

As owners of the Studio, every contribution they make makes us stronger, and their investment better. It’s the ultimate incentive system to drive win-wins.

Focus on Impact and Sustainability

There is a growing emphasis on investing in companies that not only promise financial returns but also generate positive social or environmental impact.

Plus several emerging legislative and regulatory initiatives aimed at promoting impact and sustainability within the venture capital industry.

On my recent podcast with Adrian Cockcroft, former VP of Sustainability at AWS, he dived into the challenges companies face both technological and administrative to be able to report on cardon data. Similarly, James Williams, former Head of Olympics at Coca-Cola did the same on our show.

From regulation implemented by the EU Sustainable Finance Disclosure Regulation (SFDR), to guidance in the United Nations Sustainable Development Goals, the undoubtable trend on the horizon is people shifting to only supporting companies that are clear about how Green they really are; but also demonstrate they are reporting it, actively supporting it and investing in it.

This means Venture Capitalists are increasingly considering factors such as environmental sustainability, diversity, and social responsibility when evaluating investment opportunities.

Increased Corporate Venture Capital (CVC) Activity

Corporations are increasingly participating in the venture capital ecosystem through their own venture arms or strategic investment initiatives.

In fact, we’re probably getting about 2 companies per month contacting us about setting up a venture studio for their company, country and city — it’s amazing!

This trend reflects corporations’ desire to stay competitive by gaining early access to innovative technologies and startups that can complement their core businesses.

Working with Corporate is part of our strategy at the Studios, both as investors and acquirers of our companies. The simple way to get that first look is really to be an investor in our Studio. If you’re interested in learning more about our Series A, contact me.

So What Does It Mean for You?

The significance of Venture Capital 3.0 lies in its ability to drive innovation, foster economic growth, and shape the future of industries.

By adapting to evolving market dynamics and embracing new investment strategies, venture capital plays a crucial role in supporting the development and commercialization of breakthrough technologies and ideas — in fact, we betting on it at Nobody Studios.

My focus will be working with these new emerging Venture Capitalist, investors, family offices and super angels to bring our portfolio companies to the next level with their support, funding and help.

Venture Capital 3.0 has the potential to address societal challenges and promote sustainable development by directing capital towards impactful and socially responsible ventures.

If you believe the same as we do at Nobody Studios, or are building on that path too, please get in touch.

Let’s create. Let’s build. Together.