Investing in Web3 is a ‘hedge against disruption’ — VC investment exec

Cointelegraph spoke with Martin El-Khouri, a senior director at Bertelsmann Investments, throughout the Proof of Talk blockchain conference about why significant financial investment firms still see Web3 as a way forward. Source: CointelegraphBertelsmann Investments is one of the worlds significant VC financial investment companies with around 1.7 billion euro invested in over 400 companies worldwide. Magazine: AI Eye: Is AI a nuke-level risk?

The crypto area has actually been facing waves of uncertainty in current months between impending guidelines from regulators across the world and a lingering market decline. In spite of the state of the market financiers are still backing new ventures in the space. Data reveals that in 2022 alone, European DeFi start-ups experienced a boost in equity capital (VC) funding by as much as 120%. Cointelegraph spoke with Martin El-Khouri, a senior director at Bertelsmann Investments, throughout the Proof of Talk blockchain conference about why major financial investment firms still see Web3 as a way forward. Evidence of Talk 2023 blockchain conference in Paris. Source: CointelegraphBertelsmann Investments is one of the worlds major VC investment companies with around 1.7 billion euro invested in over 400 companies worldwide. El-Khouri informed Cointelegraph that the firm made its first investment into the Web3 space back in 2016 and the existing state of the marketplace actually helps financiers compare “sound and noise.”” Now that the buzz is gone, financiers can see where the real worth is being accumulated, which jobs are just artificially inflated and which ones are developed and based on a solid foundational framework.” He said he considers investments in Web3 a “hedge versus disruption,” though says its still in some cases “difficult to convince” executive leadership in big worldwide corporate entities to dedicate attention to Web3 due to the markets changing reputation. Nevertheless, he highlighted that regulations assist the market in terms of financial investments due to the fact that it provides financiers more clarity about what is being constructed.” When you invest in a job, you wish to understand whether there is a huge regulative threat that might prevent this business and company design or concept from flying.”” The more regulatory clearness we get,” he stated, “the easier it becomes to evaluate different types of organizations.” Related: Metaverse investments: Opportunities and risks of the trillion-dollar VR marketHe also explained the shift of interest towards generative AI and AI start-ups. According to data from Marketsandmarkets, the AI market is projected to strike $407 billion by 2027, compared to its $86.9 billion revenue in 2022. El-Khouri said that although financiers are pivoting towards AI, “blockchain and crypto are going to be more vital than ever in the past.” “The fascinating thing is that the main value propositions of Web3 are basically magnified 10,000 x by means of what were seeing today with generative AI.” He concluded that especially when it pertains to AI material development, blockchain will help solve the “double costs problem without the requirement for an intermediary, and it gives provenance to digital possessions.” Publication: AI Eye: Is AI a nuke-level threat? Why AI fields all advance at the same time, dumb pic puns