At VIRA Ventures, we believe that technology can be a powerful force for improving humanity. We are driven by the conviction that the right investments can not only generate strong financial returns but also contribute to the betterment of society and the planet. Our investment thesis is built around this belief, and we are committed to identifying and supporting companies that share our vision for a better future.
As a theses-driven investor, we seek to identify trends and themes that have the potential to drive significant change and create value. We focus on areas where technology can be a transformative force, such as healthcare, energy, education, and sustainability. Our investment decisions are informed by a deep understanding of these areas, and we seek to identify companies that are leveraging technology in innovative ways to solve complex problems and create positive impact. We recognize that investing in technology for the sake of technology is not enough.
Our investments must be driven by a purpose and a mission to create meaningful change. We believe that companies that are aligned with this purpose are better positioned for long-term success and are more likely to generate positive outcomes for all stakeholders.
Our investment philosophy is grounded in a rigorous research process that leverages data, market analysis, and industry expertise. We are constantly monitoring trends and staying up-to-date on the latest developments in our areas of focus. Our investment theses are built on a deep understanding of the underlying dynamics and drivers of the markets we invest in.
Layer 1 As The Dominant Foundational Infrastructure
Unlocking the Potential of Open Finance
Redefining Infrastructure und Creating New Value
Capitalizing on Decentralized Networks
The transition towards decentralized applications and the digital economy is accelerating, and Layer 1 blockchains are emerging as the new dominant protocols for enabling this shift. As blockchain technology becomes more sophisticated, Layer 1 protocols are increasingly being designed to provide a scalable infrastructure that can support a vast array of use cases, networks and applications.
Investing in Layer 1 blockchains presents a compelling opportunity to capitalize on this transformative trend. Layer 1 blockchains with innovative technology, strong governance, well-designed tokenomics and an ecosystem of developers and users will likely become the primary beneficiaries of this transformation.
The scalability of Layer 1 protocols is critical to their long-term success. As adoption of decentralized applications and digital assets continues to increase, Layer 1 blockchains must be able to handle a significant amount of transactions while maintaining high levels of security and decentralization.
Tokenization is a major use case for Layer 1 blockchains, with the potential to unlock hundreds of trillions of value onboarded to blockchain networks. By creating digital representations of real-world assets, tokenization can enable fractional ownership, increase liquidity, and reduce costs associated with traditional asset management.
The blockchain industry is poised for massive growth in the coming years, with an increasing number of institutions, investors, and corporations recognizing the immense potential of decentralized technologies to disrupt traditional industries and transform the global economy. As capital pours into the space, Layer 1 blockchain protocols are positioned to capture a significant portion of this value as they provide the foundational infrastructure for the digital economy, enabling the creation of new markets, products, and services.
With the emergence of innovative use cases such as DeFi, NFTs, DePIN, tokenization, digital identity and more the demand for scalable, secure, and decentralized Layer 1 protocols is rapidly increasing. As a result, Layer 1 blockchains that can provide these features while maintaining high levels of decentralization and security are becoming increasingly valuable.
We believe that the emergence of Web3 and decentralized finance (DeFi) represents a paradigm shift in the way we think about finance, and presents a unique investment opportunity with significant growth potential.
Web3 is the next evolution of the internet, characterized by the integration of blockchain technology, decentralized protocols, and distributed computing. This new infrastructure creates a decentralized web where users have control over their data and can interact with applications and services in a trustless and permissionless environment. With Web3, we are moving towards a world where users are the owners and controllers of their data, and have the ability to monetize their digital assets in ways that were not possible before. DeFi, on the other hand, is the application of Web3 to the traditional financial system. It represents a new form of financial infrastructure that is open, transparent, and accessible to anyone with an internet connection. DeFi protocols allow users to borrow, lend, trade, and invest in a trustless and permissionless manner, without the need for intermediaries such as banks or brokers. This creates a more efficient and equitable financial system that is resistant to censorship and manipulation.
We believe that the convergence of Web3 and DeFi will lead to the emergence of a new financial system that is decentralized, interoperable, and globally accessible. This new system will enable the creation of new financial products and services that are more inclusive, transparent, and efficient than traditional finance. Moreover, it will enable new forms of economic activity and value creation that were not possible before, such as decentralized marketplaces, prediction markets, and social tokens.
The emergence of decentralized physical infrastructure networks represents a paradigm shift in the way we think about how to operate networks, and presents a unique investment opportunity with significant growth potential.
Traditionally, infrastructure has been built and maintained by centralized entities, such as governments or private companies. However, this model has its limitations: it can be slow, inefficient, and often fails to address the needs of local communities. Moreover, centralized infrastructure can be vulnerable to single points of failure and can be difficult to upgrade or adapt to changing circumstances.
Decentralized physical infrastructure networks, on the other hand, are built and maintained by decentralized communities using blockchain technology and smart contracts. This new infrastructure model creates a trustless and permissionless environment where users have control over the infrastructure they use and can contribute to its maintenance and development. Moreover, it allows for the creation of new forms of economic activity and value creation, such as decentralized energy grids, transportation, communication, storage & compute networks.
Relative to traditional forms of human & capital formation for building physical infrastructure, these permissionless and credibly-neutral protocols:
– Can build infrastructure faster—in many cases 10-100x faster
– Are more attuned to hyper-local market needs
– Can be far more cost effective
Throughout history, centralized capital formation has been the norm, where a single company controls the compensation of its stakeholders. However, this model is outdated in the internet age. Instead of relying on a central entity to make all the decisions, a permissionless network designed to scale and reward its most productive actors using the principles of supply and demand is more effective.
In the past, small-scale operators were unable to compete with large corporations in the deployment of infrastructure such as telecommunications, electric grids, storage, computing and third-party logistics.
But with the advent of proof of physical work, there is a paradigm shift in the way businesses operate and scale. Through crypto-economic protocols, individuals can coordinate their economic activities without relying on a centralized party to extract rent. This will lead to new value creations through efficient human & capital allocation giving the power back to the users.
Emerging blockchain networks have created a new frontier for investors to explore. One of the most promising opportunities within these networks is staking. Blockchain networks rely on a consensus mechanism to validate transactions and ensure the integrity of the network. Staking is one such consensus mechanism that involves locking up a certain amount of crypto assets to participate in the validation of transactions and the creation of new blocks. By staking crypto assets, users have a vested interest in the network’s security and stability, reducing the risk of attacks and ensuring that the network can function efficiently and effectively.
We believe that along with the exponential adaption of decentralized networks and more economic activity & use-cases over time, blockchain networks will become a fundamental pillar of our digital economy. With that emergence, providing a service on the infrastructure layer to secure the protocol and consequently the networks & applications built on top of it, will become very essential & valuable.
Participating in staking or operating nodes in emerging networks with well-designed tokenomics, real-world use cases and a flourishing community of builders, developers, companies and even countries offers a huge opportunity to capture a portion of the value creation and to earn yields coming from network fees and incentive structures.
You can compare it like providing a service enabling operating an airport that various airlines are using and paying for every day. Now transform this concept into the digital world, think of the service provided being essential not just for an airport and consequently for airlines, but for the whole world and for everything people will use & consume digitally and you will get the enormous opportunity in this assumption of a digital nation.
In summary, we believe in the power of technology to improve humanity, and we are a theses-driven investor focused on identifying and supporting companies that share this vision.
Our investment philosophy is grounded in rigorous research, a deep understanding of our areas of focus, and a commitment to purpose-driven investing. We are dedicated to generating strong financial returns while creating positive impact for society and the planet.