"2024 Asia-Pacific Web3 Early Investor Research Report": RootData is the preferred data platform for early investors, and DeFi is currently the most undervalued track

Original Title: 《ChainCatcher \& Blocktempo Release the "2024 Asia-Pacific Crypto VCs Research Report"》

Authors: ChainCatcher \& Blocktempo

Key Data Summary:

• 85% of investors use RootData for financing data queries and project tracking, leading other platforms
• 87% of investors rely on X (formerly Twitter) for industry information
• 75% of investors prioritize the background and experience of the project team
• 41% of investors believe DeFi is the most undervalued sector currently
• 42% of investors plan to maintain their current investment pace in the next 4 months

Current Status of Web3 Early Investors - Asia-Pacific Edition

As the Web3 industry enters a new development cycle, the Asia-Pacific market, with its rich resources of developers and investors, is rapidly becoming an important part of the global Web3 ecosystem. To gain deeper insights into the dynamics of this key market, ChainCatcher collaborated with Taiwan's leading crypto media platform Blocktempo to conduct a comprehensive survey on the investment research methods of early Web3 investors in the Asia-Pacific region. Ultimately, 1,084 questionnaires were collected, providing valuable first-hand data for the industry to understand the early Web3 investor community.

1. Geographic Distribution of Investors

The survey shows that 28% of respondents are from mainland China, followed by Singapore (25%), Hong Kong (18%), and South Korea (11%), with coverage also including some Southeast Asian countries. Driven by policies and the globalization of the industry, the number of early Web3 investors in Singapore and Hong Kong is rapidly increasing.

2. Age Distribution of Investors

Respondents aged 30-39 account for the highest proportion at 44%, followed by those aged 20-29 (32%) and those over 40 (20%).

3. Position Distribution

Among the surveyed group, investment managers/researchers account for the highest proportion at 27%, followed by partners (20%), founders (15%), investment directors (10%), executive directors (4%), and others (24%).

4. Types of Investment

In terms of investment types, 46% of respondents come from Crypto Venture Capital Funds, 14% from traditional Venture Capital Funds, 12% from Family Offices, 9% from Angel Investors, 3% from Corporate Venture Capital, and 15% from other types.

5. Amount of Single Investment

Regarding the amount of single investment, 36% of investors invest between $10K-100K, 32% between $100K-500K, 13% between $500K-1M, 10% over $1M, and 9% below $10K. The amount of single investment also indicates that the industry is currently in its early development stage.

6. Investment Strategies

48% of investors adopt a mixed investment strategy in both primary and secondary markets, 34% focus on primary market investments, and 18% focus on secondary market investments. This diversified investment strategy reflects the complexity of the current market environment. Due to extended exit cycles, increased difficulty in exiting, and reduced market innovation, investors are no longer limited to a single market but seek to flexibly allocate between primary and secondary markets to balance risks and opportunities.

7. Number of Investment Projects

In terms of the number of investment projects, 55% of investors have invested in 10 or fewer projects this year, 20% in 10-20 projects, 11% are observing without investing, 6% in 20-30 projects, 4% in 30-40 projects, 2% in 40-50 projects, and 2% in more than 50 projects.

8. Information Acquisition Channels

X (formerly Twitter) is the most popular information channel, chosen by 87% of respondents. This is followed by Telegram (52%), WeChat (31%), Discord (28%), YouTube (17%), media/self-media (16%), podcasts (5%), and RSS (3%).

9. Data Query Platforms

The survey shows that RootData, with an 85% usage rate, has become the most popular financing data platform, while Cryptorank.io and Crunchbase account for 43% and 32%, respectively. The absolute leading usage rate of RootData indicates that it has become the most mainstream data tool in the Asia-Pacific early Web3 investment market.

10. Project Evaluation Factors

Team background and experience (75%), technological innovation (53%), and business model (45%) are the three most valued factors by investors when evaluating projects. Notably, investors are placing greater emphasis on the "business model" of projects, while the "narrative advantage" factor has undergone a significant demystification process. Along with the tightening of market liquidity and the increased difficulty of listing on major centralized exchanges, investors' attention to the "listing advantage" of projects has also significantly decreased.

11. Research Challenges

Project information transparency (61%) and rapid industry changes (43%) are the main challenges in investment research, while characteristics such as industry globalization and distributed teams further exacerbate the challenge of "project information transparency."

12. Due Diligence Tools

The X platform (87%), RootData (71%), and LinkedIn (62%) are the most commonly used due diligence tools. Given the unique nature of the Web3 industry, traditional company databases can no longer adequately meet the demand for professional, timely, and structured data. RootData has become the leading Web3 investment due diligence database.

13. Sector Selection Criteria

62% of investors choose sectors by observing narrative/category innovation, 54% focus on financing conditions, 36% consider the wealth effect of the secondary market, 26% emphasize the attractiveness to retail investors or exchanges, and 22% consider the risk resistance/synergy needs of their investment portfolio. This reflects the crypto market's high reliance on narrative and category innovation, as well as its focus on the heat of the capital market.

14. Weight of Research Analysis

40% of investors believe that research analysis accounts for 40%-60% of their decision-making, while only 13% believe it accounts for less than 20%.

15. Undervalued Sectors

DeFi (41%), Bitcoin ecosystem (34%), and RWA (32%) are considered the most undervalued sectors. In contrast, sectors like GameFi and NFTs, which were once expected to produce killer applications, are no longer viewed as undervalued by investors. After multiple rounds of narrative shifts, investors have once again turned their hopes for industry innovation towards DeFi.

16. Overvalued Sectors

Layer1/Layer2 (48%), GameFi (28%), and NFTs (25%) are considered overvalued sectors, which may be significantly related to the stagnation of innovation in these areas.

17. Perception of Industry Innovation

44% of investors believe that no significant innovations have been seen in the Web3 industry this year, 29% find it difficult to describe, and 27% believe that significant innovations have been observed. The perception of the level of industry innovation may directly affect the activity level of the Web3 primary market.

18. Information Anxiety

39% of investors report significant information anxiety, 34% indicate that their level of information anxiety varies by situation, and 27% report no significant information anxiety. Nearly 40% of investors experience significant information anxiety, indicating that the Web3 market is still in a period of rapid development, with many unproven innovations remaining in the market.

19. Characteristics of Quality Projects

Technological innovation (61%), advantages in business models (59%), and team background (54%) are key characteristics of quality projects. Unlike previous cycles, the "listing advantage" has been replaced by the "business model advantage." Notably, the characteristic of "product technology delivery capability" is categorized by early investors as one of the least focused characteristics, which is related to the significant uncertainties in the early stage of the industry and its strong financial attributes.

20. Future Investment Plans

42% of investors plan to maintain their current investment pace in the next 4 months, 27% plan to increase their investment efforts, 22% plan to reduce their investment efforts, and a small number of investors (9%) hold a cautious or uncertain attitude towards the market outlook, choosing to be indecisive or stop investing. Notably, only 31% of investors explicitly state a cautious or reduced investment attitude, while more early investors remain optimistic, which may drive a phase of recovery and prosperity in the Web3 primary market in Q4.

Conclusion

This survey comprehensively reflects the current status and trends of cryptocurrency investment in the Asia-Pacific region, revealing that the industry is at a critical transformation period. Investors are adapting to a complex and changing market environment, which is reflected in their investment strategies, information acquisition methods, and decision-making processes. The data shows that most investors adopt a cautious attitude, favoring small investments and diversified strategies, while placing high importance on team background, technological innovation, and business models. This balanced approach reflects the uncertainty in the market and investors' demand for investment stability.

According to RootData's Q3 2024 report, despite Bitcoin prices showing high volatility, financing activities in the Web3 primary market have shown a downward trend, with a total of 321 financing events in Q3, a quarter-on-quarter decrease of 25.69%, and a total financing amount of $2.406 billion, a quarter-on-quarter decrease of 15.04%. This reflects that investors are adopting more cautious strategies in the face of market uncertainty. At the same time, investors' optimism towards certain sectors (such as DeFi and the Bitcoin ecosystem) and caution towards other sectors (such as Layer1/Layer2) reflect a market that is reassessing the potential of segmented sectors.

The current market still faces multiple challenges, including the impact of macro monetary policies, narrowing listing channels for major exchanges, MemeCoins capturing limited market liquidity, and primary market investors encountering "FUD." These factors collectively shape the current landscape of the early Web3 investment market, requiring investors to find a new balance between risks and opportunities.

PDF version of the "2024 Asia-Pacific Web3 Early Investor Research Report": Chinese | English | Tiếng Việt

Disclaimer: The data collection period for this survey was from August 26, 2024, to September 26, 2024. All data is for research purposes only and does not constitute any investment advice. Investors should bear their own investment risks. The final interpretation of this report belongs to ChainCatcher.