There’s a common misconception that web3 backers will throw money into anything and everything during a bull market, favoring a pray and spray approach. The reality is very different. While those with the funds and the vision will always hedge their bets by seeking exposure to uncorrelated ecosystems, VCs are deliberate in what they do.

When a new onchain sector, such as DeSci emerges, it’s natural that web3 VCs, incubators, and angels should start to hover. And it’s inevitable that some will write checks. But they’re shrewd in choosing the projects they fund, recognizing not just the obligation they owe to their own LPs, but the importanc...