GD1 Investment Notes - Layer3 (Web3 Fund 1)

‍

We’re excited to announce our investment in Layer3’s Series A round. Layer3 empowers organisations to reach, acquire, and retain users through engaging, interactive experiences. For users, Layer3 provides a trusted and guided exploration of web3, rewarding them for meaningful engagement.

‍

The Problem

Layer3 is tackling two important problems. First, they help crypto projects and networks grow by providing a way to reach more users. Second, they make it easier for new users to explore crypto by completing tasks that earn them token rewards. This allows people to learn about and use crypto apps without having to buy tokens right away. Both of these solutions are crucial as blockchains become more popular and new users join the crypto world.

‍

The Solution

Layer3 offers a reliable way for users to explore web3 and earn rewards for their engagement. For networks, protocols, and dApps, Layer3 helps attract and keep the right users by distributing tokens to those who are most valuable based on their activity. Unlike the expensive and inefficient methods used in web2, Layer3 uses token incentives to create a decentralised network that effectively targets and rewards the best users.

‍

“We believe everything will have a token, and there will be myriad ways for users to earn them. Tokens make it exponentially easier for projects to reach and retain users and reward engagement. But so far in crypto, tokens have been inefficient and costly for the projects that launch them.” - Brandon Kumar

‍

Traction

The Layer3 platform has served over 3 million unique users in 120 countries. It supports 25 different blockchains, including those in the Ethereum Virtual Machine (EVM) and Solana ecosystems. More than 100 crypto teams, such as Uniswap, Base, Arbitrum, and Polygon, use Layer3's distribution system.

‍

The team

Brandon and Dariya are the co-founders of Layer3. Brandon worked for six years at Accolade Partners, a US$4 billion asset management firm, before leaving in 2021 to start Layer3 with Dariya. Dariya is a lifelong entrepreneur who has built nine apps, sold an Instagram network, and launched a mentorship platform called Mastermind.

‍

‍

Layer3 is a 13-person team based in the US and Europe. They have a strong track record, having worked on projects related to L1s, L2s, DeFi, NFTs, gaming, and more

‍

I was a small angel investor in Layer3's pre-seed round in 2021 and have seen Brandon and Dariya's impressive execution, team-building skills, and product success. I am super excited to welcome Brandon, Dariya, and the rest of the team to the GD1 Web3 Fund 1 Portfolio!

‍

We are actively looking to support more web3 projects. If you’re building something in the space, please do get in touch. Our DMs are open. :)

‍