Demystifying web3 gaming with Shima Capital – trends, challenges, opportunities | Fundamentals ep.80 Fundamentals

In this episode, we’re joined by Alex Wettermann, the Head of Gaming at Shima Capital – an early stage VC firm investing in disruptive web3 companies. Alex gives us an overview of the current state of the web3 gaming market, and walk us through the key trends, challenges and potential opportunities within the space.

Alex highlights the importance of looking beyond trends like 'play to earn' and emphasizes the need to create net new experiences and novel monetization methods. He also discusses the role of token design, in-game economics, user acquisition and retention, building strong gaming communities, and the unlocks needed for web3 gaming to go mainstream.

Finally, we cover how Alex analyses potential investment opportunities, and how Shima actively works with their portfolio companies.

Tune in for a great episode about the fundamentals of web3 gaming.

Shima Capital: https://shima.capital/
Alex on X: https://twitter.com/awettermann
Shima on X (Twitter): https://twitter.com/shimacapital

Make sure to leave a comment if you have any questions 🙌

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Timestamps:

00:00 Introduction

02:28 Overview of Shima Capital

03:22 What problem does Shima solve for LPs?

04:13 What does Alex’s day-to-day look like as the head of gaming at Shima?

07:14 The barrier to entry for researching crypto is high

09:32 The core value proposition of web3 in gaming

13:24 The current state of onchain gaming

17:15 Would a Supercell-style game development model work in web3?

20:13 Does the financialization of in-game assets make it harder for game studios to iterate?

24:03 Net new experiences and monetization models enabled by web3

27:22 Balancing monetization and gameplay in web3

30:58 What trends or verticals in web3 gaming currently stand out?

36:56 Investing throughout the web3 gaming tech stack

38:07 Value accrual

40:56 The thesis behind investing in Pudgy Penguins

42:39 The biggest hurdles facing web3 gaming today

45:35 What are the main KPIs that Shima focuses on?

49:38 What qualitative data could be helpful at scale?

51:18 How does Shima work with their portfolio companies?

…


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