Written in partnership with Rodrigo Murguia
Image Credit: Mads Pedersen
The concept of Web3 is gaining significant traction in the tech and finance world, with many believing it could reshape the digital ecosystem. But how can advocates of this new paradigm practically promote its growth in the global market?
Enter Mads Pedersen, a 23-year-old venture capital investor taking aim at advancing Web3. He’s dedicated to funding up-and-coming businesses that seek to make good on Web3’s promises of secure transactions and absolute transparency.
The Upbringings of a Digital Native
Mads Pedersen’s journey spawned from an early interest in tech and finance. “Even back when I was in middle school, I was building my own computers and convincing my dad to buy stock in Apple, Amazon, or Netflix,” he recalls.
During his college years, Pedersen made his first angel investment in a project that tokenized fine art, allowing consumers around the world to own shares of high-end art pieces. Around this time, he discovered the crypto-as-real-estate virtual platform Decentraland, which further fueled his fascination with this emerging technology.
He paired this enthusiasm with a long-held distrust of centralized systems. Having lived in Malaysia for seven years under the corrupt government of Prime Minister Najib Razak, Pedersen developed a strong skepticism of what he calls “opaque, powerful institutions.” Subsequently, watching his family struggle during the 2008 economic crisis and the 2014 collapse of Portugal’s Banco Espirito Santo led him to question the traditional financial system and the usefulness of banks.
Driven by a desire to promote transparent, decentralized solutions, Pedersen dedicated his career to expanding Web3 technologies.
Web3’s Promise of Digital Freedom
As Pedersen notes, “We’re spending more time online and getting more immersed in the digital world with each year.” But the problem is that under the current iteration of the internet (known as Web2), major conglomerates like Meta, X, and Google collect up to 86% of a user’s data and often sell it to undisclosed third parties — making genuine online privacy virtually unattainable and subjecting all users to a state of constant surveillance.
Web3 aims to solve this by relying on a blockchain-based model that gives users total control over their data. In this system, data is distributed through networks of nodes rather than centralized databases, greatly reducing the risk of man-in-the-middle attacks where someone can access or manipulate it.
This shift allows users to engage in peer-to-peer interactions, make cross-border payments, and have immediate access to their digital assets without the need for intermediaries like banks — all while securing their privacy.
Pedersen likens this to a land of “digital sovereignty,” where users are the ones in charge. As he puts it, “No efficient system should require a middleman — blockchains can solve this.”
Though global adoption is still a ways off, Web3 has been picking up steam for years, with the market size expected to reach $5.5 billion by 2030 (and with a compound annual growth rate of 44.9% compared to 2023). It’s one reason why Pedersen believes “eventually, digital assets will be worth as much as — if not more than — physical assets.”
Venturing Into Web3: Pedersen’s Investment Strategy
Image Credit: Unsplash
Encouraged by the possibilities of this new internet, Pedersen landed a position as an investment associate at Inception Capital. During his time there, he sought to work with early-stage entrepreneurs who proposed new and improved ways to engage with the Web3 space. “I want to support the brightest founders at the early stages,” Pedersen explains, “so they can build pivotal products that push this industry forward and benefit society.”
His endeavors have been highly successful thus far, with recent investments yielding significant returns. Notable successes include Movement Labs, which raised over $38 million to develop smart contract security measures using the Move programming language, and Puffer Finance, a liquid staking protocol that secured over $23 million in funding — with $2 billion locked in for further development.
He partly attributes this success to being a 23-year-old caught in the Gen Z–millennial divide, which currently comprises 94% of crypto buyers. “My age allows me to connect with younger founders,” he notes, “but it also provides a unique perspective to older investors who may be less familiar with how to market to a younger, crypto-savvy audience.”
Pedersen looks for projects that can meet the core values of transparency, equal access to all users, and a firm belief in the benefits of crypto. He meticulously evaluates and works with founders to make sure they’re not rushing development or taking shortcuts, acting as a mentor and guiding force.
“At the end of the day, you’re investing in people,” he adds, “and that’s the most valuable part of this process.”
Working Toward an Equitable Future
With an eclectic portfolio behind him, Pedersen is set to become a partner at Web3 infrastructure fund Figment Capitalthis July. Here, he hopes to continue backing early-stage projects that push boundaries inside and outside crypto, as well as projects that find intersections between crypto and traditional industries — such as AI and gaming.
Outside of the firm, he hosts biweekly meetups in New York City to educate aspiring founders and investors on how to succeed in the business. He’s also a constant presence at crypto conferences and panels like Mind Network and NearCon, sharing his knowledge and insights with fellow enthusiasts.
Thanks to Pedersen and his investments in the Web3 space, a transparent and open internet may be just around the corner.
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