Factor Capital is an early stage venture fund that partners with businesses in the earliest stages that believe in the inevitability of technological progress and are comfortable challenging established norms to drive society forward.

Factor Capital

Factor invests in entrepreneurs leveraging decentralized blockchain technology to make an impact on the off-chain world.

The latest group of founders we're supporting at Factor Capital represents a new breed. In the past, it was a badge of honor for founders to boast about their long tenure in crypto. However, the best founders I see now are different. They highlight their fresh entry into the space, driven by a real-world problem they identified. They discovered that blockchain or crypto provided a unique and superior toolkit compared to traditional solutions they might have otherwise considered.
These founders are often leveraging Chris Dixon's old "thin edge of the wedge" strategy to onboard mainstream businesses and users to crypto applications that largely have no crypto components visible to end users - but they do solve an overlooked problem in a novel way, powered by the utility of the crypto rails they're building on.
The same challenge faces AI companies today as well, with the impressive utility of ChatGPT and Anthropic being great examples of the power of LLMs to edit text but with mainstream businesses increasingly unable to see how they can leverage it maximally to improve their bottom lines.
Companies in our portfolio like Legitimate, Koywe, Coala Pay, Plural Energy, PLAYTRON and others are examples of this wedge approach, demonstrating crypto utility without showing off "crypto". I discuss how I would like to see more crypto founders think similarly and bring the best technologies of crypto to the masses to better showcase its utility in my latest blog post.

The next significant evolution of LLMs and AI applications is the mass deployment of agents working on behalf of businesses and consumers. We will see releases soon from OpenAI and their peers, as well as the launches of Sierra, Adept, and numerous others. These agents will additionally unlock the next wave of crypto and web3 usage as it presents a whole new user interface for people to engage in these products. Read more on the Factor Capital Blog:
#ai  #llms  #openai  #crypto  #web3

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