Our investment strategy

Over the last 4 years of investing in blockchain we have developed a thesis we termed ‘Convergence’ (back in 2016).


Download the full Convergence paper


It references the idea that we are witnessing the convergence of wider Deep Tech with decentralized web infrastructure, such as blockchains, imbuing them with it’s qualities and characteristics.  


This is creating an entirely new Web architecture:


One that is increasingly open source, decentralised, automated and most importantly fractionally owned (tokenised).


This promises to both accelerate the growth of individual technology fields like IoT, AI and Robotics but by giving them a shared web architecture allows them to convergence and combine promising a period of profound economic growth and social change.


As a consequence we are seeing a new integrated technology stack forming we refer to as the Convergence Ecosystem (illustrated below) that we believe is birthing the next generation of open web protocols that will be as fundamental as HTTP, SMTP, RSS or GPS. In some cases creating entirely new innovations and many cases eroding centralised closed platforms.


Our investment strategy Outlier Ventures


It is here, at the infrastructure layer for Web 3, that we focus our investments: where success is founded on good design and governance.


Importantly, through digital scarcity cryptoassets provide a new commodities layer to both finance and power the mass coordination of decentralised open networks be it in computation, data storage or processing. It allows early adopters and important stakeholders to collectively own the digital economies they help create and secure.  


This represents as shift towards a more resilient and less fragile Web and away from the closed proprietary systems and data silos of the past. Where 90% would fail and disappear forever, to something seemingly more biological in nature. Something that evolves in multiple, potentially parallel, iterations.


This offers an infinitely more efficient, effective and sustainable way to finance innovation and for the first time offers a highly profitable business model for open source.


Furthermore, cryptoassets also allow us to hardcode fiscal and monetary policies, as well as behavioural economics and game theory, to govern these new digital economies. This will likely become the greatest experiment in socio-economic experimentation humanity has ever seen, bringing about leaps in technology, economics and governance models. But bringing huge responsibility for those that design the systems of the future through which we will organise the world.  


This is why we only invest in well designed and sustainable token economies that look to hardcode the principles of a more equitable web.


We believe convergence will touch every part of our daily lives but today is most relevant to the industrial web and machine-to-machine economy. That’s why we today focus on Industry 4.0, Smart Cities, Mobility & Health where we can make the greatest positive impact to society and mankind.  


Download the full Convergence paper


If you are working on a project that is focused on building a critical component of the Convergence Ecosystem, and if we can support you in any way, please get in touch.