Navigating Tess Ventures, Web 3, AI: Tess Hau In-Depth Interview

In this interview, Tess, a venture capitalist and co-founder of Test Ventures, shares her journey from developing leadership skills at a young age to building a successful career in Web 3 and AI investments. She discusses key topics such as the differences between equity and token deals, post-TGE challenges, and the importance of community engagement. Tess also highlights the role of ETFs in blockchain adoption and the convergence of Web 2 and Web 3 technologies.

She introduces the Gabs Accelerator for Web 3 AI startups and emphasizes the importance of founder commitment and coachability. She delves into strategies for fundraising during market volatility, the Middle East’s potential in blockchain, and AI’s growing role in decentralized computing. Tess concludes with advice for founders navigating volatile markets and reflects on her experiences as a female venture capitalist.

TIMESTAMPS

0:00 Introduction
1:18 Tess’s personal journey
3:01 Developing teamwork skills and leadership at a young age
10:52 Differences between equity deals and token deals
12:01 PostTGE (Token Generation Event) challenges
14:16 The role of the ETF in mass adoption of blockchain
15:04 Importance of community engagement postTGE
15:16 Successful investments and portfolio examples
16:00 Tess’s diligence process and investment thesis
20:13 Founders’ equity structure and incentives
21:33 Balancing equity and tokens in crypto startups
22:04 Introduction of Gabs Accelerator for Web 3 AI startups
22:31 Convergence of Web 2 and Web 3 as Web 2.5
23:02 Setting up token incentives and ESOPs in Web 3 startups
24:00 Criteria for accepting companies into Gabs Accelerator
25:16 Importance of founder commitment and coachability
26:30 Referrals and endorsements for new founders in the accelerator
27:33 Tess’s time at Stanford and exposure to leading startups
29:05 How Tess applies her experience to evaluate risks in startups
30:13 Balancing Web 2 and Web 3 startup principles
31:55 Importance of understanding the Web 3 playbook
34:21 Tess’s investment structure and geographic flexibility
36:16 Test Ventures’ range of investment sizes
37:29 Raising funds through node sales: Ather example
41:00 Importance of timing in fundraising and node sales
42:42 Ather’s transition to AI and decentralized computing
43:50 Strategies for fundraising during market volatility
46:13 Regional focus: Middle East’s potential in blockchain
47:00 AI’s growing importance in Web 3 and beyond
48:25 Bitcoin ecosystem and the rise of AI agents
49:19 Gaming as a persistent trend in the Web 3 world
52:02 Tess’s advice to founders for fundraising in a volatile market
55:04 Tess’s biggest lesson as a female venture capitalist
59:03 Book recommendation: The Lean Startup