June 22 (Cointime) - Investments in Web3 are being seen as a hedge against disruption in the tech industry, according to Martin El-Khouri, a senior director at Bertelsmann Investments. Despite regulatory challenges and market downturns, investors are still supporting new ventures in the Web3 space, with DeFi startups seeing a surge in venture capital funding of almost 120% in 2022.

El-Khouri emphasized the importance of distinguishing between genuine value and artificial inflation in the market for Web3 investing, and believes that with the hype subsiding, investors are now able to identify projects built on solid foundations. While there is a reputational problem with Web3 that needs to be addressed for traditional corporate leaders to take it more seriously, regulatory clarity actually benefits investments in the Web3 and crypto sector.