Markets |
Reimagining Due Diligence
as a Pillar of Investment
Session Video
With the growing complexity of Web3 investment vehicles, Teresa Liang of Decasonic led a deep-dive conversation with Wyatt Lonergan of VanEck and Neil Thakur of Teknos Associates on how due diligence is evolving. The panel unpacked valuation in tokenized systems, founder pattern recognition, and the technical rigor needed to underwrite Web3-native companies amid regulatory shifts and nascent infrastructure.
Core Themes and Shifts
The panelists agreed that Web3 investing demands new frameworks. Neil Thakur emphasized that traditional P&L and DCF models often fall short in token-rich projects. Instead, token utility, ecosystem dynamics, and liquidity profile are critical inputs. Wyatt Lonergan added that founder quality and vision—especially at the pre-seed stage—outweigh early financials. The most compelling founders demonstrate clarity of mission and adaptability, especially given the frequent pivots in crypto startups.
Key Strategic Insights
Thakur highlighted the challenge of valuing native tokens before they trade, noting issues like order book depth and staking dynamics. He emphasized that only a handful of altcoins currently have sufficient liquidity to support realistic exit scenarios. Lonergan shared how his diligence focuses on long-form founder narratives, such as memos or essays, as markers of critical thinking. Teresa Liang introduced Decasonic’s AI agents, which help score deal compatibility and amplify pattern recognition during the sourcing process—showcasing how technical tooling is enhancing human judgment.
Implications for Builders or Investors
Founders should expect increasing scrutiny of token utility and ecosystem design. Due diligence now spans beyond financials into understanding network effects, governance incentives, and cultural stickiness. Investors must stay ahead by retooling valuation models and leveraging AI-assisted analysis. The best-prepared builders will articulate how tokens fit into a sustainable business model—with regulatory clarity and paths to revenue and liquidity baked in.
