Atlanta’s Web3 scene includes companies that have reached or are on the verge of $1 billion valuations. Now, the city is getting a venture studio focused on helping diverse founders in this sector.
W3 Studio, founded by investor and entrepreneur Brian Zwerner, plans to help grow local Web3 companies founded by Black, Latinx and women founders through mentorship and early investments. Web3 is a new type of internet service built on blockchain technology.
“Friends and family capital rounds, especially for diverse builders in Atlanta, is just the hardest,” Zwerner said. “Anyone who doesn't come in with an existing network, didn’t work in big tech or went to tech-focused West Coast colleges, struggle for that first money to get off the ground.”
The program will help companies refine their product with resources such as financing, marketing, accounting and product design. Businesses can stay as long as they need, until they find a product market fit. Businesses must be Atlanta-based, Web3-focused and have a founding team with at least 50% diverse members. Zwerner says he’s less interested in traction, and more in founders who have shown resilience in jobs, schoolwork or personal lives.
Zwerner has applied for the studio to be a 501(c)(3) organization. It will accept donations and sell digital assets, to then make grants up to $200,000 for the companies in its program.
The program is in the process of recruiting companies. It will begin operations once it finalizes more agreements with corporate partners, Zwerner said.
The program will use the Atlanta Blockchain Center, an incubator that opened in 2022 in Buckhead, for in-person meetups and events.
Board members of W3 Studio include Atlanta Blockchain Center founder Marlon Williams, CEO of Dr. Noze Best and former president of the Launchpad2X program Christy Brown and Georgia Department of Economic Development Project Manager Asante Bradford.
Disruption in Web3
The launch of W3 Studio comes as great doubt plagues the industry.
Crypto exchange FTX lost at least $8 billion in customer funds, leading to the bankruptcy and subsequent arrest of founder Sam Bankman-Fried last month. Bitcoin’s value is down from its record high of around $69,000 in 2021, to just over $21,000 as of Jan. 18.
Zwener believes given recent turbulence, it will be harder to grow a Web3 company in the next few years. However, he believes that following the FTX scandal, it will encourage more Web3 businesses to have real lasting value for customers.
“[FTX] steered away people that weren't committed to this space, and gave naysayers the ability to wag their finger and say, ‘I told you so,’” Zwerner said. “This is the best opportunity to start from a clean slate and come out in the right direction.”
About Zwerner
Zwerner spent two decades working in capital markets, in roles including senior vice president of financial firm Janney Montgomery Scott LLC and managing European and Asian rates for Bank of America, before getting an entrepreneurial itch.
In 2014, he co-founded Atlanta-based small business lender Aquina Health helping it grow through Series A financing. After his next startup project closed down, Zwerner founded the Beyond the Game Network to expose athletes to startup founders and venture capital. The business has helped make 23 investments into companies, over half of which have a Web3 component, Zwerner said.
Based on his experience, Zwerner believes the biggest opportunities for Web3 are to engage fanbases with assets such as fantasy sports games and collectibles.
