TechFlow news — Fred Wilson, partner at U.S. venture capital firm Union Square Ventures (USV), spoke about artificial intelligence and cryptocurrency during a panel discussion on Thursday. He noted that the recent surge of interest in AI resembles the hype cycles previously seen around cryptocurrency.
Wilson said: "I think these technologies all go through similar hype cycles. We went through a massive hype cycle in Web3, and we're now definitely in the trough of disillusionment. Meanwhile, we're going through the full hype cycle with artificial intelligence. I believe eventually we'll calm down and realize that years from now, we won't be working for robots."
USV has backed companies including Twitter, Coinbase, Stripe, as well as Web3 leaders Dapper Labs and Dune Analytics, and AI-focused startup Alife. In an article titled "The Freedom to Innovate," published on May 24, Wilson recounted USV's 2014 experience being subpoenaed by the New York State Department of Financial Services due to its Web3 investment activities. At the time, USV hired a law firm to respond and ultimately Wilson was required to testify publicly before DFS officials. During his testimony, Wilson told DFS staff that unlike some countries, the United States respects the freedom to innovate.
During USV's quarterly LP conference call, someone asked whether increasing U.S. regulatory pressure on Web3 might lead the firm to reduce its investments in the space. This question reminded Wilson of the 2014 moment. He responded: "When they want to ban it, that’s when I double down. The most powerful technologies send waves of fear throughout the establishment. And when you see that fear in their eyes, that’s exactly when you should invest in the thing causing it."
