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Founded in 2018, CertiK quickly became a trusted name in Web3 security by leveraging formal verification to safeguard smart contracts and decentralized systems. Over the years, we expanded our offerings to include comprehensive security services, audits, and tools, solidifying our reputation as a go-to partner in the Web3 security space.

Recently, CertiK has set its sights on an even more ambitious goal, illustrated by a new company slogan, “Elevating Your Entire Web3 Journey.” But what does this mean in practice? In order to support the growth and innovation crucial to Web3, CertiK introduced CertiK Ventures, an initiative designed to empower builders by offering robust support and fostering collaboration, ensuring a solid foundation for continued success within blockchain.

CertiK Ventures seeks to establish partnerships with like-minded innovators, foster strong alignment between teams and businesses, and create opportunities for joint ventures, funding rounds, and exploring mergers and acquisitions. Beyond business guidance, we provide ecosystem growth advisory, security expertise, and technical deployments to help projects thrive in a competitive landscape.

In CertiK Ventures’ 2024 Investment Thesis, we explore CertiK’s roots as a leader in blockchain security, the current state of the venture capital (VC) landscape, developing supportive ecosystem strategies, and crypto market opportunities. We also discuss in detail our investment philosophy, strategic directions, methodologies, and proprietary investment grading and scoring metrics — all in line with our commitment to transparency and providing publicly-accessible resources.

Here are some of the key points explored in our thesis:

Strategic Investment Focus

At CertiK Ventures, our core philosophy is simple yet powerful: “As a builder, grown with builder, growth with builder.” This statement reflects our steadfast commitment to the developer community and our support for innovation, growth, and resilience in the blockchain ecosystem.

Our investment thesis is rooted in two foundational pillars: Security Innovation and Developer Enablement. We prioritize advancing security methodologies, such as fuzzing, formal verification, and transaction monitoring, while combating phishing attacks. We also foster collaborative initiatives, such as hackathons and educational platforms, to empower the next generation of builders.

Security Innovation

Advancing methodologies like fuzzing, formal verification, transaction monitoring, and combating phishing attacks.

• Proactive Transaction Monitoring & Prevention: Real-time monitoring systems powered by AI and machine learning that analyze transactions for irregularities and prevent fraud before it happens.
• Automated Advanced Auditing: AI-driven tools to automate the auditing process, ensuring thorough checks for compliance and vulnerabilities while reducing human error and increasing efficiency.
• Anti-Phishing Tools: Cutting-edge solutions to identify and block phishing attempts, including email filtering, domain verification, and user education on identifying suspicious activities.
• Decentralized Auditing Model: A shift from centralized to decentralized systems, enhancing transparency and reducing the risks of manipulation, particularly in blockchain networks.

Developer Enablement

Supporting collaborative initiatives such as hackathons and educational platforms to empower builders and developers.

• Developer Enablement through Hackathons and Education/Mentorship: By organizing hackathons, workshops, and mentorship programs, we can empower developers to build innovative solutions, master new technologies, and foster collaboration within the security space.

Supporting the Blockchain Ecosystem

• CertiK Ventures envisions the future blockchain ecosystem as a landscape of multiple, interoperable, application-specific chains. Our goal is to serve as partners, incubators, catalysts, and co-creators across as many ecosystems as possible, while staying true to our core role as a rational VC. To achieve this, we leverage well-defined ecosystem profile frameworks, along with comprehensive investment and risk management strategies.
• Good ecosystems are those that prioritize robust infrastructure, builders, and differentiation, and receive reasonable valuations.
• By providing a progressive ecosystem support strategy, CertiK Ventures can help ecosystems expand their market presences and be prudent in early-stage initiatives.
• CertiK Ventures can provide the following support services: primary market token investments and OTC deals, builder programs, hackathons, node support, liquidity bootstrap support, security support, and cross-portfolio collaboration.
• Ecosystems may encounter challenges throughout their lifecycles pertaining to shifting market conditions, regulatory headwinds, technological shifts, and vulnerabilities. To address these, we implement comprehensive risk mitigation strategies.

Financial Investment Opportunities

• According to CoinMarketCap, as of November 2024, the total market capitalization of the cryptocurrency market is approximately $1.1 trillion, showing signs of recovery and growth potential.
• CertiK Ventures aims to leverage its expertise in blockchain security as an anchor to enhance risk management and investment strategies, utilizing data-driven insights to inform decision-making and invest in high-potential blockchain projects — particularly in areas such as DePIN, DeFi, Social, Gaming, and AI.
• CertiK Ventures considers the following factors for investment opportunities: value proposition, team background, product market fit (PMF), business model innovation, and overall technological trends.
• In the valuation process of Web3 projects, traditional valuation methods (e.g., DCF and Asset-Based Approach) tend to be difficult to apply. Since these projects usually lack stable cash flows in the early stages and the tokens have no public value until listed, we need to rely on experience and industry consensus for valuation.
• CertiK Ventures combines a variety of elements such as vesting schedule, secondary market availability, public prices, price forecasts, market sentiment and phased exit strategies in the development of its exit strategy.

CertiK Ventures encourages internal and external stakeholders—including researchers, engineers, investors, and practitioners—to engage with this thesis. By fostering open dialogue, critical review, and collaborative innovation, CertiK Ventures aspires to contribute meaningfully to a thriving and prosperous Web3 industry and community.

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