The ThoughtLiter: Thought Leadership Learnings from a16z’s “State of Crypto 2024” Report
Welcome to the ThoughtLiter, our series in which we explore thought leadership content across industries to glean best practices and identify areas for potential improvement. In our first edition, we examine a16z’s State of Crypto 2024 Report, a robust exploration of crypto markets and the noteworthy trends driving them. The report has generated significant attention from crypto enthusiasts and mainstream media outlets alike, and thanks to its depth and thoroughness, it’s likely to continue garnering widespread citations.
Let’s deconstruct the report - including its structure, contents, and delivery - to understand what worked well and what might’ve worked better.
The Report: State of Crypto 2024
The Author: a16z Crypto (a crypto-focused venture capital firm)
The Contents: An annual, data-oriented examination of the key developments and trends in the crypto industry.
Length: 58 Slides
Why was a16z well positioned to write this report?
The report was produced by a16z Crypto, a crypto-focused venture capital firm that’s part of the larger Andreesen Horowitz VC organization. a16z Crypto has invested in the web3 and crypto space since 2013 across multiple funds, raising $7.2 billion in committed capital. While you might think a large exchange like Coinbase or Gemini is better positioned to produce “State of Crypto” content - and indeed they do just that - a16z’s position in the web3 landscape gives it broad visibility. As a venture capitalist, a16z sees where the brightest entrepreneurs in the space are focusing their efforts, and they also know how their strongest portfolio companies are adjusting to changing market conditions or what they’re grappling with. This perspective enables a16z to keep its finger firmly on the pulse of activity in the crypto ecosystem, from its largest and most established components to its shifting paradigms and emerging innovation.
But that doesn’t mean the firm’s content relies purely on anecdotal evidence. Rather, the regular feedback and intel it gathers better positions a16z to focus the scope of its data collection and analysis - to know what questions need answering with data and where to find the data that will answer them.
What’s unique about the report?
Format. The team at a16z offers two different ways of consuming the report. The first is a 58-slide deck that can stand on its own. The slides themselves are extremely light on text and commentary, relying instead on headings, visuals, and charts to tell the story, a job they do quite capably. For those who prefer a narrative structure, the report webpage offers text-based commentary - interspersed with relevant slides as visual aids - to guide the reader through the report’s key narratives.
It’s not uncommon to see reports offered in both PDF and webpage-based formats. However, the PDF is often a whitepaper-style report that contains all or most of the same content displayed on the webpage. It’s rarer to see a slide deck that eschews most text-based commentary, though those in the financial industry will be accustomed to consuming information in that format. The choice of format contributes to both strengths and shortcomings of the report.
What are the report’s strengths?
Data: robust and diverse. By their very nature, crypto and blockchain technologies are very transparent, meaning that relevant data is extremely bountiful. The crypto crowd is highly data-oriented and effectively leverages the industry’s unique strength. This report is no different. If you were to tally up each unique data point used in the report's production, you would likely reach a number in the tens of thousands. The broad availability of data in extremely high volume is both a blessing and a curse; the author of a report like this has to assess the landscape, identify which data to focus on, and figure out how to weave it together into cohesive takeaways and a broader narrative.
The a16z team has deftly accomplished that tall feat, adding meaningful value for readers who don't have to undertake it themselves. Standing at the base of that mountain of data would paralyze many into abandoning the journey before it even begins.
The team has also incorporated proprietary data and referenced it in several places, leveraging the firm’s unique interactions with hundreds of crypto entrepreneurs. This position equips a16z with tools that further emphasize its status as an industry thought leader; the “Builder Energy Dashboard” and “State of Crypto Index” demonstrate expertise beyond a typical VC’s capabilities.
Abundant visual aids. The slides' ability to convey key narratives is a testament to the thoughtful use of clear and effective visual aids. Nearly every slide contains a chart or graphic that tells a story independently, without heavy lifting from text. Though many charts are complex and require a few moments of examination to digest, showing is better than telling, and a data-rich visual supports every point made.
Optional reliance on text. If the reader requires more explanation, it's provided, whether in footnotes or the webpage-based commentary. Wading through it is not obligatory, though, and both kinds of readers - those who are more visual or those who prefer to digest through reading - will find their way.
What are the report’s weaknesses?
As you might have surmised, we’re impressed with the a16z team's work, and the market seems to share our admiration. Still, there are a few areas for improvement, albeit nitpicky ones.
Digestibility. The slide deck does little to make the content easily digestible for those bereft of time. Busy readers will yearn for an abridged version or an upfront summary of pertinent takeaways. The webpage commentary is helpful but ultimately provides an alternative means of consuming the content rather than a faster, streamlined solution. Additionally, the webpage introduces the report’s 7 key takeaways early on, which we appreciate. However, it presents those takeaways as one-liners with no support. If consumed in isolation, a reader might recognize them as casual takes based on anecdotal evidence rather than the well-supported facts they are.
Quotability. On the last note, both the report and the webpage alike could have included the most relevant and noteworthy data point for each of the 7 takeaways at the beginning of the slides or the top of the webpage. In doing so, a16z would ensure that the most quotable bits of the report are readily available to all readers and especially to media organizations. This might be the difference between an outlet covering and not covering the report - the broader the reach, the better. That said, the quality of the research and its thoroughness were such that the report was widely cited anyway, deservedly so. Not every firm boasts the renown of a16z, though, so if we want our reports to receive attention and coverage, we should be mindful and intentional about making it as easy as possible to synthesize the takeaways we most want to share.
The name. There’s nothing fundamentally wrong with “State of Crypto.” That’s why many consistently reach for “State of” when naming reports - it’s clear, easy to remember, and easy to search. It’s a safe but ultimately unoriginal choice, and it may create confusion with other publications. Look no further: Gemini produced its own “State of Crypto 2024” report.
Why not opt for something a little more differentiated?
How does the report benefit a16z?
Producing a report of this stature positions a16z as a thought leader in the crypto space. Thought leader positioning is highly desirable for venture capitalists, as it resonates with founders, investors, and other stakeholders. Founders seek investment from category thought leaders, confident that the VC will provide exposure to a robust industry network and that the VC’s inclusion in their funding round will attract other investors. Investors are inclined to become limited partners of thought leaders, acknowledging their deep knowledge of the space and the network effect it creates in sourcing deals. Other industry stakeholders are similarly attracted by such attributes.
Competing investment firms will claim to know the space, and they very well might. To do so, they’ll point to their portfolio of rising stars and successful exits. However, few can point to a credible piece of intellectual property that an entire industry treats as a go-to source of knowledge.
That’s a meaningful differentiator in an intensely competitive field.
Have a great idea for thought leadership content that will resonate with your industry the way a16z’s report gripped the crypto world? Or want to develop a concept to do so? ThoughtLede works with businesses to produce whitepapers, reports, newsletters and more to demonstrate your unique expertise and insights. Get in touch today to get started.