Monday, Dec 2nd
The Burn Rate
You’ve Heard Of Web 2.0 And Web 3.0—Meet “Web 2-H” And What It Means

The internet has gone through several distinct phases. Web 1.0 was the era of static, read-only websites. Think of Netscape, the browser that introduced millions to the internet, or AOL, which bundled email and online chat with curated web portals. These early tools turned the web into a digital library—useful for browsing and consuming content, but the interaction was entirely one-sided.

Web 2.0 changed the game. Platforms like Facebook, YouTube, and Twitter enabled users to create and share content, making the web interactive. Wikipedia replaced encyclopedias, and Instagram turned everyone into a photographer. But this interactivity came at a cost. Power became centralized in the hands of big corporations, which monetized user data and dictated access to the web. The internet felt more democratic, yet its underlying structure became dominated by corporate interests.

Then came Web 3.0, a term coined in 2014 by Ethereum co-founder Gavin Wood. It promised a decentralized internet where users could reclaim control of their data through blockchain technology. The vision included a censorship-resistant web and a return to user sovereignty. Although his dream is likely to become a reality, for now, it remains just that—a dream.

Meanwhile, a quieter yet equally transformative shift is underway. AI is clearly reshaping the internet, leading us to what we will coin as the "Web 2-H Era." Unlike Web 3.0, which seeks to decentralize the web, Web 2-H builds on the Web 2.0 framework, yet factors in AI agents that are beginning to operate across the internet.

The "H" in Web 2-H stands for "headless," a concept borrowed from headless browsers—automated tools that operate without a graphical user interface (GUI) or screen. A headless browser functions like your traditional Chrome or Firefox but without displaying a physical window (hence, no "head"). These browsers navigate the web to perform tasks like testing or data scraping with virtual button clicks, all without presenting content to a user visually.

The concept of headless browsers is not new, but "Web 2-H" offers a more fitting term to describe the emerging layer of AI agents built on the current internet infrastructure. Over the next decade, the integration of these AI agents will dramatically transform the digital landscape, creating an experience that feels distinct from the past two decades of Web 2.0.

This shift does not align with the idea of Web 3.0, as it is not focused on a fully decentralized internet. Thus, introducing a new term within the Web 1.0-3.0 framework feels not only timely but also highly relevant: Web 2-H (and yes, if anyone asks, you heard it here first).

STORIES WE’RE READING

CURATED VENTURE DEAL FLOW

  • 360Player, a digital platform for modern sports clubs, received a $25M investment from Five Elms Capital.
  • Roon, a health tech startup aiming to replace "Doctor Google" with video-based Q&As from doctors, raised $15M in Series A funding co-led by Forerunner Ventures and Firstmark, with participation from Sequoia Capital and TMV.
  • Clean Skin Club, a first-of-its-kind brand at the intersection of skincare and hygiene, raised $32M in late-stage funding led by Astō Consumer Partners and Amberstone.
  • Pi-xcels, a startup offering paperless, interactive e-receipts via a single tap on a shopper's smartphone, raised $2.7M in Seed funding led by Headline.
  • PlayAI, a voice AI platform, raised $21M in Seed funding led by Kindred Ventures and 500 Global, with participation from Y Combinator and others.
  • Dev Agents, an operating system for AI agents led by former Stripe CTO, raised over $50M in Seed funding co-led by Index Ventures and Google Ventures.
  • Cardless, a co-branded credit card provider, raised $30M in later-stage funding led by Activant Capital and joined by Mischief, Industry Ventures, Thayer Ventures, and others.
  • Argil, a Paris-based AI video startup, raised $4.1M in Seed funding led by EQT Ventures.
  • Range, a wealth management tech startup that provides personalized financial advice, investment management, and tax planning, raised $28M in Series B funding led by Cathay Innovation and joined by Gradient Ventures.

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