The financial market This year’s crash has had a unique effect on the web3 industry. Web3 companies are the newest members of the fintech ecosystem and the current downturn marks the industry’s first major “hit”.
Fundraising can be a huge challenge in times like these, and it’s a vital lifeline for web3 companies looking to get through this downturn. The major difference between web3 companies and their counterparts in more established industries is that the latter accept cryptocurrencies (as opposed to just fiat) as a form of investment. This gives web3 deals the potential to close faster.
But to even get those deals on the table, there are a number of strategies that web3 companies can and should take from their ancestors. Ultimately, it’s a delicate balance between measuring the various fundraising options available and knowing which practices to embrace or avoid along the way.
Don’t count traditional VCs as investment and connectivity opportunities.
Explore all your resources
When looking for funding sources, start small and work your way up. Contact individual accredited investors within the crypto space.
Many angel investors had a lot of Ethereum when it was under $100 and drove all the way to $4,500. These investors are already convinced; every $10,000 they invested in Ethereum ended up being worth $450,000. That said, do your due diligence and research investors and VCs.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.