12 Tips to Help Crypto and Blockchain Companies Win VC Funding

It’s no secret that venture capitalists react to prevailing market conditions when making decisions, and amid global economic uncertainty, entrepreneurs from all industries are finding that VC funding is harder to come by these days. This is especially true for crypto and blockchain companies, which not only have to overcome a knowledge barrier, but also the persistent fear raised by recent bad behavior from certain high-profile crypto entrepreneurs and firms.

Crypto pioneers who got used to a free-flowing loss of VC cash during the industry’s early heyday may need to adjust their mindset and approach to succeed when seeking funding in the current market. Here, 12 members of the Cointelegraph Innovation Circle share tips to help crypto and blockchain companies move forward as VC funds become less generous with their investments.

Make sure the first encounter with the front end feels familiar

We have carefully thought through the user flow for our applications and demos, with a test network behind our first application. Our goal is for users to understand that blockchain-based decentralized applications are simply the next generation of apps, with special features on the back end – so their first encounter with the front end must feel familiar. Only then will we go into the block explorer and the code, if they wish. – Stephanie So, Geeq

Stop focusing on tokens

The first thing a crypto or blockchain company needs to do is stop focusing on tokens. The main focus, regardless of cycles, should always be on building a high-quality product and the effort to create traction and prove the product fits the market. – Sami Rusani, Rusani Ventures

Focus on delivering customer value

Remember: You are building a business, not a hype machine. Businesses have revenues, profits, customer acquisition and retention costs, and so on. Understand what real problems you solve, who your customers are, how to find them, and the value you create for them, especially relative to your competitors and alternatives (like Web2, fiat, and so on). Focus on delivering customer value, and the rest will follow. – Xinglu Lin, Fog Works, Inc.

Be able to demonstrate the versatility of your solution

As a fund manager, I have found that those who succeed in securing funding do the following: They demonstrate that their solution is versatile enough to swing into the niche the industry needs most. For example, my last two investments have been in infrastructure projects focused on improving the Know Your Customer capabilities of games and decentralized financial protocols in light of the upcoming regulatory pressures. – Carlos Gomez, Belobaba Crypto Fund

Prepare your deck and demos and ask for a reasonable valuation

Keep your ducks in a row. So many crypto entrepreneurs who were around in the bull market are lazy when it comes to approaching VCs. They don’t have a proper tire. They don’t have product demos. Above all else, don’t ask for a crazy valuation with a long vesting plan. Insane and unjustified valuations and long earnings plans do not sit well with investors in bear markets. – Brian D. Evans, BDE Ventures

Show off your passion for your project

The best tip I can give a crypto entrepreneur looking to raise money at the moment is to show VCs how purpose-driven your project is. I think we all – especially investors – are now looking for honest, inspiring and value-driven projects. Show them your passion and why they should be excited. It is time to wash away the bad players and focus on those in the ecosystem that provide value. – Ayelet Noff, SlicedBrand

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Make sure there are no surprises

Minimize risk and maximize value. Investors need to know that their money is safer with you than with someone else of seemingly “equal” value; the only way to assure them of that is to ensure there are no surprises, no secrets, and no hidden embarrassments or vulnerabilities. Keep them informed, actually build what you say you want to build and update them early and often if circumstances change. – Budd White, Tacen

Develop application-specific solutions

While it can be challenging to raise capital while the economy is struggling, companies can insulate themselves from general market trends by developing application-specific solutions that play an integral role in their customers’ business, rather than producing generic products that are often the first budget. line elements on the chopping block. – Yaoqi Jia, AltLayer

Show strong fundamentals and highlight Web3’s benefits

Crypto companies can be more successful in raising funds by demonstrating strong fundamentals such as traction and efficiency. In addition, crypto companies can differentiate themselves by highlighting the unique features and potential of the Web3 ecosystem, such as its decentralized nature, transparency and, most importantly, lower customer acquisition costs. – Erki Koldits, OÜ PopSpot

Be clear about the potential risks and rewards and have a plan for using the funds

To attract investors in a tough market, focus on building a strong business plan and track record, network and build relationships, and stay current on industry trends. It is also important to be open and clear about the risks and potential benefits of investing in the company and to have a clear plan for how the funds will be used to grow the business. – Wolfgang Rückerl, ENT Technologies AG

Don’t give in to fear

The worst thing to do is subscribe to the fear. Mindset is everything, and if your deep-seated belief is that you won’t be able to raise money or that your business might not survive, whether you realize it or not, you will make decisions – often critical decisions – with fear as your primary basis and motivator, which is not good. Instead, keep your head down and focus on what’s important. – Zain Jaffer, Zain Ventures

Keep building

Potential investors are interested in projects they believe in, so it is crucial for companies to continue building good products and better services. The market will eventually turn the tide, and the companies that were patient and continued to work on building impactful products are the companies that will survive in the long run. -Anthony Georgiades, Pastel Network

This article was published through the Cointelegraph Innovation Circle, a researched organization of top executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

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