17 ways to better explain blockchain projects to potential investors

When it comes to the blockchain space, entrepreneurs and potential investors can both end up stumbling upon the underlying technology. While industry insiders are clear on, and often passionate about, how blockchain works, investors are more interested in what it can achieve.

If either side gets bogged down in technical details, it is unlikely that an investor will be able to understand the impact and potential returns of investing in a blockchain project. Here, 17 members of the Cointelegraph Innovation Circle share ways blockchain companies can better explain blockchain projects to, and earn the trust of, potential investors.

Tailor your message according to the investor category

There is a need for distinct communication strategies based on the investor category. Retail and angel investors are more risk tolerant and you need to have a business plan for short term gains. Venture capitalists and family offices, on the other hand, are more risk-averse and look for opportunities within the technologies and infrastructure of the blockchain. – Arvin Khamseh, SOLD OUT NFTs

Explain how your solution can build partners’ and customers’ revenue

Companies working with blockchain infrastructure should focus on how their solution enables partners and customers to increase revenue. Such companies all too often focus on the technology, when investors really care about how the technology improves the ability of partner companies to generate profits. Companies should also articulate how they intend to stay viable in bear markets. – Jason Fernandes, AdLunam Inc.

Focus on benefits for the end user

Education is the key. Instead of using technical jargon or going into terms like “democratizing investment” or “enabling a trustless society,” keep it simple and focus on the benefits to the end user. Ultimately, customers are concerned about three things. Is it safer? Is it more practical? Is it cheaper? If the answer to these questions is “yes”, then it is a better system. – Tammy Paola, Zerocap

Connect concepts to familiar situations

Blockchain infrastructure companies can better explain their products to investors by using related examples and emphasizing that decentralization and digital ownership represent the evolution of the Internet. Connecting concepts to familiar situations helps investors understand Web3 technology’s potential impact, benefits and competitive advantage, leading to informed investment decisions. – Tomer Warschauer Nuni, Kryptomon

Define the product’s utility and USP in advance

Blockchain infrastructure critically supports the protocol layer and a given ecosystem’s projects. When talking to potential investors, clearly define a product’s utility and unique selling proposition upfront. Why is it important to build the interchain highway? Why are software development kits needed? Then dive into the more complex technical details that execution will require. – Rene Reinsberg, Celo Foundation

Explain key details and benefits in a simple way

It is really important to explain, in a simple way, who the consumer of the service or product will be, the benefits and advantages of the product compared to alternative options, who the actual buyer will be (if different from the consumer), and how the service or product is or going to make money. Any research into potential regulatory risks and considerations is always a plus. – Nimit Sawhney, Voatz

Distill the goals of the project down to a simple sentence

We are still very much in the “dial-up” phase of Web3, so there is still work to be done in translating this intricate technology into easy-to-understand information. Try to summarize the goals for the development of your blockchain infrastructure in one sentence – in simple, straightforward language, without jargon. If you can’t, you may not be ready for outside investment. – Sandy Carter, Unstoppable Domains

Talk about real business potential

Explain your project to investors in terms of real business potential or use case goals and features. Do not use blockchain-specific terms, except when explaining how the technology offers unique capabilities or security. – Joe Roets, Dragonchain

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Show these three things

The key is to keep it simple and show three things: 1) that your product solves a problem; 2) that the market for the solution is large and profitable; and 3) that your solution is unique and positioned to capture the market. The pitch deck should be story-like, short and use graphics more than words. – Shawn Douglass, Amberdata

Blend key information with data-driven storytelling

Blend your product and/or technology information with data-driven storytelling. Communicate through visuals, useful analogies and historical comparisons with similar case studies that show impact in relation to market growth, consumer behavior and trends. – Yaoqi Jia, AltLayer

Talk about what your solution does, not how it works

When pitching to investors, focus on what your solution does, not how it works. Too many people think that when pitching new technology, the presentation should be based on how it works. However, you are only confusing potential investors by taking this approach. They want to know what it does and how to make money. – Brian D. Evans, BDE Ventures Ventures

Create a message based on value, results, use and the problems to be solved

Messages about blockchain infrastructure are becoming undifferentiated and centered around “more of the same”, with technical features being discussed primarily. Investors want to know what people can do with your product, not what your product can do. Frame your message in terms of value, results, usage, and the problems to be solved, as opposed to getting deep into technical talk about features and functionality. – Nitin Kumar, zblocker

Explain why your solution is better than the solution of your closest colleague

Be sure to understand how and why your product is significantly different from everything else on the market. Be able to point to your closest colleague’s solution and explain why yours is better. If you can’t do that, why are you asking for money in the first place? – Jae Yang, Tacen

Show how your products complement known systems and reduce risk

It has taken me far too long to understand the advice to “simplify”; it’s ironic and funny because that’s what our infrastructure does. What potential investors need to know about your company is that your products extend and complement known systems and that you have worked to reduce business and user risk rather than introduce it. Everyone understands risk reduction. Innovation is a bonus. – Stephanie So, Geeq

Share the ways blockchain can solve existing problems

Blockchain companies should focus on explaining, in simple terms, the real use cases for their products by providing examples of how the blockchain infrastructure can solve existing problems. This can help potential investors appreciate the potential value of the technology and understand how it can simplify their lives. – Bogomil Stoev, Seasonal Tokens

Remember that investors are interested in returns and impact

Focus on the technology’s benefits and value rather than the technical details. Remember that investors are generally more interested in the potential return on their investment and the impact a company’s product can have. It is important for blockchain infrastructure companies to explain how their technology solves real-world problems, creates value for users and has a competitive advantage. – Theo Sastre-Garau, NFTaften

Dig into the income streams

Highlight the revenue streams for your products. To show that your business is built on real returns and not just empty hype, it’s important to clearly communicate the fundamentals that will make your business a profitable long-term investment. – Wolfgang Rückerl, ENT Technologies AG

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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