Blockchain Investments: Driving Benefit for a Better World

It is now clear that blockchain technology is here to stay, and it will have a world-changing impact on almost every industry.

With such a change comes opportunities to invest in what will be the next unicorns. Having been a journalist in this space for several years now, I’m going to share my thoughts on what I’ve learned from venture capitalists (VCs), startup founders, and industry thought leaders.

All industries will be affected—10% of global GDP could be on blockchain by 2027

After watching various panels with some of the smartest VCs in the blockchain industry, I have noticed that they disagree on many things, but they all agree that no industry will escape the blockchain revolution.

Scalable utility blockchains will impact everything from banking and insurance to supply chains and logistics to gaming and entertainment. Some of these industries will be enhanced by it, while others will be totally transformed and disrupted at a fundamental level.

Investors who want to survive and thrive in the long run rather than make money should focus on companies that aim to provide utility in the largest global industries. There are no shortcuts; companies that don’t deliver value won’t make it.

After listening to several experienced VCs talk about their investments in the blockchain space, I have learned that some have a narrow focus on one or two industries and only one blockchain, while others cast a wide net and invest in companies that use the right blockchain for the job at hand in any industry. There is plenty of room for different strategies and opinions about what the future will look like.

From the other side of the table, startups looking to raise capital should be heavily focused on communicating the value they intend to provide and the size of the addressable market. They should have at least a viable product and some skin in the game.

There is no limit to the industries blockchain technology can impact. Whatever you are looking to invest in or raise capital for, there is a suitable match somewhere in the blockchain industry.

Whole new business models will be created, and existing ones will be improved

While blockchain technology can improve existing business models, for example by making them more efficient and transparent and creating greater accountability, it will also disrupt and challenge many existing business models.

Two examples immediately come to mind; subscriptions and the advertising-based model of the revenue models that dominate the internet today. With micropayments, binding users to subscriptions to publications, games and other digital products is already obsolete. Likewise, subjecting readers and viewers to annoying ads that create a worse user experience is a dying model.

With micropayments at scale, the “how we’ve always done it” models will face much-needed challenges. Many of these new models will restore the “user as buyer” way of doing things rather than the “user as product” model we have become accustomed to over the past decades of so-called free services.

At the Global Blockchain Convention in Dubai, experienced VCs said that blockchain technology would impact “transaction industries” the most, particularly payments, banking, gaming and insurance. Investors should not only think about investing in consumer-facing companies, but those building the infrastructure that will enable these new business models at scale.

width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>

Likewise, startups have many opportunities to build infrastructure and products that will manage data, automate payments and invoicing, handle disputes that may arise and more. It’s a whole new world, and there are endless possibilities for those who understand the big picture.

Experienced VCs look for specific things– team, product and market

Switching gears for a moment and seeing things from the startup founders’ point of view, many wonder what VCs in the industry are looking for. Again, we can look at the various public discussions and panels where experienced blockchain investors have told us directly what they look for before making a financial commitment.

Almost everyone mentions the team. The more experienced, the better and the more successful projects the team members have worked on, the more likely they will be seen in a favorable light. Almost all also said that skills gap was a commitment killer. The team has to be right for the job and in such a competitive area there is no place for teams that don’t have the skills required to row the boat all the way home.

More and more experienced investors insist on a Minimum Viable Product (MVP) from those who present them. Dr. Kurt Overley said bluntly that he and his team “do not invest in ideas.” They want to see a product prototype, some skin in the game from the team and a solid business plan that shows the team knows what they are getting into and what the potential is.

Each of them also considers the addressable market and business use case. After all, a startup can have an all-star team and the best product in the world, but if the market is not large or is better served by an existing product, there is limited upside and the likelihood of failure increases. Those pitching blockchain investors should show that they have done market research, including the total addressable market, some basic financial projections, and why this startup is going to be in the top 5%.

Learn more at the London Blockchain Conference

Between May 31 and June 2, the largest blockchain conference in the world will take place in London. Developers, entrepreneurs and blockchain enthusiasts from anywhere are invited to participate.

Although we believe BSV is the ultimate blockchain, we welcome different opinions and viewpoints. Assuming what you’re doing is legal and requires blockchain technology that scales, we want to hear from you.

To book a place as a speaker or stand to present your startup or to simply mingle and enjoy the company of other blockchain believers, secure your ticket to the London Blockchain Conference today. You never know who you’ll meet or where those connections might lead!

See: Virtual Events & Blockchain

width=”562″ height=”315″ frameborder=”0″ allowfullscreen=”allowfullscreen”>

New to Bitcoin? Check out CoinGeeks Bitcoin for beginners section, the ultimate resource guide for learning more about Bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.