Funding your NFT project: Tips and tricks – Global Village Space
The NFT market may have experienced a decline from its peak in 2021, but founders, developers and collectors are still flocking to the space. Many are seeking new capital to finance their NFT projects. Despite NFTs being part of the web3 world, traditional business mechanics cannot be avoided in the post-boom market.
At NFT NYC, an eclectic group of non-venture capitalists gathered for a panel on how to get NFT projects funded. The speakers agreed that it is crucial to have the details fine-tuned and adjusted before seeking investors. Emily Cheshire, segment manager of Aprio Cloud’s blockchain and cryptocurrency team, emphasized that investment planning should start from day one. Most NFT projects have vague predictions, roadmaps and ideas for their business models. Ralph Kuepper, founder of Sherwood Analytics, noted that it is rare to see a business plan with predictions and ideas for NFT projects.
Cheshire pointed out that many NFT projects are already too late when they start looking for investment. Planning includes knowing who the advisors are, who the core team will include, as well as understanding finances and forecasting. “Building in this space and building an NFT business is sexy and fun, I don’t blame you. I would want to build it out all day, but you need the basics in place as well,” Cheshire said.
Kuepper emphasized the importance of looking at what and how investors invest. There is a noticeable difference between companies that buy NFTs for a PR stunt and those that invest in building out a project.
To attract investors, NFT projects must have a clear business plan with detailed predictions and ideas. They must also have a strong core team and advisers in place. Understanding economics and forecasting is essential to planning and securing investments.
In addition to these fundamentals, NFT projects must also consider how they can stand out in a crowded market. One way to do this is to create unique and valuable NFTs. Another way is to leverage partnerships and collaborations with other NFT projects or brands.
NFT projects must also take into account the legal and regulatory landscape. The NFT market is still largely unregulated, but this may change in the future. NFT projects must be prepared to comply with any regulations that may be imposed.
In conclusion, NFT projects must have a solid business plan, a strong core team and advisors, and a clear understanding of economics and forecasting to attract investors. They must also consider how to stand out in a crowded market and be prepared to comply with any future regulations. By focusing on these fundamentals, NFT projects can increase their chances of success in the post-boom market.
