The financial market crash this year 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 first major “hit” for the industry.
Fundraising can be hugely challenging in times like these, and it’s an essential lifeline for web3 companies intent on withstanding this downturn. The major difference between web3 companies and their counterparts in more established industries is that the latter accept cryptocurrencies (as opposed to only fiat) as a form of investment. This gives web3 deals the potential to close faster.
Still, in order to even get those deals on the table, there are a number of strategies web3 companies can and should lift from their forebears. Ultimately, it’s a delicate balance of gauging the various fundraising options available and knowing which practices to embrace or avoid along the way.
Don’t count traditional VCs out as investment and connection opportunities.
Explore all your sources
When seeking out sources of funding, start small and work your way up. Reach out to individual accredited investors within the crypto space.
Many angel investors held a lot of Ethereum when it was under $100 and rode it all the way to $4,500. These investors are already convinced; every $10,000 they invested in Ethereum has eventually become worth $450,000. That said, do your due diligence and research investors and VCs.
This article was originally published on TechCrunch.com. Read More on their website.