Crypto Companies: 12 Tips to Win VC Funding in 2021
• In the current market, crypto and blockchain companies need to adjust their mindset and approach when seeking funds from venture capitalists.
• 12 members of Cointelegraph Innovation Circle have shared tips for crypto and blockchain companies to win VC funding.
• Companies should focus on creating value, delivering customer value, building a quality product, stopping focusing on tokens, and ensuring the first encounter with their application is familiar.
Winning VC Funding for Crypto and Blockchain Companies
Focus on Value Rather than Hype
In a time when venture capital funding is hard to come by, entrepreneurs in the crypto and blockchain space must focus on creating value rather than generating hype. Understanding what real problems they solve, who their customers are, how they will find them and the value they create for them relative to competition is key in order to secure VC funding.
12 Tips for Winning VC Funds
Members of Cointelegraph Innovation Circle have offered 12 tips to help crypto and blockchain companies win much-needed VC funds:
- 1. Ensure the first encounter with the front end feels familiar; 2. Stop focusing on tokens; 3. Focus on delivering customer value; 4. Build a high-quality product; 5. Understand what real problems you solve; 6. Who your customers are; 7. How you’re going to find them? 8. The value you create for them relative to alternatives (like Web 2 or fiat); 9. Try test nets before actual applications; 10. Create traction & prove product-market fit; 11. Think through user flow carefully; 12: Generate revenue & profits.
Overcoming Knowledge Barriers
Crypto pioneers looking to attract investors may be faced with not only a knowledge barrier but also fear aroused by bad behavior from certain high-profile companies within the industry which can affect investor decisions negatively . To overcome these barriers it is important that businesses focus on building an understanding of their target audience and ensure that their applications appear as familiar as possible at first sight in order to gain trust from potential investors .
Overall , securing venture capital funds for crypto and blockchain projects requires more effort than ever before due global economic uncertainty . However , if businesses focus on creating customer value , building an understanding of their target audience , ensuring familiarity with their application’s front end , avoiding tokenization strategies among other tips provided by members of Cointegraph Innovation Circle they will be better equipped in securing necessary investments .