💰 Funding Resources 💰
Securing the right funding is often a critical step toward realizing your vision.
Our "Funding" section is your gateway to a treasure trove of resources designed to help you navigate the complex landscape of investment. Here's what you'll find within this section: 💰🔍
1. List of investors / grant programs
Find investors that match your profile and identify who can connect you to them within your network 🌐 : https://signal.nfx.com/investors
Traditional lists on the web (When it is possible, contact the analyst on LinkedIn):
2. Five examples to illustrate 5 funding strategies
These five examples can inspire you to identify what most closely resembles the current situation of your project.
Company A, Early stage:
Imagine a startup, full of vigor and ideas, let's call it "AlphaTech" 🌱. It's in the world of web3, with dreams of changing the way we interact with technology. AlphaTech, in the Early Stage, was like a child in an amusement park, exploring the roller coasters of grants and building a solid community. The days were long, the nights short, but small successes were beginning to accumulate. The pre-seed round was a success, thanks to a clear vision and a passionate team. In Early, you start on the new market conditions, certainly demanding, but you will still find funds: it's up to you to prove that you are the best. It's a bit hard, but it's better than being in other situations 😊
On LinkedIn, Malcom Lewis remembers us the objective of each slides of a pitch deck:
Company B, Strong Community can buy token… or Equity :
Next, we have "BuzzChain" 🐝, a bold project with a community so strong it could move mountains. They looked at the traditional path, then decided to take the less traveled path of crowdfunding, drawing inspiration from the success of Swissborg. Their community, their greatest asset, was the wind in their sails, propelling them towards new and exciting horizons. Community doesn’t think like VCs and it could be you’re chance.
Don’t hesitate to learn form the landing page of the crowdfunding : https://swissborg.com/launchpad/swissborg-series-a
Company C, Long Term R&D:
Meet "CryptoConstruct" 🧪, a company immersed in L2 R&D , with lab glasses and whiteboards everywhere. No growth demonstrated yet, but an untamed spirit. They dug deep into the world of public funds and contests. Admittedly, public funds were like a side dish, but they added a necessary flavor to their entrepreneurial culinary journey.
Example: BPI project calls in France.
Company D, Scattered:
Here is "DiverseTech" 🌐, an eclectic mix of ideas and projects. A bit everywhere, but with flashes of genius. They decided to highlight their best assets in an SPV, attracting investors to specific and promising aspects, while letting other ideas simmer in the background. Focusing on isolated activities could be salutary for the rest of your entrepreneurial adventure, even if the rest of the activities perish in the end.
Company E, All is Lost:
And finally, "EndGame Tech" 🕳, the company that has seen the bottom of the abyss. They looked bankruptcy in the eyes and decided to fight. With post-bankruptcy recovery files and solid partners, they have redrawn their destiny, finding a glimmer of hope in the darkest moments.
Conclusion
We let you build your own conclusion, some questions to help your with this challenge :
🌐 Which specific financing modalities have you explored, and how does each option align with the long-term vision and goals of your web3 startup?
💰 How are you adjusting the ratio between Equity and Token to maximize value for investors while preserving the integrity and mission of your company?
🌟 What concrete strategies are you using to build and maintain a strong and engaged community, and how do you measure the effectiveness of these strategies?
🔍 How do you identify and isolate specific and promising aspects of your project to attract investments, and what are the implications of this isolation for the rest of the company?
🔄 What plans and partnerships do you have in place for post-bankruptcy recovery, and how do these plans contribute to the resilience and sustainability of your company?
📈 How do you concretely demonstrate profitability and effective management of your company to secure long-term financing, and what metrics do you use to assess these aspects?
🔄 How do you integrate investor feedback to refine your value proposition and continually improve your financing approach?
3. The 7 tips from a web3 VC to raise funds
Last week, we focused on the subject of funding. As a complement and reaction to this dossier, Noé Giglio, who happens to be one of our readers and kindly shared his insights with us, on how to succeed in fundraising :
Noé Giglio - Co-founder of White Loop Capital
Trim Expenses to the Minimum: It's better to survive on shaky ground than to be dead. Cut expenses to the bone.
Avoid Relying Solely on Retail Investors (ICO, Private Sale): Raising funds from retail investors might seem like a quick fix, but if professional investors aren't interested, imagine the retail investors. Look at the trading volumes; it's a telling sign.
Leverage Your Current Investor Network: Many founders hesitate to "bother" their existing investors, but you must push them to make introductions. Networking is crucial.
Understand VC/Fund Lifecycles: Venture capital funds often have a set lifespan, often around 10 years. They need to generate exits from their portfolio within this timeframe. They can't wait indefinitely to deploy funds.
Don't Be Afraid to Adjust Valuations: For equity funding in the seed stage, keep valuations below 6/7 million, and for tokens, aim for a maximum of 15 million. Be flexible.
Consider Interest Rate Trends: It's worth noting that interest rates are expected to remain at this level and potentially start decreasing in 2024. So, fundraising conditions might improve by mid to late 2024, especially among professional investors.
Make Fundraising Your Top Priority: If your project is in the fundraising phase, it should be your number one priority. Too many founders raise funds but don't treat it as their full-time job. When you're raising funds, you should be pitching from morning to night for a month and following up diligently.
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