Key Strategies for Early-Stage Web3 Startups

Your Web3 project isn’t getting funded because you're focused on the wrong metrics. Here is how to fix it 👇 🧪 Build a prototype, not a pitch Your MVP should solve a real problem. Ship something users can test and give feedback on. Execution > ideas. 💬 Build your community before raising capital Investors look for signals. An engaged, loyal community is the strongest one. NEVER buy fake followers - they’re a red flag, not an asset. 🔍 Focus on metrics that matter Investors want hard numbers, not promises. Data showing active user retention is far more valuable than metrics that don’t demonstrate user engagement or loyalty. Retention metrics > vanity metrics. 🎯 Apply for funding strategically Not all funding paths are created equal. Choose wisely: - Ecosystem Grants: Perfect for chain integrations. - Protocol Grants: Ideal for improving existing protocols. - Hackathons: Great for networking and testing ideas. - VCs: Focus on teams with strong technical execution, clear roadmaps, and scalable potential. Don’t shotgun your pitch - tailor it to fit the funding source. 📈 Build momentum before talking to VCs VCs back progress, not just ideas. Before pitching: - Highlight adoption curves, early community growth, and technical achievements. - Build relationships with early users - they’re your first advocates. - Launch an MVP, iterate fast, and showcase how feedback has improved your product. 🔥 Don't burn cash on hype Focus on: - Token utility: Depending on the project, you can show a strong strategy for generating yield, TVL, or transaction growth. - Treasury management: Keep 12+ months of runway in stablecoins or diversified assets. - Community engagement: Highlight governance votes, staking rates, and active participation. Keep it lean, measurable, and sustainable. 💲 Want to raise capital? Build first and show progress. The money is out there. The question is: Are you fundable?

I’ve been talking to tons of Web2 founders jumping into Web3 lately. They’re seriously underestimating the massive gap between the two. Here’s the truth: If you think Web3 is just Web2 with a blockchain twist, you’re about to fail hard. Here’s where they’re messing up (with real data and how to fix it): 🔹 1. Assuming users = customers In Web2, you build for users. In Web3, your users are also stakeholders — token holders, DAO voters, liquidity providers. If you treat them like passive customers, they’ll leave. Build with them, not just for them. 🔹 2. Using Web2 monetization models Ad-based and SaaS revenue doesn’t translate 1:1. Web3 thrives on alignment, not extraction. Tokenomics, staking, revenue share, NFTs, DeFi mechanisms — these are tools to incentivize contribution, not just transactions. 🔹 3. Launching before product-market fit I’ve seen teams raise and launch tokens with zero validated usage. The result? Price crashes, loss of trust, and users who never come back. Focus first on solving something real. PMF in Web3 = usage, retention, community loops. 🔹 4. Over-indexing on follower count 10K Discord members doesn’t mean you have a community. Look at engagement rates, wallet activity, and on-chain retention. → A study from Mirror showed that only 4–6% of followers in early-stage DAOs actively participate in governance or proposals. 🔹 5. Misunderstanding decentralization Trying to “own the user” or “control the ecosystem” is a fast track to irrelevance. Web3 is built around openness — protocols, standards, collaboration. The best founders let go of control and lean into composability. 🔹 6. Marketing like it’s Web2 Web3 doesn’t respond to paid ads the same way. It responds to memes, builders, vibes, and community value. Start with genuine contributions. Then layer storytelling, collabs, and ambassadors. 🔹 Web2 taught us how to build fast. Web3 teaches us how to build with people. Don’t just copy-paste your startup into crypto. Take time to learn what makes this space different — and build like you belong here. Curious what mistakes others are seeing or lessons you’ve picked up from watching founders transition. Drop them below 👇 #Web3 #Crypto #Startups #Tokenomics #CryptoInvesting

Everybody thinks growing a web3 project is easy if you have money. Polkadot's example illustrates why this is NOT the case: 👇 So Polkadot spent $37m on Marketing in Q1 and Q2 2024. Some of the top categories were: • $10m on Ads and Sponsorships • $7.9m on Events/Conferences • $4.9m on Influencers • $4.1m on Digital Ads Yet despite these huge marketing activities, Polkadot somehow seems quiet and invisible. So what is it that they could have done better? Here are the top 8 ones for me: 1/ Slash all soccer club and race car sponsorships. These don't attract web3 developers and builders. Seems like we didn't learn our lessons from 2021 when projects splashed money on renaming stadiums and sponsoring all sorts of sports teams. 2/ Use respected influencers to educate about the advantages of your chain. Explain in layman's terms WHY and HOW your chain is different from 100+ other L1s and L2s out there. Simply Tweeting common sense threads and posts will not bring adoption. 3/ Build an in-house team of core contributors and loyal ambassadors and invest in their growth. Let them become the thought leaders of tomorrow in their domain and promote your chain. This is a long-term initiative but will pay big time down the road. 4/ Dramatically increase your funding for Community Building. Enable a variety of educational and ambassadorial programs.  Again, it was the community that kept Solana alive in Dec 2022 when everyone thought it was dead. When you splash 10x more funds on sports team sponsorships, it's sending the wrong to your community. 5/ Increase grants to attract tier one teams to build the best web3 dApps with killer UI/UX. Offer incentives to the existing top projects to bridge to your chain as well. 6/ Allocate more funds to organize dozens of informal Polkadot gatherings targeted at developers across the continents. Empower your community ambassadors and evangelists in different countries. Let them bring the best builders and developers together for casual meetups. 7/ Slash the budget on digital ads. Traditional ads that work well for web2 startups usually don't result in good conversions for web3 projects. 8/ Completely rethink your Media strategy. If you spent millions but people can't remember hearing about you recently, then it didn't work. That's because simply promoting a chain doesn't work. Instead, promote a new chain specific innovation or user facing feature or at least get creative with ads. Coinbase/Base and Solana are killing at this, so learn from them. -- In short, money is important but it's all about HOW you are spending in. And promoting a web3 chain is not the same as scaling a web2 startup. What works in web2 doesn't always fly in web3 and vice versa. Image source: DefiIgnas on X P.S. Anything else you'd add to the list? Let me know below. Follow 👉 Aram Mughalyan & consider sharing ♻️ this post if you like it.

Remember when ICOs were the hottest thing in crypto? $5.6 billion raised in 2017 alone, yet 80% of them turned out to be scams. The wild west of cryptocurrency fundraising taught us valuable lessons. Looking back at the ICO boom, here's what successful projects did right: FUNDAMENTALS THAT WORKED: • Built real solutions to real problems • Maintained transparent communication • Had working prototypes before fundraising • Established clear tokenomics and use cases • Created detailed technical documentation • Engaged with community feedback RED FLAGS THAT SPELLED DISASTER: • Promises of guaranteed returns • Anonymous team members • Copy-pasted whitepapers • No clear product roadmap • Aggressive marketing without substance • Limited technical documentation The landscape has evolved significantly since 2017. Today's successful blockchain projects understand that fundraising isn't just about collecting capital - it's about building trust. Here's what modern crypto fundraising looks like: CURRENT BEST PRACTICES: • Legal compliance from day one • Thorough security audits • Gradual token distribution • Community governance • Regular development updates • Clear milestone tracking The ICO era wasn't just about mistakes - it revolutionized startup funding. Traditional VCs now embrace token economics, and regulatory frameworks have matured significantly. For entrepreneurs considering blockchain-based fundraising today: STRATEGIC STEPS: 1. Start with a solid legal foundation 2. Build community before fundraising 3. Focus on product-market fit 4. Implement robust security measures 5. Create sustainable tokenomics The next wave of crypto projects won't succeed through hype alone. They'll win through utility, transparency, and genuine value creation. #Cryptocurrency #Blockchain #Startups #Innovation #Web3

Breaking into the crypto/blockchain/Web3 space can feel like stepping into a whole new world. I often get messages asking for advice on how to get your foot in the door, so I’ve been trying to think of what I would do if I were starting out in the space right now. Here’s the some of the advice I always give: 1️⃣ Learn by Doing • Experiment with tools, apps, and protocols (DeFi, DAOs, DePIN projects). • Build something—even if it’s small. A simple dApp, a legal framework for a DAO, or a blog breaking down complex concepts for non-tech folks. 2️⃣ Be Curious and Always Learning • Dive into Solidity or Rust if you’re technical. For non-techies, study tokenomics, governance models, or regulatory issues. • Stay updated—read whitepapers, follow thought leaders, and track projects that excite you. 3️⃣ Get Involved in Communities • Contribute to DAOs, GitHub repos, or decentralized projects. Even non-technical contributions like writing, organizing, or brainstorming can help you get noticed. • Attend meetups, conferences, and hackathons (even virtually). Web3 thrives on connections. 4️⃣ Network with Purpose • Reach out to people with specific questions or collaboration ideas. A targeted DM is far better than “Can I pick your brain?” • Follow companies and individuals in the space, engage with their content, and contribute to the conversation. 5️⃣ Show, Don’t Tell • Build a portfolio: GitHub projects, research papers, blogs, or even videos explaining concepts. • For lawyers, offer insights into crypto regulations or write thought pieces on policy gaps. Web3 is still in its early days—there’s room for everyone. The key is to bring your unique skills, curiosity, and drive. Don’t wait for permission—just dive in. What advice would you give to someone breaking into Web3? Let’s hear it!