Six Tips for Encryption Project Founders in the Current Funding Environment
In today’s environment, what should crypto project founders do when funding or funding rounds stall?
Over the past two weeks, I've spoken to over 40 founders, and here's my feedback to them.
keep calm and confident
Investors may not give you a clear answer. Don't let a lack of response shake your confidence.
Your team needs you now more than ever and your goal is to believe in yourself and the product you are bringing to market
The point is to survive until your product fits the market. Remember, Aave, Compound, dYdX, Uniswap were all built in a bear market.
1. Finalize and close your funding round
2. Apply for funding – $250 million available
3. Be flexible in terms/valuation
Product market suitability
In order to build influence, founders need to optimize PMF (Pyramid Model) and user attraction.
price the valuation
Founders have raised money at higher valuations in different markets over the past 18 months. Don't compare or compete. Focus on surviving and improving, and finance on terms that give you room to grow.
Here are the valuations we see:
Pre-seed round of financing: $3 million-$9 million
Seed round: $10 million-$15 million
Be smart and thrifty!
The most common expenses I've seen among crypto startups are overhiring and attending/sponsoring events
In his book, The High Growth Handbook, @eladgil discusses the idea of hiring only when people leading functions/roles are overloaded.
Build a tight network of allies
After talking to many founders, I was lucky enough to talk to @__mikareyes
She built a strong team of founders with similar positions.