5 Expert Tips for Crypto Startups Seeking Funding in Today’s Market
Venture capitalists are warming up to funding blockchain and crypto projects, ready to fuel the next wave of innovations.
After two years of hardship, crypto entrepreneurs are now seeing a potential shift in fortunes, with Bitcoin’s surge of over 30% in the past month reigniting interest in funding opportunities within the industry.
While still low compared to previous highs, VC investment in crypto startups edged up in Q4 2023, suggesting renewed interest in the sector, PitchBook data published this week showed.
The funding figures are remarkable. VC giant Andreessen Horowitz announced this week that it injected $100m into crypto restaking startup EigenLayer. Additionally, Hack VC disclosed raising a $150m fund dedicated to supporting projects focused on decentralizing the internet.
Phillip Shoemaker, executive director of decentralized ID verification startup Identity.com, said he wishes VCs would be more cautious about investing in digital assets. But he doesn’t see any signs of that happening.
“It’s more a [Fear of Missing Out] thing, and this is standard for VCs,” he told Cryptonews. “There’s just so much VC money out there and they are going to continue to throw money around to see if something sticks. I don’t see any difference now when compared to previous cycles.”
One of the best ways for a startup to stand out is to present something new that the industry needs, said David Kemmerer, CEO of crypto tax software firm CoinLedger.
In his experience, one effective method to make an impact is to approach crypto from a more inclusive standpoint as “it can be an industry many people find confusing.”
Kemmerer believes startups that offer informative and inclusive approaches might attract more investments because they can be
Read more on cryptonews.com
