#25 A mess of an AMA on Web3 Fundraising w/Game7 😂

03/24/24 • 41 min

The Token Takeover

Summary: Navigating Fundraising and Incubation for Web3 Startups

Major Themes:

Incubation and Fundraising Strategies: The discussion offered valuable insights into how developers and startups can approach incubation and fundraising. For developers like 1208 AM, who have developed a product and secured partnerships but are seeking investment to scale, incubation programs were recommended as a viable path. These programs can provide the necessary support, resources, and networking opportunities to take projects to the next level.
Community Engagement and Network Building: The importance of community engagement and network building was emphasized. Participating in relevant communities, such as Game7, can lead to meaningful connections, partnerships, and potential investment opportunities. Sharing stories, experiences, and seeking advice within these communities can open doors and provide valuable guidance.
Product Demonstration and Market Fit: It was suggested that having a playable demo or beta version of a game can significantly enhance a startup's appeal to incubators and investors. Demonstrating engagement metrics, player retention, and the potential for growth can be more convincing than merely presenting an idea. Thus, startups should focus on showcasing their product's value and market fit to attract investment.
Grant Applications and Chain Partnerships: Startups are encouraged to explore grant applications and partnerships with blockchain platforms. While the bear market has made securing grants more challenging, presenting a developed product and clear partnership benefits can improve the chances of receiving support. These grants can provide crucial funding for further development and scaling efforts.
Investor Relations and Expectations: Understanding the dynamics of venture capital and investor expectations is crucial. Startups should seek investors who offer not only financial support but also strategic value, such as industry expertise and networking opportunities. Being transparent, honest, and aligned with investors' goals can foster long-term partnerships and support subsequent fundraising rounds.

Actionable Takeaways:

Explore Incubation Programs: Startups at the cusp of scaling should consider applying to incubation programs that cater to their industry and goals. These programs can offer mentorship, resources, and exposure to potential investors.
Engage with Communities: Actively participating in relevant communities can lead to partnerships, advice, and investor connections. Sharing progress and seeking feedback can also validate the project's direction and appeal.
Demonstrate Product Value: Prioritize creating a playable demo or beta version to demonstrate the game's potential to investors and incubators. Focus on metrics that showcase engagement, retention, and the game's unique selling points.
Pursue Grants and Partnerships: Continue applying for grants and seeking partnerships with blockchain platforms. Tailor applications to highlight how the project aligns with the grantor's objectives and the mutual benefits of a partnership.
Build Trustworthy Investor Relationships: Seek investors who align with the startup's vision and can provide value beyond capital. Be transparent about the team's commitment, the project's status, and realistic projections to build trust and secure long-term support.

This session provided a platform for discussing the intricacies of fundraising and incubation in the Web3 space, emphasizing the importance of community engagement, strategic partnerships, and demonstrating product value to secure investment and support for growth.
https://game7.io/
https://twitter.com/G7_DAO

Summary: Navigating Fundraising and Incubation for Web3 Startups

Major Themes:

Incubation and Fundraising Strategies: The discussion offered valuable insights into how developers and startups can approach incubation and fundraising. For developers like 1208 AM, who have developed a product and secured partnerships but are seeking investment to scale, incubation programs were recommended as a viable path. These programs can provide the necessary support, resources, and networking opportunities to take projects to the next level.
Community Engagement and Network Building: The importance of community engagement and network building was emphasized. Participating in relevant communities, such as Game7, can lead to meaningful connections, partnerships, and potential investment opportunities. Sharing stories, experiences, and seeking advice within these communities can open doors and provide valuable guidance.
Product Demonstration and Market Fit: It was suggested that having a playable demo or beta version of a game can significantly enhance a startup's appeal to incubators and investors. Demonstrating engagement metrics, player retention, and the potential for growth can be more convincing than merely presenting an idea. Thus, startups should focus on showcasing their product's value and market fit to attract investment.
Grant Applications and Chain Partnerships: Startups are encouraged to explore grant applications and partnerships with blockchain platforms. While the bear market has made securing grants more challenging, presenting a developed product and clear partnership benefits can improve the chances of receiving support. These grants can provide crucial funding for further development and scaling efforts.
Investor Relations and Expectations: Understanding the dynamics of venture capital and investor expectations is crucial. Startups should seek investors who offer not only financial support but also strategic value, such as industry expertise and networking opportunities. Being transparent, honest, and aligned with investors' goals can foster long-term partnerships and support subsequent fundraising rounds.

Actionable Takeaways:

Explore Incubation Programs: Startups at the cusp of scaling should consider applying to incubation programs that cater to their industry and goals. These programs can offer mentorship, resources, and exposure to potential investors.
Engage with Communities: Actively participating in relevant communities can lead to partnerships, advice, and investor connections. Sharing progress and seeking feedback can also validate the project's direction and appeal.
Demonstrate Product Value: Prioritize creating a playable demo or beta version to demonstrate the game's potential to investors and incubators. Focus on metrics that showcase engagement, retention, and the game's unique selling points.
Pursue Grants and Partnerships: Continue applying for grants and seeking partnerships with blockchain platforms. Tailor applications to highlight how the project aligns with the grantor's objectives and the mutual benefits of a partnership.
Build Trustworthy Investor Relationships: Seek investors who align with the startup's vision and can provide value beyond capital. Be transparent about the team's commitment, the project's status, and realistic projections to build trust and secure long-term support.

Previous Episode

#23 Web3 Marketing, Simplified with Justin CEO of Safary

Major Themes:

Founder's Journey and Community Building: Justin, the co-founder of Safary, shared his journey from entering the crypto space in November 2021 to establishing Safary. Initially aiming to develop a DAO tool, they pivoted to focus on building a community of Web3 growth leaders. This community-first approach led to the realization of the need for better tools to serve the Web3 growth industry, culminating in the creation of an attribution tool akin to "Google Analytics for Web3."
Challenges and Opportunities in Web3 Growth: Safary addresses critical gaps in Web3 marketing by providing insights into which marketing channels drive tangible results. This attribution tool helps Web3 companies measure the effectiveness of their marketing strategies by linking off-chain activities with on-chain outcomes, a crucial advancement given the complexities of tracking conversions in the decentralized web.
Safary's Evolution: Starting as a community, Safary evolved into a research hub before developing its own Web3 analytics tool. This progression highlights the importance of understanding community needs and leveraging insights to build practical solutions. Justin's journey underscores the value of adaptability and direct engagement with your target audience to refine and develop relevant products.
Community-Led Growth: Justin emphasized the significance of building small, intimate communities where real connections are fostered. He shared insights on scaling communities slowly to maintain quality interactions and the importance of founder involvement in community engagement. Safary's approach to community building, focusing on relationships and personal connections, serves as a model for Web3 projects aiming to cultivate a dedicated user base.
Fundraising Insights: Although the conversation didn't delve deeply into Safary's fundraising journey, it was hinted that Safary successfully navigated raising capital in a challenging bear market by initially gathering support from angel investors. This strategy demonstrated the power of showcasing a strong network and unique market insights to secure significant VC backing.

Memorable Quotes:

"We built a community first and then evolved into doing research and building tools for the Web3 growth industry." - Justin
"Community building in Web3 is about fostering real connections and engagement, not just amassing large numbers." - Justin
"Our attribution tool is like Google Analytics for Web3, bridging the gap between off-chain marketing activities and on-chain results." - Justin

Actionable Takeaways:

For Web3 Founders: Consider adopting a community-first approach to understand your audience deeply and identify the tools and solutions they need. Engage directly with your community members to build lasting relationships and gather valuable insights that can guide your product development.
For Marketing Professionals: Explore and leverage analytics tools designed for the Web3 ecosystem, like Safary's attribution platform, to optimize your marketing strategies and ensure your efforts contribute to tangible outcomes.

Safary's journey from a community initiative to a pioneering Web3 analytics platform underscores the importance of listening to your audience, iterating based on feedback, and the transformative power of community-led growth in the decentralized space.
https://www.linkedin.com/in/justin-vogel/
https://twitter.com/Safaryclub

Next Episode

#30 How to ACTUALLY Market your Web3 Startup w/Treki from The Gaming Strategist

In this video, we share a conversation with Treki, Founder of The Gaming Strategist, a leading Web3 marketing agency.
https://twitter.com/Treki33

The Token Takeover - #25 A mess of an AMA on Web3 Fundraising w/Game7 😂

Transcript

NoAutopilot00:00:00.170

Hey, this is Noah Autopilot, founder of the Gaming Startup Collective and host of the Token Takeover podcast. In today's episode, we're conducting another deep dive into the complexity of fundraising for your Web3 startup. Now, this one went off the rails a little bit because my main guest ghosted me, but we were able to salvage it thanks to the help of some awesome folks within the Game7 community. Alright, enough of me talking, let's jump in.