How to find a large investor for a blockchain start-up?
There are already more than 200 crypto-funds in the world that invest in blockchain start-ups. They include both traditional venture capital funds and hedge funds that form their portfolios entirely from crypto assets. Interestingly, most crypto-funds invest in a small number of projects. However, they have at least as much assets under management as venture capital funds do, and often even more. So, what is the ideal profile of a portfolio project for crypto funds?
First, most funds pay attention to the standard parameters: team, MVP, innovative idea, niche competitiveness, and notably intellectual property rights. Secondly, the funds often select for investment particular areas of blockchain applications. The most popular ones are fintech, innovations in finance and infrastructure projects. It appears that institutional investors prefer traditional areas of blockchain application and are still afraid to invest, for example, in artificial intelligence or virtual reality.
But even if your project does not fall under the above criteria, there is a chance to attract a large investor. Of course, the most obvious option is the blockchain fund. Often they select projects for the accelerator and provide consulting services during the ICO. So, in this case the project should attract the investor by its uniqueness and market perspective.
A fund that develops platforms for decentralized applications may be another source of investment.Such funds are willing to invest in a project that can develop applications based on that platform in the future. An excellent option, for example, for the IT industry.
Finally, there are crypto hedge funds. Usually they choose undervalued projects with low capitalization, but with a great growth potential. Such crypto-funds launch their own index, where tokens of other projects are included with certain weights. For such investors, the level of capitalization of the token is more important than the sphere of application. Tokenized investment funds work on the same principle - they issue their own token, with the price depended on the prices of other projects' tokens.
All in all, the takeaway is that start-ups should not concentrate in their projects 24/7, but also contemplate on selecting the most suitable fund which will be interested in fruitful cooperation.
TFH AI Analysts