When Should Crypto Startups Approach VCs for Fundraising?
The post When Should Crypto Startups Approach VCs for Fundraising? appeared on BitcoinEthereumNews.com.
For any cryptocurrency startup, deciding when to approach venture capitalists (VCs) is a crucial problem. The best time to look for outside funding varies greatly, depending on the particular requirements of the project and the interests of the venture capitalists (VCs) involved. The investment thresholds of various VCs vary. While some investors are satisfied with the founding team’s strength and the idea alone, others look for concrete results like a Minimum Viable Product (MVP) or obvious market traction. All agree that raising money should never be seen as the final goal. Instead, it’s a strategic tool that must align with a startup’s growth trajectory. “Founders shouldn’t feel pressured to chase VC funding unless it aligns with their growth strategy. The goal should be building sustainable businesses with healthy revenue streams, not just fundraising for the sake of it,” Leonarda Rajeckyte from The VC Whisperer states. With this principle in mind, we’ve gathered insights from experts at Axia8 Ventures, Bing Ventures, Capitable Group, Outlier Ventures, and The VC Whisperer to shed light on the right stages for crypto startups to approach VCs. Pre-Seed Stage: Building a Vision and Team For some VCs, investing begins even before an MVP exists. Axia8 Ventures, led by Wayne Lin, focuses on the very early stages of a startup’s journey. For them, the most important criterion is not necessarily the technical advancement of the project but the strength of the founder’s vision and adaptability. “We invest at the truly early stage, often before a deck or product is even developed. The critical factor for us is the founder’s vision, passion, and capability to pivot through multiple iterations. We’ve worked with founders who failed twice but succeeded on their third try,” As Wayne Lin explains. This approach highlights the importance of having a strong, committed team with…
Filed under: News - @ November 4, 2024 5:19 pm