Diffusion Digital 2020 - Fundraising in a Financial Crisis

TL;DR

Panelists discuss how the current financial crisis is impacting fundraising for startups in the web 3 and blockchain space, with different perspectives from Asia, Europe, and the US.

Transcript

hello everybody and we're life so thanks for everybody for joining us for the fusion digital I'm Anna from the investment and the Basecamp team and outlet ventures and I want to say welcome to our panel on fundraising in a financial crisis I have been investing for a little over three years now and I've started from a more generalist and traditiona... Read More

Key Insights

• 😀 Startups in the web 3 and blockchain space face unique challenges in fundraising during a financial crisis.
• 🛝 Valuations have decreased, and some funding rounds have been postponed or canceled.
• 🫷 There is a push towards utility and product-market fit in blockchain startups.
• 😚 Token crowdfunding has lost some appeal due to past negative experiences, but there is potential for future growth.
• ❓ Emotional support becomes crucial for founders during a crisis, alongside financial and operational support.
• 🖐️ VCs play a critical role in guiding startups through uncertain times and helping them navigate challenges.
• 🏛️ Growth hacking and community building are essential for startups to thrive in the current environment.

Questions & Answers

Q: How has the global pandemic affected fundraising for web 3 startups?

While web 3 startups operate in a niche market, they still face challenges in meeting investors and potential users. However, there is a push towards utility and product-market fit, presenting opportunities in the current environment.

Q: What impact has the pandemic had on startups in Asia?

Valuations have decreased, and some funding rounds have been delayed or canceled. However, startups in the blockchain infrastructure and digital asset sectors are still gaining traction and receiving funding.

Q: How do venture capitalists view token crowdfunding in the current climate?

Token crowdfunding has lost some appeal due to regulatory concerns and lack of substantial value. However, there is optimism for the future as models evolve to ensure fairness and transparency.

Q: What is the role of a VC during a crisis and recovery?

VCs provide support beyond capital, including guidance, resources, and emotional support. During a crisis, emotional support becomes even more essential as founders face tough decisions like layoffs and cost-cutting.

Summary & Key Takeaways

• Panelists discuss the challenges faced by entrepreneurs in the current investment scene, with longer sale cycles and industries being impacted differently.

• They highlight the importance of clarity in use cases and a push towards utility in blockchain startups.

• The panelists share their experiences in different regions, with insights on the impact of the pandemic on fundraising and token financing.