The Wild Ride of 2023: Ups, Downs, and Unexpected Twists
This year has been nothing short of a rollercoaster in the Web3 industry. With the year starting on a bullish trend, DeFi projects had everyone dreaming of endless growth. But then came the shocking collapse of Terra and the UST depeg, sending us all into a whirlwind. Who had this on their bingo card?
Building Though the Chaos
Through all this market turmoil, one thing became crystal clear: folks were scrambling to raise money. Many assumed investment opportunities were drier than a desert, yet I witnessed the unwavering resilience of builders in our field. Contrary to popular belief, the bear market isn’t the harbinger of doom we often assume it to be.
Unmasking the Substance: The Search for Serious Projects
In my tenure in this industry since 2017, I’ve seen the good, the bad, and the downright ugly. Some ambitious companies raised millions but struggled to deliver anything of real substance. The core issue here? They lacked viable business models. When the market cools, it’s these projects that suffer the most, quickly revealing who’s truly got the goods. Bear markets lay bare the facade.
Opportunity Knocks: Sifting Through the Rubble
Contrary to every instinct that screams ‘RUN!’, the bear market can be a golden opportunity to identify projects with real merit. There’s something liberating about watching the not-so-stellar projects flounder while the truly resilient ones pivot and adapt. When the dust settles, the true innovators stand tall.
VCs: The Silver Linings Playbook
Logically, raising money during a bear market seems like a pretty nonsensical challenge; however, that perception may not hold water. With a limited pool of quality companies, venture capitalists are hungry for investment prospects. There’s billions of dollars at play from savvy investors looking to stake their claim on the best projects out there.
Why Strong Teams Raise Funds
If you’ve got a powerhouse team, raising funds shouldn’t be a Herculean feat. VCs invest not just in ideas, but in people. If things aren’t working, it might be time for a fun little self-audit. Just like a product launch can flop due to timing, sometimes it’s your pitch that could use a little polish. Don’t take it personally; sometimes the world just isn’t ready for your genius.
Pulling the Trigger on Funding
The talk around the Web3 landscape can be bleak, but the truth? It’s still early days, and VCs still have an eye on the market. They’re waiting to deploy their capital wisely. If your project offers value, those funds are very much within reach. A bear market can actually work in your favor if you have your ducks in a row.
Let’s Get Building!
So as we ride through this market madness, remember: there’s funding to be had. VCs want a piece of a meaningful product, and if yours fits the bill, you can secure your share of the pot. Don’t let the bear scare you off—get in there and build!
Disclaimer: The information provided here is not financial advice. Always consult with a licensed professional for personalized counsel.
Written by Rupert Barksfield, project lead of Amulet.org—Simple Reliable Insurance for Everyone in Web3.
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