The Challenge of Starting a Blockchain Project
Launching a blockchain project is like trying to juggle flaming swords while riding a unicycle—it’s not for the faint-hearted. Simply having a dazzling idea isn’t enough! Success hinges on having a dream team with the vision, technical know-how, and resources necessary to bring that idea to life.
Money Alone Isn’t Magic
In 2017, the folks at Deloitte unveiled a staggering truth: about 90% of the 26,000 blockchain projects launched in 2016 are now ghostly remnants of what could have been. Why, you ask? Well, money is flowing into the blockchain sector—over $1.3 billion in venture capital last year alone—but much of that cash isn’t translates into successful projects. It’s almost like giving a toddler a credit card and expecting them to buy a car. Cash is just one part of the equation, and many venture capitalists (VCs) aren’t offering the crucial value-add.
What’s Missing? Hands-On Support!
One of the biggest weaknesses in the VC model for blockchain projects is a severe lack of genuine interest. VCs toss money at a multitude of projects and then hit the snooze button, leaving those projects to bubble in isolation. This approach clinks more glassy than productive. Blockchain projects require more than just financial showering; they thrive on focused mentorship, engineering talent, and business acumen. After all, these are new concepts floating in a sea of uncertainty—guidance is like a GPS in the Bermuda Triangle. We need to be prepared to help young, brave entrepreneurs dream big and work hard to turn those dreams into reality!
The Talent Crunch
Let’s address the elephant in the room: the talent pool. While there are a whopping 23 million software developers globally, the number of blockchain developers hovers around a mere 100,000. That’s right: an aquarium full of fish compared to a tiny fishbowl. Startups are not just vying against each other; they’re also competing with industry giants like IBM and Oracle. If VCs could lend a helping hand by sharing expertise and resources instead of merely pumping in cash, we could turbocharge these projects toward success.
The Clock is Ticking
Another major obstacle is agility. Many blockchain startups drag their feet longer than a kid at bedtime, ultimately losing momentum. Money is fleeting, and every minute wasted can put a project at risk. If teams benefit from engineering support from the get-go, their focus can shift from just surviving to actually building. The blockchain landscape is a fast-paced race; slowpokes are bound to be left behind!
Moving Forward Together
Despite outlining roadblocks, I’m not oblivious to the fact that some startups stumble due to their own faulty vision. This is true across industries, but no sector holds the promise to change our world like blockchain does. It’s crucial that we don’t allow potential to fizzle away due to inadequate support. The good news is that our blockchain community is working hand-in-hand toward mainstream adoption. From accelerators providing essential resources to individuals nurturing new talent, we’re all pushing in the same direction.
A Call to Action for VCs
As we look to the horizon, we need forward-thinking VCs who bring expertise and resources to the table. Resurrecting this malfunctioning VC model is vital for long-term blockchain success. It’s not just about the bucks; it’s about fostering the incredible ideas and people powering this tech evolution!
