The crypto world is at a crossroads. A recent panel discussion at a crypto event brought together a diverse group of experts – a venture capitalist, a representative from a major blockchain platform, and several angel investors – to dissect the changing dynamics of fundraising in this volatile space.
The moderator set the stage by pointing to a noticeable trend: a "crisis of narratives." While fleeting trends and meme coins grab headlines, the industry seems to be lacking a cohesive long-term vision. This lack of direction, coupled with the aftermath of high-profile failures, has made venture capitalists wary, leading to a noticeable tightening of the purse strings.
This cautious approach from traditional funding sources has opened the door for a new breed of investors. Angel investors and smaller funds, less burdened by the need for massive returns, are stepping in to support promising projects. This shift is not just about available capital; it's about a fundamental change in how projects are being evaluated and supported.
The panelists agreed that the old playbook of relying solely on big-name VCs is becoming outdated. Projects are realizing the importance of building strong communities and attracting a diverse range of investors who bring more than just money to the table. Strategic guidance, network access, and marketing expertise are now viewed as equally valuable, especially in a market saturated with projects vying for attention.
This new landscape demands adaptability and creativity from both sides of the table. Founders need to think beyond traditional fundraising rounds and explore alternative models, such as community-driven initiatives and tokenized equity. VCs, on the other hand, need to evolve from being just financiers to becoming active partners, offering tangible value beyond their initial investment.
The panel discussion served as a reminder that the crypto space while facing challenges, is also ripe for reinvention. The current climate, though turbulent, presents a unique opportunity to build a more sustainable and community-driven ecosystem where innovation thrives on shared vision and collaborative effort.
This event, held in Seoul on 2 September 2024, is a side event organized by ICP, NewTribe, and Cointelegraph in conjunction with the Korea Blockchain Week (KBW). Panelists include David from UFVentures, Shashi Shekhar from ICP, Red from PickelsDAO, Petr Martynov from Morningstar Ventures, and best-selling author Anndy Lian.
Anndy Lian Video Timeline:
01:29 Anndy Lian introduces himself
04:33 Anndy Lian shares his vision for the future of the crypto space, emphasizing the importance of community-driven projects and the role of regulations.
25:03 Anndy Lian discusses his investment strategy, focusing on layer one, meme coins, and AI.
42:39 Anndy Lian explains his approach to investment, stating that his fund either provides just money or just strategic advice, but not both, to avoid conflicts of interest.
46:38 Anndy Lian candidly addresses the topic of VCs selling tokens, explaining that selling is necessary for making money and that good projects often buy back tokens from VCs to manage market impact.
