Spotlighting Web3 Accelerators - A Founder Option During the Bear
A Strategic Move With Longterm Benefits
CryptoJeter is your passage to discovering insights within transformative startups and essential topics in the crypto industry.
Blockchain technology will disrupt life’s normalities like finance, social media, and art. If you are curious about how crypto will impact your world, be sure to subscribe.
Feel free to reach out:
Twitter: @cryptojeter Email: Jeter@cryptojeter.com
Introduction
Unlock the keys to thriving in the unpredictable world of Web3 fundraising with insights about reputable accelerators and if joining one is a great move for your business.
Topics Covered
Background of Accelerators
Pros and Cons of Founders Choosing Accelerators
A deep dive Into Three Web3 Accelerators
Quick Notes ✍️
Web3 accelerators provide startups a lifeline during the uncertain fundraising market, offering valuable short-term experiences.
In a bear market, where funding is scarce, accelerators offer mentorship, guidance, resources, and investment opportunities.
Additionally, mentorship from Web3 veterans can significantly benefit startups, helping them navigate the evolving industry.
As you can tell, for those with web3 company ideas, accelerators offer a strategic initial step.
But, the founder downside of accelerators is that like in VC, many want equity in the participating companies.
The most notable web2 accelerator is Y-Combinator, known for aiding OpenSea and Rainbow's development in the crypto industry.
But, Outlier Ventures, StartUp Wiseguys, Techstars, and Alliance are notable Web3 accelerators, each offering unique advantages to budding founders.
Founder due diligence is essential, including reaching out to past participants and mentors, to determine the best accelerator fit.
Ultimately, founders should follow their intuition and evaluate if an accelerator aligns with their startup's goals and growth strategy.
Full Analysis📝
Accelerators Drive Value to Founders but Aren’t Without Flaws
Web3 Accelerators give startups the time to build in an uncertain fundraising market.
These short-term experiences have proved to be valuable for many companies.
The most well-known accelerator is Y-Combinator.
In the crypto industry, Y-Combinator has aided in the development of OpenSea and Rainbow.
If you have an idea for a web3 company, an accelerator may be an initial step to consider.
As mentioned in the prior CryptoJeter Article “Web3 Fundraising - Like Finding Water in a Desert”...
The crypto bear market has prompted founders to find new ways to find funding.
But, there are advantages to working with an accelerator.
These include mentorship and founder community-building opportunities.
Many accelerators partner with Fortune 500 corporations which can lead to a startup’s initial customers.
During this market, it is pivotal for companies to focus on developing great products
But they also have to start gaining traction and generating revenue.
Thus, startups accepted in Web3 accelerators can leverage this time to develop these characteristics.
Accelerators open doors for startups by giving the machinery to build the early foundations for the company to be successful.
Accelerators Can Help Combat the Startup Failure Possibilities
It is extremely difficult to start a company.
Statistically, 90% of startups fail, and 20% fail within the first year of being in business.
But if you are a founder, these statistics don’t matter.
Thus, these brave souls trek to build something new despite looking failure in the eye.
Statistics show that 35% of businesses fail because they run out of cash.
For web3 founders, it is unlikely to get business loans from traditional banks, especially in this market.
Another option for crypto founders is to try to raise venture capital.
But Roman Giler, founder of Savvy DeFi mentioned a concern about raising VC due to low company valuations.
Thus, founders in the early stage may not be getting the best terms in this market.
Some web3 founders have turned to token sales…
But that can become cumbersome because the best token sales today display a product.
Thus, this method of capital generation may cause founders to ship products without market understanding.
Founders have choices but they all come with their pros and cons.
For some, accelerators will make sense rather than the aforementioned options.
Web3-focused accelerators offer many benefits to founders.
These include things such as mentorship, guidance, resources, and investment.
Mentorship from Web3 veterans during the accelerator is very valuable to startups.
The industry is only 14 years old…
But has evolved very rapidly and gone through volatile cycles.
We can see perspective be valuable in this quote from Alliance Core Contributor, Qiao Wang,
“Part of building a startup is finding a secret that no one else knows. In crypto, I’ve seen that for founders who are new to crypto, it usually takes at least 1–2 years to find that secret.”
With this in mind, industry OG’s can share perspectives and experience with budding founders.
Mentorship, strategy, and community are key to scaling the business.
However, some founders are hesitant to give up substantial equity early in their company lifecycle.
While funding is crucial to scaling, it is also important that there is a strong alignment between the accelerators and the founders.
The Vibe is Not the Same for All Accelerators
Despite the bear market, new Web3 companies are being created…
And there are a few Web3 accelerators that will help guide founders to prosperity.
Thus this article will dive into Outlier Ventures, StartUp Wiseguys, Techstars, and Alliance.
Outlier Ventures’ Basecamp, connects new projects with ecosystems and Web2 companies.
The Basecamp accelerators have shepherded Farfetch and Walmart toward Web3 innovation.
CryptoJeter Readers Say….
“CryptoJeter is a part of my newsletter rotation to separate signal from the noise.” - Erikan Obotetukudo, Crypto Investor at Audacity
Erikan is a professional.
She’s wants to keep in touch with a broad range of topics surrounding the industry because it helps her win.
Are you willing to miss out on game-changing insights about the web3 accelerators?
Click “Subscribe Now” to purchase the premium content.
Keep reading with a 7-day free trial
Subscribe to Crypto Jeter to keep reading this post and get 7 days of free access to the full post archives.