Market
What Stages Should Crypto Startups Approach VCs for Fundraising?
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For any cryptocurrency startup, deciding when to approach venture capitalists (VCs) is a crucial problem. The best time to look for outside funding varies greatly, depending on the particular requirements of the project and the interests of the venture capitalists (VCs) involved.
The investment thresholds of various VCs vary. While some investors are satisfied with the founding team’s strength and the idea alone, others look for concrete results like a Minimum Viable Product (MVP) or obvious market traction. All agree that raising money should never be seen as the final goal. Instead, it’s a strategic tool that must align with a startup’s growth trajectory.
“Founders shouldn’t feel pressured to chase VC funding unless it aligns with their growth strategy. The goal should be building sustainable businesses with healthy revenue streams, not just fundraising for the sake of it,” Leonarda Rajeckyte from The VC Whisperer states.
With this principle in mind, we’ve gathered insights from experts at Axia8 Ventures, Bing Ventures, Capitable Group, Outlier Ventures, and The VC Whisperer to shed light on the right stages for crypto startups to approach VCs.
Pre-Seed Stage: Building a Vision and Team
For some VCs, investing begins even before an MVP exists. Axia8 Ventures, led by Wayne Lin, focuses on the very early stages of a startup’s journey. For them, the most important criterion is not necessarily the technical advancement of the project but the strength of the founder’s vision and adaptability.
“We invest at the truly early stage, often before a deck or product is even developed. The critical factor for us is the founder’s vision, passion, and capability to pivot through multiple iterations. We’ve worked with founders who failed twice but succeeded on their third try,” As Wayne Lin explains.
This approach highlights the importance of having a strong, committed team with the ability to persevere and pivot through failures.
Seed Stage: Concept Validation with Whitepaper and Deck
As a project progresses from ideation to conceptualization, having a well-crafted whitepaper and a solid deck becomes crucial. According to Bruce Lan from Bing Ventures, the whitepaper plays a pivotal role in bridging the gap between an idea and its execution.
“In the early stages, a well-crafted whitepaper or deck can bridge the gap between an idea and execution. It’s essential for teams to communicate a clear vision and path forward. VCs are more likely to engage when they see that the project is grounded in a solid, thoughtful concept, even if it’s still in its infancy.”
This is particularly important for startups looking to raise funds at the seed stage, where they may not yet have a fully functional MVP but can present a compelling argument for the viability of their idea.
A whitepaper can serve as an essential document that articulates the project’s vision, technology, and potential market impact. It gives VCs a clear roadmap of where the project is headed and how it plans to get there.
MVP Stage: Gaining Credibility and Minimizing Risk
As a project advances past the ideation stage, having a Minimum Viable Product (MVP) becomes a critical factor in demonstrating both credibility and progress to VCs. Matthew Tang from Capitable Group emphasizes the importance of an MVP in instilling confidence in investors.
“A working MVP demonstrates progress and eliminates any suspicion of vaporware or scams. At this stage, VCs are more confident in the team’s ability to build and deliver,” says Tang.
For many VCs, especially those who enter the later stages of seed funding, having an MVP is a concrete indicator that the project has moved beyond the theoretical phase and into practical application. The presence of a functioning MVP also provides investors with an opportunity to evaluate the product’s technical feasibility and potential market fit.
Scaling Stage: Approaching VCs for Growth Capital
A cryptocurrency project should look for venture funding to support its next stage of growth once it has begun to attract users and has demonstrated its product-market fit. When a startup is prepared to grow into new markets, accelerate product development, or scale operations, Pietro Negri of Outlier Ventures suggests that they approach venture capitalists.
“When a crypto project needs funding to take its ventures to the next level, it should approach venture capitalists. VCs look for indications of strong product-market fit and growth potential at this stage, whether it’s expanding the product or entering a new market,” says Negri.
Venture capitalists are currently searching for projects that have already demonstrated their concept and now need funding to grow. They will evaluate important measures of product-market fit, like revenue generation, user adoption, and the project’s capacity to draw in partnerships.
Key Criteria VCs Look for in Crypto Startups
Several universal factors help VCs evaluate the potential of crypto startups, regardless of the stage. These criteria include:
- Founding team
- Technological innovation
- Market potential and capacity for problem-solving
- Strategic partnerships
For a deeper look into each of these criteria and insights from experts like Wayne Lin (Axia8 Ventures), Bruce Lan (Bing Ventures), and Pietro Negri (Outlier Ventures), refer to our article on Key Criteria VCs Prioritize When Assessing a Crypto Project.
Common Pitfalls to Avoid When Seeking VC Funding
Even though raising money can be exciting, a lot of cryptocurrency startups risk failing because they make simple mistakes that could have a negative impact on their chances of success. Red flags are easily spotted by VCs, and a startup’s attractiveness can be greatly increased by avoiding these pitfalls.
- Unclear vision and goals: Uncertain vision and goals: One of the most frequent errors is to propose an extremely ambitious or vague vision without providing a clear plan for how to get there. Startups need to be able to clearly explain both their long-term objectives and the precise actions they plan to take to get there. “Investors need to see a well-defined plan that demonstrates how the project intends to grow and scale,” says Leonarda Rajeckyte of The VC Whisperer.
- Incomplete tokenomics: Many crypto projects fail to adequately design a sustainable and transparent tokenomics model. VCs are particularly cautious of projects where the token’s utility and value growth are unclear or poorly thought out. A solid tokenomics model should outline how the token functions within the ecosystem and its long-term value potential.
- Lack of compliance: Legal and regulatory issues are often overlooked in the rush to launch, which can be disastrous in the long run. Failing to consider compliance can turn VCs away and also lead to legal complications down the line. Bruce Lan from Bing Ventures stresses, “Compliance is crucial. Crypto projects need to be mindful of regulations, especially if they plan to expand internationally.”
Final Thoughts: Aligning Funding with Growth Strategy
Raising venture capital is a critical step for many crypto startups, but it must align with the startup’s growth trajectory. As emphasized by experts from Axia8 Ventures, Bing Ventures, Capitable Group, Outlier Ventures, and The VC Whisperer, there is no one-size-fits-all approach to securing VC funding.
The decision to approach VCs should be driven by the project’s readiness, market fit, and clear long-term strategy. Startups should not view fundraising as an achievement in itself but as a means to support sustainable growth. Leonarda Rajeckyte from The VC Whisperer wisely advises that startups should pursue funding only when it enhances their business strategy.
Timing is essential. VCs are more likely to invest when there is demonstrable progress—whether it’s a strong team, an MVP, or early market traction. Ultimately, the goal should be to use funding as a tool to scale, without losing focus on the project’s core mission and vision. Clear objectives and a solid growth strategy will always attract the right investors at the right time.
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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Market
3 Meme Coins to Watch For The Last Week of February 2025
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DOGEai, TST, and BROCCOLI are three meme coins drawing attention for the last week of February. DOGEai, launched on Solana, is up 110% in the past seven days, positioning itself as a leading AI meme coin.
TST remains one of the most popular meme coins on the BNB chain despite a recent correction. At the same time, BROCCOLI, inspired by Binance co-founder CZ’s dog, has also seen significant volatility.
DOGEai (DOGEAI)
DOGEai is an artificial intelligence coin launched on Solana. Its market cap is now $32 million, up 82% in the last seven days. This rise has positioned DOGEai as one of the most talked-about AI meme coins in recent days.
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DOGEai leverages multiple narratives, including Dogecoin’s popularity, the growing interest in DOGE (Department of Government Efficiency), and the broader AI cryptos trend. It defines itself as “an autonomous AI agent here to uncover waste and inefficiencies in government spending and policy decisions,” offering bill summaries and insights into government expenditures.
If the current uptrend continues, DOGEai could test the resistance at $0.048, with potential targets at $0.059 and $0.069. However, if a downtrend emerges, DOGEai has support at $0.030, and if that level is lost, it could drop to $0.018 or even $0.0092.
Test (TST)
TST has emerged as one of the most popular meme coins on the BNB chain, benefiting from the chain’s growing volume, which recently even surpassed Solana.
In the days following its launch, TST reached a market cap close to $500 million, then entered a strong correction phase. Its market cap has since dropped to $78 million.
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If the BNB narrative gains strength again, TST could benefit as one of its most popular meme coins and may test the resistance at $0.10. A breakout above this level could push TST to $0.20 or even $0.25 if buying pressure intensifies.
However, if TST fails to regain strong upward momentum, it could test the support at $0.0719 and potentially drop to its lowest levels since February 9.
CZ’S Dog (BROCCOLI)
BROCCOLI was launched a few weeks ago after Binance co-founder CZ revealed his dog’s name, sparking a flood of BROCCOLI tokens on the market.
The largest of these tokens quickly surged to a $249 million market cap in its early days but has since dropped to $52 million.
Like TST, BROCCOLI benefited from the recent rise of the BNB ecosystem but has since entered a strong correction phase. It is down 40% in the last seven days.
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If the downtrend continues, BROCCOLI could test support near $0.04, and a break below this level could push it to its lowest price since launch.
However, if the BNB ecosystem and meme coins regain traction, BROCCOLI could benefit, especially given the popularity of dog-related meme coins like Dogecoin and Shiba Inu. In this bullish scenario, BROCCOLI could rise to test the resistance at $0.113.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Ethereum Rollback Debate Intensifies After Bybit Hack
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The crypto community is divided over calls for an Ethereum blockchain rollback following a massive security breach at Bybit.
On February 21, the exchange lost nearly $1.5 billion in ETH to hackers, sparking discussions about whether Ethereum should intervene to recover the stolen funds.
What is a Blockchain Rollback?
A blockchain rollback, also known as a reorganization, involves reversing confirmed transactions to restore the network to an earlier state.
This process usually happens after a major security breach or exploit. Validators must reach a consensus to discard the affected blocks, effectively erasing the malicious transactions.
Despite its potential benefits, a rollback remains a controversial and rarely used measure due to its impact on a blockchain’s trust and decentralization.
Blockchains operate on the principle of immutability, meaning transactions are expected to be final once confirmed. So, rolling back transactions challenges this principle, raising concerns about the security and reliability of the network.
Crypto Leaders Clash Over Ethereum Rollback Proposal
BitMEX co-founder Arthur Hayes has been vocal in advocating for a rollback to solve the ByBit hack. He pointed to the 2016 DAO hack, where Ethereum underwent a hard fork to recover stolen funds, as precedent.
Hayes argued that since Ethereum previously compromised on immutability, another intervention should not be off the table.
“My own view as a mega ETH bag holder is ETH stopped being money in 2016 after the DAO hack hardfork. If the community wanted to do it again, I would support it because we already voted no on immutability in 2016,” Hayes said.
JAN3 CEO Samson Mow also supported the rollback, stating it could prevent North Korea from using the stolen funds to fund its nuclear weapons program.
However, not everyone agrees. Pseudonymous crypto trader Borovik strongly opposed the idea, arguing that a rollback would jeopardize Ethereum’s credibility and neutrality.
Bitcoin advocate Jimmy Song also dismissed the possibility, stating that the Bybit hack cannot be compared to the 2016 DAO exploit. Song emphasized that the DAO hack allowed for a 30-day intervention, whereas the Bybit attack is already finalized, making a rollback impractical.
“I know people are expecting the Ethereum Foundation to roll back the chain, but I suspect it’s already too much of a mess to do it cleanly,” Song added.
Meanwhile, Ethereum supporter Adriano Feria introduced an alternative perspective. He argued that Bybit could have avoided this situation by using a Layer 2 (L2) solution with conditional reversible transactions.
According to Feria, blockchain technology needs some form of reversibility to ensure real-world adoption.
“Whether through social recovery or another pre-determined, immutable, and transparent decision-making process, real-world mass adoption will not work without reversible transactions. Without this capability, transactional activity will inevitably gravitate toward TradFi systems that already provide it,” Feria stated.
This debate raises a fundamental question for Ethereum: should it prioritize immutability or intervene in extreme cases?
While some see a rollback as a necessary response to an unprecedented loss, others fear it could undermine the core principles of decentralization. Ethereum’s next steps will likely shape its long-term credibility and trust within the crypto space.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Berachain (BERA) Falls 15% After Recent Rally Surge
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Berachain (BERA) is down almost 15% in the last 24 hours, with its market cap now at $778 million, although its price remains up nearly 20% over the past seven days. This sharp pullback comes after a strong rally between February 18 and February 20, when BERA reached levels above $8.5.
BERA’s Relative Strength Index (RSI) has dropped from overbought levels, signaling a loss of bullish momentum, while its Directional Movement Index (DMI) shows growing bearish pressure. As BERA navigates this correction phase, it faces key support at $6.1, with potential resistance levels at $8.5, $9.1, and $10 if bullish momentum returns.
BERA RSI Is Dropping Steadily After Touching Overbought Levels
Berachain Relative Strength Index (RSI) is currently at 50.6, down sharply from 86.7 just two days ago when its price surged above $8.5. RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100.
It is commonly used to identify overbought or oversold conditions, with values above 70 indicating overbought levels and below 30 suggesting oversold territory.
The steep decline in BERA’s RSI reflects a significant loss of bullish momentum after reaching overbought levels above 86, where a correction was likely.
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With RSI now at 50.6, BERA is in a neutral zone, suggesting that buying and selling pressures are relatively balanced.
This could indicate a period of consolidation as the market digests recent gains. If RSI continues to decline below 50, it could signal increasing bearish momentum. This could lead to a further price drop for BERA.
Conversely, if RSI stabilizes and begins to rise, it could suggest renewed buying interest and a potential recovery in Berachain price.
BERA DMI Chart Shows Buyers Are Losing Control
Berachain Directional Movement Index (DMI) chart shows its Average Directional Index (ADX) currently at 50.5, after peaking at 60.2 yesterday, up from just 13.3 five days ago. ADX is an indicator used to measure the strength of a trend, regardless of its direction, ranging from 0 to 100.
Values above 25 typically indicate a strong trend, while values below 20 suggest a weak or sideways market. The sharp rise in ADX reflects a significant increase in trend strength, confirming that BERA has been experiencing strong directional movement recently.
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Meanwhile, BERA’s +DI is at 24.4, down from 48.4 two days ago, indicating weakening bullish momentum. Meanwhile, -DI has risen to 15.1 from 4.9, suggesting growing bearish pressure.
This shift signals that the bullish trend that drove prices higher is losing steam, and selling interest is beginning to increase.
If -DI continues to rise above +DI, it could indicate a bearish crossover, signaling a potential reversal or deeper correction in BERA’s price. However, if +DI stabilizes and moves upward again, it could suggest a continuation of the uptrend, albeit with reduced momentum.
Will Berachain Fall Below $6 Soon?
Berachain surged 53% between February 18 and February 20, pushing its price above $8.5 after the coin struggled following its airdrop. However, after this sharp rally, BERA entered a correction phase and is currently down almost 15% in the last 24 hours.
This pullback suggests profit-taking and a shift in market sentiment as buyers hesitate to push prices higher. If the downtrend continues, BERA could soon test the support at $6.1, and a break below this level could lead to a further decline towards $5.48, reflecting increased selling pressure.
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On the other hand, if Berachain can regain its bullish momentum from a few days ago, it could rise above $8.5 again, potentially testing the next resistance levels at $9.1 or even $10.
To confirm this bullish scenario, Berachain would need to see renewed buying interest and strong upward momentum. If buyers can defend key support levels and push the price above resistance zones, it could indicate the continuation of the uptrend.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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