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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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Swift, UBS, Chainlink Pilot Simplifies Tokenized Fund Transactions

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In partnership with UBS Asset Management and Chainlink, Swift has completed a pilot program designed to streamline tokenized fund transactions through its established financial network.

Conducted as part of the Monetary Authority of Singapore’s (MAS) Project Guardian, this pilot demonstrates how financial institutions can leverage Swift’s existing infrastructure to manage off-chain cash settlements for tokenized assets.

Swift, UBS Asset Management, and Chainlink have completed a pilot for settling tokenized fund subscriptions through the Swift network. The initiative addresses inefficiencies in the $63 trillion global mutual fund market by connecting 11,500 institutions to streamline manual processes and cut costly settlement delays that hinder liquidity.

“Chainlink is enabling institutions to reuse Swift’s infrastructure to facilitate payments for digital asset transactions. I am very excited by the upcoming adoption of these off-chain payment capabilities and how they will increase the flow of capital and expand the possible user base of digital assets,” Chainlink co-founder Sergey Nazarov said.

Read more: RWA Tokenization: A Look at Security and Trust

Chainlink and Swift’s pilot bears real potential in demonstrating how financial institutions can streamline these processes in the future. It automates payment processing for tokenized investment funds without requiring a fully blockchain-based system. This approach makes transactions faster and more efficient.

The pilot builds on earlier work between UBS Asset Management and SBI Digital Markets. Their previous collaboration focused on developing a Digital Subscription and Redemption system for tokenized funds.

Using Swift’s established infrastructure, the pilot demonstrated how fund transactions could be settled efficiently by connecting traditional systems with blockchain. Upon meeting specific conditions, UBS’s tokenized investment funds automatically issued or canceled fund tokens for investors.

UBS rolled out a tokenized fund on the Ethereum blockchain on November 1. The “UBS USD Money Market Investment Fund Token,” known as “uMINT,” aims to meet growing demand for tokenized assets. Meanwhile, MAS highlighted its dedication to asset tokenization, drawing insights from 40 institutions and 15 pilot trials.

“Our collaboration with UBS Asset Management and Chainlink under MAS’ Project Guardian uses the Swift network to bridge digital assets with existing systems. This approach supports our goal of helping financial institutions securely transact across various digital asset classes and currencies,” Swift Head of Strategy Jonathan Ehrenfeld commented.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

The pilot highlights the growing momentum toward integrating digital assets with mainstream financial systems, illustrating how established infrastructures like Swift’s can support the fast-evolving digital economy.

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 ConditionsPrivacy Policy, and Disclaimers have been updated.



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Why FET Recovery Could Be More Than 10% in November

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Artificial Superintelligence Alliance (FET) is one of the top gainers today, registering a 10% increase within the last 24 hours. This FET recovery contradicts its performance in October, when its price decreased by 13.39%.

Following this rebound, on-chain data shows that the altcoin could be working toward wiping out those losses. Here is how.

Artificial Superintelligence Alliance Sees Buying Pressure  

Yesterday, FET’s price was $1.10. But as of this writing, the altcoin’s value has risen to $1.25. According to the 4-hour chart, FET’s price climbed this high due to rising buying pressure. 

Notably, Bull Bear Power (BBP) has jumped to the positive region after remaining in the red area since November 1. The BBP shows whether the strength of buyers is greater than that of sellers.

When the reading is negative, bears have the upper hand. Therefore, in this instance, bulls are in control. As such, the altcoin’s value could continue to climb if this remains the same. 

Read more: How to Invest in Artificial Intelligence (AI) Cryptocurrencies?

FET recovery driven by bulls
FET Bull Bear Power. Source: TradingView

The Money Flow Index (MFI) is another indicator suggesting that the FET recovery could be swift. The MFI, which measures buying and selling pressure by analyzing price and volume data, has shown a positive trend for FET. 

A rising MFI indicates increased buying pressure, which supports the likelihood of continued price growth as demand for the asset strengthens. Therefore, if bulls sustain this momentum, then the altcoin’s price might continue to rise.

FET recovery is ongoing
FET Money Flow Index. Source: TradingView

FET Price Prediction: Token to Breach Resistance

Since the IOMAP indicates that there is only one significant resistance level for FET at $1.28, where 3,590 addresses hold 616.89 million tokens, it suggests that surpassing this level could open up further upside potential. 

Notably, the IOMAP tool categorizes addresses by whether they are making a profit, breaking even, or incurring losses at the current price

This accumulation zone acts as a key psychological barrier. The volume of tokens accumulated here is notably higher than the amounts held between $1.06 and $1.25, signaling that if buyers manage to push the price beyond $1.28, FET could gain strong momentum.

Read more: Which Are the Best Altcoins To Invest in November 2024?

FET bulls to breach resistance
FET In/Out of Money Around Price. Source: IntoTheBlock

Therefore, if buying pressure continues to increase, FET could rally all the way to $1.44. However, if bulls fail to breach the resistance, the altcoin price might pull back, and FET could drop to $1.10.

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 ConditionsPrivacy Policy, and Disclaimers have been updated.



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US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead?

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Bitcoin’s (BTC) price climbed to $70,000 today ahead of the US presidential election, indicating the connection between major political events and cryptocurrency movements. Historically, political uncertainty and significant elections have influenced crypto market sentiment and volatility.

As the election begins, on-chain analysis provides insights into potential future price movements. Analysts are also weighing in on the implications of the election outcome for Bitcoin, with opinions varying on whether the cryptocurrency could continue its upward trend or face downward pressure. Here are all the details.

According to Glassnode, the Bitcoin price increase comes amid a drop in the sell-side risk ratio. This metric shows whether investors are confident about a bullish performance or if conviction is low.

High values in this metric indicate periods when significant amounts of value are being realized, often correlating with increased market volatility. Such periods are commonly seen during the late stages of bull markets.

Conversely, low values suggest periods with minimal value realization and reduced market volatility. This can also signal macro market bottoms, accumulation phases, and environments with lower sell-side pressure and risk, potentially indicating the onset of future bullish trends.

Read More: 7 Best Crypto Exchanges in the USA for Bitcoin (BTC) Trading

Bitcoin selling pressure reduces
Bitcoin Sell-Side Risk Ratio. Source: Glassnode

Therefore, the rise in Bitcoin’s price indicates that selling pressure is low, and the US elections could be bullish for the cryptocurrency.

Regarding this development, Juan Pellicer, Senior Researcher at IntoTheBlock, opined that a Donald Trump win would be good for BTC and the crypto market at large.

“The market appears primed for further upward movement, with the US election serving as a potential catalyst. Sentiment suggests that Trump’s more favorable stance on cryptocurrencies could provide the momentum needed for a decisive breakthrough to a new all-time high.” Pellicer told BeInCrypto

Meanwhile, CryptoQuant’s weekly report says that BTC is at a favorable price level ahead of the elections. It noted that the cryptocurrency is currently not overvalued. Hence, if demand increases, Bitcoin’s price might rally post-election.

For instance, BTC prices rallied by 22% between election day and December 2012. In 2016, it climbed by 37%, while the cryptocurrency saw a 98% increase in 2020. 

Therefore, if past performance influences future trends, the BTC might reach a new all-time high before the end of the year.

Data from the on-chain data provider also showed that demand for Bitcoin has increased. This is similar to the trends of 2016 and 2020. Hence, if sustained, the Bitcoin price might climb well above $70,000 soon.

Bitcoin demand rises
Bitcoin Apparent Demand. Source: CryptoQuant

BTC Price Prediction: $73,000 Possible

On the 1-hour chart, Bitcoin has attempted to break out on four different occasions. However, each time that happened since October 31, the coin faced rejection. However, today, the trend has changed as bulls pushed the cryptocurrency above $68,336.

This breakout has ensured that Bitcoin’s price has risen to $70,288. Furthermore, the Bull Bear Power (BBP) shows that bulls are in control. If sustained, Bitcoin’s price might rally much higher in the coming days.

Read More: Bitcoin (BTC) Price Prediction 2024/2025/2030

Bitcoin US election day price analysis
Bitcoin 1-Hour Analysis. Source: TradingView

If bullish momentum persists, Bitcoin could potentially climb to $73,623 ahead of the announcement of the US election results. However, should BTC face rejection at resistance levels, this forecast might be invalidated, with the cryptocurrency possibly declining to $67,405.

The post US Election Day Boosts Bitcoin to $70,000: Further Rally Ahead? appeared first on BeInCrypto.



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