How to Build a Successful Web3 Startup in 2023

How to Build a Successful Web3 Startup in 2023

Are you thinking of starting your own Web3 project? Well, you’re in luck! Recently, industry pioneers from IN. Capital and Emurgo shared their expert insights on how to build a thriving Web3 start-up from an investment perspective in a panel hosted by Oort and Rice University. Keep reading to learn from the best and turn your vision into a successful reality!

Special thanks to Dr. Kaimin Hu from Emurgo, Sam Lin from IN. Capital, and Mike Robinson, Chairman of the Oort Foundation, for making this article possible!

Pre-launch Tips to Prepare Yourself in Web3

Spend spare time on the new technology revolution

In addition to formal education, it is important to spend time learning about new technologies like AI and blockchain. Having more skills in different areas can open up more opportunities in the future.

Learn from outside resources

Not all universities have courses on nascent technologies like blockchain, so it’s important to seek out knowledge from outside sources. Reading white papers and researching use cases can inspire new ideas and ways of thinking.

Learn from people

One of the quickest and most effective ways to learn about new technologies is to learn from people who are already working with them. Sitting down with intrapreneurs or alumni who have started successful ventures can provide valuable insights and information.

Market Assessment & Strategizing Your Business Growth

Novice entrepreneurs should assess the size and demands of their market, whether it’s a niche or a mixed market, to determine the potential success of their business idea. It is important to differentiate between real demand and a “good to have” feature to avoid investing time and money into something that does not resonate with customers. The following is summarized based on IN Capital’s Sam Lin’s insights.

Focus on product development

Entrepreneurs should spend a considerable amount of time developing their product, ensuring that it adds value to customers. They should consider incorporating technology to differentiate their product from competitors and improve user experience.

Timing is key

Timing is crucial in launching a new product or service. Entrepreneurs should evaluate whether it is the right time to introduce their products to the market. They should also determine whether their product meets a current demand or if it is something that can create a new demand.

Consider budget and team building

Entrepreneurs should take into account their budget and team-building strategies to ensure they can fulfill the demands of their target market. It is important to understand how quickly customers want their needs met, whether it is a quick fix or a longer-term solution.

Qualities of a Successful Entrepreneur in Web3

Starting a successful company in the Web3 space requires a specific set of skills and qualities that will help you navigate the challenges and opportunities in this rapidly evolving industry. Sam Lin and Dr. Kaimin Hu from IN. Capital and Emurgo shared their thoughts on the most important qualities an entrepreneur in Web3 should have from a Venture Capitalist point of view.

Choose the right partner and build a strong team

According to Sam Lin, one of the most important things to consider when starting a Web3 startup is to choose the right partner and build a strong team. You cannot do everything alone, and you need to have the ability to attract and work with talented people from different backgrounds and characters. Leadership and teamwork are essential to success.

Focus on one vertical and be disciplined

To succeed in Web3, you need to be focused and disciplined. Dr. Hu emphasizes the importance of choosing one vertical to focus on instead of trying to do everything at once. There will always be opportunities, but it is essential to stay true to your vision and goals.

Be reasonable and realistic

Entrepreneurs in Web3 need to be realistic and reasonable. You cannot control everything, and it is important to make the right decisions based on the counter situation. This includes being flexible and open-minded to change and being able to adapt to new circumstances.

Close the loop and be responsive

Dr. Hu also emphasizes the importance of being responsive and closing the loop. This means being able to reply promptly to messages and emails and being available to communicate with your team and partners. This helps build trust and establishes a strong foundation for collaboration and growth.

What Do Investors Look For When They Look At Web3 Projects?

Attracting investors for Web3 projects can be challenging, and it’s important to have a clear vision, business model, and a strong team. It’s not only about having a vision; investors also look for the potential to add value through cash flow. Investors want to know how the project will add value to the market and generate revenue.

The essential needs of the product

One way to judge whether a Web3 project is good is to identify the essential needs of the product it aims to deliver to the market. The product should resolve a real problem or issue faced by the users rather than just offering unnecessary features. The project should focus on fulfilling a niche and essential requirement of the market.

The team behind the project

The team building the project should be realistic, reasonable, and capable of building the product together. A strong team, without a doubt, can help in delivering a successful product.

Product deliverables

The success of a Web3 project depends on its ability to deliver the product. It’s important to focus on delivering the project and ensuring it’s marketable. A comprehensive marketing plan, operation, campaign, and other efforts are required to deliver the product successfully.

How to Stay on Top of Industry Trends Post-launch

With new technologies and business models emerging constantly, it can be challenging to keep up with the latest trends. Staying on top of industry trends at the moment requires a combination of focusing on real business logic, paying attention to energy trends, and using analogy and analytics to predict potential new trends. Here are some tips to stay on top of industry trends at the moment:

Don’t follow trends blindly

According to Sam Lin, chasing trends can be risky. It’s important to focus on real business logic and make concrete assumptions about new work and lower costs to increase efficiency. Instead of chasing the latest trends like NFTs, focus on adding value and transforming web technologies and methodologies.

Look at energy trends

Take a close look at the latest technology and energy trends. For instance, storage computing always has a demand, and there may be ways to lower costs and make data sets more efficient. By paying attention to the latest energy trends, you can identify potential opportunities in the industry.

Use analogy and analytics to predict trends

Dr. Kaimin Hu believes that by exploring history and using analogy and analytics, it’s possible to predict the next potential trend. By understanding how previous applications and infrastructure were built, we can explore potential new trends and be ready to step out in front of the pack.

The Panel: Web3 Entrepreneurship With Dr. Kaimin Hu, Sam Lin, and Mike Robinson

Discover the insightful views of Dr. Kaimin Hu and Sam Lin on Web3 and explore their top project picks by watching the entire panel on YouTube 👇