Coinfluence: Redefining Blockchain Seed Funding and Crowdfunding
The startup world is a game of miss and hits, a game of numbers and figures. And this is why venture capitalists are sometimes hesitant to fund projects they are not sure will succeed in the future.
But without funding, startups will not hit their milestones or even turn into unicorns that some of them have become.
And this rings the bell of familiarity in the blockchain sector, which changed the funding landscape through its decentralization model.
The early days of cryptocurrency were trying times as not many people were ready to fund projects or technology they didn’t understand. But fast forward a few years later and the tables have turned.
Is Blockchain Funding on the Rise?
It is normal for people to take a look at the market cap to determine the size of the crypto market. This works although it should be taken with a pinch of salt due to the market’s volatile nature.
There are a lot of vaporware projects that will likely crash if a protracted crypto winter kicks in.
But a good measure is the amount of venture capital flowing into the industry.
Bloomberg reported that the crypto industry attracted a record $17 billion in venture capital in 2021. And the year is far from over.
In Q2, blockchain startups secured $4.38 billion in funding.
What is more astounding is that the amount raised this year alone is almost the same as the amount the industry raised since its birth more than 12 years ago.
Blockchain startups raise $17 billion in the first 7 months of 2021. |Source: Bloomberg
This is exciting for the nascent industry as these billions are coming from institutions that at one point, had their reservations about the young industry.
And by the end of the year, the industry should add a couple of more billions to the total funding.
However, the increased capital flow does not tell the whole story about the crypto industry.
What’s Going on With Blockchain Seed Funding and Crowdfunding?
Those in the know will tell you that blockchain is where the internet was 20 years ago. There are a lot of applications that need to be built on top of the distributed ledger technology.
When the internet was first introduced to the world, not many people thought that we could have Facebook or Amazon.
Most importantly, the internet has contributed to the success of smartphones and other mobile devices.
Likely, blockchain technology will possibly follow this trajectory. And if it does, then we have a long way to go before the industry’s “killer apps” are discovered.
This leads us to an important question: are the right ideas being funded?
Coinfluence: A Paradigm Shift in Blockchain Funding
There is no doubt that the crypto industry is being funded by institutions. However, it is being funded within the confines of what the funders think needs to be created. In a way, venture capitalists set the beat and tone to the song of crypto innovation.
But the truth is that innovation requires thinking outside the box and pushing the boundaries.
And these are the kind of ideas that Coinfluence, the next-generation launchpad empowering smart investors and blockchain projects, is looking for.
We introduced a seed fund after realizing several factors:
Bootstrapping is not for Everyone
Not every person with a great idea has enough capital to turn their idea into a tangible product.
The costs could be very high and some entrepreneurs run out of money before reaching the stage where they can attract funding.
As an example, when you are building a crypto product, you may need to have your smart contracts audited by reputable firms. Token investors are reluctant to invest in new projects with questionable smart contract security.
And the costs for smart contract audits could be sky-high. Not many projects can afford it. Without the audit, the platforms could are relegated to the bottom of promising projects. A good idea may be shelved due to a lack of funding.
And this is one of the many reasons why Coinfleunce has a seed fund geared for projects that need some bit of propulsion before building real products that can take them to the ‘moon.’
Great Ideas Need Time
When the crypto market is bullish, every crypto project seems to hit the mark. Doesn’t this feel like 2017 all over again?
The truth is that great ideas take time to build and deploy. They need to be tested and retested before an MVP is shared with the public.
Coinfluence is looking to fund such ideas that can outlive bear cycles and contribute significantly to the entire industry.
It takes foresight to discover these ideas and appreciate them to the point of funding their initial operations.
Coinfluence: A One-Stop Launchpad for Seed Funding and Crowdfunding
We are creating a launchpad that finds, funds, and incubates great blockchain ideas. We want to turn ideas into tangible products that change the world and the portfolios of our community of investors.
Through our seed fund, ideas are turned into attractive projects that are getting further funding from our internal and external investor communities.
We strictly vet that we list on our platform to safeguard the interests of the investors that fund these projects.
More importantly, our reputation is at stake. The success of our CFLU will partly come from the success of the projects we launch.
In other words, it is in our best to make sure that we only support the best projects, or else we have more to lose. This is one way for us to gain the trust of our community and work with them to fund promising projects.
And without a doubt, we are going to unlock funding and viral exposure for deserving blockchain projects.
Final Thoughts
We are mindful of the task we have of becoming the Y-Combinator of crypto. The challenge is very exciting and we are looking forward to vetting and picking some of the greatest blockchain ideas.
If you have an innovative idea and are in need of funding and exposure, get in touch with us.
If you are an investor and want access to promising blockchain projects, buy and hold CFLU tokens.
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