Key takeaways
- Web3 fundraising has evolved; investors now demand strong business models, clear tokenomics and market validation.
- Remember, smart money matters; beyond funding, strategic investors can provide mentorship and industry connections.
- Multiple funding options are available — VCs, angel investors, grants, ICOs and crowdfunding each have their advantages.
- You must know when to pivot — If traction is low and resources are depleting, reassess or move on to a new opportunity.
If you were in crypto back in 2017, you might remember Centra Tech, a Miami-based company that conducted an ICO. The company claimed to offer a cryptocurrency-based debit card backed by major payment networks like Visa and Mastercard — but in reality, it had no operational product.
Despite being at the “idea” stage, Centra Tech raised over $32 million in its ICO and even secured endorsements from celebrities like Floyd Mayweather Jr. and DJ Khaled.
Less than a year later, its founders were arrested. It was later revealed that the company had no actual partnerships with the payment networks and no real product.
Centra Tech was just one of many “ICO Boom” projects that secured investment based on white papers alone, without an MVP (minimum viable product). A report by Fabric Ventures and TokenData highlighted that in 2017, 435 successful ICOs collectively raised about $5.6 billion, with an average of $12.7 million per project.
What’s crazy is that fewer than half of these ICOs remained active beyond four months after their token sales concluded. A study reported that over 80% of ICO projects in 2017 were identified as scams.
Indeed, the days of easy money are long gone. Many startups in 2025 are seeking investment, expecting the same level of enthusiasm, only to be met with increased regulatory scrutiny, investor caution, high competition and ultimately, low success rates.
But it’s not all doom and gloom. Investors are still out there for projects that truly stand out.
Today, you’ll learn the most popular ways to fundraise in Web3, all the way down to what to do if you’ve only got a mobile phone and a dream.
Moreover, there’s a treat at the end, an exclusive sit-down with the head of business development at Cointelegraph Accelerator, offering valuable insights on the current state of Web3 investment.
1. Incubators and accelerators
Incubators and accelerators play a crucial role in helping Web3 startups move from idea to market. These programs provide mentorship,…
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