As the market continues to plummet, founders in the space are struggling to hold on to investors who are now trying to minimize their risk.
For the first time in over a year, the global market value of cryptocurrencies fell. Many companies are preparing for a potential recession, while the founder of acryptocurrencies startup is still trying to raise funds.
According to a number of investors, the time is right to buy as the market shifts to a VC friendly landscape. Even though investors are back in the driver's seat, not everyone is happy with how they are being treated.
There are a number of VC firms that play games with founders when it comes to raising money. Entrepreneurs are being forced to give up more by investors. It should be considered a privilege when a founder invites investors.
VC firms not staying true to their word has cost them time, money, and more according to two web3 startup founders.
“Unless your [crypto] project is getting good traction, no one is getting a valuation over $30 million right now.” Founder of a web3 gaming platform
The founder of the startup said that they started raising about two and a half months ago. The market crashed after theTerra/LUNA situation.
The founder said that a traditional VC investor bought him a fancy beachfront lunch in order to convince him to allow him into the company's funding round. He committed to a $250,000 investment after lunch, and then when he found out the other investors were involved, he increased his investment to $500,000. After the UST Terra crash, he changed his mind.
I began to wonder what commitment really means to them. The founder said that if you are committed, you know you are in the good times.
All Rights Reserved © 2024
