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Chances are you will agree that starting a Web3 business feels daunting and confusing. It was like that when I first started funding my business with Web3 solutions. The learning curve was not easy to grasp. Metta World Peace, the former Lakers legend who brought home an NBA Championship in 2010, is a friend of mine. He showed me how Tru evaluates his investments.
Metta said there are two types of founders, the ones who have experience and education and the ones who are visionaries who know where they want to be. He wants to invest in the founders who are taking calculated risks. "You want to take it step by step, make sure you're building a good product, test it out, and be careful not to blow your investment money because I've seen so many people lose so much money so fast."
There is a need for a calculated approach in the market. Entrepreneurs are continuing to build and innovate despite the recent filing of FTX. According to a recent Cornell University research, the global market forBlockchain is expected to be worth around $65 billion by the year 2020. Hundreds of Web3 projects have raised billions of dollars, despite the fact that the total market cap of thecryptocurrencies has fallen. Despite the uncertain economic times, Metta still sees opportunity in the emerging market and he's investing in the technology today.
Money invested in venture capital has fallen in half. Alternative funding is one of the reasons why entrepreneurs are turning to it.
Did you ever invest in a startup? It's easy to invest in newcryptocurrencies. It might be too easy to use these products. If you want to make a living in this Industry, you need to do your own research before investing money.
Crowdfunding can be used to raise funds for yourself instead of in a traditional finance setting. Crowdsourced tools are being used to raise money. Metta said that it's attractive to founders who don't have a lot of connections. In Silicon Valley, it can be difficult to raise money from cold emails because of the need for a relationship with an investor. In addition to the legal paperwork that goes into term sheets, it can be difficult to navigate the venture capital world. Crowdfunding is an alternative to venture capital.
Metta World Peace knows how important crowd-sourced startup are to the future of Web2. Metta has shifted his focus to the entrepreneurial and tech industries since his unofficial retirement in 2017.
Orbiit Technology is a company in Metta's investment portfolio that he invested in. The company launched a virtual competition called "ThePitch" in late October of 2022. The next up-and-coming founder is the focus of the competition. Metta is a judge.
Think of a shark tank on the internet. Entrepreneurs compete for capital and prizes to help them grow their businesses. Metta is a judge in the contest. They will evaluate the top 10 final contestants, who will be voted on by the public. A one-on-one mentoring session with Metta and the investment committee will be given to the first-place winner.
Saving and investing could be the way to go if you can't raise funds or compete in "The Pitch"
When their nest egg is ready to hatch, many new entrepreneurs get started. Metta says you want to get a revenue stream as soon as possible. If you are strategic about your job or side hustle, you can set yourself up for success.
You are building a coffee company. You can make money by working at Starbucks and learning their systems. Start in the mail room if you want to work on a FinTech app. He told them to learn something that can impact their company in a meaningful way. The more equity you can hold on to, the better your business will be.
You always need more money to survive. One way to earn passive income is to sell digital goods, which can be either original intellectual property or secondary sales. In addition to cash, you can pay your employees in equity, token or NFTs. If you're sitting on digital assets, you can put your money to work by locking them up in finance platforms to earn yield, but remember to be very careful with the platforms you choose.
Metta said that building connections helps raise money. It will be difficult for you to get startup capital if you don't have connections. The way money is raised can be decentralized with the help of web3.
We live in a world full of people. It is easy to make connections if you stay active and learn more. When a founder doesn't have a lot of connections to investors, the most common way to raise money is to bring on seed investors and advisers. In Silicon Valley, it is more about who you know than who you don't. If you know the right people in venture capital, those relationships can go far. Pitch meetings can be scheduled with the help of an advisor. If you give the advisor a small equity package, they will work hard to open up their network so they can get valuable pitch meetings.
If the investor passes, you can always ask them if they would like to introduce another investor friend of theirs. To understand common themes, sectors, and stage of investment fit into that investor's existing portfolio and what motivates them to invest, always research the investor's portfolio of startup companies. The chances of them passing are higher if the dollar value range is outside of their typical range.
It's not done yet. Good ideas get higher up. If you have innovative ideas but don't know how to use them in the traditional market, it may be time to start your own business. Maybe Metta World Peace will invest in you.
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