Did you know that less than 10% of blockchain startups succeed? When they fail, it’s usually due to execution, not lack of funding.
According to a 2017 Deloitte report, less than 10% of all blockchain startups are successful, and blockchain projects have an average lifespan of about one year.
Starting a new company is always difficult, Web3 or not. All startups have a 75% failure rate, but in the blockchain industry it can exceed 90%.
The harsh reality of blockchain startups and their short lifespans is that most startups fail to follow a few key principles to achieve radical success.
The old recipe that most entrepreneurs follow has been around for decades, come up with a great idea, write a business plan, pitch to investors, build a team, launch a product, and (very) live We follow a flat and simple structure of working hard. sell it.
However, startups require a different approach. Even if you have the money, you have the right team, you have a great product, and you have the sheer determination, it’s execution according to Eric Ries’ concept of The Lean Startup.
5 Blockchain Startup Keys to Success
Blockchain is a fairly new technology compared to most systems. So it’s hard to predict where it’s going.
The market is still mature and many of these companies are failing due to lack of funding and infrastructure. Some of them had the perfect scenario for traditional organizations to thrive. Is required.
We analyzed the key factors that help a blockchain startup succeed.
The cryptocurrency field may look rich quick to the average eye. Therefore, many inexperienced venture companies try to make a profit without concrete ideas or products in place. Building products for the blockchain should not rely solely on good ideas. Founders need to understand exactly what they want to develop and why.
A clear product vision and minimal viable product (MVP) are the stepping stones to success. Publishing the purpose of such products to the public, MVPs test their acceptance in the market.
BeInCrypto CEO and co-founder Alena Afanaseva knew what she was doing when she started the company.
“I saw an opportunity and conducted an in-depth study analyzing all existing crypto news media, their audiences, geography and growth trends in recent years. I read the research and all of these tools helped me validate my hypothesis and calculate my growth plan in detail.”
Products should solve real problems
Web3 itself is a new concept, still in the early stages of adoption, and a large portion of the population is unaware of its existence. In short, there is still uncharted territory to explore and understand the wants and needs of the market.
The hype around cryptocurrencies and blockchain has made many entrepreneurs more hungry for profit than to find out if blockchain solutions solve real problems.
If the solution to a problem is unknown or non-existent, it is more likely to fail because it will not be accepted by the market. In other words, a product’s systems and interfaces can be user-friendly and visually appealing, but they must solve real problems and be validated in the market by real customers.
Some success stories are in various fields, including the healthcare industry. An important use case for blockchain is pharmaceutical supply chain management. According to Interpol, counterfeit medicines kill one million people each year.
DHL and Accenture have created a blockchain-based pilot with nodes in six regions to track medicines throughout the supply chain and reduce counterfeit medicines on the market.
Conversely, pioneering startups failed and were shut down. One example is 37coins, a Bitcoin wallet provider headquartered in California.The company failed to provide a product that would allow him to trade BTC outside the US
The company said on its blog: We also found that his SMS delivery between different carriers in countries other than the US was unreliable. “
BeInCrypto’s goal is to be reliable
BeInCrypto has become a top 3 crypto news company in the world with the help of an avid audience looking for transparent and trustworthy news about crypto and blockchain.
Afanaseva identified the industry’s main pain point as the lack of reliable information. she said: So we’ve taken this as our main focus – where you can’t find shillings, only original reports.
Once you’ve tested your product in the market and the results are positive, the next step is to get the right people on your side. The structure of your team determines the success or failure of your business.
The number of blockchain experts and experienced professionals is relatively small, with an estimated 105,000 blockchain developers worldwide. The very low number of these professionals makes it even more difficult to put together a strong team.
Additionally, it is important to properly structure and define all roles. Failure to do so may delay the launch of your project or product. Leisure is something most startups don’t have.
It is difficult to find specialists in various fields who specialize in blockchain and crypto, not just developers, but also marketers and designers. One solution is to hire quality professionals who are willing to learn and train to work in the industry.
BeInCrypto’s CEO says it’s all about people. “
Throwing cash and waiting for profits is the traditional no-interference approach of most VCs. The problem, however, is that it doesn’t work well in blockchain scenarios. What the market for both investors and businesses needs is proper education.
Since the industry is still in its infancy, most young entrepreneurs lack experience and skills. Guidance and education on Web3 and the blockchain industry in particular can help make a difference and set you up for success.
One of BeInCrypto’s missions is to provide the public with reliable and accurate information about the blockchain and cryptocurrency industry. Furthermore, we have developed various products for all levels of Learn, Exchanges, Jobs and Academy.
Stable business and static environments are generally not available for startups, mainly in volatile and volatile industries like crypto. Planning and waiting too long for a product release is a very risky game.
A minimal viable product has a reverse cycle to traditional product development. First, we test possible customer needs and propose solutions for them. With sufficient market acceptance, proven hypotheses can be used to improve and sell the product.
Information provided in independent research represents the views of the authors and does not constitute investment, trading or financial advice. BeInCrypto does not endorse buying, selling, trading, holding, or investing in cryptocurrencies.