So it begins…

So, You believe in the power of the blockchain. And by power, I do not speak of the hype that comes with everything that is even remotely connected with Bitcoin and cryptocurrencies. By power, I mean the possibility that Blockchain technology will continue to revolutionize the way people interact with current financial systems. That more innovative, and groundbreaking utility will be found for the Blockchain outside of the current financial application it currently has. And that brings us back to you. Because you are a true believer, you have that “Under the Apple tree, Isaac Newton” moment, and you have a great idea for another Blockchain application that will take the Web3 community and the world by storm. With your Crypto idea well formed, you have a number of options. You could try to get some of your friends to come work on your idea and you all bootstrap till you become the next “Nick Woodman”. Or you could try to attract investors to invest in your Blockchain project.

Now I cannot tell you much about the first option since I have not particularly had “on-field” experience with that. Attracting investors for your Blockchain project, whether it be a regular Crypto, Defi or GameFi project is a different matter entirely. There is no single path to attracting investors to your project. Might be surprising, but what if there are organized entities whose existence is centred around helping projects like yours source necessary funds, and significantly push marketing and advertisement, even while building a sustainable community? Well, don’t be surprised. These organizations are called Incubators and we’ll be exploring how they can help your project succeed, and the drawbacks that they might present.

Incubators like they incubate?

Of course, they incubate. But they do not deal with babies that might need to stay in a glass, or a crib for a while. They deal with new ideas that might require some kind of support in their early days. You see in reality, an idea is just an idea. I do not believe there is any such thing as a “million-dollar idea”. Without the necessary funding, professional and dedicated team, successful marketing, technical know-how and a whole lot of grit, your idea will always remain an “idea”. Bootstrapping is an option, but that road gets quiet, and when it rains, it pours. Deciding to join an incubator program does not make your idea any less important or great, it just means that you are opening yourself to a stream of support that you might not get if you tried to do it all alone.

Annually, thousands of Crypto Projects make their entry onto the Blockchain stage, each one aiming for that famed success and having an Incubator, such as Bluezilla, Binance Labs, GBV Capital, MAGIC Funds, Defi labs etc., in your corner can be the competitive edge that you have over other projects. Incubators have teams that are dedicated to different aspects of a project ranging from fundraising to product development, marketing, business strategy and community development, and legal consultation. For a more concise understanding, these services provided by Incubators will be categorized into Fundraising, Product Development, Marketing, and Legal Consultation.

Fundraising.

In its early days, your crypto project will need a whole lot of funds to get things started. From physical infrastructure like office space to the entire budget for marketing, you will need sizable funds, to begin with. Let’s not forget that while your product might not have reached profitability just yet, you still need to pay team members. So, at this point, you are really just spending a lot of money to create your minimum viable product. Incubators can provide the funds that you require to kick-start things. An example to buttress this point is Binance Labs which provides selected projects in their incubator program with a seed fund of up to $10 million dollars, to begin with. This is only a seed investment that could increase as the project continues to grow. This is just an example of how much funds Incubators are willing to put into your project.

Product Development.

Whether you are trying to set up a new Blockchain and token, you are building the next big Defi protocol, or you are developing a next-level GameFi project, your project development trajectory is of the utmost importance to the success of your project. From development to beta-testing, to launch, and even marketing campaigns, you need all the advice you can get on best practices to improve the chances of success. Incubators (Crypto Incubators to be exact) are best suited to providing this kind of advice because oftentimes, the incubator teams have a working and profitable product within the Blockchain and Cryptocurrency space, and can draw from that experience to provide you with the necessary technical and non-technical advice that you might need. These Incubators also have experience with projects like yours so you can rest assured that you are in good hands.

Marketing.

In the Blockchain and Cryptocurrency industry, you should be almost the same level of effort into your product and marketing. While this might sound counterintuitive to some, it should be treated almost like an unshakeable law. You do not want to spend all your time working hard on making your Blockchain product the best in the market, only to fail because no one has ever heard of your product, or your competition is investing in marketing more than you are. Incubators have experience with what you are trying to achieve and know the right influencer networks you might need to work with, Digital Marketing tactics to employ and the offline, conventional methodologies to use. Incubators also contribute to community building as part of Marketing. This provides you with a conduit that can help share your latest updates and important news with a larger audience, even while providing a congregation of people who not only believe in your project but are also invested in it.

Legal Consultation.

Many within the Blockchain space are of the opinion that the industry is still in its infancy, and this is plausible considering the current position with Crypto regulations in the world. For the most part, many countries are still developing their regulatory frameworks for Crypto and all things Blockchain related. To avoid a situation where you violate some of these regulatory guidelines and incur unnecessary penalties or even a complete ban, your project needs to work closely with legal professionals within your region of operations. Incubators have notable experience with the legal side of the business and have the appropriate contacts to help you hire the best legal professionals who can help your startup navigate sometimes turbulent seas of regulation.

So Incubators have no Downsides?

Oh, Of course, Incubators are not all sunshine with no rainy days (Forgive me, I had to do that). The thing is I do not think these factors should be called downsides. I think they are just factors you need to be aware of before you decide to join an incubator. First, you need to know that Incubators often have some significant equity in any startup or project that they invest in. This equity could be so significant that it gives the incubator considerable control over the startup and its operations. This means that you might not have all the control you wish to have and decision-making might be much slower. In all of these, you need to be aware of how much these incubators are putting into your project and that might allow you to see the bigger picture when things get a little uncomfortable.

In Conclusion.

So yes, that was quite a ride. Even I think I have read enough about Incubators to last a week! If you’ve got that Blockchain, Crypto or better still Web3 startup that you will like to bring to life, you must evaluate your situation. Determine what option best suits your startup. Are you gonna bootstrap or are getting incubated? It’s all up to you. After all, the Blockchain is your playground. So Play.