Pain Points
The web3 movement is emerging, we can see clearly that more people talking about that.
In "uptrend" phase, throwing money into projects seems a norm to community of investors. An distinct pitch-deck or a well arrange white-paper have convinced people to invest easily without "fact-checking" or due diligence the project team behind.
As an active investor, of a VC partner - what urges you to invest. The startup that has potential in successful launch and generates revenue as its projection.
However, how deeply you understand the start-ups and its team are more important.
VCs and retail investors have been severely damaged by the collapse of Alameda Research/ FTX or Terra Labs or Three Arrow Capital by these following:
VC FOMO: The fear of missing out on potential gains associated with established names has led to hasty investment decisions, resulting in financial losses.
Communication Gaps: Deficient communication between VCs, investors, and project teams hinders informed decision-making, further exacerbating risks.
Misuse of Funds: Instances of fund mismanagement within Web3 projects have contributed significantly to investor losses.
Incomplete Investment Flow Management: Lack of comprehensive oversight over fund flow leaves investors exposed to unforeseen risks.
Meanwhile, Startups often struggle to find the resources and support they need to help good builders thrive. Limited access to networks and relationships within Web3 creates significant time pressures, shortening runways and increasing stress levels.
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