The Evolution of Web3 Fundraising
In 2017, ICOs allowed startups to raise millions with just a white paper. However, the hype led to many failures and scams, causing regulatory crackdowns. Today, investors demand more: working products, sustainable tokenomics, and real market demand. Despite the challenges, strong Web3 projects still attract funding.
This guide explores the best ways to raise capital in Web3, covering everything from VC funding to crowdfunding platforms.
1. Incubators and Accelerators
Incubators and accelerators provide early-stage Web3 startups with mentorship, resources, and funding.
Incubators help at the ideation stage, offering guidance and networking.
Accelerators work with startups that have an MVP, helping them scale and secure investment.
Top Web3 Accelerator Programs:
Outlier Ventures Base Camp – A 13-week accelerator for Web3 startups.
Alliance – Daily mentorship and flexible funding.
Antler – A global early-stage investor with a structured program.
Brinc – A 10-week accelerator with funding and global networking.
Cointelegraph Accelerator – Offers up to $100,000 in smart money, connecting startups with industry leaders.
To join these programs, research alignment with your startup, create a compelling pitch, and apply early.
2. Venture Capital (VC) Funding
VCs provide substantial funding, but they are selective. Successful Web3 pitches must showcase:
A strong business model.
Sustainable tokenomics.
Clear legal compliance.
Proven market traction.
How to Secure VC Investment:
Target the Right VCs – Focus on firms with Web3 expertise (e.g., Alchemy’s Web3 VC list).
Stand Out – Highlight unique value propositions.
Structure the Deal – Negotiate investment amounts, equity/token splits, vesting schedules, and governance rights.
Prepare for Due Diligence – Ensure legal, financial, and tokenomics documentation is in order.
Warning: Watch out for fake VCs targeting Web3 startups.
3. Angel Investors
Angel investors are individuals funding early-stage startups. They typically provide smaller amounts than VCs but offer flexibility and mentorship.
Where to Find Angel Investors:
Conferences like Token2049, ETHDenver, and Consensus.
Web3-specific Twitter (X) and Telegram investor groups.
Warm introductions through networking.
Angel investors often invest in projects they are passionate about, so tailor pitches accordingly.
4. Grants and Ecosystem Funds
Many blockchain networks offer grants to projects that enhance their ecosystems.
Examples of Grant Programs:
Rootstock Grant – $2.5M quarterly for Bitcoin layer-2 projects.
Starknet Seed Grant – Funding for early-stage projects with MVPs.
How to Secure Grants:
Align with the grant provider’s mission.
Demonstrate viability with a clear roadmap.
Highlight community and ecosystem benefits.
Follow application guidelines precisely.
5. ICOs and Token Sales
ICOs still exist but require compliance with securities regulations.
Steps to a Successful ICO:
Develop a transparent tokenomics model.
Set realistic funding goals.
Build community trust.
Ensure legal compliance to avoid regulatory issues.
Influencers can also boost ICO visibility, but ensure ethical promotions.
6. Crowdfunding in Web3
If traditional investors aren’t an option, crowdfunding can bridge the gap.
Gitcoin Grants – For open-source blockchain projects.
UFANDAO – A decentralized fundraising platform with zero commissions.
Crowdfunding may not raise millions but can provide crucial early-stage capital.
Exclusive Insights: Web3 Fundraising in 2025
Anna Shakola, Head of Business Development at Cointelegraph Accelerator, shares key insights:
What Are Investors Looking For?
Infrastructure and B2B solutions are in high demand.
Market validation is more important than hype.
Investors favor startups with clear roadmaps and execution strategies.
Advice for Web3 Startups:
Define Your Identity – Solve a real problem.
Research Investors – Target relevant #VCs and accelerators.
Explore Grants – Ecosystem funds are underutilized.
Seek Smart Money – Investors who offer strategic value.
When to Pivot or Move On?
If money runs out, traction is low, and investor interest is nonexistent, it may be time to pivot or start a new venture.
Navigating the Future of Web3 Fundraising
Fundraising in Web3 has matured, requiring more than a white paper and hype. The key to success is a strong project foundation, strategic partnerships, and adaptability. Whether through VCs, angel investors, grants, ICOs, or crowdfunding, the right funding method depends on your startup’s stage and vision.
For those struggling, remember: the best founders know when to persist—and when to pivot.
Good luck with your fundraising journey!