EddieJayonCrypto

 14 Oct 24

tl;dr

The article provides insights from leading venture capitalists (VCs) in the crypto space on the criteria they use to evaluate projects. It is segmented into three primary areas: business and strategy, product and technology, and marketing and community. VCs prioritize factors such as founding team a...

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VCs' criteria for assessing crypto projects: Insights from leading venture capitalists including Axia8 Ventures, Bing Ventures, Outlier Ventures, and Capitable Group


Business and Strategy: Founding team, leadership, vision, long-term strategy, and regulatory compliance

Product and Technology: Product-market fit, MVP, scalability, and technical infrastructure

Marketing and Community: Partnerships, strategic alliances, community, and network effects

Conclusion: Key factors for evaluating crypto projects and increasing chances of securing funding


The article provides insights from leading venture capitalists (VCs) in the crypto space on the criteria they use to evaluate projects. It is segmented into three primary areas: business and strategy, product and technology, and marketing and community. VCs prioritize factors such as founding team and leadership, vision and long-term strategy, regulatory compliance, product-market fit, MVP development, scalability, partnerships and strategic alliances, and community and network effects when assessing crypto projects. The article emphasizes adaptability and regulatory navigation as crucial for a project's long-term success.


When evaluating crypto projects, VCs rely on a distinct set of criteria that reflect their investment philosophy and the project’s potential. These criteria can be segmented into three primary areas: business and strategy, product and technology, and marketing and community. In this article, we gathered insights from leading venture capitalists (VCs) across the crypto space to shed light on what they look for when assessing crypto projects. Contributions come from experts at Axia8 Ventures, Bing Ventures, Outlier Ventures, and Capitable Group, who shared their perspectives on the key criteria that determine whether a project is worth the investment.


BUSINESS AND STRATEGY

VCs look at several things from a business and strategy perspective. Let’s take a closer look at them:

1. FOUNDING TEAM AND LEADERSHIP

For most venture capitalists (VCs), evaluating the team behind a startup is the critical first step in their investment decision. A strong, experienced, and cohesive team can significantly influence a startup’s potential for success. VCs typically assess the founders’ track record, leadership skills, industry expertise, and ability to execute their vision. They also look for team dynamics, such as how well the members collaborate, handle challenges, and adapt to changing market conditions.

Wayne Lin from Axia8 Ventures emphasizes, “We invest in people first. The founder’s vision, adaptability, and resilience are key to our decision-making. If a founder can pivot and iterate multiple times, even after setbacks, we know they have what it takes to succeed”. This people-first approach is critical in early-stage projects where the product is still being developed. Echoing this sentiment, Bruce Lan from Bing Ventures adds, “The ability to execute and adapt is what sets great teams apart. VCs need to see not only technical expertise but also the soft skills needed to lead and inspire teams through uncertain market conditions”. Strong leadership, combined with clear communication, often makes or breaks a project in its early days.

2. VISION AND LONG-TERM STRATEGY

For venture capitalists (VCs), a project’s long-term vision is very important when making investment decisions. They aren’t just interested in quick profits; they want to see a clear plan for how the project will grow over time. The project needs to show how its goals fit with bigger trends in the industry so that it can keep up as the market changes. VCs look for projects that can adapt and stay strong in the future, not just ones that do well right now. A solid long-term vision helps investors feel confident that the project will succeed in the long run.

As Pietro Negri from Outlier Ventures explains, “We look for teams that understand their industry’s trajectory and are positioned to evolve as trends shift. Projects that capitalize on emerging sectors and adapt to the market’s needs stand out.” Innovation alone isn’t enough. Bruce Lan from Bing Ventures emphasizes that “VCs want to see that a project is not only innovative but also relevant to where the market is headed. Having a clear vision of how the project fits into future industry developments shows foresight and adaptability.” This adaptability is key to ensuring a project’s long-term success in a rapidly changing environment.

3. REGULATORY COMPLIANCE

With more regulations coming in, compliance isn’t optional anymore—it’s a must. Projects that focus on legal issues show investors they’re less risky. VCs prefer projects that are ready for future regulatory changes. Following these legal rules not only reduces risk but also helps ensure the project’s long-term success as the crypto industry

More about MicroStrategy Incorporated

MicroStrategy Incorporated Summary

MicroStrategy Incorporated provides global business analysis software and services. The company is headquartered in Tysons Corner, Virginia.

Sector: TECHNOLOGY

Industry: SERVICES-PREPACKAGED SOFTWARE

Market Cap: 43,076,686,000

Dividend Yield: None

Beta (5Y Monthly): -1.87

EPS: 2.901

PE Ratio: -0.437

Revenue: 480,634,000

Stock Price: $201.97

1-Year Change: -0.775

1-Year Change (%): -0.074

Disclaimer

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