Fundraising is never easy, but in Web3, it’s a different beast entirely. As someone who’s co-founded multiple companies in this space and actively supports founders through Disrupt.com, I’ve seen the disconnect firsthand. Many Web3 entrepreneurs approach fundraising with a traditional SaaS mindset—a mismatch that can tank their chances before the pitch even begins.
Traditional VC Rigour Still Applies, but It’s not Enough
Let’s be clear: fundamentals still matter. Vision, execution, and traction remain essential for any investment, including those in Web3. But in this space, these alone won’t close deals. You must demonstrate how decentralisation drives your product’s value, creating a better, more trusted, or more scalable solution.
Today’s investors are more discerning. They’ll walk if your token adds friction instead of utility, or if your product lacks demonstrated demand. Thoughtful decentralisation unlocks innovation; as an afterthought, it becomes a liability. Focus on proving why Web3 architecture makes your product better, not just different. Ditch the jargon. Explain the problem you’re solving and for whom. Show real use cases, even if small.
Narrative Isn’t Fluff, It’s Fuel
While utility and meaningful decentralisation are essential, narrative remains crucial. In an industry saturated with hype, having a genuine, positive story you can articulate distinguishes you from countless hopeful startups. A compelling narrative isn’t just a marketing tool, it’s foundational for driving community engagement, investor interest, and long-term viability.
Storytelling in Web3 is vital for connecting with audiences on an emotional level and fostering a sense of belonging that transforms users into advocates. This foundation attracts potential investors and helps projects weather market fluctuations, as their proposition extends beyond immediate financial incentives.
Capital Follows Trust, not a Pitch Deck
In the Web3 ecosystem, investors favour founders who have earned credibility within the community. Don’t wait until fundraising rounds to begin engagement—these relationships should be cultivated six to twelve months before you raise.
Active participation in industry discussions, contributions to open-source projects, and demonstrated thought leadership serve as powerful indicators of a founder’s commitment. Focus on being visible for the right reasons, consistency proves more valuable than virality.
Optimise for Strategic Alignment, Not Just Valuation
One of the most common mistakes founders make is chasing the highest valuation instead of the best partners. You want investors who genuinely believe in your model and will support you when challenges arise. Research potential investors’ portfolios to ensure alignment with your project’s goals, and be prepared to decline offers that don’t align with your vision, even with higher valuations. The right partners add value far beyond financial contribution.
Some Metrics Matter— Some Don’t
While high user acquisition numbers can appear impressive, investors are increasingly focused on metrics that demonstrate sustainable growth and meaningful engagement. Retention rates, active user interaction, and revenue serve as critical indicators of viability. Track how frequently users return to your platform, monitor revenue streams for healthy growth, and develop a clear token utility model that demonstrates tangible value. These metrics tell much more about your project’s potential than raw acquisition numbers.
Your Token Model Isn’t a Shortcut
Tokens should be integral components of your ecosystem, providing utility and aligning incentives. Poorly designed tokenomics lead to speculation without value creation. Tie distribution and unlock schedules to specific milestones, incorporate staking, governance participation, and utility-based rewards to encourage active token use. A thoughtfully designed token should be the backbone of your ecosystem, not just a fundraising tool.
Web3 x AI: Build at the Intersection
The intersection of Web3 and AI offers valuable opportunities for innovation. Projects that thoughtfully combine these technologies can improve user experiences and create new business models. Explore how AI might use blockchain data to deliver personalised features, build systems for AI-enhanced decentralised applications, and keep up with developments where these fields meet. Establishing your project where they connect may provide competitive benefits and reveal new growth directions.
Final Word: Play Smarter, Not Just Louder
In this space, the loudest founders often raise early, but the best ones build to last. Your token isn’t your business. Your narrative isn’t your strategy. Fundraising in Web3 is about building belief, and backing it with real-world results. Do that well, and capital will follow.
About the Author
Abdul Rafay Gadit is the Co-Founder and Head of Strategy at ZIGhain, a Cosmos-based Layer-1 blockchain backed by a $100 million Ecosystem Fund. As Partner and Head of Investments at Disrupt.com, he is helping drive a $100 million commitment to AI-first startups across Web3, cybersecurity, and retail innovation.
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