We would like to say a massive thanks to all who joined our AMA “How to get your Web3 startup funded?” that was held on June 21st on our social media platforms. In one hour's conversation Nebojša Veron, CEO of Blank and Danilo Polovina from the Rezolut agency, went over the most important topics related to the Web3 Development Fund that was released a month ago.

In more detail, Nebojša Veron is an entrepreneur and founder of several successful software companies. With an engineering background, he initially launched his career as a software engineer before transitioning fully into management. He is very passionate about cryptocurrencies and Web3 from its early days and building exceptional products and companies in the space.

Let’s take a look at some of the most interesting questions that could help Web3 startups and entrepreneurs to turn their business dreams into reality.

Q1: Tell us about your Development Fund. How did you come to the idea, and what do you want to achieve with it?

In the past few years the Blank team was helping our clients to bring their ideas to life, from launching an NFT collection, to building an NFT marketplace or creating a DeFi product. We were always happy to create something new that has the potential to onboard new users to Web3, but at some point we wanted more so we started partnering with some interesting projects in the Web3 space.

After a couple of partnerships, we decided to build an ecosystem through which we can identify promising projects and support them with what we do best - software development.

We realized that Web3 projects applying for different grants in the industry are often spending those funds on two things - marketing and development, and development is usually more expensive. Another tricky part is finding a reliable development partner and if you fail you might have spent all your funds already and got no product. So we thought, why not create a fund where projects get exactly that - software development services from a proven and reliable company. That’s how our Web3 Development Fund came to life!

Q2: What types of startups are you looking to support?

Startups have to be in the Web3 industry and in need of development services. We would love to see our applicants projects in the early, pre-funding phase because we believe that we can help those the most. They probably still have no product or have some basic MVP, and we can help them build everything from scratch, meeting the highest industry standards. Our program is globally available, there are no geographical restrictions, but all applicants should be fluent in writing and speaking English language.

Q3: What unique challenges do you believe web3 startups face in terms of funding?

The most common are limited understanding and awareness of main Web3 concepts to traditional investors, regulatory uncertainty and reputational issues.

But despite all these challenges, the Web3 ecosystem also offers unique opportunities for fundraising, such as decentralized crowdfunding platforms, tokenized investment vehicles, and community-driven funding initiatives. As the industry matures and regulatory frameworks become clearer, funding options and investor confidence in Web3 startups are expected to improve.

Q4: What are the criteria your platform uses to evaluate and fund startups?

I would put attention on four important things: team background and previous experience, product market fit, business model and development plan.

The first criterion evaluates the expertise, qualifications, and the track record of the startup's team members. It assesses their relevant industry experience, technical skills, leadership capabilities, and past entrepreneurial successes. We want to avoid any projects whose founders don’t have a clean background without any issues in the past.

Product market fit refers to how well a startup's product or service aligns with the needs and preferences of its target market. We want to see whether the startup has identified a real problem that customers are facing and if their solution effectively addresses that problem.

The business model outlines how a startup plans to generate revenue and achieve profitability. It includes elements such as revenue streams, cost structure, customer acquisition strategy, distribution channels, and competitive advantage. We look for startups with a clear and well-defined business model that demonstrates a path to profitability and growth.

And the last one is the development plan! We want to see the exact plan for the product or service and their envisioned roadmap for building the product.

Q5: How does Blank support startups beyond just providing funding?

Besides providing funding in the form of software development services, we can definitely help projects with our business expertise and previous experience in Web3 space. Not only that, our vision is to onboard new partners into the program, such as law firms and offices, marketing agencies, VCs and create the whole ecosystem for Web3 startups that can be beneficial to their success in the future.

Q6: Are there any conditions and guidelines in regard to spending the awarded funding for the startups?

Since the funding is not in the form of cash, startups spend it in a bit different way. Together with their founders, we’ll define the product and path that needs to be built. Depending on the amount of funding, we’ll allocate our designers and engineers for a certain period of time and deliver the product we agreed on. Startups won’t pay us for the development services but that’s the point of this funding!

Q7: What role do you see for decentralization in the future of startup funding?

I would like to mention three most important things for decentralization in the future: crowdfunding and tokenization, peer-to-peer lending and global access and cross-border transactions. But in more detail:

Decentralized platforms and protocols can enable crowdfunding and tokenization of startup projects. Through initial coin offerings (ICOs) or token sales on decentralized platforms, startups can raise funds directly from a global pool of investors, bypassing traditional intermediaries like venture capitalists or banks. This allows for greater access to capital for early-stage projects and enables a more inclusive investment ecosystem.

Decentralized finance (DeFi) protocols can facilitate peer-to-peer lending, where individuals can lend funds directly to startups in a decentralized manner. Smart contracts on blockchain platforms can automate the lending process, eliminating the need for intermediaries and reducing associated costs. This opens up alternative funding avenues for startups and enables more efficient capital allocation.

Decentralized technologies can enable startups to access a global pool of investors and conduct cross-border transactions seamlessly. Blockchain-based solutions can remove geographical barriers, reduce transaction costs, and facilitate faster settlement times. This broader reach and ease of cross-border transactions can provide startups with increased opportunities for funding and expansion.

Q8: How do you handle situations when a startup fails?

We’ll provide our funding in the form of software development services and we hope our platform will help startups gain access to other top quality services such as legal help, marketing etc. It’s up to startup founders to take care of the business and find a way for their product on the market. We’ll always be there in the form of an advisor, and we’ll be truly sorry if their business fails. But in the end, they don’t owe us anything!

Q9: What do you think sets your platform apart from other funding platforms?

I believe the platform is unique because it starts with the development of the product. We don’t offer cash funding that is later spent on finding the right development partner and getting them to build the product, but we offer the shortcut and fund you directly in the form of software development. That way, startups don’t have to spend time finding the right partner and potentially get scammed or not have their product delivered.

Also we are connected with people from different sectors who want to participate and help startups with their expertises such as law offices, marketing agencies, cloud computing providers and VCs. That’s practically all they need to start their business!

How to apply for the Fund?

Hope that this conversation encourages you to present your ideas and apply for our Web3 Development Fund! For more information about the Program timeline, check our website and follow us on Facebook, Instagram, LinkedIn and Twitter. And of course, don’t forget to send your application until June 30th!