If you are still thinking about applying for our Web3 Development Fund, this is the ideal opportunity to convince you. Read an interview with our team of experienced entrepreneurs from the Web3 space and find out what you need to start a successful startup. And of course, don’t forget to apply until June 30th!

1. What are the most important elements a startup needs to have to succeed?

Luka: First and foremost a clear vision and solid strategy are fundamental. They need to know what they want to achieve and how to get there. I see sometimes many teams who are just making things up as they go and that’s not always the best approach. Secondly, the team's strength is key!

They should have a diverse range of skills, relevant expertise, and work well together. In the past couple of years, this is one of the most important things that helped startups to survive and then strive. It’s usually the team with the most grit, perseverance, and resourcefulness that makes it.

Nebojša: The most important elements a startup needs to have to succeed are the same elements we will actually use to evaluate and fund startups within the Web3 Development Fund. Some of the most important are team background and previous experience, product market fit, business model, and development plan.

Benja: A successful startup fundamentally requires driven and visionary founders, a product or service that fulfills a significant market need, and innovative technology that sets it apart. But that's just the foundation! A startup should also operate in a large and growing market and be capable of scaling its operations to meet increasing demand. Its success hinges on precise execution, launching at the right time, and remaining adaptable in a rapidly evolving business landscape.

Marko: The most important elements for a startup to succeed are a strong vision and unique value proposition, a skilled and committed team, a deep understanding of the target market, a scalable business model, and the ability to adapt and overcome challenges. But in more detail!

A startup should have a clear vision of what problem they are solving and how they differentiate themselves from competitors. A unique value proposition helps attract customers and investors.

Their success heavily relies on the expertise, dedication, and cohesion of their team members. They should possess the necessary technical and business skills, complement each other's strengths and weaknesses, and be passionate about the startup's mission. Startups need to thoroughly understand their target market, including its size, trends, and customer needs. Conducting market research and staying updated on industry developments is crucial for making informed decisions and adapting to market dynamics.

One of the most important things is having a viable and scalable business model that allows for growth and profitability over time. This involves identifying revenue streams, estimating costs, and planning for future expansion. And in the end, they often face challenges and unforeseen obstacles. Being adaptable, willing to iterate, and learning from failures is crucial for survival and long-term success.

2. Can you tell us more about the unique challenges that startups face in Web3?

Luka: The most significant challenges, include regulatory uncertainty. It's very hard to build in an unstable and murky environment. You don't know when and if some random decision is going to kill your business model. There's also technical complexity due to the nature of decentralized systems and blockchain technology. Finally, user adoption is a hurdle, given that the general public is still gaining an understanding of Web3.

Nebojša: There are many challenges startups face in the Web3 world, but some I would like to point out are related to the accessibility of funding for such startups. Those challenges include limited understanding and awareness, regulatory uncertainty, reputation, and trust

Web3 concepts, such as blockchain, decentralized finance (DeFi), and non-fungible tokens (NFTs), are relatively new and may not be well understood by traditional investors. This lack of understanding can make it difficult for web3 startups to attract funding from conventional sources.

The regulatory landscape surrounding web3 technologies is still evolving. Governments and regulatory bodies are grappling with how to categorize and regulate cryptocurrencies, token sales, and decentralized applications. This uncertainty can make investors hesitant to fund web3 startups due to potential legal and compliance risks.

The web3 space has witnessed instances of scams, hacks, and fraudulent projects, which can erode trust among investors. Building a strong reputation and establishing trust becomes crucial for web3 startups to attract funding. This can be challenging, especially for early-stage projects without a proven track record.

Despite 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.

Benja: Web3 startups face their challenges like any other startup, just more intense. Making Web3 technology accessible and user-friendly is one of the biggest in my opinion. Coming up with sustainable monetization models that align with the principles of decentralization presents an economic challenge. Technically seen, achieving interoperability among different Web3 platforms is a complex but necessary hurdle to success.

Marko: Startups in Web3 face unique challenges, including navigating the technical complexity of blockchain and decentralized technologies, dealing with regulatory uncertainties, driving user adoption, and securing funding from investors who may still be getting familiar with the Web3 ecosystem.

Web3 technologies, such as blockchain, decentralized finance (DeFi), and non-fungible tokens (NFTs), come with a steep learning curve. Startups need to understand and navigate these technologies to build innovative and secure solutions. The regulatory landscape surrounding Web3 is evolving, and startups may encounter legal and compliance challenges. It is important to stay updated on regulations and seek legal counsel to ensure compliance while pushing boundaries.

Web3 products often rely on user adoption and network effects. Convincing users to embrace decentralized solutions and change their existing behaviors can be a significant challenge. Startups need to focus on building intuitive user experiences and educating users about the benefits of Web3.

While the Web3 space has witnessed significant investment, securing funding for Web3 startups can still be challenging. Investors may require a deeper understanding of the technology and its potential impact. Building relationships with investors familiar with the Web3 ecosystem is crucial.

3. What is the first thing that you check in an application for Web3 Development Fund?

Luka: The first thing I usually check is the team. I believe that carries 99% of the success rate! Any startup's success is heavily dependent on a strong, balanced team. Their expertise, past experiences, and commitment levels can show the startup's potential to succeed. It’s almost never the straight As that make it but scruffy resourceful coachable teams that are capable of transforming into new roles when the situation dictates. I have seen developers becoming stellar CEO just because of the right mindset!

Nebojša: It’s definitely who stands behind the project - the founders and the whole team. It is really important for us to partner with founders with a clean track record and who are passionate about building a startup in a Web3 space. Previous entrepreneurial experience is definitely a plus!

Benja: First of all - the team, their skills, and determination. After that, I evaluate how well they have articulated their problem statement and proposed solution. The most important attribute for the deck is that everybody understands the statement and solution, from the perspective of the listener's knowledge.

Marko: When reviewing applications, the first thing to assess can vary, but commonly it includes evaluating the team's qualifications, experience, and track record, understanding the startup's vision and problem-solving approach, analyzing the market potential and scalability of the solution, and assessing the technical feasibility and merit of the project.

4. What type of projects according to you have the greatest potential to grow and potentially become industry disruptors?

Luka: It’s hard to tell. Especially now in this current environment. But I’m betting on startups focusing on Defi and Web3 social, well basically anything that is trying to disrupt well-established, extremely lucrative business models that exist for years (and sometimes centuries) and are “common knowledge”.

Nebojša: I believe those are the startups who successfully solve some of the biggest issues Web3 space faces at this moment. And those are scalability and efficiency and enhanced user experience.

As Web3 applications gain traction, there is a need for improved scalability and efficiency. Advancements in consensus mechanisms, sharding, and layer 2 solutions like state channels or sidechains could help address scalability challenges and enhance the overall user experience.

Web3 aims to provide a user-friendly and intuitive experience, making blockchain technology accessible to a broader audience. Improvements in user interfaces, developer tools, and education initiatives could help lower barriers to entry and encourage wider adoption.

Benja: Projects that leverage blockchain technology through innovative concepts like token-bound accounts and account abstraction have the highest disruptive potential. Token-bound accounts for example allow for the binding of services, rights, or assets directly to a token, making them easier for users to manage and trade. They are simply more adaptable to our world today and solve issues of intermediaries. Another topic is account abstraction, it hides the underlying blockchain complexity from users, making it more user-friendly and potentially boosting adoption.

Marko: Projects with the greatest potential to become industry disruptors are those that address unmet needs in the market, embrace emerging technologies, offer innovative and user-centric solutions, and have the ability to scale and adapt to changing market dynamics.

Disruptive projects often solve problems that are currently underserved or overlooked by existing solutions. Identifying gaps in the market and offering innovative, user-centric solutions can lead to significant disruption.

5. In the end, can you give advice to the future applicants of the Web3 Development Fund?

Luka: I'd say do your research! Know your sector, the key players, and the latest advancements. Second, build your network. Engaging with other Web3 entrepreneurs and participating in industry events can open up a wealth of opportunities. Third, always focus on the user. Despite the complex technology, the user experience should be simple to promote adoption as much as possible. It's not complicated as you see!

Nebojša: We are still very early in Web3 and we are now building its foundations. I encourage everyone to step into Web3 and contribute to it by building new products that will bring value and onboard new users. I believe our Development Fund will help them to kickstart their projects and get access to a valuable network of experts that can help them along the way.

Benja: My advice is rooted in the spirit of the crypto movement: "Don't Trust, Verify." You are the entrepreneur, you are the asset, your idea is the vessel, and we at the fund serve as the sails to help you navigate. Be audacious and visionary, but also pragmatic and realistic. Remember, it's not just about the technology, but also about building a strong community, collaboration, and creating tangible impact in the real world.

Marko: First and foremost, clearly articulate your vision and highlight the unique value your project brings to the Web3 ecosystem. Build a skilled and passionate team that aligns with the requirements of your project and showcases commitment to its success.

Thoroughly understand your target market, conducting comprehensive research to identify their needs and pain points. Demonstrate the technical feasibility and scalability of your solution, presenting a well-defined roadmap. By following these guidelines, you can enhance your chances of securing support from the Blank Web3 Development Fund.

For more information about the Program timeline, check our website and follow us on Facebook, Instagram, LinkedIn and Twitter. Good luck!