Cronos’ Accelerator Model Is A Critical Lesson for The Web3 Industry

There is a brief moment when a rocket is launched out of a submarine.  It uses one type of propulsion to force the rocket quickly out of the sub, and fast enough to fully clear the surface of the water.  At this point, the rocket's main propulsion ignites and it shoots off into the sky.  However, in between this switch there is a perilous moment when the rocket loses momentum, hangs in the air, and even begins to tip and fall.  In this split second it is unclear if the ignition will happen or if the rocket will fall back into the ocean.  

This moment exactly describes where the Web3 industry is right now.

The last few years have propelled Web3 out of the shadows, spreading the word into wider society, and exploding with development.  DeFi, the metaverse, and NFTs have all hit mainstream news channels and have created massive buzz in the news cycles.  However, some of that buzz has not been positive, forcing the industry to lose momentum.  And with widespread adoption a critical milestone in the success of Web3, we need to expand beyond the exchanges, the NFT collections, the early stage metaverse attempts, and the P2E games.  These are all important and a key part of Web3, but the world needs to see unique, valuable use cases that will benefit a wide audience.  Gaining a wide offering of diverse and powerful use cases is critical for Web3 to finally ignite and take off into mass adoption.  While a natural evolution will continue to produce more use cases, the industry needs that evolution to happen fast.  Enter the Accelerator.

An accelerator program is not new to Web3, but has seen strong use among some of the larger Web3 ecosystems.  Cronos Labs in particular has made quite the splash with their $100 million accelerator investment, but not just because of its size.  The program is a model in how to grow an ecosystem quickly, but also how to maximize the chance for success in each participant, how to ensure a diverse and healthy ecosystem, and how to manage the right pace of growth.  Let's dig into their model to see how it works, why it has proven so effective, and how it will affect the Web3 industry as a whole.

The Cronos Model

According to Cronos, their Cronos Accelerator Program "aims to support early-stage crypto projects by providing mentorship and funding opportunities."  The platform is searching to find top projects across all industry verticals, especially those projects that build up practical, real-world use cases.  The goal is to create dApps that have real value and that people will want to use.  

Specifically, the program runs for 12 weeks for those few top-ranked projects selected, with a maximum of 8 startups supported in each cohort.  There are a number of sessions that help the startups with critical resources and skills, including mentorship, master classes, how to market their project, and how to gain financial support.  The Cronos team also provides introductions to strategic partners, which will be critical for the startups to find the right connections to grow their ideas into fully operational platforms.

The program is currently accepting applications for its third cohort of the program (winners will take part during Q1 2024), and has already seen significant promise with previous startups who participated in Cohort 1 and 2.  While many of the teams have gone on to create successful platforms with private funding, a standout among the group has been Earn Network, which raised $2.7 million for its development.

Keys to Success

What is important to note about the accelerator program is how it is designed to maximize success for its participants, but also designed to accelerate the growth of the larger Cronos ecosystem.  There are three elements that make this program particularly successful.

First, an accelerator program is different from a straightforward grant program.  While stimulating development by funding projects can be beneficial, as it eliminates the effort needed to find investors, a grant program only helps to solve a single problem.  Startups struggle with much more than just funding.  Many startups are created because an expert has a great idea.  This expert is rarely well versed in engineering, business operations, finance, marketing, and strategy.  They are often an expert in one area, and perhaps knowledgeable in another.  It takes dedicated mentorship and training to develop in all these areas, and an accelerator program can provide this in a dedicated way.

Second, Cronos is able to view its current ecosystem and determine what areas it has gaps.  With over 350 applications in the second cohort, it is able to identify the use cases it needs most, then find top performing startups that will most likely succeed in adding value to the Cronos ecosystem.  This type of targeted growth allows Cronos to be a well balanced ecosystem for its users, which adds tremendous value to everyone involved.  This appeal then encourages more platforms to build on Cronos, creating a positively reinforced cycle of growth.

Third, using a cohort-based approach allows Cronos to practice iterative improvements to its own process.  By taking eight startups at a time, focusing closely on their growth, then seeing the results, they are able to adjust their approach and improve the program for each new cohort, increasing the quality of support consistently.  This agile-based approach is far superior to one large cohort, and will result in more value for every dollar invested into the program. 

Looking Ahead

Though Web3 is in a delicate balance right now, and needing desperately to broaden its use cases for real-world use, there is hope in the success of the accelerator programs that Cronos and other ecosystems have employed.  By cultivating a Web3 ecosystem and driving high-value growth to those gaps where it is most needed, the Web3 industry can ignite and truly launch skyward toward mass adoption.