Crypto Grassroots Funding Is Real: But Who Are The Winners?

Source: Midjourney

For any business starting out, raising funds to realize a vision is a critical piece.  The more standard approaches to finding capital can be limited, especially if the business idea can't attract those entities willing to invest.  For the Web3 community, options can be further limited simply by the fact that many people still don't understand what Web3 can offer, and might have only skewed ideas of the industry taken from "crypto scam" headlines.  This is unfair to the many Web3 development teams with good ideas, solid business plans, and everything but the money to make it happen.  

Web3 businesses seeking funds usually follow one of a handful of paths, each with its own challenges.  The most straightforward approach is to self-fund, with either the team's money or with loans/grants from friends and family.  This obviously might not work if those involved don't have the extra capital.  Standard bank loans for starting a small business is possible, but requires all the standard scrutiny of a bank loan, plus the hope that the person making the decision to loan is familiar with Web3.  Crowdfunding using platforms like GoFundMe is possible as well.  However, this requires a strong marketing campaign to bring Web3 investors to the site, sell them on the idea, and then to endure the eye-watering fees from such crowdfunding platforms.

Web3 funding models like Nexera Fundrs are emerging to fill this critical gap.  The program is unique in its ability to support these Web3 startups while bolstering community involvement, and the Web3 projects have begun to benefit from both the funds and the community knowledge that is contributed.  Let's look at why the Fundrs model is especially beneficial to Web3 startups, and discover what kind of projects are benefiting as a result.

The Fundrs Model

Because of these challenges, the Fundrs platform was developed as a way to incorporate the benefits of standard crowdfunding but with a Web3 focus, very low fees, and with more tools that allow for transparency and efficiency.  Focused on "participatory capitalism," the decentralized protocol allows blockchain-based projects to set up as "Seekers", using the platform to pitch their idea and, if the community is interested, receive funding.  Platforms provide an overview of their financial goal, their development plans, and why the community should invest.  Fundrs helps the projects to gain the attention of their community, then provides a one stop shop for the project's private token sale.  These platforms benefit not just from funding, but from the expertise of the community, with access to mentors, experts, and those from the community willing to share their experience.  The funders benefit from discounts, reward programs, and the ability to have a voice in the projects they support.  The projects supported to date have been diverse, and through their support from Fundrs have managed to energize their communities.  These communities in turn have proven more than willing to support and back the project's success.  Here are three of the largest projects funded so far:

Nuklai:  $2.55M Raised

Nuklai is a collaborative data marketplace and the infrastructure provider for data ecosystems.  By far the largest project on Fundrs, the platform has set up multiple funding rounds as it builds up its business offerings and capabilities.  Fitting into the intersection of AI, big data, and blockchain, Nuklai's goal is to build up large data collections that can be used by businesses to create insights, predictions, and a better understanding of their customers/industries.  The platform utilizes AI to develop its own data insights, which allows an additional product line for customers along with the ability to customize these services for those who need them.  Raw data can also be sold by the growing number of clients who need to use it for their own analysis. Using blockchain allows Nuklai to become more transparent and offer trustless access to clients, which is more secure but also allows the system to be more efficient. As it grows, Nuklai hopes to bridge the fragmented data landscape and help clients get the data they need to be successful.

Arkefi AG:  $200K Raised

Arkefi AG was established to help democratize the ownership and investment of high-value art, cars, and collectibles.  Blockchain is an ideal architecture for fractional ownership, with smart contracts fairly and transparently managing the purchases of the different pieces, providing proof of ownership for the investors, and handling the selling of assets and distribution of profits (along with the collecting consensus to sell a given asset).  Governance, community engagement, and even rewards can easily be implemented in this system, providing a safe method for those wishing to invest in the fractional ownership of high-value assets.   There are, of course, non-blockchain platforms that offer fractional ownership, but these lack the automation and transparency needed for this type of investment to be performed for a global community, with the physical asset located anywhere.

Galileoprotocol.io

Galileo Protocol also concerns itself with luxury products, but for a different purpose.  The platform's goal is to utilize blockchain, AI, and pNFT technology to enhance the ownership and authentication of luxury goods and real-world assets (RWAs).  By purchasing the native token LEOX, users can mint a pNFT of their luxury item, and as part of the service create a linked digital twin that will contain the data necessary for origin authentication, the digital trail of ownership, and verification that the asset is authentic.  The platform recognizes the massive and growing counterfeit market globally and believes this model will help to protect those who own and purchase luxury goods, allowing peace of mind by preventing counterfeits passing themselves as authentic items.

Looking Ahead

With the success of the funded projects so far, the Fundrs platform will continue to grow as more Seekers elect to leverage the funding opportunity.  As Web3 continues to develop as well we will likely see more projects seeking to provide crowdfunding services specific to Web3 startups, using the many benefits of on-chain transparency and smart contract efficiency to connect promising startups with eager and supportive communities.