The rise of Web3 and decentralization is radically changing the approach to startup funding, opening access to capital through crypto tools.
Challenges of Traditional Funding
Traditional startup financing, including attracting venture capital or bank loans, involves numerous challenges. Prolonged approval processes and numerous investor meetings rarely yield success—less than 1% of companies secure financing.
Crypto Funding and the Role of Launchpads
Decentralized technologies like blockchain and crypto launchpads are transforming how startups engage with investors. Crypto platforms allow projects to raise capital through token sales, bypassing traditional barriers. Platforms such as Trustpad and Polkastarter help startups present their ideas and provide critical liquidity.
Liquidity Pools and Investor Protection
Liquidity pools, such as Liquidity Bootstrapping Pools (LBPs), offer solutions to mitigate price manipulation risks on the market. They allow new projects to set fair token prices, avoiding the influence of large holders and bots, protecting project reputations and ensuring reliability for retail investors.
Decentralized tools and platforms provide more transparent and accessible ways of funding startups, opening new opportunities for projects and supporting investors.
