With the markets picking up, we see more investor movement and projects aiming to reignite their funding rounds, and Web3 startups continue to expand as key players in the digital landscape.
In order to succeed in a market potentially competing with legacy tech startups, Web3 projects often need to present strong, diverse and efficient teams with the right blend of qualities that can attract investors and secure funding at very early stages. Investors and VCs typically assess and request evidence for various people-related indicators when considering funding a project, such as a team's background, expertise, commitment, and synergy. Consider this from day 1, build a team that meets these expectations, and your Web3 startup can significantly increase its chances of attracting investment.
Building a TEAM with a minimal crew
A lean team is key for startups to adapt quickly to change, while you’re not market-proof, and appeal to investors looking for a straightforward critical path to operations and delivery. Here are some tips for building a lean team:
Clearly define roles and responsibilities to maximize efficiency, which can show a well-structured organization to investors.
Focus on hiring individuals with essential skills that complement each other, showcasing a balanced team that can tackle various challenges.
It’s ok to go for a small team, avoiding the complexity that comes with multiple overlapping roles at this stage. Don’t overengineer your team design.
Essential Roles for Web3 Startups
Let’s consider the pivotal roles to be - besides you, the Founder - a Technical Lead, Product Manager, Marketer, as well as Business Developer. Investors and VCs typically seek startups with a strong core team. To fill these roles, remember to:
Seek out candidates with proven experience in the relevant fields, which can instil confidence in potential investors. Don’t, however, get too dependent on profiles with big-sounding names in their backgrounds.
Look for individuals who are passionate about learning and growing in the Web3 space, as this can signal long-term commitment and drive. How you develop and grow your team will also showcase your management skills.
Tailor your selection to your needs, ensuring 100% output down the line. Otherwise, you as Founder will end up picking up the slack on a topic you might not be an expert on.
Identifying Great Web3 Talent
Great startup talent for Web3 companies will present itself to you as a strong entrepreneurial mindset, adaptability, and a problem-solving attitude – qualities that investors and VCs look for in both spirit and track record. To tap into potential great fits, consider:
Leveraging your network and attend industry events to find potential candidates, as personal connections often lead to warm introductions to investors. Work your immediate and extended communities. Great projects attract great people, and your next great addition might be right in front of you.
Using Web3-native platforms tailored for the blockchain sector to find candidates with a history of success in the industry. Finding people with experience in Web3, not only boosts confidence in your team’s ability to read the needs and design a path there but reduces attrition and turnover risk.
Don’t hesitate to correct hiring mistakes. Your ability to adjust course is also under scrutiny. You will get to a stage where you can take leaps of faith with people. But doing so now would mean asking the same of more risk-averse potential investors.
Leverage Team Experience
Team experience can go a long way in securing funding by showing a deep understanding of the industry and showcasing a skilled, seasoned team. Investors and VCs are more likely to grant funds to projects with a solid team foundation who’s overcome similar challenges in the past. To leverage your team's experience:
Highlight your team members' expertise, past achievements, and contributions to the field in your pitch deck or investor presentations. This will help build credibility, trust, and perceived chances of success.
Emphasize the synergies within your team and how their unique skills complement each other, evidencing the potential for great collaboration and project execution.
Ensure the above is also clear to your team, highlight it with them, and make it clear how much they can achieve together. This is as important - if not more so - as ensuring potential investors know it.
Presenting the Team in the Best Possible Light
This is what it comes down to. Presenting the team well is essential for attracting investment and building credibility in the Web3 space. To present your team in the best possible light and appeal to potential investors:
Focus on emphasizing their qualifications, relevant experience, and passion for the project, which will signal and invite commitment.
Share stories of their past successes and their ability to overcome challenges, showcasing resilience and adaptability that investors value.
Highlight how the team can deliver on today’s milestones, but also farther down the roadmap. The decisions you make regarding the team and how you get the best out of them will also show investors your management skills.
Founders will often try to make investors see the team through their eyes. This is a mistake. Instead, try seeing your team through the investors’ eyes. You’ll gather a much more objective view and have a better chance of understanding and meeting what they’re looking for.
Building a strong, capable team is crucial for the success of any Web3 startup and can really impact your chances for funding. By focusing on creating a lean team with clearly defined roles, matching key needs to talent, and leveraging your team's experience, you can set your startup to make sure your People front not only is seen by VCs and investors, but plays a decisive role in getting those grants.