Welcome back to another exciting episode of Crypto Legends! Our esteemed panel takes a deep dive into the art of fundraising during the brutal crypto winters.
CEO of Keyrock, Kevin de Patoul, shares insights from his successful $72 million Series B raise, crediting a long-term perspective and resilience in building the company. Michael Stroev, COO & Head of Product at Nebeus, explore alternative funding avenues like convertible loan rounds and equity crowdfunding, critical tools for surviving challenging market conditions. Fabric Ventures' GP, Anil Hansjee, stresses the importance for startups to demonstrate their ability to handle unpredictability and validate their business models, a must for drawing in investors in challenging times.
This episode also sheds light on the evolving due diligence practices in today's crypto market downturn, an in-depth discussion about the investment in FTX, and the delicate balance between conducting thorough due diligence and acting swiftly.
Tune in to discover the importance of competitive dynamics in investment decisions and the complexities of detecting fraud during investment. Gain insights into information asymmetry, learn how to mitigate unpredictability in startup investments, and understand the significance of nurturing investor relationships for sustained backing.
Explore existing investors' key role through symbolic gestures of support through follow-on investments or bridges, especially during challenging periods. We also discuss successful large fundraisings during downturns, emphasising trustworthy propositions and tackling pain points such as security, compliance, efficiency, scaling, custody, and privacy.
Despite a seed-stage investment focus, the panel identifies growth opportunities for early-stage projects. Further, we delve into the different dynamics between early and later fundraising stages, highlighting the need to sync with investors that align with your company's mission. Also, we stress the importance of advanced planning for future funding rounds and nurturing relationships with potential investors.
Learn why stubbornness over valuations during a downturn and the need for more runway in the crypto market can be detrimental. They predict a future where all value will be digital, discuss the potential implications of Mica regulations, and the steps startups can take to reduce uncertainty.
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