How do External Support Mechanisms (like Institutional Investors, Board Advisors, and Business Partnerships) Shape a Blockchain Project’s Trajectory?
In this post, we’re going to be talking about some of the crucial external support mechanisms that blockchain/crypto projects rely on in order to help them boost their branding and distribution channels as well as achieve their strategic goals. One areas of particular importance is the ability for projects to attract high-quality partners, be it from an investment, advisory or growth perspective. In our mind, this is one of the core drivers of future value for a project. In general, these are the things an investor should check out:
- If it’s a large project that already has backing, learn more about the institutional investors and/or backers of a project. We’re not referring to individual investors that participate in an ICO. In this context, we’re focusing on big-time venture capitalist firms, hedge funds, family offices, or other institutions that are providing the necessary funding for the project. They can also help facilitate partnerships, help with recruiting team members, enhance branding, and provide distribution channels,
- Look at the advisors that are helping the team. Ideally, these will be well-known individuals in one or more of the following industries: crypto, blockchain, finance, or technology. Typically, advisors also constitute researchers or professors from established universities in a relevant field. They can provide significant strategic advice to projects as well as help with introductions to partners and with branding. A strong advisory board is a good validation for a project, and also provides investors with comfort that there is an external team aligned in the success of the project.
- Examine the business partnerships a project has. Projects can accelerate adoption by having strong real-world partnerships that utilize or promote the technology for its respective use-cases. In addition, strong partnerships indicate that companies believe they can benefit symbiotically from the relationship, providing some validation that there is merit in the vision of the project. Partners typically share resources and aid in branding.
We provide an infographic of some of the prominent venture capital and hedge fund investors in crypto and blockchain specifically. These were selected based on perceived reader familiarity and are not necessarily a representation of relative importance. For a more detailed list, take a look at this post Hacker Noon compiled (which allegedly is of VC funds specifically; nevertheless it is still a big list):
Rather than give you a list of top-flight advisors in crypto, we provide you with some of the general types of people you should look out for. There are hundreds if not thousands of potential candidates and they don’t necessarily have to be in crypto or blockchain (though that’s certainly an added plus) if they bring the right complementary skills and resources like branding and partnerships. Keep in mind that effective advisors will typically be on only one major project, whereas investors can be on multiple. Here are the types of people you should look at:
- Crypto Experts
As you’ve probably noticed, blockchain hasn’t escaped the eye of multinationals. Here’s a couple industry stalwarts that have built their own blockchain capabilities, or used blockchain in some way to deliver value to stakeholders. Once again, these are based on what we believe are high-profiles most readers would be familiar with. A more comprehensive list can be found at this link:
We expect to continue seeing more of this growth as projects go from being level-one use-cases to serving massive global needs.
Some of the more prominent exchanges in crypto today (a more detailed list can be found here):