How launchpads can change the game for web3 startups
With the blockchain industry still in the throes of the bear market or so-called crypto winter, getting funding has become an even bigger struggle for many web3 gaming companies. This does not mean, however, that it is impossible. It just means that founders must build even more value and become more creative — including looking at alternative ways to raise money, such as launchpads.
“We’ve invested in 70 projects in the last year. Small ticket sizes — US$25K to US$100K. But this allows us to work with a lot of early stage companies. See their progress, and also kind of lend the support that we’ve had,” said Enjinstarter CEO and Co-Founder Prakash Somosundram.
Somosundram of Singapore-based launchpad Enjinstarter was one of the speakers in the panel that I moderated at the Philippine Web3 Festival on Nov. 17.
The launchpad is part of the Enjinstarter ecosystem, which is meant to help creators and game studios with their blockchain and digital asset strategies. To date, the Enjinstarter launchpad has successfully funded more than 50 IDOs (initial DEX offerings).
What is a launchpad, and why has it become a fixture in the blockchain industry? As this article points out, launchpads are actually becoming the backbone of the decentralized finance ecosystem.
“Crypto launchpads, also called crypto incubators, are special platforms that help blockchain-based projects take off. These platforms act as fundraisers for any crypto project. They provide a group of investors access to token sales that are in the early stage. This kind of access ensures that investors can achieve bargain prices on sales before they become publicly available.
“Launching anything on a crypto launchpad involves buying tokens at low fees, which is a huge plus for investors, signifying low investment costs. As a result, many projects are approaching crypto launchpads to raise requisite funds.”
Another advantage is that scams are reduced by some launchpads that dox the founders, because the KYC (Know Your Customer) process is typically handled by a third party.
“Crypto launchpad platforms attempt to do two things: generate project finance and bring credible initiatives to their community before they become public. Launchpads aim for the outcomes above by cultivating a robust community before attracting reputable projects for crowdfunding on their platform.”
As you can see, launchpads benefit both the project owners and investors. The project owners, of course, are able to raise funds. Meanwhile, the investors benefit by being given access to new projects at ground zero.
In this bear market, one strategy for web3 gaming companies can be to raise funds by listing on different launchpads. The amount raised might be relatively small on each launchpad, but these can all add up.
Moreover, as Somosundram emphasized on the panel, a launchpad like Enjinstarter offers more than just funding to founders.
“You know, all the mistakes that we’ve made, we kind of compressed that into a playbook, and now we kind of help these founders, actually help them achieve success. And then, whatever challenges that they have, we come in like a paratrooper, and we come in there to solve all that,” he said.
As I’ve previously stated, the best time to be bullish is during a bear market.
With the help of Enjinstarter and other launchpads, more companies will have the chance to build better platforms, business models, and communities during this crypto winter.
So that they will not just survive, but actually thrive.
