When it comes to the blockchain space, entrepreneurs and potential investors may end up stumbling on the underlying technology. While industry experts are clear and often passionate about how blockchain works, investors are more interested in what it can achieve.
If either party gets bogged down in the technical details, it is unlikely that an investor will be able to understand the impact and potential ROI of investing in a blockchain project. Here, 17 members of Cointelegraph Circle of Innovation share ways that blockchain companies can better explain blockchain projects and earn the trust of potential investors.
Tailor your message based on investor category
Differentiated communication strategies are needed according to the investor category. Retail and angel investors are more risk tolerant and it is necessary to have a business plan to make short term profits. Venture capitalists and family offices, on the other hand, are more risk averse and seek opportunities within blockchain technologies and infrastructure. โ arvin khamseh, SOLD OUT NFTs
Explain how your solution can generate revenue for partners and customers
Companies working on blockchain infrastructure need to focus on how their solution enables their partners and customers to increase revenue. Too often, these companies focus their talk on technology, when investors really care about how that technology enhances the partner companies' ability to generate profits. Companies must also articulate how they intend to stay viable in bear markets. โ jason fernandes, AdMoon Inc.
Focus on benefits for the end user
Education is key. Instead of using technical jargon or getting into terms like "democratize investing" or "enable a trustless society," keep it simple and focus on the benefits to the end user. Ultimately, customers are concerned about three things. Is it safer? It is more convenient? It's cheaper? If the answer to these questions is "yes", then it is a better system. โ tammy paola, zero capitalization
Connect concepts to familiar situations.
Blockchain infrastructure companies can better explain their products to investors by using related examples and emphasizing that decentralization and digital ownership represent the evolution of the Internet. Connecting concepts to familiar situations helps investors understand the potential impact, benefits, and competitive advantages of Web3 technology, leading to informed investment decisions. โ Tomer Warsaw Nuni, cryptomon
Define the utility and USP of your product in advance
Blockchain infrastructure critically supports the protocol layer and projects of a given ecosystem. When talking to potential investors, clearly define a product's utility and unique selling proposition up front. Why is it important to build the highway between chains? Why are software development kits needed? Then dive into the more complex technical details that the execution will require. โ Rene Reinsberg, Celo Foundation
Explain key details and benefits in simple terms
It is really essential to explain, in simple terms, who will be the consumer of the service or product, the advantages and benefits of the product compared to alternative options, who will be the actual buyer (if different from the consumer), and how it is monetized or marketed. will monetize the service or product. Any research on potential risks and regulatory considerations is always a plus. โ nimit sawhney, voatz
Reduce your project objectives to a simple sentence
We're still in the "dial-up" phase of Web3, so there's still work to be done when it comes to translating this complex technology into easy-to-understand information. Try to summarize the goals of your blockchain infrastructure developments in one sentence, in direct and uncomplicated language, without jargon. If you can't, you may not be ready for outside investment. โ sand carter, unstoppable domains
Talk in terms of real business potential
Explain your project to investors in terms of actual business potential or use case objectives and characteristics. Do not use blockchain-specific terms, except when you are explaining how the technology offers unique capabilities or security. โ joe roets, dragonchain
Join the community where you can transform the future. Cointelegraph Innovation Circle brings together the leaders of blockchain technology to connect, collaborate and publish. apply today
Show these three things
The key is to keep it simple and show three things: 1) that your product solves a problem; 2) that the market for the solution is broad and profitable; and 3) that your solution is unique and positioned to capture the market. The pitch deck should be like a story, brief, and use graphics more than words. โ shawn douglas, amberjacks
Combine key insights with data-driven narratives
Combine your product and/or technology information with a data-driven storytelling. Communicate through images, helpful analogies, and historical comparisons with similar case studies that demonstrate impact against market growth, consumer behavior, and trends. โ Yaoqi Jia, AltLayer
Talk about what your solution does, not how it works
When pitching to investors, focus on what your solution does, not how it works. Too many people think that when they are presenting a new technology, the presentation should be based on how it works. However, you are only confusing potential investors by taking this approach. They want to know what you do and how they are going to make money. โ Brian D. Evans, BDE Companies
Craft a message based on value, results, usage, and issues being resolved
Messages about blockchain infrastructure are becoming undifferentiated and focused on โmore of the sameโ, with technical features mainly being promoted. Investors want to know what people can do with your product, not what your product can do. Frame your message in terms of value, results, usage, and the issues being resolved, rather than delving into technical talk about features and functionality. โ Nitin Kumar, z-blocks
Explain why your solution is better than that of your closest partner.
Make sure you understand how and why your product is substantially different from everything else on the market. Be able to point to your closest partner's solution and explain why yours is better. If you can't do that, then why are you asking for money in the first place? โ jaeyang, Taten
Demonstrate how your products complement known systems and reduce risk
It's taken me too long to understand the "simplify" advice; it's ironic and hilarious because that's what our infrastructure does. What potential investors need to know about your company is that your products extend and complement known systems and that you have worked to reduce business and user risk rather than introduce it. Everyone understands risk mitigation. Innovation is a bonus. โ stephanie so, Addicted
Share ways blockchain can solve existing problems
Blockchain companies should focus on explaining, in simple words, the real-world use cases for their products, giving examples of how blockchain infrastructure can solve existing problems. This can help potential investors assess the potential value of the technology and understand how it can simplify their lives. โ bogomil stoev, season tokens
Remember that investors care about ROI and impact
Focus on the benefits and value of your technology instead of the technical details. Remember, investors are generally more interested in the potential return on their investment and the impact a company's product can have. It is essential that blockchain infrastructure companies explain how their technology solves real-world problems, creates value for users, and has a competitive advantage. โ Theo Sastre-Garau, NFNight
Dig into revenue streams
Highlight the sources of income for your products. To demonstrate that your business is built on real returns and not just empty hype, it's important to clearly communicate the fundamentals that will make your business a profitable investment in the long run. โ Wolfgang Ruckerl, ENT Technologies AG
This article was published via the Cointelegraph Innovation Circle, a vetted organization of top executives and industry experts in blockchain technology who are building the future through the power of connections, collaboration, and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
Learn more about the Cointelegraph Innovation Circle and see if you qualify to join.
