Nov 2024#MarketResearch
Bitcoin’s price is a core benchmark of the cryptocurrency market, often called the “defining” one. While it is difficult to statistically prove the influence of its price on overall market activity, the correlation between price dynamics and market activity is evident. Changes in Bitcoin’s price are frequently closely linked to other important market indicators, demonstrating the interdependence of their behavior.
We are entering a new bull market phase: prices are climbing with transaction volumes. Also, we see an increase in investments in the fundraising stage.
In 2024, the crypto market has seen significant changes, including:
Institutional and angel investments are the primary sources of project funding. Together, they account for up to 91% of all funds raised in 2024. While angel investments are direct tranches from large individual investors, institutional investments encompass funding through venture and corporate funds, DAOs, investment incubators, accelerators, exchanges, hedge funds, and investment guilds.
Public Investments involve retail investors’ participation in various funding events, such as token sales, NFT investment sales, and more.
Over the past six years, institutional and angel sources have remained dominant in the structure of all raised funds.
Attracting institutional investments requires a clear and long-term plan: pitch deck preparation, working with funds, participating in events, and much more. At the same time, attracting angel investments can be significantly simpler and faster.
In this article, we’ll explore the key ways to attract project investments: direct funding without a finished product and raising capital through a ready product. The overview is based on our market research, expert interviews, and practical experience working with partners.
Attracting investments via public sales and institutional investors typically requires a solution. The market offers a wide range of concepts, each accompanied by its own specific requirements. We will have a look at some of the most prominent cases of 2024 that show the diversity of approaches and ideas.
Concept: The product allows users to supply liquidity to DeFi services, creating conditions for stable income. Clients can invest their funds and earn profits from:
Technical Implementation: Landing page and protocol development (e.g., Aave, MakerDAO, Compound).
Target Audience: Web3 investors, DeFi enthusiasts, and traders.
🚩 Red Flags:
Concept: Launching an NFT collection with varying functionalities and value tiers. Each owner receives a fixed monthly income in USD.
Target Audience: Crypto investors, DeFi, and NFT enthusiasts.
Technical Implementation:
🚩 Red Flags:
Concept: A Telegram app or bot that helps users invest in yield platforms, exchanges, and other financial instruments, earning a share of the company’s profits.
Technical Implementation:
Target Audience: Retail investors, gambling community.
🚩 Red Flags:
Concept: A utility token with a deflationary mechanism, serving as the currency of the ecosystem. Users can purchase the token in the app and on DEX, using it for staking and trading.
Technical Implementation:
Target Audience: Crypto investors and DeFi enthusiasts.
🚩 Red Flags:
Significant investments in development and ongoing efforts to secure funding are necessary to attract large investors and retail audiences. These investments can range from $10-20k to $500k. Smaller teams often may have little budget. However, such projects can still secure investment funding.
Angel investments offer several advantages:
The following factors are essential for angel investors:
We use cookies to assess whether the information provided is relevant and digestible. Learn more how you can control cookie use here.