Crowdfunding: very “one-sided”, difficult to stand out from the crowd
Traditional banking: risk averse institutions, reluctant to lend
Native Web3 offering: fully crypto focused, difficult for businesses and the end user to understand
NFT-as-a service: high barrier to entry, focused on bigger brands, specialist technical expertise required to execute properly
Risk averse banking institutions – Current uncertain global economic outlooks & the shocks from Covid, plus the conﬂict situation in Europe, means it is especially difficult for businesses to thrive & secure funding.
75%+ of SMEs in the UK are unable to secure funding from traditional players
Diverse founders struggle further - Minorities or women owned businesses are more likely to be rejected for an overdraft & charged higher borrowing rates vs their male or white counterparts.
0.25% of all VC funds in UK have gone to minorities founders in last 10 years
2% of all VC funds in US went to female founders in 2021
The ﬁght for customer attention is brutal - Customers are constantly bombarded with offers and advertising. Businesses are struggling to stand out from the crowd & retain customers.
80%+ of customers are more willing to choose retailers with membership or reward programs
3.5x more transactions per member vs. no loyalty program
Unless you happen to be a founder, family member, or close friend of a founder, chances are you will not be able to get involved at the very beginning of an exciting new startup. If you happen to be wealthy or a high net worth individual, then you may likely be able to participate as an angel investor or invest through a VC fund.
Unless you are a crypto savvy who is consistently in the space, the likely hood is that you might experience issues with:
- A lack of knowledge on where to begin investing in crypto and NFTs.
- A lack of trust due to a lack of knowledge.
- Questionable value of tokens and NFTs on offer due to lack of utility.
- Poor user experience due to a lack of technical know how.
- Complexity with complicated wallets, user interfaces and jargon.