At Blockchain Life Forum in April 2024 during the panel ‘The Role of Crypto Whale Funds’, key leaders from the Web3 and crypto venture landscape discussed their strategies in determining which Web3 projects to invest in.
Andrei Grachev, Managing Partner of DWF Labs, shared his insights alongside Sergei Khitrov (Founder of Listing.Help, Jets.Capital, Blockchain Life), Danilo Carlucci (Founder and CEO of Morningstar Ventures), and Bhavik Patel (CIO of Arrington Capital). In the first part of this panel’s recap, we presented key forecasts for the crypto market.
The Founder-First Approach: People Over Profit
A key theme throughout the discussion was the emphasis on investing in exceptional founders and strong teams. The panelists shared that while profits are important, the true determinant of long-term success lies in the quality, vision, and capabilities of the founding team.
Andrei Grachev, Managing Partner of DWF Labs, shared that, ‘We have a founder-first approach. We invest in people before technologies or products. Behind every idea and technology should be a team that can execute, build, and be trusted’.
This prioritization stems from the recognition that even the most promising blockchain technology or product can fail without the right team to execute, as well as to pivot and persevere during challenges.
The importance of trust and credibility in team selection was also highlighted by Danilo Carlucci (Founder and CEO of Morningstar Ventures): ‘When we pick a team, we consider very much who the introducer was. Most of the investments we make are referred to us by people who we trust, and when we pick bets, we ask the opinions of others to certify our belief in a team.’
This focus on referrals and credibility demonstrates how institutional crypto investors value founders who have already built strong networks and relationships within the industry.
Strong founders bring not just technical expertise but important soft skills such as leadership, adaptability, and the ability to attract and retain talent. These qualities often prove more valuable than initial profit projections or technical specifications, as they enable teams to overcome obstacles and capitalize on new opportunities as the crypto market evolves.
The Importance of Sustainable Tokenomics
Panelists also explored the role of tokenomics in creating sustainable blockchain projects. They discussed the delicate balance between short-term liquidity and long-term value creation, highlighting the need for projects to design token strategies that align with their growth goals.
Andrei Grachev described two common tokenomic approaches: funding of crypto projects with short-term, aggressive token economics, and projects with longer lockup periods of 12 to 24 months. The longer lockup period is more suited for long-term investors but requires more crypto venture capital upfront.
He shared that while both approaches can work, the second strategy is more relevant for building substantial and sustainable solutions in the long run.
Danilo Carlucci also emphasized flexibility in token distribution, sharing that blockchain projects shouldn’t sell too many tokens initially and should maintain flexibility for future funding.
The Power of Ecosystems: Supporting the Broader Web3 Community
A key differentiator of DWF Labs is our comprehensive blockchain ecosystem approach. Andrei Grachev shared about a key aspect of our crypto investment strategy — that we also invest in projects that may not deliver immediate profits but play a crucial role in supporting our portfolio companies.
We provide our portfolio companies with extensive connections and resources to grow, ensuring that each project contributes to the strength and resilience of the larger ecosystem.
Building Lasting Value in Web3
The panel discussion at Blockchain Life Forum in April 2024 highlighted priorities of crypto venture capital firms and their holistic approach to investment. The founder-first philosophy, sustainable tokenomics, and ecosystem-driven strategies collectively highlight a shift toward long-term resilience and community building in the Web3 space.
These insights are particularly valuable for founders and teams seeking crypto venture funding, as they provide a clear roadmap for building projects that are not only innovative but also built to last.
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