Most Web3 Startups Flop at Fundraising—Here's How to Beat the Odds

Written by isaac-joshua | Published 2025/08/20
Tech Story Tags: web3 | crypto | funding | crypto-launchpads | web3-funding | startup-funding | startup-pitch | startup-pitch-advice

TLDRDespite crypto’s growing legitimacy, Web3 startups still face major hurdles securing capital, regardless of whether it's through a launchpad or traditional VC firm. Pitches must be sharp, narrative-driven, and backed by proof, not hype. Your story must captivate and your data must validate your legitimacy.via the TL;DR App

Despite crypto’s growing legitimacy, Web3 startups still face major hurdles securing capital, regardless of whether it's through a launchpad or traditional VC firm.

Whether you’re building a DeFi primitive, a crypto game, or a cross-chain protocol, pitches must be sharp, narrative-driven, and backed by proof, not hype. It’s not just about innovation, it's about being clear, compelling, and credible.

With greater competition and regulatory pressure, investors, launchpads, and communities are more skeptical than ever. If you can’t explain why your platform is cutting-edge or who it's for, you likely won’t make it. Your story must captivate, and your data must validate your legitimacy.

Craft a compelling narrative

Developer-led Web3 projects often struggle with breaking down the complexity of what they’re building into something digestible for the public—or more importantly—launchpads and VCs. It’s essential to focus on clarity and conviction while setting aside the buzzwords. Your story should clearly explain: what problem you solve; who it's for (AKA the user persona); why it matters; and why you’re the best team to solve it.

The narrative should use simple language, be specific, grounded, and leave an impact on those who encounter it. Technical jargon should be limited, and your story should be anchored in real examples or analogies to make it easier to envision how the problem is being solved. If you’re building a new identity layer, for example, explain how it solves frictions like logging in or verifying access in the current Web3 user experience.

Know your audience

Launchpads, VCs, and communities have different priorities and demand to be pitched differently, even if they all care about the vision, credibility, market potential, and tokenomics. Launchpad and VCs both want to collaborate with high-potential projects but messaging must still be tailored to who you’re talking to.

Launchpads want regulatory clarity, token utility, and a solid market fit. They will inspect your token sale structure, marketing strategy, and community traction, evaluating your overall readiness for a successful launch.

VCs want asymmetric upside, strong teams, and clear go-to-market plans to ensure solid ROIs. Projects should emphasize business fundamentals like revenue model, competitive advantage, legal compliance, governance, and risk mitigation.

Communities value transparency, vision, utility, and the ability to meaningfully participate. Focusing on utility and inclusivity shows how users can engage, why they should care, and how they will benefit.

A VC pitch should center around roadmap milestones and competitive edge, while a community pitch should show users how they can participate, earn, and stay involved.

Use meaningful data

When pitching VCs, launchpads, or communities, substance over speculation is essential. Data adds color to your story and makes it believable. VCs and launchpads aren’t looking for unrealistic promises, they want concrete evidence of momentum, interest, and validation to confirm that something legitimate is happening.

Even early-stage projects need evidence of traction: Active users, Discord activity, product milestones, early-stage partnerships, and grants or early revenue. This information enhances pitching by showing that you’re not just building, but that people are already invested in your idea.

Align storytelling across platforms

Whether it’s your pitch deck, website, white paper, or social media, your narrative should remain consistent across all platforms. Contradicting or selective information between these platforms comes off suspicious and could raise alarm bells for VCs, launchpads, and possible users.

This doesn’t mean you should copy-paste your messaging, but themes and value propositions should be aligned.

Short videos, AMAs with the leadership, and community updates should be leveraged to reinforce the project’s foundation and milestones. It’s also recommended to design a coherent and easy-to-consume “story arc” to show progression over time, creating a narrative that shows where you’ve been, where you are, and where you’re heading.

Approaching the pitch

Before a project even approaches a launchpad or pitches a VC, the core team must be prepared for the tough questions and scrutiny that they will surely encounter. That means pre-empting the hard questions by having clear, defensible answers on a range of issues, which will likely include regulatory compliance, a strategy for avoiding the “hype and rug-pull” stigma, and a long-term sustainability plan. Investors, launchpads, and communities alike want to see projects that are disciplined and have the foresight to navigate unforeseen scenarios, in addition to ambition and talent.

When it comes to pitching, a sharp, concise pitch deck of no more than 12 slides should outline the problem, solution, and why now is the right time. Without using buzzwords, the pitch should highlight your competitive advantage and exactly what your platform or protocol needs to succeed. A one-pager should capture the essentials for quick readers, and your narrative must be compelling. Pitches should be consistent but tailored to the specific audience you are addressing. Launchpads care about community traction, VCs about upside, and community funders about the utility and transparency aspects. This type of prep work demonstrates that the team is motivated to build something meaningful as opposed to chasing cash.

Project confidence and leadership

Clear and straightforward communication, without over-explaining, is key to projecting confidence, which reflects well on any target audience. Be honest about your project, own your weaknesses, and securely explain how you’ll overcome them.

Whether you’re tweeting, pitching, or chatting on Telegram, consistency and transparency go a long way. In Web3, leadership isn’t about perfection, it's about being genuine.

Conclusion

Ultimately, pitching is basically selling your idea, and the objective isn’t to just inform potential stakeholders, it's about persuading them to believe. And if done right, that belief becomes support, funding, contributions, access to resources, and a community to help scale and drive progress.

Being persuasive is the objective, but it’s also about telling a clear story, backed up with data, and tailored to the audience. Preparation and confidence are a must, and remembering that the pitch isn’t about raising funds or selling tokens, it's about convincing others to join a movement.


Written by isaac-joshua | Isaac Joshua is CEO of Gems, a launchpad for blockchain and Web3 projects.
Published by HackerNoon on 2025/08/20