Web3: start-ups that are no longer able to finance themselves
To grow, web3 start-ups need a product, customers and... money. Especially in the current climate. And funding has never been so hard to come by.
Pierre* has made and re-made his presentation dozens of times, canvassed his network and even lowered his financial demands. The answer is always the same: impossible to convince investors to put a ticket in his studio specialising in NFTs.
"We've been trying to raise money since the beginning of the year, but it's been a real nightmare. Either we're being asked to let go of the reins of the company, or the amounts offered are far too low", details the entrepreneur 🇫🇷 who wished to remain anonymous.
Pierre's aim is to raise just under €1 million to keep his start-up, which has five employees, running. "We're talking about a crypto winter, and that's exactly what it is. Investors are very skittish", he laments, pointing out that he has "three or four months" of cash left. "After that, we'll run out of cash", he lets out a little bitterly.
An ecosystem in slow motion
It's no surprise to anyone that the web3 ecosystem has been running in slow motion for the past few months. Like Pierre, hundreds of European entrepreneurs are facing a drop, sometimes very sharp, in their business, with cash flow melting away like snow in the sun. "We've only signed one customer since the start of the year," confides another French entrepreneur, somewhat dejected.