Investment activity in crypto and blockchain start-ups is surging, with the first quarter of 2024 witnessing a total investment of $2.52 billion, a notable 25% increase from the previous quarter, as reported by PitchBook.
Projections indicate that this trend will continue to accelerate throughout the latter half of the year. Almost daily, we observe DePIN, AI, and GameFi projects securing larger funding rounds, largely driven by crypto launchpads.
In the crypto sphere, a launchpad serves as a platform facilitating the introduction and sale of new tokens to the public, typically through Initial Coin Offerings (ICOs). Acting as intermediaries between projects and investors, launchpads offer a structured and secure environment for investment, along with various start-up services ranging from regulatory compliance to marketing assistance.
For instance, Yield App Angel provides investors with access to its extensive community of 105,000 users holding approximately $20 billion in total crypto assets. Additionally, it offers marketing support, strong relationships with Key Opinion Leaders (KOLs), access to prominent venture capitalists (VCs), and more. Investors are presented with a carefully curated selection of vetted projects to choose from.
The Key for Successful Startups
Numerous initiatives have effectively raised funds through launchpads. Anybody interested in cryptocurrency will be familiar with Polygon, a platform that seeks to develop an Ethereum-compatible multi-chain blockchain environment. In 2019, Polygon—formerly known as Matic Network—raised capital with the aid of the Binance Launchpad. At the peak of the 2021 DeFi boom, it had almost $8 billion in total value locked (TVL), according to Defi Llama, and it developed into a robust ecosystem.
In the Web3 realm, there exists a diverse array of launchpads, ranging from those operated by major centralized exchanges such as Binance and Bitget, to specialized incubators and launchpads like Yield App Angel or Seedify. These launchpads play a pivotal role in assisting start-ups in launching successful funding rounds on a daily basis.
For instance, Seedify reports having supported over 50 projects in raising approximately $18 million in total funding, resulting in market capitalizations growing up to five times the initial amount raised.
However, despite the invaluable support they offer to crypto start-ups seeking funding, launchpads have also been tarnished by the fallout from the 2018 Initial Coin Offering (ICO) boom. During this period, some launchpads were implicated in promoting pump-and-dump tokens, contributing to an alarming number of ICO scams, with an estimated 80% of all ICOs in 2017 being identified as fraudulent.
The Value of Extensive Research
Launchpads are an essential component of startup fundraising, but since not all of them are created equal, it is your responsibility as an investor to select one that adheres to stringent due diligence guidelines in order to weed out fraudulent ventures. Yield App Angel may be right for you if you're looking to take advantage of the recent surge in start-up investments but security is your main worry.
Leveraging its proprietary 135-point risk assessment model, Yield App adeptly maneuvered through the crypto downturn of 2022, successfully sidestepping the collapse of the UST stablecoin. Remarkably, Yield App has maintained an unblemished record, devoid of any hacks or exploits since its inception. With such a track record, investors can trust that all projects featured on its launchpad will uphold the same rigorous standards upheld by Yield App's overall portfolio.
Yield App Angel: The Finest Fundraising Practice
Yield App Angel's primary goal is to give its consumers access to the most promising initial coin offerings. Normally, only the wealthiest funds and top venture capitalists have access to these early-stage allocations; however, Yield App gives retail investors early access with very lower minimum investments. Furthermore, compared to other launchpads, Yield App's total allocations are usually substantially greater ($300,000–$4 million) and are subject to oversubscription, ensuring access for all interested parties.
In a recent achievement, Yield App Angel successfully orchestrated a fundraising round for ME3, a groundbreaking project reshaping fan engagement and community interaction by converging eSports, gaming, finance, and social connections. Concurrently, subscriptions are open for the AI project Raiinmaker, highlighting the platform's continuous efforts in facilitating promising ventures.
With an array of captivating fundraising opportunities in the pipeline, Yield App Angel is set to be instrumental in democratizing access to the burgeoning 2024 start-up investment surge. Covering diverse sectors from gaming to AI and beyond, Yield App diligently seeks out early-stage projects curated for their potential to not only enhance investor wealth but also capitalize on the current bull market in a secure, risk-managed manner.
May 2024, Cryptoniteuae