The Full Guide to Strategic Fundraising with KOLs in the Crypto Space

Full checklist to raise funds in Web3

10 min read
Nov 4, 2022

Thousands of new projects join the crypto-ecosystem every month, but a select few of them make it past their grass-roots stage. This is mainly due to the project not having enough funding to maintain its marketing, developers, and other team members until it gains traction. However, gaining investment in the crypto world is not as daunting as it seems, so here at Lunar Strategy, we’ve put together a full checklist to raise funds for Web3 projects.

What’s Your Incentive?

Before we show you the full checklist, it’s essential to understand what the incentivize is to potential investors. In the Web3 world, you can incentivize investors by offering pre-sale tokens or early insights into the project. However, at the end of the day, investors are looking to make a return, so a pre-sale round where tokens are sold cheaply is the most common incentivize you can give to crypto VCs (Venture Capitalists). Ensuring you understand your incentivize means:

  • Understanding your value proposition
  • Understanding your place in the market
  • Knowing your vesting schedule (more on this later)
  • Knowing your tokenomics

Pre-sales in crypto are successful for the same reason they are in TradFi. They allow those with money to invest in the potential to hedge their bets against a particular narrative. If you’re a perpetual exchange, for example, investors may believe that is the future of DeFi, and investing in pre-sale tokens is a great risk/reward ratio for them. Pre-sale tokens are also cheap enough that they allow venture capitalists to have a low strike rate and still be profitable.

However, pre-sales with large token incentives can be looked down upon by the crypto community, so it’s important to manage expectations and understand what will happen if you sell too many! There are plenty of other ways to raise funds in Web3.

What are investors looking for?

Another piece of the puzzle is understanding what investors are looking for. There is a multitude of answers to this, but here are the main three:

  • Maximizing ROI

Let’s face it; investors are mostly looking to maximize their Return-on-Investment (ROI) whether that be in the short or long term. Making sure you’re aware of this and are letting the investor know exactly what the potential upside looks like is incredibly important. If someone asked you to invest in something, one of the first things you would probably ask is; what’s in it for me? Use that mindset when approaching investors.

Investors' potential ROI is based on your current valuation and what portion of equity you’re willing to give away for capital. The higher the valuation, the less potential return of investors.

  • Active or passive investors

Building on our previous point, it’s also important to consider whether the investors you’re pitching to are active or passive. Active investors are essentially part of the team, playing an integral role as an advisor in your decision-making, whilst passive investors are purely providing capital. Each provides its own pros and cons, but a necessary decision to make.

  • Investors are looking for ways to either integrate your project into their current business or find synergies.

Other than maximizing an investor's ROI, you can provide them value by compounding their current partnerships or business. Ask yourself, how can I provide value to my potential investors without having to let go of more of my projects tokens? This could include finding synergies between your project and another partnership they may have or by providing early information to a group that they run.

So without further ado, here are key points to consider and a full checklist to raise funds in Web3.

1. Have a project whitepaper and convincing pitch deck.

Your project pitch deck should be professional, straight to the point, and engaging. Investors are looking at hundreds of different pitch decks, so if yours doesn’t catch their attention immediately, the rest of the deck doesn’t matter!

Key points it should cover are:

  • The problem you’re solving
  • The tokenomics behind your project
  • What is the potential benefit for the investor

Although pitch decks are often seen as a crossover with TradFi, they are equally important in Web3 alongside whitepapers. Elementary to any successful crypto project is their whitepaper which explains exactly what they’re doing and why. On the other hand, your pitch deck is suited more towards what investors want to see, such as potential return on investment, why your project's token will increase in value, and what the catalysts are for that to happen.

2. Find Venture Capitalists that resonate with your project.

As we mentioned above, venture capitalist investments are a great option for raising capital in Web3. However, you must find ones that resonate with the problem you’re trying to solve. Not only will they be more likely to invest in your project, but they are also less likely to dump a large portion of their tokens once their tokens unlock.

To find said VCs, you should be networking with like-minded individuals and projects which have experience in fundraising and understand what to look for. Also, VCs that resonate with your project is more likely to accept a longer vesting schedule, which will reduce overall selling pressure which benefits you and your community.

Luckily enough, our experts at Lunar Strategy have created a full Web3 investment funds list which includes some of the top VCs currently investing in the Web3 space. Despite our thorough list, not all your Web3 investment has to come from top VCs, especially if you’re a smaller project. Instead, you could choose to go down the fair launch route through a launchpad, which gives investors an equal opportunity to help you raise funds.

Top VC Investments by Sectors in 2021

As seen via the infographic above, Web3 investment growth outpaced all other sectors by a mile, showing us that they are interested; you just need to get their attention.

3. Using a Popular Launchpad

Launchpads are fundraising platforms that give everyone, not just VCs a chance to invest in early projects before they’re publicly listed. Launchpads offer the ability to be an entirely fair launch, meaning first come first serve, or whitelist your applications beforehand.

In crypto, the amount of investment you receive is often down to the number of eyes that see your project before it launches. You can have the best project in the world but receive no investment because the platform you’re using isn’t popular. When looking to do a pre or public sale, consider looking at the most popular launchpads. Not only are they often decentralized, but they also garner a lot of attention from large VCs and smaller retailers, which maximizes reach in both sectors.

Depending on the ecosystem your project is being launched in, popular launchpads include the Binance Launchpad, Babylons, Polkastarter, and Seedify.

4. How to approach investors?

With all this knowledge in the bank, you might be asking yourself, how do I approach investors in the first place? Well, now that major business is now done online, not all meetings need to be done in person.

With the expansion of Web3, individuals are leveraging social media platforms not traditionally done for businesses to find potential investors for their projects. Platforms like Twitter or Linkedin are hotbeds for investors as the Web3 business culture is much more informal than traditional methods. However, do not discount physical events, such as Web3 conferences, as a great way to network and meet potential investors face-to-face. After all, it’s much easier to make a good impression in person than online.

5. Perfect Your Pitch

With your strategy in place and your platform decided, it’s now for the last step to raising funds in Web3; perfecting your pitch! Taking all the advice mentioned above, it’s important to create a concise pitch to investors that shows your model and why it will benefit them. Remember, you must appease investors' interests if you want them to give you any money to begin with. That start’s with telling them what you will use their funds for and ends with how they will see a return on their investment.

Pitching can be a nerve-wracking experience, so practice makes perfect. Make sure you know the ins and outs of our project before walking into any fundraising event so you can answer any questions asked by potential investors.

Conclusion

At the end of the day, there is no one size fits all guide to raising funds in Web3, but following this checklist will ensure you’re as ready as you can be! You should take confidence in the fact that hundreds of top companies are already using Web3 technology to their advantage. The infographic below shows the likes of Tesla, Meta, and Instagram, amongst many others, willing to take steps into the Web3 world.

Tech companies investing in Web3

So do you think you’re ready to start raising funds in Web3? If you still have more questions, join us on Telegram, Twitter, or Discord and ask away; we would be happy to help! Alternatively, we hope you got value from our full checklist to raise funds in Web3 and even more value from our aticle on The Complete Web3 VC Investment Funds List.

Tim Haldorsson
CEO
CEO of crypto and Web3 marketing agency Lunar Strategy, involved in the crypto scene since 2017. Provides forward-thinking Web3 marketing insight as a contributor to Cointelegraph, Rolling Stone, Daily Coin, NFT Plazas, and Finance Magnates.
Jack Haldorsson
CMO
CMO at Lunar Strategy. Been in the crypto space since 2017. Jack leverages his know-how of the blockchain ecosystems and strong KOL relationships to execute result-focused strategies that amplify brand storytelling, drive awareness and grow the project sustainably with the help of Influencer relations.
Adam Westerén
Head of Sales
Adam's passion is to create self-sustainable communities in the Web3 world. He enjoys when you create a Web3 community that can grow by itself. This is what he does in his current role as Head of sales.
William Rejström
COO
As a Community Manager at Lunar Strategy, I'm passionate about finding new ways to connect people, add value and build strong community relationships.
Shann Holmberg
COO
As head of growth at Lunar Strategy, I understand the significant shift away from traditional marketing strategies that Web3 projects require.
Nick Ballanutsa
Crypto Content Creator
Crypto Content Creator, Nick is creating engaging Twitter threads & posts for leading crypto & NFT companies.
Vide Haldorsson
Influencer Manager
Influencer Manager at Lunar Strategy.
Johnny Pedro
Head of Partnerships
Head of Partnerships at Lunar Strategy, creating win-win solutions for Web3 companies. You might have heard his music on Tomorrowland from his previous ventures in the music industry.
Jarrod Frankel
Head of Community
Jarrod is responsible for the teams that provide both engaging social media content and enticing and informative articles for our clients.
Tayler McCracken
Editor at Coin Bureau
Tayler McCracken is the Editor-in-Chief of the Coin Bureau, a leading publication that provides cryptocurrency education.
Vineet Nair
Writer
As a web3 storyteller, Vineet brings a wealth of experience in content, journalism, and management, with hands-on knowledge of metaverses, NFTs, AI, and finance.
Hassan Shafiq
Lunar Strategy
Lunar Strategy.
Mairead Finlay
Writer
British writer specialising in NFTs, luxury lifestyle & travel based in Portugal. Previous publications include Business Insider, LoveEXPLORING, The Guardian and My French Country Home Magazine. Previously the SEO Editor of tech & startup website TechRound.
Sandra Vukovic
Content & Marketing Specialist
Content & Marketing Specialist at Lunar Strategy.
David Kevin Jeppesen
Lunar Strategy
Raised in the spring of technology, solving problems and finding simple digital solutions is part of my nature. I’m a teachable individual who is always eager to learn and develop as a person.
Julieta Ose
Crypto Content Creator
Crypto Content Creator at Lunar Strategy.
Gino De Graaf
Google Ads Specialist
Google Ads Specialist at Lunar Strategy.
Sam Runge
Media Manager
Lunar Strategy.
YouTube SEO For Businesses - 12 tips to rank higher
YouTube SEO For Businesses - 12 tips to rank higher
Why You Should Optimize Your Google Ads Shopping Campaign
Why You Should Optimize Your Google Ads Shopping Campaign
What is Web 3.0?
What is Web 3.0?
Read Also
May 21, 2024
Mastering DePIN Marketing: A Complete Guide for 2024
Discover the essential strategies for mastering DePIN marketing in 2024. This comprehensive guide covers influencer marketing techniques, PR best practices, social media optimization on X (formerly Twitter), and community building tactics. Learn how to identify the right influencers, craft strategic narratives, execute impactful PR campaigns, and create a thriving community around your DePIN project. By implementing these strategies, you can position your project at the forefront of the DePIN revolution.
May 10, 2024
How To Use Crypto Public Relation Strategies After Launching Your Token‍
This article explores essential strategies for successful post-token launch crypto PR and marketing. Key topics include defining PR goals, crafting compelling narratives, leveraging media relations, building thought leadership, engaging communities, managing crises, and measuring success. By implementing these tactics, projects can boost brand awareness, foster loyalty, and drive adoption.
May 6, 2024
What Running A Crypto Influencer Marketing Agency Looks Like: Lunar Strategy Insights
In this article, we share valuable insights on managing influencers, working with clients, and creating synergy between KOLs and brands in the fast-paced world of crypto.
May 2, 2024
5 Crypto Startups You Need To Know In 2024
This article highlights five noteworthy crypto startups in 2024 that are bringing fresh ideas to areas like AI-powered e-commerce, cloud computing, Layer 2 solutions, Bitcoin development, and decentralized exchanges. Find out what sets these companies apart.
Apr 29, 2024
Lunar Capital’s Strategic Crypto Fundraising Guide: A Brief Overview
Lunar Capital's "Full Guide to Strategic Fundraising with KOLs in the Crypto Space" is a comprehensive resource for navigating the post-halving crypto landscape. Learn about fundraising stages, KOL partnerships, crafting the perfect pitch, and vesting strategies to ensure long-term success in the ever-evolving world of web3.
Apr 25, 2024
Top 5 AI Projects On The Blockchain In 2024
Uncover the transformative potential of five cutting-edge crypto startups in 2024. This article delves into their unique offerings, technological innovations, and impact on industries, showcasing their role in shaping the future of web3 and decentralized solutions.
Apr 5, 2024
Top 5 Crypto Publications To Follow In 2024
This article highlights five leading web3 publications that are essential for staying informed and ahead in the rapidly evolving crypto space. These outlets, including Cointelegraph, The Block, Decrypt, CryptoSlate, and BeInCrypto, offer reliable news, insightful analysis, educational resources, and innovative products to guide readers through the complexities of web3.
Apr 3, 2024
Top 10 European Crypto VC Investment Firms
This article explores how European venture capital firms are leading the charge in shaping the web3 and crypto landscape. It highlights ten top firms, their notable investments, and how they support innovative startups through funding, expertise, and global networks to revolutionize digital interactions and financial management.
Apr 2, 2024
Top 50 Strategic Crypto VC Investment Funds
This comprehensive guide dives into the world of crypto venture capital, exploring how VC funds are driving innovation and growth in the blockchain space.
Mar 31, 2024
Crypto VC Funds: A Beginners Guide To Web3 Investing In 2024
Building the right product and positioning your brand at the right time in a crypto market may be subject to volatility - as is the nature of the crypto market in general.
Mar 31, 2024
Lunar3 Capital: Exploring New Horizons In Web3 & KOL Fundraising
At Lunar, we’ve worked tirelessly across the span of 5 years, working closely with the finest innovators and ideators in crypto to bring them closer to their goals, raise capital, and develop their communities.
Mar 31, 2024
THE LUNAR STRATEGY APPROACH TO BLOCKCHAIN MARKETING: WHY PR MATTERS IN WEB3
Blockchain is revolutionizing marketing strategies, offering brands unprecedented transparency, security, and customer trust.