Top 6 strategies for 2025

Key takeaways

• Web3 fundraising has evolved; investors now demand strong business models, clear tokenomics and market validation.
• Remember, smart money matters; beyond funding, strategic investors can provide mentorship and industry connections.
• Multiple funding options are available — VCs, angel investors, grants, ICOs and crowdfunding each have their advantages.
• You must know when to pivot — If traction is low and resources are depleting, reassess or move on to a new opportunity.

If you were in crypto back in 2017, you might remember Centra Tech, a Miami-based company that conducted an ICO. The company claimed to offer a cryptocurrency-based debit card backed by major payment networks like Visa and Mastercard — but in reality, it had no operational product.

Despite being at the “idea” stage, Centra Tech raised over $32 million in its ICO and even secured endorsements from celebrities like Floyd Mayweather Jr. and DJ Khaled. 

Less than a year later, its founders were arrested. It was later revealed that the company had no actual partnerships with the payment networks and no real product.

Centra Tech was just one of many “ICO Boom” projects that secured investment based on white papers alone, without an MVP (minimum viable product). A report by Fabric Ventures and TokenData highlighted that in 2017, 435 successful ICOs collectively raised about $5.6 billion, with an average of $12.7 million per project.

What’s crazy is that fewer than half of these ICOs remained active beyond four months after their token sales concluded. A study reported that over 80% of ICO projects in 2017 were identified as scams.

Indeed, the days of easy money are long gone. Many startups in 2025 are seeking investment, expecting the same level of enthusiasm, only to be met with increased regulatory scrutiny, investor caution, high competition and ultimately, low success rates.

But it’s not all doom and gloom. Investors are still out there for projects that truly stand out.

Today, you’ll learn the most popular ways to fundraise in Web3, all the way down to what to do if you’ve only got a mobile phone and a dream.

Moreover, there’s a treat at the end, an exclusive sit-down with the head of business development at Cointelegraph Accelerator, offering valuable insights on the current state of Web3 investment.

1. Incubators and accelerators

Incubators and accelerators play a crucial role in helping Web3 startups move from idea to market. These programs provide mentorship, resources and funding to support early-stage projects. Here’s the difference: 

• Incubators: These focus on startups in the ideation phase, providing guidance, networking opportunities and resources to help build an MVP.
• Accelerators: They work with startups that already have an MVP, offering funding and mentorship to help scale rapidly. Most conclude with a demo day, where projects pitch to investors.

Notable Web3 programs include:

• Outlier Ventures Base Camp: A 13-week accelerator program for Web3 and crypto startups.
• Alliance: Offers daily mentorship and flexible funding for Web3 founders.
• Antler: A global early-stage investor with a 26-week startup program.
• Brinc: A 10-week accelerator providing funding, mentorship and a global network. 

And, of course, Cointelegraph has its own accelerator program, offering up to $100,000 of “smart money,” giving you direct access to infrastructure providers, investors, mentors, foundations, exchanges, market makers and more.

If you’re looking to apply to a Web3 startup accelerator or incubator, research programs that align with your project, prepare a strong pitch deck and submit applications through their official channels. 

Each program has its process and deadlines, so check the requirements beforehand.

2. Venture capital (VC) funding

For Web3 startups that need serious capital, venture capital (VC) firms are a go-to option. 

Investors are more selective, expecting clear business models, sustainable tokenomics, and strong legal foundations. Here’s what you need to know.

Finding the right Web3 VC

Not all VCs are interested in blockchain, so it’s crucial to target firms that specialize in Web3. 

Look for investors who have backed similar projects and have a track record in crypto, DeFi or NFTs. Resources like Alchemy’s list of Web3 VC firms can help you identify the right players.

When reaching out, ensure your pitch highlights what makes your project different. VCs receive hundreds of applications, so you need to stand out — whether through an innovative use case, strong traction or a killer team.

Structuring VC deals 

Web3 funding often involves a mix of equity and token allocations. 

Investors may take a stake in your company while also receiving a share of tokens, which can increase in value over time. Key things to negotiate: 

• Investment amount: How much capital is being raised, and at what valuation?
• Equity vs tokens: Will the deal include both? If so, what’s the split?
• Vesting schedules: Investors may have lock-up periods to prevent early sell-offs.
• Governance: Will VCs have decision-making power in your project? 

The best deals align incentives between founders and investors. A bad structure could mean losing control over your project.

Due diligence: what VCs expect

Before signing a deal, investors will conduct due diligence — a deep dive into your project’s financials, legal status and business model. To be prepared, you’ll need:

• Legal documentation: Company registration, contracts and compliance with regulations.
• Tokenomics model: A clear plan for token distribution, utility and long-term sustainability.
• Roadmap and traction: Demonstrated progress, whether through partnerships, a working product or an active community.

A strong business case, combined with solid legal and financial documentation, will make your project more attractive to investors.

Did you know? Scammers impersonating venture capitalists (VCs) in the Web3 space aim to exploit startups’ eagerness for funding by employing deceptive tactics to steal money or sensitive information. Always keep your wits about you! 

3. Angel investors

Angel investors — high-net-worth individuals who invest their own money — can provide early-stage funding with more flexibility than VCs. But securing angel investment isn’t just about numbers; it’s about finding someone who truly believes in your vision. 

If you’re working on a Bitcoin layer-2 solution, your best bet isn’t a generic tech investor; it’s a Bitcoin whale who wants to see the network scale. Investors are far more likely to back a project when they have a personal stake in its success, whether ideological or financial.

So where do you find these people? 

Conferences. 

Events like Token2049, ETHDenver and Consensus are full of angels looking for their next opportunity. 

Cointelegraph spoke to random attendees at Token2049, and nearly all had money to invest.

Beyond conferences, Web3 X, Telegram and private investor groups are great places to build relationships. Warm introductions can be the difference between getting a meeting and getting ignored.

Angel investors can be some of the most supportive backers in Web3. You just need to be in the right place, with the right pitch at the right time.

4. Grants and ecosystem funds

Many blockchain platforms have established grant programs to support projects that enhance their networks. 

Essentially, “If you build your project on our blockchain, we’ll back you!” 

For instance, the Rootstock grant offers $2.5 million quarterly to developers building on the Bitcoin blockchain. Similarly, the Starknet seed grant program provides non-dilutive funding to early-stage teams with an MVP aiming to enter the market.

To increase your chances of securing a grant:

• Align with the grantor’s mission: Ensure your project’s goals resonate with the objectives of the funding organization.
• Demonstrate project viability: Present a clear roadmap, including milestones and a sustainable business model.
• Highlight potential impact: Explain how your project will benefit the ecosystem and its community.
• Follow guidelines meticulously: Adhere to application instructions and provide all required documentation.

For detailed guidance, refer to the Rootstock grant application guide, which offers insights into eligibility and evaluation criteria. 

Did you know? The largest Web3 grant in history might go to Lotte Group, a South Korean corporate giant, through an Arbitrum Foundation grant, marking a shift from funding indie developers to backing big enterprises in Web3. 

5. ICOs and token sales

Believe it or not, initial coin offerings (ICOs) and token sales are still popular methods for blockchain-based projects to raise capital.

An ICO involves creating and distributing a new cryptocurrency token, which investors purchase using established cryptocurrencies like Bitcoin (BTC) or Ether (ETH).

These tokens may grant holders access to a specific service, voting rights or a share in the project’s potential profits. The ICO process typically includes:

• White paper release: A detailed document outlining the project’s concept, technical specifications, team background and funding requirements.
• Marketing campaign: Efforts to generate interest and build a community around the project.
• Token sale event: The period during which investors can purchase the newly issued tokens.

Remember, in many regions, tokens offered in ICOs are considered securities, subjecting them to specific legal requirements. For instance, the US Securities and Exchange Commission (SEC) has indicated that many ICOs involve the offering of securities and must comply with federal securities laws.

Noncompliance can lead to legal actions, financial penalties and damage to the project’s reputation. Therefore, it’s crucial to consult with legal experts to ensure adherence to all applicable laws and regulations. 

To increase the likelihood of a successful ICO:

• Develop a clear tokenomics model: Define the token’s utility, total supply, distribution plan and mechanisms to incentivize holders.
• Set realistic fundraising goals: Determine the amount needed to achieve project milestones and avoid overcapitalization.
• Build community trust: Engage transparently with potential investors, provide regular updates, and demonstrate the team’s competence and commitment.

By carefully planning and adhering to regulatory guidelines, projects can leverage ICOs and token sales to raise capital and foster a dedicated user base.

Did you know? Influencers can be part of your ICO fundraising strategy by receiving tokens directly to promote your project. This approach is sometimes called an ‘influencer round.’

6. Crowdfunding

If you’re at the idea stage without funding, bootstrapping development costs to build your MVP can be challenging. 

On top of that, you might not have angel investor contacts or the funds and time to attend investor events.

It’s a challenging position, especially if you’ve spent months sending cold LinkedIn messages to potential investors with no success.

So, instead of leaving half our audience without fresh ideas, we’re introducing Web3 crowdfunding as a way to bridge the gap. While it may not cover everything, it can help with some MVP development costs.

Traditional crowdfunding platforms like Kickstarter and GoFundMe are centralized and don’t integrate with blockchain-based fundraising models, making them unsuitable for Web3 projects. Instead, Web3 startups typically turn to projects such as Gitcoin grants — those that offer crowdfunding for public goods and open-source blockchain projects.

And if you’re still struggling to secure funding, you might want to try an industry-agnostic platform like UFANDAO.com.

This platform stands out for its ability to facilitate crypto fundraising for any idea, with donations coming from individuals who resonate with the vision and wish to contribute to the collective happiness of humanity.

While it’s unlikely to help you raise hundreds of thousands of dollars, it might be the push that gets your paper airplane off the ground.

UFANDAO offers: 

• Peer-to-peer donations: Contributions are made directly between members in real-time, ensuring instant access to funds without intermediaries.
• Zero commissions: The platform doesn’t charge any fees on donations, so you receive the full amount.
• Access to a global community: Available to anyone with internet access.
• Flexible fundraising: Raise funds for anything, from personal goals to Web3 innovations.

And there you have it — our wildcard for those with nothing but a smartphone and a dream.

You can’t say this article wasn’t comprehensive!

The state of Web3 fundraising in 2025 with Anna Shakola

As part of the research for this article, a conversation was held with Anna Shakola, the head of business development at Cointelegraph Accelerator, to gain an insider’s perspective on the current state of Web3 fundraising.

Here are three key moments from the conversation that are worth sharing with you.

1. What are Web3 investors currently looking for?

Gone are the days when a startup could raise tens of millions of dollars on the basis of a white paper. 

The industry has suffered from poor-performing Web3 portfolios, from investing in projects that showed a lack of growth or ended up being scams. 

The industry is getting bigger, yes, but this has also meant that there are more startups, higher levels of competition, and investor risk tolerance has lowered.

Right now, we’re looking for infrastructure, B2B, and growth-stage projects with proven market demand. I think this reflects the broader investment appetite.

I would emphasize that infra is really the new alpha.

2. What’s your advice to a Web3 startup in 2025?

Here are the things I’d focus on at the start:

• Think about who you are. Be specific, be honest, and remember that you don’t need to reinvent the bicycle. Be sure of the problem you’re solving. Strong project identity is crucial.
• Check investor portfolios. Look at the accelerators, VCs and angel investors you’re reaching out to. Don’t contact everyone mindlessly — you’re wasting your time.
• Consider grants and ecosystem funds. These are often overlooked. You might even want to validate your idea at hackathons or through bug bounties. This is where investors will be paying attention.
• Seek smart money. It might not be enough to secure funding from laissez-faire angel investors. Focus on deals that will bring you solid, comprehensive support.

3. At what stage should a founder give up trying to fundraise for their project?

It’s an interesting point because ordinarily, most people would say never.

However, you need to consider the opportunity cost of time spent reaching out to VCs, traveling to events, reworking the MVP and the financials involved.

I have a list of founders that I reach out to every year because they launch new projects each time there is a trend. It’s important to adapt. If something doesn’t work, don’t be afraid to scrap it.

I think that when the money runs out, the project becomes a financial burden, the team is burned out and working at low efficiency, and there are no meaningful conversations with investors underway, these are all signs that it might be time to move on.

Remember, more often than not, VCs find you — you don’t find VCs.

Beyond ICOs to smart money: Navigating the future of Web3 fundraising

In case the stunning amount of double ticks you’ve received from VCs on Telegram hasn’t painted the picture for you, fundraising in Web3 has changed massively since the ICO boom of 2017.

Today, securing investment requires more than just a white paper and a few good connections. It demands a strong project identity, a well-structured business model and the ability to demonstrate real market demand.

Whether you pursue venture capital, angel investors, grants, token sales or crowdfunding, understanding the right approach for your stage of development is key.

Most importantly, as Anna mentioned, securing smart money — investment that comes with strategic support — can make all the difference.

If one method doesn’t work, pivot, refine and keep pushing, even if you end up fundraising for your MVP over at UFANDAO. 

But if the challenges become overwhelming and traction remains elusive, knowing when to move on is just as important as knowing when to persist.

Good luck!