How Startups Use Launchpads to Reach Investors

Startups are now able to leverage crypto to raise capital, create communities and market products, all on the same platform. At the centre of everything are launchpads because they help the new startup founders secure capital, advertisement, and help them align with their early supporters in a way that is impossible through traditional venture capitalist (VCs).

 

What is a Launchpad?

 

It is a platform where blockchain projects that are still in the early stages of development are able to raise capital by selling tokens to investors before the public launch. These platforms help in linking new start-ups to a community of crypto investors that are always looking to access new projects.

 

For investors, it is a platform where they can invest in the innovative ideas of up-and-coming startups. Launchpads are a collection of early stage crypto projects that are looking to market and sell their tokens to investors. For startups, launchpads are a new opportunity to connect innovation with investments. Rather than presenting their ideas to a few selected investors, they can now present their ideas to retail investors.

 

Why Launchpads are Preferred Now

 

They are preferred in the Web 3.0 ecosystem now largely because of their access to advance funding. Launchpads have become the go to for web3 fundraising because of a few core principles.

• They speed up capital raising to new heights.
• They mitigate the chances of equity dilution.
• Although there are risks involved, now there is better transparency.
• Fundraising can be done in a matter of clicks with blockchain.

In short, “closed-door” VC models have been replaced with launchpads and community driven, open approaches that are more fitting to the ethos of Web3.

 

What Is the Process of Launching on a Launchpad?

 

Starting a new business through a launchpad follows a particular procedure. Beginning with the application and screening process to being listed on an exchange:

 

Stage 1: Application Submission & Screening

 

For a specific launchpad, the startup has to submit a project. The project will be assessed for legitimacy, tokenomics, technology vetting and other relevant factors to ensure that only credible projects reach the investor pool.

 

Step 2: Tokenomics & Whitepaper Finalisation

 

With the help of launchpads, founders design token allocation models to draw in investors and provide long term sustainable growth. This is done with proper supply, vetting and staking incentives for the crypto tokens.

 

Step 3: Marketing & Community Building

 

With the use of AMAs, advertising through social media and influencers, launchpads ensure that there is enough hype around the project to make certain that there is a sufficient investor base when the launch occurs.

 

 

Step 4: Token Sale (IDO/IGO/INO)

 

Investors buy project tokens during the Initial DEX Offering (IDO) and similar events, where stake-based allocation to the launchpad’s native token becomes a norm.

 

Step 5: Listing on Exchanges and Progressing Ecosystem

 

Following the IDO, projects actively engage in listing tokens on decentralised or centralised exchanges and continue to work on their products to integrate their new community of token holders.

 

Why Launchpads Are Better for Startups than VCs in Web3: The Startup Edge

 

Beyond funding, launchpads provide a full package to new businesses: funding, growth, and visibility. Unlike VCs, launchpads market projects to their investors. Launchpads create a buzz from engaged patrons who become advocates. In this ecosystem, where adoption is everything, this capital and community combination is ideal for Web3 startups.

 

Ecosystem Builders: Beyond Fundraising

 

Launching new projects goes beyond simply fundraising; they serve as effective ecosystem builders. Launchpads integrate founders with investors, mentors, developers and influencers, crafting a network for sustainable growth. Launchpads provide infrastructure, covering everything from advertising to collaborative relationships, enabling unprecedented growth and strength for businesses.

 

Benefits of Startups Launching on Launchpads

 

Ready to fuel their growth, startups on launchpads get an instant community, marketing resources and momentum. In addition to greater visibility, they experience accelerated fundraising, incentivised investment support and liquidity assistance that allow projects to flourish.

 

Community and Viral Marketing: Amplifying your brand from day one with pre-existing audiences.

Built-in Traffic: Active investor bases are brought to launchpads, often searching for new projects.

Staking and Incentive Alignment: Users stake tokens for participation, which aligns their success with yours.

Liquidity Support: Several Launchpads provide assistance with listings on exchanges and liquidity pools after the project is launched.

Credibility Boost: Getting vetted by a trusted launchpad boosts instant market trust.