Founders should look to venture capitalists as their allies as they grow in the bear market

Venture capital firms offer value to startups beyond just cash. They also bring business experience, vast networks and essential services to the table.

This year's bear market trajectory should be viewed as a favorable opportunity for Web3 founders to raise capital and create cutting-edge products. Some of the strongest companies today were created during market downturns, and founders now have a real opportunity to ensure they are creating products and services that meet real, real needs and go beyond oversized checks to find the most appropriate business partnership.

Determining the best methods to finance your product and business is of paramount importance and should not be a hasty decision. It is an action that requires due diligence and a keen understanding of how the partnership will work and, more importantly, thrive in the face of adverse markets. However, before a founder embarks on the adventure of attracting investment, it is important that he can communicate the effectiveness of his product in current and future markets.

Only 0.05% of startups manage to secure venture capital (VC), and as such, one of the fundamental requirements for attracting investment is that your project be able to demonstrate a designed product-market fit to succeed. Although this may not apply to all investment scenarios, demonstrating that your product is useful to your target audience is crucial in the process of securing capital. So what exactly does a good product-market fit look like?

As decentralized finance (DeFi) has cemented its place as one of blockchain's strongest value propositions, many innovative DeFi solutions have come to the fore.

Having worked tirelessly to create the best possible product for the market, you may now be ready to explore the various avenues of raising capital available to you. Due to the decentralized nature of Web3, startups can raise capital through the non-traditional means that have emerged in recent years, such as decentralized autonomous investment organizations (DAOs). The availability of...