Research Summary
The report by IOSG Founder, Jocy, reflects on the 2049 conference and the current state of the crypto industry. It highlights the financial struggles of many teams due to the bear market, the challenges of fundraising, and the resilience of founders. The report also discusses the shift in the nature of the 2049 conference, the role of capital in industry progress, and the importance of innovation in the industry.
Key Takeaways
Financial Struggles of Teams
- Running out of funds: Many teams, due to their expansion in the past two years, are nearing the end of their financial runway. Some have only 5-10 months left in the current market.
- 2049 as a last hope: For many teams, the 2049 conference was their last hope for financing and brand exposure.
- High burn rate: Some teams have a very high burn rate, leading to financial struggles.
Fundraising Challenges
- Regulatory pressure: Due to regulatory pressure in the US, fund financing has become very difficult.
- Reliance on Chinese LPs: Many VCs are relying on Chinese LPs in Asia for support, but most crypto-oriented LPs are more frugal due to the bear market.
- Skepticism of traditional LPs: Traditional LPs are skeptical about the value and use cases of the crypto industry, making fundraising challenging.
Resilience of Founders
- Adaptability and patience: The bear market is testing the adaptability, patience, and resilience of the founding teams.
- Endurance: Many founders endured the last bear market cycle until March 2020, when many lost hope and abandoned their projects.
- Rebirth of the crypto industry: Three months later, the DeFi Summer broke out, the crypto industry was reborn, and many industry practitioners saw an unprecedented dawn.
Actionable Insights
- Focus on innovation: Applications on L2 have become the inevitable trend of industry innovation. Founders should focus on solving the industry’s application problems.
- Embrace the development community: Practitioners should feel the native power of the development community and find the bright and hot places in the industry.
- Create, don’t wait: Instead of waiting for the next bull market, practitioners should create and innovate in the industry.
