Crypto projects need more visionary funding for long-term growth

Opinion by: Kori Higgins, director of investor relations and growth at the Web3 Foundation 

The euphoria that erupted in crypto markets following the outcome of the US presidential race solidified Bitcoin’s status as a mature asset class in the eyes of the global investor community. The recent market backdrop unleashed arguably the most potent crypto bull run in its 16-year history, pushing the price of Bitcoin (BTC) past the $100,000 barrier. 

The fervent activity of institutional investors further propelled Bitcoin’s recent price rally. While most in Web3 welcome the inflow of institutional money into crypto, the level at which these investors will drive innovations forward and support true breakthroughs in Web3 technology is questionable. 

To ensure the investor community doesn’t lose sight of Web3’s longer-term potential, leading investors in the space must look beyond the hype and build a durable vision for the future of blockchain adoption that encapsulates a broad view of economic advancements and societal change.

Reimagining Web3 community funding 

Amid evolving market conditions, crypto startups are pivoting their funding plans and stakeholder engagements to coincide with changing investor behaviors and demands. 

With capital inflows increasingly directed toward these investment products, these market developments could inadvertently impact longstanding investments into Web3 startups. While crypto’s market movement and economic potential have recently dominated investment narratives, we must remember that actual value — both financial and societal — aligns with the long-term vision of Web3.

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Under these market conditions exists an opportunity for the Web3 ecosystem to reimagine the funding landscape to enable and ground various innovative projects in the crypto community. More community-led initiatives in the form of Web3 ecosystem grant programs, hackathons and accelerators are emerging as essential channels for funding and support. Alternative community funding channels bring multiple benefits for recipients, and have the added appeal of speaking directly to the community. The rise of ecosystem-led funding channels may be due to the type of use cases they support and how they achieve interoperability between different technologies. 

Crypto accelerator programs set by well-known market players such as Circle’s Ventures provide a direct path for startups to get more specialist advice and resources related to their projects.

Viewed holistically, these funding and support initiatives form the foundation for creating more dependable mechanisms for Web3. They help mitigate the volatility that stems from fluctuating market trends.

Web3’s values require bigger-picture thinking

The depth and breadth of the Web3 ecosystem have created more opportunities for Web3 investors through compelling use cases that incorporate economic, social and technological components. For these use cases to be transformed into economic outcomes, funding must be directed and targeted to help projects build on their milestones and achieve measurable outcomes. Education on the benefits of the intersection of Web3 and other technologies should also be supported through more cross-industry collaboration initiatives led by investors. 

Some of the most active Web3 investors also have skin in the game in other technology verticals such as artificial intelligence, decentralized physical infrastructure networks (DePIN) and quantum computing. The intersection of blockchain and other technologies requires a nuanced investment approach that puts interoperability and enablement at the center of strategic decision-making. The intersection of AI and blockchain is already providing significant outcomes across multiple use cases, such as data provenance, with some analysts predicting the two industries could add a collective $20 trillion to global GDP by 2030. 

The path to a tech-enabled world

While Web3 is making its way into mainstream discussions on economic welfare and social advancement, a large proportion of the crypto community remains fixated on Bitcoin price movements, which is just one piece of the puzzle.

At Davos 2025, the meeting’s “Rebuilding Trust” theme offers an opportunity to highlight how Web3 can empower communities and challenge corporate dominance. If global leaders are to be realistic about “rebuilding trust,” they need to acknowledge Web3’s potential to empower communities through decentralized governance and improved data ownership and security.

Therefore, Web3 company founders, key opinion leaders and investors must choose which conversations they want to participate in. Web3 projects that choose the long-term economic conversation will need a robust, agile funding environment to support their longer-term objectives. That needs to be backed up and supported by visionary thinking from the investor community. Other support structures through grant programs and accelerators will play more of a role in filling the void between market swings. 

Now is the time for the global investment community to seize the opportunity that matches Web3’s long-term vision and develop a funding plan that supports long-term growth and societal benefits.

Kori Higgins is the director of investor relations and growth at the Web3 Foundation and chief of staff at Parity Technologies, where she is involved in advancing the infrastructure behind Web3 technologies, including the Polkadot ecosystem. Before Parity, she managed business development for a firm that ran quantitative hedge funds and a venture capital arm.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.