With blockchain revolutionising a number of industries, there has been an increase in the demand for new ideas and innovations. That purpose is served by entities that identify the potential in some of these ideas and help bring them to life. A prime example of one of the leading blockchain accelerators is Outlier Ventures. Entrepreneurship is the driving force behind the progress of any field, and blockchain based technology is no different. That is why it is vital to identify and promote such ideas with adequate help and resources wherever it is possible to do so.
What do BLOCKCHAIN Incubators and Accelerators do?
Like any other startup, blockchain-based startups also require hardwork and dedication, along with capital. This starting capital is what funds research, development, marketing and covers employee payroll. Incubators and accelerators provide an initial capital to the startup in return for a stake in the company. Along with the funds, blockchain accelerators and incubators also offer additional benefits to the startup.
Many of these companies like Outlier Ventures provide grooming for the startup. They also allow startups to network and facilitate introductions. They often run pitch events where startups can present their business idea to more investors. Since blockchain based technology startups mostly comprise young and eager entrepreneurs, these blockchain incubators offer their wisdom and business experience. It is a symbiotic relationship between the two.
An incubator is meant for companies that are already in the process. They do not have a fixed schedule and they may be sponsored by a number of firms. While incubators can connect you with a specific market or area of interest, they also do more than that.
They often help blockchain startups refine ideas, make a foolproof business plan, identify intellectual property, a product market fit, and even allow networking in the right startup ecosystem.
With shared working spaces and mentoring, they often provide opportunities for co-working. This means that blockchain startups will have the opportunity to collaborate with like-minded startups and individuals and fine tune ideas.
Accelerators for blockchain startups usually function similar to incubators. The key difference is the structure of individual programs, as accelerators depend on a fixed timeframe. Startups spend a few weeks to months with accelerators. They provide a group of mentors and help the business avoid potential pitfalls on the way.
With application processes, companies once selected are given a small seed investment. Accelerators put deadlines for each stage, and let startups access a mentor network in return for a small equity stake . Accelerators, like incubators, provide startups with platforms to pitch their ideas to investors and do good business building.
The business develops continuously through various stages of the accelerator program, and the end product has a strong foundation. The startup now has enough network and contracts to get the idea off the ground. In addition, most good accelerators offer incentives and try to prevent overworking so that startups can work at a fairly normal pace.
Why Startups Need ThE Support OF BLOCKCHAIN INCUBATORS
There are many reasons why most blockchain startups could use the help of venture capitalists and the incubators that they fund. The key reasons among them are discussed below.
Relatively New Field
Blockchain technology is a relatively new field. This means that while there is a lot of innovation to be done, most of those coming up with startup ideas are young. They could use the guidance and networking opportunities provided by someone who has been through the process. It might be difficult to find such a mentor on one’s own, but incubators make it easier.
Collaborating with other startups or even individuals is a great way to explore ideas. You might even get the chance to create joint services that provide a much better value addition to your customers. In fact, you might use your co-working space or meet-and-greet events to harness the power of collective thinking to come up with phenomenal ideas, or identify important opportunities for collaboration. This could be a key part of your business going forward. It might force you to rethink a point of view or even lead to fruitful business partnerships.
Networking And Mentoring.
A good business incubator like Outlier Ventures will offer you the chance to network with individuals who have been through the process of setting up their business in the same field. They might have valuable insights. What’s more, you might find a mentor or coach who can guide you through the difficult parts of the startup culture. Staying in touch with your mentor and the network makes sure you have channels of communication to turn to in case you need to solve a future problem or need advice on getting your business running.
A good business always attracts the right kind of attention from investors. A good business accelerator or incubator will make sure you are put in contact with investors. You will have opportunities to pitch them your ideas. When your startup starts to actually grow, you will undoubtedly need extra funding in order to fund the growth. The introductions to and contacts of the right people can make finding investors a piece of cake, allowing your startup to grow without any concerns. Pitching your idea also becomes second nature, allowing you to convince investors that your startup is a winner.
Allows you to Focus on a Business Plan
Blockchain technology is a field that is continuously developing. It is important to keep your end goal in sight and work towards it. This is exactly what a business incubator offers you. You will be able to maintain your focus and stick to the business plan or modify it as the situation demands. With the right infrastructure and equipment already in place, all you have to do is focus on the business goals and objectives that you had set. That is why there is a rapid increase in the demand for business incubators and other accelerators for blockchain startups.
With so many emerging blockchain based startups that are in the form of decentralised apps and other solutions, it is vital to identify an incubator that can align itself with your ideas and offer you the best environment for growth and collaboration. This gives startups a significant boost in their growth. With the business plan in place and all resources and professional material available, the startup can focus exclusively on building the solution and fine tuning it to best serve the client base. The incubators will also help in identifying the best customer base, getting more funding, and garnering attention.
Outlier Ventures: An Example of Support
A great example of venture capital blockchain incubators is Outlier. They invest in the early stage ventures of extremely driven entrepreneurs who are on the route to building companies that can transform industries. They have been investing in blockchain based startups since 2015. This San Francisco based venture capital is renowned for its ability to work hard to get these startups off the ground, supporting them in every way possible, at every step of the way.
An example of their investment is Enigma, the protocol for sensitive data use with the help of decentralised technology that could create a wave across credit, finance and other industries that hold important personal information about their clients.
The CEO of Outlier, Jamie Burke, states that they focus on “the important mission of reducing the world’s reliance on insecure cloud computing platforms by offering peer-to-peer, privacy-preserving, decentralized and open-source alternatives.” This is what they look for in blockchain technology-based startups as well, so that they can align their interests and support these startups with funding, resources, equipment and much more.
Outlier and 18 other organisations came together to form The Convergence Alliance, in order to enable a new economy of the open data model. This is one example of the resources startups have access to with the right accelerator. With all these plans in place, it is no wonder that Outlier Ventures won the “Hottest Blockchain Investor 2019” award at the Europas Awards. This is one of the best among many other blockchain based accelerators and incubators looking to identify the best startups in the field and helping them achieve their business goals.
As the number of members of the blockchain community increases, so does the ecosystem meant to expand the reach of these people. Blockchain-based startups are definitely a field that could revolutionise everything from finance to payments. With modern solutions, startups undoubtedly need the expertise and wisdom that the mentors can provide, along with funding and exposure. All this calls for the need to increase the number of blockchain venture capitals like Outlier Ventures.
This will not only give startups the confidence to continue working on innovative solutions, but will also give them the equipment and resources needed to continue.