Crypto start-up investing is heating up. The first quarter of 2024 saw a total of $2.52 billion invested in crypto and blockchain projects, according to PitchBook – some 25% higher than Q4 2023.
And all signs point to an exponential increase throughout the second half of the year. Nearly every day, we’re seeing projects in the DePIN, AI, and GameFi sectors closing bigger and bigger funding rounds, and much of this surge in activity is being fuelled by crypto launchpads.
In crypto, a launchpad is a platform that facilitates the introduction and sale of a new token to the public, typically through a process called an Initial Coin Offering (ICO). Launchpads act as an intermediary between crypto projects and investors. They offer a more structured and secure environment for investors and a wide range of start-up services – from regulatory compliance to marketing support.
For example, Yield App Angel provides access to its established community of 105,000 users with an estimated $20 billion in total crypto assets, along with marketing support, strong KOL relationships, access to top VCs, and so much more. Investors, meanwhile, can choose from a curated selection of vetted projects.
The Formula to Start-Up Success
There are many examples of projects that successfully raised capital via a launchpad. One name any crypto enthusiast will recognize is Polygon – a platform aiming to create a multi-chain blockchain ecosystem compatible with Ethereum. Polygon, originally called Matic Network, raised funds with the help of the Binance Launchpad back in 2019. According to Defi Llama it grew into a thriving ecosystem, with around $8 billion in total value locked (TVL) at the height of the 2021 DeFi boom.
Today, there is a wide range of launchpads in the Web3 space, from platforms run by leading centralized exchanges like Binance and Bitget, to dedicated incubators and launchpads like Yield App Angel or Seedify. Every day, these launchpads are helping start-ups get off the ground with successful funding rounds. Seedify, for example, says it has helped more than 50 projects raise some $18 million in total funding and grow their market caps to five times the total amount raised.
However, while launchpads can offer a crucial support network for crypto start-ups conducting a funding round, the 2018 ICO boom has also left them with a bad rep. Some were responsible for promoting pump-and-dump tokens, with an estimated 80% of all ICOs in 2017 identified as scams.
The Importance of Due Diligence
So, while launchpads are a crucial piece of the puzzle for start-up funding, as an investor, it’s important to find one that follows strict due diligence rules to avoid fraudulent projects, since not all launchpads are made equal. If you want to make the most of the current start-up investment boom but security is your top concern, then Yield App Angel could be for you.
With the help of its proprietary 135-point risk assessment model, Yield App expertly navigated the 2022 crypto downturn, having avoided the collapsed UST stablecoin. In fact, Yield App has seen zero hacks or exploits since its inception. You can be confident all projects available through its launchpad will adhere to the same high standards as the rest of Yield App’s portfolio.
In the 2024 start-up investment boom, robust due diligence will be particularly crucial. With thousands of new crypto projects coming to market, it’s increasingly difficult for investors to identify the ones that will deliver the best value. Launchpads with a focus on security and risk controls will create a bridge between investors and the highest quality early-stage projects coming to market.
Yield App Angel: The Gold Standard in Fundraising
Ensuring that its users have access to the most promising ICO opportunities is at the heart of Yield App Angel. Typically, these early-stage allocations are only available to top VCs and the most privileged funds, but Yield App provides early access to retail investors with much lower minimum investments. On top of this, Yield App’s total allocations are typically much larger than other launchpads ($300,000-$4 million) and can be oversubscribed, which guarantees access to all those interested.
Recently, Yield App Angel facilitated a successful fundraising round for ME3 – a project revolutionizing fan engagement and community interaction by bringing together eSports, gaming, finance, and social connections and is currently taking subscriptions for AI project Raiinmaker.
With a wide selection of exciting fundraising rounds in the pipeline, Yield App Angel will play a pivotal role in giving the average investor access to the 2024 start-up investment boom. From gaming to AI and everything in between, Yield App seeks out curated early-stage projects that offer a real opportunity to grow your wealth and make the most of the bull market in a secure, risk-controlled way.
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