The Unique Challenges Facing Startups in Web3
Apple is now entering the augmented reality space. That’s one step closer to mass adoption, and you can hear the sigh of relief from many of my friends and connections who are pro-metaverse. As a founder building in Web3 and AR, you just need one of the big players to kick things off to make the little guy sit up and take notice.
Thank you, Apple, for once again making all of us pay attention.
That attention helps solve one of the many challenges of building a brand-new industry. It stirs excitement and conversation. Potential buyers and builders sit up and take notice.
Who is going to create exciting new products for the new Vision Pro? Will those companies find it easier to gain traction in the metaverse now that Apple is in the mix?
For the Web3 industry, gaining attention is a huge hurdle to jump. This is one among many other struggles startup founders face in this new space.
Here are some of the challenges that come up in conversations with Web3 community members about building new companies with cutting-edge technology.
Lack of Web3-educated consumers
The number of people officially “onboarded” into Web3 is limited. Providing the education and trust needed to grab attention takes time. And once you catch that attention, will they have the patience to work through the bugs and new technology to use the product?
Going halfway - Web 2.5
By providing a more effortless user experience, many builders are using Web2 solutions for their new Web3 products. This, in my opinion, is a mistake. While it does help onboard new users faster and easier, it doesn’t solve the problem that Web3 is trying to fix.
We use credit card processing and centralized storage instead of self-custody wallets and paying with cryptocurrency. How can we then wean off users from that experience?
Changing “free” behavior
One founder told me that it is difficult to sell her Web3 product because people don’t understand the problem and price of “free” content. We want free articles, songs, videos, and other content that exploits our data and doesn’t reward the author, artist, or musician. We must understand that paying for something (like the good ‘ol days) is actually a good thing.
Free just isn’t that appealing when you truly understand the costs. Once that is understood, then the benefits of Web3 products and services comes into focus.
Things are moving too fast
You start a company with a fantastic product and a great team. Now create a business plan, mission statement, and strategy to make money and provide the best customer experience possible. Once you have that determined, things flip around, and you must start all over.
Technology is evolving so quickly that as a business owner, one day, your strategy works; the next, it is entirely out of date. How can you keep up?
Misinformed media coverage
Mainstream media latches on to drama and bad news. They spin it and sensationalize it for ratings, likes, and advertising. What if they get the message wrong or blow it out of proportion?
We have seen it happen many times - shocking news announcements around cryptocurrency. As a result, it trickles into the world of our Web3 startup founders.
The mainstream audience isn’t going to dig deep to understand. They see and hear the flash and make quick assumptions.
Explaining and changing minds is challenging, especially if the message is to scare or worry.
There is always more to the story and different angles. A different perspective may not be that scary at all but an opportunity.
Web3 founders get off course to explain their perspective and to rebuild trust. While working to get people back on track is frustrating, it is a valuable lesson for founders.
No history to refer back to for answers
We are exploring a new technology that goes back just a few years. I giggle every time someone has been in Web3 since 2017. An old timer for sure. We have no further history to learn lessons to prevent future mistakes from happening. New territory to discover and many lessons to learn are ahead of us.
Still want to build in Web3?
So now that I depressed and discouraged you, dear reader, what will you do?
Do you throw up your hands and give up?
Or is this a challenge you are excited to take on?
This is the battle our Web3 founders are dealing with each day. I want to say, keep it up and persevere. Unlimited amounts of creativity and possibilities are addictive. If you have the right entrepreneurial mindset, you can make it happen.
Let’s rally around and support our Web3 community members.
I’m rooting for you. I wish I was Apple so I could make a loud noise to give you the attention and encouragement you need. Instead, I will do what I can and try to tell the story to as many people as I can.
Will you?
