Why Launchpads Are the Backbone of Web3 Funding

Opinon: John R. Bussiculo, CEO of GraphLinq Chain

In the tech world, having a great idea is just the beginning. Whether you're building the next app or platform to disrupt an industry, you still need capital to get your project off the ground. Traditionally, venture capital (VC) firms and private equity groups have been the lifeblood of tech innovation. They fuel the engine, allowing creativity and competition to shape the future through innovation.

But things work differently in crypto and web3.

The Role of Venture Capital in Web3

In traditional tech, raising capital from VC firms is a structured and relatively predictable process. You pitch your vision, show a strong leadership team, and demonstrate that your product solves a problem with a clear market fit. If the stars align, you get your funding, often in exchange for equity or control over your company.

In crypto, VC funding has had a much more volatile history. While major Silicon Valley players like Andreessen Horowitz and Sequoia Capital have created funds dedicated to blockchain investments, their involvement often ebbs and flows with the crypto market. A notable example is the massive surge in VC funding in early 2022, coinciding with Bitcoin’s record-breaking price of $69,000. However, the market crash later that year saw VC interest plummet, leaving many projects struggling to secure financial support.

This fickle behavior underscores a crucial point: crypto and web3 need a more reliable, decentralized funding mechanism. That’s where launchpads come in.

Why Launchpads Matter in Web3

The crypto industry’s inherent volatility has led to the development of alternative funding routes that align with its decentralized ethos. Launchpads, also known as IDO platforms (Initial DEX Offerings), emerged as one of the most successful solutions to fill the gaps left by traditional VC firms.

Launchpads allow projects to raise funds directly from the community, letting retail investors and institutional players alike decide which projects deserve their attention and money. This democratized funding approach reflects the very values that crypto and blockchain were built upon: decentralization, transparency, and community-driven growth.

During the last bull market, launchpads like DAO Maker and Polkastarter became household names in the crypto space, giving access to a wide variety of early-stage projects. These platforms did more than just help projects raise money—they also provided tools, resources, and networking opportunities that were essential for startups to thrive in such a competitive environment.

The Evolution of Launchpads

As the crypto industry matured, especially during the bear market, the role of launchpads expanded. No longer just platforms for token sales, launchpads have evolved into full-fledged incubators and accelerators. They offer more than just access to capital—they provide mentorship, post-launch support, and strategic guidance, helping projects navigate the complexities of the blockchain landscape.

Platforms like ChainGPT and Seedify are setting new standards for multichain launchpads, allowing projects to launch across various blockchain networks. These platforms are becoming indispensable as they not only help projects raise funds but also ensure compliance with regulatory frameworks, adding a layer of security for investors.

One standout example is Gems, a new launchpad that not only helps projects raise money but also connects them with a network of influential investors and key opinion leaders. By providing both capital and strategic guidance, Gems has raised nearly $200 million across just three project launches. This model, which carefully balances the needs of both investors and project founders, is rapidly becoming the new norm in web3 fundraising.

The Future of Funding in Web3

At GraphLinq Chain, we see the importance of these decentralized launchpad platforms in fostering innovation and growth. As crypto continues to integrate with traditional finance and attract mainstream attention, the methods for funding projects will inevitably evolve. However, the core principles behind decentralized funding—community involvement, transparency, and autonomy—will remain critical.

In this dynamic industry, launchpads will likely continue to adapt and play a central role in shaping the future of web3. They represent more than just a funding source—they are the new infrastructure that empowers communities, fuels innovation, and ensures the survival and growth of promising blockchain projects.

As CEO of GraphLinq Chain, I’m excited to see how this evolution unfolds. Launchpads will be an integral part of the ecosystem as we continue to build a decentralized future. The projects that embrace these platforms and leverage their community-driven approach will be the ones that thrive in the long run.

So, while VCs may come and go, launchpads will remain the backbone of web3’s growth.

John R. Bussiculo a.k.a. jr00t
CEO, GraphLinq Chain