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The fast rise of Web3 and decentralized technologies allowed for truly disruptive possibilities across finance to content creation. Web3 presented unparalleled opportunities and challenges; at the same time, it provided the possibility to change it all. On a mission to guide such groundbreaking startups in fundraising, scaling operations, and overcoming the complexities of such a decentralized ecosystem is Hesham Zreik, CEO of FasterCapital. In this interview, Zreik provides an overview of what he believes Web3 founders ought to focus on and offers some practical advice for their success.
Q: Web3 funding is problematic due to its different model. Specifically, what are some barriers you see in the funding landscape for Web3 startups?
Hesham Zreik: Indeed, funding in Web3 comes with unique challenges not faced by traditional tech startups. Many investors still lack the deep understanding of decentralized technologies, and concerns on regulatory uncertainties, scalability, and security are clear. Sometimes this creates hesitation with investors who are less familiar with the technical side of blockchain. To a lot of traditional investors, Web3 is still new, and this gap between investors and potential knowledge for Web3 can slow down funding.
Q: How does FasterCapital look at funding differently so as to satisfy the needs of Web3 startups?
Hesham Zreik: At FasterCapital, we consider funding to be part of what we offer. We want to give an all-round support system. To our investment, there is also technology co-development, market validation, and business development. What we found is that many Web3 founders need a partner that can guide them through how to manage both the technical and community sides of a project. We don’t just invest in companies; we partner with companies to build out ecosystems that benefit the greater good of the Web3 community.
Q: What trends do you see emerging in the Web3 funding models, and how do you expect these to impact startups?
Hesham Zreik: Token-based funding models and DAOs are already popular, fitting well into the decentralized ethos of Web3. Such models provide new avenues for founders to raise funds by interacting directly with their communities. Community-driven ways will be even more involved in the future of funding on Web3. For instance, users will have the ability to become active stakeholders in projects through DAOs, which help better align incentives and build trust. FasterCapital is observant and always supports such innovative funding mechanisms whenever they pop up.
Q: One of the major problems with scaling in the case of Web3 startups relates to technical and governance complexities. How will you advise them to go about it?
Hesham Zreik: Scaling in Web3 is complex because it’s not just about growing the user base or infrastructure—it’s about managing decentralized governance, ensuring interoperability with other chains, and building trust. First and foremost, security should be a concern. Small issues tend to snowball really fast, so it is important to invest in secure development. Interoperability from the very beginning, so that when needed, projects could integrate with other platforms seamlessly, is another advice I give to the founders.
Another crucial thing that matters is community building. It’s essential to have engagement from the community from the very beginning, as they are often stakeholders who can actually influence the trajectory of projects. FasterCapital works closely with our startups to ensure they are prepared to scale both from a technical standpoint and from a community management standpoint.
Q: How does FasterCapital help Web3 startups move beyond these scaling challenges?
Hesham Zreik: FasterCapital covers all aspects-skills development, from co-development to advice on business strategy and community building, including connecting a startup with relevant partners and experts in areas of specialized knowledge. In Web3, much of the growth relies on the partnerships you build-be it with other protocols, active blockchain developers, or leaders within the community. We help our portfolio startups build these relationships that are so vital for sustainable scaling.
Q: What advice would you have for the founders of Web3 balancing growth and community involvement?
Hesham Zreik: Community is key in Web3. In general, your users will be stakeholders, so onboarding them early and listening to their feedback is going to be critical. Security is an ongoing concern. Investing in secure infrastructure and protocols is a must-have, not an afterthought. Lastly, be forward-thinking. Although the web changes fast, only those who have built durable, transparent, and secure projects will make it through.
Q: FasterCapital seems focused on building an ecosystem around Web3. Can you share more about how this ecosystem works and why it’s important?
Hesham Zreik: We are committed to empowering Web3 entrepreneurs through the creation of a support ecosystem. This is way more beyond funding. The accelerator program gives the founder access to industry experts, resources for technical development, and partnerships. It’s about building an environment where founders feel supported and are able to find the right guidance and resources.
Q: Looking ahead, how would you see the development of Web3?
Hesham Zreik: Web3 is going to be one of the most core shifts in the technological world. While getting to a more decentralized solution, Web3 will change industries and set new standards for transparency, security, and community-driven development
The Web3 space is rewriting the rules on how we think about technology, trust, and value creation. Though this opens exciting avenues to innovate, it also presents singular challenges that demand our diligence. Fundraising and scaling within this decentralized landscape demand new approaches oriented in security, community inclusion, and sustainable scale. To the founders, success in Web3 means developing robust technologies with resilient ecosystems that can adapt and go on to thrive in this rapidly evolving environment. As Web3 continues to reshape industries, leaders who are collaborating, making transparency paramount, and attuning themselves to the needs of their communities will be on the front lines, leading into the next era of digital transformation
Bio of Mr. Hesham Zreik
Hesham has been ranked #39 out of top 50 investors (Forbes 2018) based on investment and successful exits. Hesham has invested in +100 startups. He has co-founded more than 40 startups. He has a passion for building innovative start-ups around the principle of developing simple solutions to challenging problems. He is multilingual and can speak, read, and write Arabic, English, and French. He also has some good knowledge in German and Spanish. Hesham is the founder and CEO of FasterCapital.
Links
Facebook Account Link https://www.facebook.com/hesham.zreik
Latest Articles written by Mr. Hesham
https://blog.hubspot.com/ai/smart-ai-trends
https://startupsmagazine.co.uk/article-importance-diversity-startup-teams-driving-innovation-and-success
https://www.fintechfutures.com/2024/10/the-rise-of-decentralised-finance-defi-opportunities-and-challenges
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