As bear markets continue to slash venture capital investment in the cryptocurrency industry, alternative financing options such as grants are gaining traction as a means of supporting communities while promoting growth for established projects.
At Least 40 Crypto Projects Currently Active, According to Blockchain Grants dedication Funding is provided for developers developing Web3 solutions, while data from Cointelegraph Research suggests that the market downturn has left a void in cryptocurrency venture capital, resulting in a 30% drop in funding injected into Web3 projects over the past 12 months.
Grants and venture capital are two different financing mechanisms with different purposes and conditions. While grants are typically used to support projects that align with specific goals and values, venture capital seeks startups with high growth potential and a focus on financial returns.
However, Cumberland Labs CEO Naveen Agnihotri told Cointelegraph that access to grants may only benefit the project if the funds are put back into work. “Grants are especially helpful for nascent cryptocurrency projects, but only if the money has to be put back into the work,” Agnihotri noted, adding that venture capital “can help a founder get his or her project off the ground.” Quite a useful way, since both parties are motivated to participate in this way. ”
open call for grants
In an effort to foster innovation while holding projects accountable for the funding they receive, the SingularityNET team has updated its Deep Grant grant program. Following the recent launch of its third round, the program will now reward teams based on achieved milestones and deliverables, as well as peer revisions. As of Sept. 3, the program will receive proposals from five funding pools and plans to allocate more than $1.5 million to AI-related projects in the coming months.
“Funding programs are playing a key role in shaping the next phase of development and innovation in the cryptocurrency industry. These projects provide financial support and a platform for unconventional ideas , to foster creativity, research and the creation of groundbreaking solutions. Since its launch in 2022, the project has helped 28 artificial intelligence (AI) projects distribute grants through decentralized voting within the SingularityNET ecosystem.
We are looking for community members who would like to be actively involved in promoting our community-driven programs @DeepFunding, we reward those who do! Submit your proposal now:
— SingularityNET (@SingularityNET) August 18, 2023
In addition to funding projects, the Interledger Foundation uses its grants program to advance initiatives to provide a payments network to the unbanked community around the world. “Funding programs can relieve some of the financial pressure[that faces]entrepreneurs and innovators. In some cases, because of a lack of resources, some amazing projects were abandoned and never shown to the world. “The program will accept applications until November 21. And plans to award more than $100,000 in grants in this round.
Applying for a Grant: What to Consider
When applying for funding, it is critical to understand the goals and priorities of the funder. According to Presa, this demonstrates a genuine interest in and understanding of the program’s core goals. “Engaging with the community, seeking feedback, and refining your proposal accordingly not only improves its quality, but also demonstrates your commitment to collaboration and improvement.”
For Agnihotri, projects must focus on solving real problems when positioning proposals. “Right now that we’re in a bear market (…), I think it’s a good time to really think about problems and big ideas. Get yourself a quiet place, think, think, think, and then, if a big idea pops up, Really take the time to thoroughly write a grant proposal,” he advises, adding that the bear market gives projects time to think about real problems. unresolved issues.
“While money may not be flowing in large quantities during this time, money is still there, and money will be attracted to good ideas,” AgniHotley said.
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