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Insights from CIFDAQ COO Jay Hao: A Guide to Fund Raising for Web3 Startups

Insights from CIFDAQ COO Jay Hao: A Guide to Fund Raising for Web3 Startups

Web3 startups have raised over $5.4 billion in venture capital during the first three quarters of 2024. This figure reflects a significant investment trend, with $1.4 billion raised in the third quarter alone.

Investors are increasingly targeting emerging markets at the intersection of blockchain and artificial intelligence (AI), while projects focused on decentralized blockchain infrastructure have also recently drawn substantial capital flow.

However, despite these glowing statistics and trends, securing funds for Web3 startups is no straightforward feat. And as a Web3 journalist, I have witnessed the tension in the industry firsthand. Conversations with founders and investors have revealed a landscape marked by both potential and uncertainty.

There’s no doubt that startups are emerging with innovative concepts. But then they’re confronting an investment arena that demands more than just a compelling pitch—it requires strategic precision, robust fundamentals, and a clear, executable vision.

To help Web3 startups go about fundraising the right way, I spoke with Jay Hao, Co-Founder and Global Chief Operating Officer of CIFDAQ, and former CEO of OKX. In this exclusive interview, Hao shared practical tips on building a solid foundation, crafting a compelling narrative, and tokenomics. He also offered guidance on identifying investment needs, attracting the right investors, and negotiating deals.

Editorial Note: The article is derived directly from the exclusive interview with Jay Hao. While the original interview format has been transformed into a comprehensive narrative, every insight and quote remains authentic to Hao’s original responses.

Building a Strong Foundation Every great Web3 startup begins with a rock-solid foundation. According to Hao, building a solid foundation is more than a preliminary step—it’s a critical determinant of a startup’s potential success. Hao emphasizes that this foundation rests on three fundamental pillars: team, technology, and business model.

“A strong foundation for a Web3 startup hinges on assembling a visionary, skilled team, developing innovative and secure technology, and crafting a business model that leverages blockchain’s decentralization,” Hao explains.

This holistic approach goes beyond mere technical capabilities, focusing on scalability, real-world impact, and creating a unique value proposition that captivates both users and investors.

Additionally, central to a startup’s foundation is the ability to tell a compelling story. According to Hao, a powerful narrative combines the mission with an engaging story about how the project solves an urgent problem in an innovative way. And this approach is not merely about marketing—it reflects a profound understanding of the problem and presents a visionary solution capable of transforming existing paradigms.

When asked whether tokenomics is essential, Hao emphasized its importance in aligning the interests of all stakeholders. He explained that effective tokenomics goes beyond simply creating a cryptocurrency.

“It involves creating a model with fair token distribution, real utility such as governance, staking, or transactions within the platform, and mechanisms to balance supply and demand. This fosters trust among investors and the community while driving ecosystem adoption,” Hao adds.

The Right Funding Strategy Having established the foundational elements of a Web3 startup, the next challenge is securing the right capital from the right investors for the right reasons.

Now, the first question any startup must ask is whether funding is even necessary. And Hao offers a clear perspective on this:

“Investment is essential only if it addresses critical growth gaps like product development, scaling, or market entry. One should avoid the allure of fundraising for PR hype; instead, ensure funding directly accelerates achieving your startup’s long-term vision.”

This perspective demands a strategic, almost surgical approach to fundraising. Startups must move beyond the glamour of raising capital and focus on precise, milestone-driven funding that propels genuine growth. Meticulously forecasting costs, aligning funding with specific growth targets, and benchmarking valuations against market trends become paramount.

The quest for the right investor is equally nuanced. You shouldn’t raise from any investor, but find a partner who comprehends the unique challenges and potential of your Web3 venture.

“The right investor understands your vision, brings strategic value beyond funding, and aligns with your long-term goals. Whether it’s an angel for early validation or a VC for scaling, prioritizing those who can offer expertise, connections, and credibility boosts the success of a startup,” Hao emphasizes.

Adding another layer to the complexity are Key Opinion Leaders (KOLs), who are increasingly stepping into the investor role. While they can offer massive exposure and credibility, their involvement requires careful consideration. The equity they demand must be proportional to their tangible impact—measured not by social media followers, but by their ability to drive meaningful community growth and user adoption.

Closing the Right Deal Negotiating investment terms is another critical moment for Web3 startups. Founders must balance financial strategy with collaborative partnership, viewing investor discussions as opportunities to align mutual goals and create shared value.

Following are some of the key tactics that Hao emphasizes for getting the best deal:

Don’t limit yourself to one source of funding. Having a range of options gives you leverage in negotiations and avoids being cornered into unfavorable terms. Be upfront about your startup’s valuation and the reasoning behind it. A clear, well-supported explanation shows investors that you understand your worth and the market. Focus on terms that benefit both sides, such as vesting schedules, governance rights, and token lockups. These provisions help align the interests of the startup and investors over the long term. Always bring legal experts into the process to ensure that agreements are fair and enforceable, and protect your startup’s best interests. After the Funding Securing funding is not the finish line. The transition from fundraising to execution is where many Web3 startups falter. Successful teams understand that investor confidence is continuously earned, not just initially obtained.

This is where the roadmap developed during the fundraising process becomes a critical navigation tool, guiding the startup’s strategic decisions and demonstrating commitment to its original vision.

“Post-funding, the team must focus on disciplined execution, strategically hiring talent, and delivering on the promised milestones,” Hao advises.

This approach goes beyond mere financial management—it’s about building trust, maintaining transparency, and demonstrating the ability to transform potential into tangible results.

Here are the key strategies that Hao shares for fostering strong relationships with investors:

Keep investors in the loop with regular updates on progress, challenges, and new opportunities. This helps build trust and ensures everyone stays aligned with the vision. Involve investors in key decisions when appropriate. Their expertise can be invaluable, and giving them a stake in important choices strengthens their connection to the project. Encourage investors to get involved in the ecosystem, whether through roles like validators, token holders, or advisors. This deepens their engagement and makes them feel more invested in the startup’s success. “By sticking to the roadmap you’ve built, you naturally boost confidence among both the community and the team,” Hao continues.

Critical to this process is building a loyal community, tracking key performance indicators (KPIs), and maintaining organizational agility. Every funding dollar must be viewed as an investment in growth and innovation, requiring constant evaluation and strategic reallocation.

The Web3 landscape is unforgiving to startups that cannot translate capital into meaningful progress. Success demands more than a compelling pitch or an impressive funding round—it requires relentless execution, strategic talent acquisition, and an unwavering commitment to the original mission.

www.cifdaq.com

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Donald Trump's crypto push: Not just Bitcoin, even these tokens are soaring

The bull run is not only crucial in terms of Bitcoin's valuation but also in its wider impact on the altcoin market. In Short Trump's pro-crypto stance boosts digital assets Altcoins like Ethereum, XRP see significant gains Meme coins Dogecoin, Shiba Inu also surge Bitcoin, the world’s biggest cryptocurrency, has become one of the most eye-catching movers in the week since the US presidential election, crossing the $90,000 mark.

On November 14, Bitcoin recorded a surge of 21.05% over the last seven days. It was trading at $90,617.33 and had a market cap of $1.79 trillion at the time the article was being written.

The catalyst for this dramatic uptrend is President-elect Donald Trump’s positive stance on digital currencies. Trump has expressed his desire for the US to become the ‘crypto capital of the planet’. This has shifted investor sentiment across the digital asset landscape.

ALTCOIN MARKET BENEFITS FROM BITCOIN’S MOMENTUM The Bitcoin rally has acted as a rising tide lifting many altcoins. Ethereum, which has long played second fiddle to Bitcoin, and the second largest cryptocurrency, is currently trading at $3,234.44, experiencing a growth of 14.40%, at the time the article was being written.

Other major altcoins, such as XRP, Avalanche, and Cardano, posted robust gains, climbing by 25.85%, 27.01%, and 57.72%, respectively, over the past week.

Meanwhile, the optimism surrounding Trump’s endorsement has extended even to smaller-cap coins such as Polkadot and Chainlink which posted impressive surges of 26.13% and 11.31% in the last seven days, thereby reflecting a broad-based boost in investor confidence, as both institutional and retail traders are looking to diversify their portfolios in anticipation of sustained market momentum.

MEMECOINS WITNESS A TRUMP-FUELLED RALLY Dogecoin, the canine-based memecoin, presently priced at $0.3965, has witnessed an enormous growth of 108.76% over the past week. This surge can be attributed to positive market sentiment and the strong backing of Tesla CEO Elon Musk.

While Musk hasn't made any recent statements about Dogecoin, his past endorsements have firmly established the coin's position in the market.

As per analysts, Musk’s public endorsements backing Dogecoin and Trump’s pro-crypto stance have been pivotal in boosting investor interest and demand. Another memecoin, Shiba Inu, recorded an upward tick of 43.79% in its price over the past week.

Himanshu Maradiya, Founder and Chairman, CIFDAQ, said, “Bitcoin hitting $100,000 is within reach, given its supply cap of 21 million and the recent break of its all-time high near $73,500 and hitting almost $90,000.”

“Rising institutional interest, adoption growth, ongoing accumulation trends, and post-halving cycles point to a higher long-term valuation. While market conditions and regulatory clarity will play a crucial role, Bitcoin’s fundamentals and demand trends make six-figure prices plausible,” he added.

"It was also a strong day for meme coins, as Pepe and Bonk were both listed on Coinbase, fueling substantial demand and pushing their prices up by 30-50%. Additionally, Pnut, a new memecoin listed on Binance, saw an impressive 250%+ price jump in just one day," said the CoinSwitch Markets Desk.

EXPERTS ADVISE CAUTION The catalyst for a dramatic uptrend in crypto prices is Donald Trump's newly vocal pro-crypto stance, which has unexpectedly shifted investor sentiment across the digital asset landscape.

His influence, as the President-elect, has provided a new form of legitimacy to digital currencies, reshaping the narrative within financial markets.

"While this market surge presents enticing opportunities, investors must remain vigilant. The rapid price movements in this niche highlight the inherent risks, as these tokens can experience steep declines just as quickly as they rise. Ultimately, this environment calls for a balanced approach—leveraging the potential of meme coins while exercising caution and conducting thorough research.," said Avinash Shekhar, Co-Founder & CEO, Pi42.

www.cifdaq.com

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The Transformational Power of AI in Talent Acquisition: A Competitive Edge for Modern Businesses

The Transformational Power of AI in Talent Acquisition: A Competitive Edge for Modern Businesses

By Anil Vasu, CHRO, CIFDAQ

Artificial Intelligence is revolutionising the field of talent acquisition, transitioning it from a reactive, time-consuming process to a strategic function that drives long-term business success. AI-powered tools now enable hiring teams to rapidly process vast amounts of data and make predictive decisions with remarkable speed and accuracy. However, this transformation also brings both opportunities and responsibilities for organisations to leverage AI in a balanced and ethical manner.

Streamlining Talent Acquisition Through Automation One of the immediate benefits of AI in hiring is increased efficiency. AI-driven platforms can quickly sift through thousands of resumes to identify relevant candidates, significantly reducing the initial screening time. This automation frees up recruiters to focus on value-added tasks, such as assessing cultural fit and managing relationships, which AI cannot fully replicate. For many companies, AI tools reduce the operational workload while enhancing the likelihood of finding the best-fit candidates based on objective criteria, ultimately helping to build a skilled and diverse workforce.

Yet, this efficiency comes with a need for caution. While AI can accelerate processes, it can also unintentionally reinforce biases if the algorithms are not regularly audited. Companies must continuously review their AI systems to ensure that the technology remains an enabler of inclusivity, rather than a barrier.

Creating a Personalised Candidate Experience In today’s competitive talent market, candidate experience has become central to a company’s brand. AI chatbots and virtual assistants are increasingly being used to provide candidates with real-time responses and updates, fostering a more transparent and engaging experience. This personalised communication reassures candidates and keeps them informed, leading to a stronger relationship between the candidate and the organisation. Beyond transparency, AI also enables recruiters to make tailored recommendations to candidates based on their skill sets, allowing companies to align roles with each person’s potential more effectively.

This approach to personalised interaction not only enhances the hiring experience but also reflects a company’s commitment to understanding and valuing each candidate. While AI assists in this tailored journey, organisations must balance automation with genuine, human-centered interactions for a holistic approach.

Leveraging Predictive Analytics for Strategic Hiring Predictive analytics is one of the most forward-looking applications of AI in recruitment. By analysing past employee data, AI can help identify traits associated with high performance, tenure, and job satisfaction, enabling organisations to make more strategic hiring decisions. Predictive analytics also offer insights into workforce planning, helping companies anticipate future needs based on market trends and internal growth trajectories.

Organisations using these insights can shape a proactive recruitment strategy that aligns with both current and future needs, positioning them for long-term success. Predictive analytics guide hiring managers beyond immediate requirements, setting the stage for sustainable growth through strategic talent management.

Responsible and Transparent Use of AI in Hiring As organisations integrate AI, maintaining ethical practices and transparency is essential. Candidates should be informed about AI’s role in the hiring process, especially regarding data usage and privacy. Many companies are adopting decentralized data frameworks to give candidates greater control over their information while still allowing AI to provide valuable insights.

At its core, responsible AI usage in recruitment means ensuring that the technology supports human-led decisions rather than replaces them. It’s about using AI to streamline processes, enhance candidate experiences, and support long-term business goals, all while respecting privacy and maintaining ethical standards.

Staying Competitive in the Evolving Talent Market AI-driven talent acquisition isn’t just about finding candidates faster or with greater precision; it’s about staying competitive in a rapidly evolving job market. Companies that leverage AI responsibly can attract top talent more effectively, foster better relationships with their workforce, and make strategic decisions that contribute to a stable, future-ready organisation. With AI’s ongoing advancements, the companies that balance technology with human insights will lead in attracting, retaining, and developing talent in the years to come.

AI offers transformative potential for talent acquisition, yet its successful implementation relies on a thoughtful, balanced approach that aligns with long-term business goals and ethical practices. The future of hiring does not lie in replacing human intuition with algorithms, but in complementing human expertise with data-driven insights for a more comprehensive and effective talent strategy.

www.cifdaq.com

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Bitcoin prices up 30% since Trump victory. Is $100,000 mark on the cards next year?

Synopsis After hitting a record high of $89,956 on Tuesday, Bitcoin experienced some profit-taking on Wednesday. By 12:32 pm, the cryptocurrency was trading 3% lower at $86,740.

Bitcoin’s rally has gained impressive momentum since Donald Trump’s victory, driving the cryptocurrency to new all-time highs (ATH). Following Trump's win, Bitcoin surged over 30%, peaking at an ATH of $89,956 and maintaining a bullish trend since then.

www.cifdaq.com

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Why Is Bitcoin Rising? BTC Price Surpasses $100K

Why Is Bitcoin Rising? BTC Price Surpasses $100K

BTC is the world’s largest cryptocurrency, with a market capitalization of $2.03 trillion. It skyrocketed immediately after Donald Trump won the U.S. presidential election on Nov. 5, 2024, and has continued rising since then, surpassing its previous highs multiple times. As of Dec. 5, 2024, Bitcoin has surpassed its prior highs and hit an all-time high of $103,900.

After nearly touching $100K, BTC stabilized at $95,000, with the market optimistic that it will continue to rise; as of Dec. 05, 2024, it peaked at an all-time high of $103,900.

The hope that the U.S. and the rest of the world will embrace pro-crypto policies appears to be the most appealing factor fuelling BTC’s rise. China’s efforts to lift restrictions on personal cryptocurrency ownership are also spurring hopes. Reports of Brazil and Russia considering BTC as a reserve too signal promise for cryptocurrency.

Bitcoin Trading At $100K In December 2024 Bitcoin peaked at its all-time high at $103,900, with a market capitalization of $2.03 trillion and a global market capitalization of $3.69 trillion as of Dec. 5, 2024, after the U.S. presidential election, Donald Trump’s victory, and anticipation of more favorable policies for the crypto industry.

Bitcoin is stable at around $102,473, with an increase of approximately 7.85% from the last week. The crypto market sentiment is “extreme greed.”

Last week, the U.S. Federal Reserve lowered its interest rate by 25 basis points from 4.50% to 4.75%, making borrowing money through credit cards, loans, and auto financing cheaper. This contributed to the surge. In the past, BTC rose due to the U.S. Federal Reserve’s announcement of a rate cut of 0.5% on Sept. 19, 2024, the start of an easing cycle.

The currency has struggled to maintain above $65,000 since hitting an all-time high in March. Still, it has neared $98,000, surpassing the all-time high multiple times in November 2024 after Trump, who has a pro-crypto stance, clocked victory in the U.S. presidential election.

Why is Bitcoin Rising? Among the key reasons why Bitcoin has surged to reach its highest since 2021 include:

Donald Trump won the U.S. presidential election in 2024. The U.S. Federal Reserve cut interest rates by another 25 bps after its once-in-four-years cut of 50 bps. The Swiss National Bank followed suit by reducing the interest rate by 25 bps. The Bank of Japan maintained a steady interest rate. U.S. SEC approval of Spot Ethereum ETFs. Strong inflows into Spot Bitcoin ETFs. The U.S. banking sector’s woes in 2024 led digital currency supporters to reiterate the significance of decentralized finance and the need to have complete control of one’s own money without the regulation of banks that themselves find it difficult to stay afloat in a challenging global economic environment. What Lies Ahead for Bitcoin? Institutional adoption is accelerating, exemplified by Bitcoin ETFs like BlackRock’s, which have attracted billions in investments, signaling growing confidence from traditional financial markets. On the regulatory front, President-elect Donald Trump’s nomination of Paul Atkins, a known cryptocurrency advocate, to head the SEC highlights a potentially favorable shift in the regulatory landscape. This could pave the way for more precise guidelines, encouraging widespread adoption.

The market momentum is another bullish signal. Let us see what industry experts have to say about what lies ahead for Bitcoin:

Vikram Subburaj, chief executive officer of Giottus, said that Bitcoin is currently in price discovery with experts predicting the price of BTC to reach $150,000 or even more. Volatility is expected as early entrants will indulge in booking profits. The overall sentiment for BTC will remain bullish till 2025.

Saravanan Pandian, chief executive officer of KoinB, said that market sentiment and adoption and increased confidence: Hitting $100K could fuel further confidence among retail and institutional investors, driving more capital into the market. Businesses and governments may increase Bitcoin adoption as a store of value.

He further said that the price milestone may speed up regulatory approvals for spot Bitcoin ETFs in major economies. More companies could follow Tesla and MicroStrategy’s lead in holding Bitcoin on their balance sheets.

Bottom Line According to CoinMarketCap data, as of Dec. 5, 2024, Bitcoin had exceptionally surged to an all-time high at $103,900, indicating 79% bullish and 21% bearish community sentiment, voted by 845.9K votes.

As per the BTC holdings, 78.35% are in $0-$1k, 20.12% are in $1k-$100k, and 1.52% are in $100k+. The whale holdings are 1.25%, and others are 98.75%. Despite the surge in BTC, it is essential to approach cryptocurrencies with caution and diligence. Remember to stay informed, patient, and vigilant in protecting your investments.

www.cifdaq.com