In the life of a company, the business idea is followed by the executive summary, product and services, marketing, sales, and growth over time. Along with value creation, facilitating the users, value capturing, and profiteering are the prime reasons for launching a company. The last two decades have witnessed a lot of startups that are challenging a traditional corporate culture where few conglomerates capture all the value created. Now a lot of startups are gaining popularity in AI, Tech, and Web 3.0. What methods they have opted for business growth and market expansion? Let's see few trending revenue generation models or growth strategies and how they create and capture value.
Web 3.0 and Startups Value Accrual
Web 3.0 refers to the third generation of the World Wide Web, which is focused on the use of semantic technologies and artificial intelligence to enable the Web to understand and interpret the meaning of information on the Web, rather than just the text itself. Startups working in the Web 3.0 space may be accruing value through a variety of means, such as developing new technologies or platforms that leverage these semantic and AI technologies, providing consulting or professional services related to the implementation of these technologies, or creating applications or services that utilize these technologies to solve real-world problems.
Partnership and Collaboration with Large Companies and Organizations to Accrue Value:
One way that startups working in the Web 3.0 space may be able to accrue value on investment is through partnerships and collaborations with larger companies or organizations that are interested in utilizing their technologies or expertise. For example, a startup working on a new semantic search engine might partner with a major search engine provider to incorporate their technology into the provider's platform, or a startup working on AI-powered tools for data analysis and visualization might partner with a consulting firm to offer these tools as part of their services.
Transactional Model of Developing Tools for other Web 3.0 Startups:
Startups may also be able to accrue value on investment by obtaining services or products sales. Initially they got funding from investors who believe in the potential of their technologies or business model. This funding can be used to develop and scale the startup's products or services, and may also provide a source of capital for marketing and other growth efforts. Then they charge the customers and sell the products or services.
So, these startups are raising funds from angel investors or capital ventures. By this, they are creating utility tools for other startups and pledging future value.
Building SDKs for gamefi projects, and no code methods to develop Websites, Apps, and DAPPs are some of the tools that can be included in this business model.
Providing a solution to the problem and transaction (gas) fees for the services:
One way that blockchain projects can create value is by providing solutions to problems or challenges that exist in a particular industry or market. For example, a blockchain project might develop a platform that streamlines supply chain management, making it easier and more efficient for companies to track and manage their goods as they move through the supply chain. This solution could create value for companies by reducing costs and improving efficiency, and the blockchain project could capture some of this value through fees or other forms of revenue.
Projects built on BNB or Eth chain use BNB or eth tokens for transactions by wallets at DEX. It strengthens the base chain and empowers the tokens.
Decentralized DAPPs for web sales and subscription revenue model for Value Accrual Mechanism:
Another way that blockchain projects can create value is by enabling the creation decentralized DAPPs or peer-to-peer platforms that allow individuals to directly buy and sell goods or services without the need for intermediaries. This could create value and the blockchain project could capture some of this value through fees or other forms of revenue.
Opensea, Rarible, Gamefi, and guilds could be counted in this segment.
Affiliate Program for User Growth and Price Appreciation of the tokens for Revenue:
Finally, blockchain projects may also be able to create and capture value through the appreciation of their token or cryptocurrency, if they have one. For this, web 3.0 projects use affiliate program to exponentially increase the customers base. If the demand for the token increases and the price goes up, the project could capture value through the sale of the token.
In-app Advertisements for growth and revenue:
Few Gamefi projects, and socialfi DAPPs are using these methods. Gamefi projects collaborate with a few brands and advertise the brands through in-game graphics. For example, a gaming project Radikal Riders use in-game advertisements. In Radikal Riders, you’ll be able to find advertisements in various spots in the game, in the Rider’s pizza boxes, in the road billboards, etc.
There are various types of advertisement deals: affiliation, CPC, CPA, weekly impressions, etc.
In all cases, 100% of the benefits of the advertisement go fully into liquidity. Increased liquidity means lower price impact, better order book depth, and less spread with larger trading volumes. In short, it improves tokens' health and helps in value capturing by building reputation and so on.
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Conclusion:
Lets conclude business growth strategies for web 3.0 startups with the following options available.
- Leveraging partnerships and collaborations to drive business development for Web 3.0 startups
- Utilizing marketing and sales efforts to drive growth for Web 3.0 firms
- Implementing a targeted growth strategy to expand the market for Web 3.0 businesses
- Seeking out new business opportunities through strategic planning and business development efforts for Web 3.0 startups
- Building relationships with key industry players to drive business development for Web 3.0 enterprises
Overall, the value that Web 3.0 startups are able to accrue on investment will depend on a variety of factors, including the strength of their technologies, the size and growth potential of their target market, and their ability to effectively execute their business plan.
- Disclaimer:
Error or omissions are possible. Feel free to share your valuable suggestions or critics for value creation and value capturing mechanism.