It’s no secret that blockchain and crypto startups are on the rise. In fact, this may be one of the most opportune times to get involved in this industry. So why are blockchain and crypto startups so popular right now? And more importantly, is it a good idea to start one? In this article, we will explore the reasons behind the blockchain and crypto startup boom and help you decide if it’s right for you.
In this article, we will review the following areas:
- Shifting political tides on regulation
- The UK as a FinTech Hub
- Expanding Crypto use cases
- How Akcela can support crypto startups
Shifting political tides on regulation
With the UK government itself using terminology such as Government sets out plan to make UK a global cryptoasset technology hub, this is a strong level of intent coming from the top on what we can expect from crypto in the UK. Compared to recent news in the US, including items such as Latest Draft of US Crypto Law Would Temporarily Ban Terra-Like Stablecoins – a new Liz Truss government seems intent on continuing the momentum within the UK of welcoming cryptoprenuers (we just made that up) to the fold. It seems Crypto Remains a Priority for UK Under New Leader, Drawing Industry Excitement.
The UK as a FinTech Hub
The United Kingdom has a long and storied history with financial technology, or fintech. The country was an early adopter of many fintech innovations, including online banking and mobile payments. Today, the UK is home to some of the world’s leading fintech startups and is a major hub for fintech investment.
The UK’s favourable regulatory environment and strong talent pool have made it a top destination for fintech companies. In recent years, the UK government has taken steps to further support the development of the fintech sector, including launching a number of initiatives to promote innovation and investment.
As a result of these favourable conditions, the UK fintech sector has flourished in recent years. The country is now home to over 1,600 fintech companies, spanning all the way from innovative startups to global giants. These companies have attracted over £4 billion in investment since 2010.
Given the UK’s thriving FinTech industry, it is quickly emerging as a global leader in blockchain and crypto startups. The UK has a large pool of talented developers and entrepreneurs and as we continue to see this adoption and use case evolutions, more and more opportunities will present themselves.
Expanding Crypto use cases
As blockchain and crypto continue to gain mainstream acceptance, more and more use cases for these technologies are emerging. Some of the most popular applications already in use, as well as some upcoming opportunities are listed below.
Payments
Cryptocurrencies such as Ethereum are becoming increasingly popular for making payments online. Using a stablecoin (a crypto-based asset that is pegged to a real-world currency) on a blockchain such as Polygon, allows fast payment of goods and services on the blockchain in lightning-fast speeds and low transaction costs.
Trading and Capital Raising
Blockchain technology is used to create decentralised exchanges for trading cryptocurrencies and other digital assets. This is creating an incredible opportunity for capital raising within the startup ecosystem and supporting new founders and ventures to find product market fit in this emerging technology.
Royalty Distribution
Blockchain technologies offer the opportunity to split royalties over a number of users. Currently the best use case of this as an example is royalty redistribution on projects listed on OpenSea. However, in the future, I expect that we will see music royalty distribution on albums that have been funded by communities.
Data Management
Blockchain can be used to securely store data and track changes to it over time. This can be useful for tracking things such as medical records or voting history. This has a really powerful use case in carbon offsetting, where carbon tokens can be retired and tracked, to ensure there is no fraud with credits being reused. It is also a great opportunity for companies to verify their carbon offset, through a corporate wallet.
How Akcela can support crypto startups
Akcela is a leading provider of blockchain and crypto startup services, as well as being a Polygon Builders’ Hub, offering access to initial startup grants and credits with core services. As a UK based startup incubator, we can also offer our teams time and space free of charge. We offer a variety of products and services that can help you get your business off the ground quickly and efficiently.
Our services include:
Business plan creation
A business plan is a critical document for any startup. It lays out your company’s goals and strategies, and helps you to track your progress over time. A well-crafted business plan can help you to secure investment from investors, and can be a valuable tool for guiding your company’s growth.
If you are starting a blockchain or crypto startup, it is especially important to have a well-developed business plan. The blockchain and crypto industries are still in their infancy, and there is a lot of uncertainty about how these technologies will develop. It is essential to have a clear vision for your company and the ability to adapt as the industry evolves.
A good business plan will help you to stay on track and make the most of the opportunities that arise in this rapidly changing industry.
Blockchain development
One of our incubated companies, Tech Educators, offers the Forbes “best blockchain” listed blockchain coding bootcamp, this gives us access to excellent solidity developers who can help you build a blockchain solution tailored specifically for your needs.
Partnerships and Customer Acquisition
Akcela has a number of key partnerships in the blockchain space and we are always pleased to support our startups within the Akcela incubator to create win-win opportunities with them.
Customer acquisition is one of the most important tasks for any startup. Without customers, your business will not survive. It is therefore essential to devote time and resources to acquiring new customers and building a customer base.
There are many methods for acquiring customers, and each startup will have its own approach based on its products and services. Some common methods include:
Marketing
Marketing is a crucial tool for attracting attention to your product and getting people to try it out. It can be done through traditional methods such as advertising, or through more modern techniques such as social media marketing or content marketing.
PR
PR can be a powerful tool for building brand awareness and generating interest in your product. It involves getting your company mentioned in the media, either through press releases or by getting reporters to write about your product. We have partnered with Luminous PR who offer all of our incubated companies support as they begin to scale, with advice and support on their journey.
Sales
Sales is the process of persuading individuals or businesses to buy your product or service. It involves building relationships with potential customers and convincing them that your product is the best solution for their needs.
Akcela offer support to our startups to ensure the correct blend of each method is chosen, as a business starts out, it is important to dedicate time and energy to customer acquisition, and is one of the hardest elements to get right.
Business Due Diligence and Operational Support
When starting a blockchain or crypto startup, it is important to have a well-defined structure and to operate in a structured way. This will help you to make the most of the opportunities that arise in this rapidly changing industry.
A structured approach will help you to stay on track and make the most of the resources at your disposal. It will also help you to build a sustainable business that can withstand the challenges of the blockchain and crypto industries.
Ensuring plans are maintained, organisational agreement and focus is aligned, teams are focused and well structured is an important tool in any startups journey and whilst this can be fluid, a good process to revisit and realign will yield solid results.
The future of Crypto in the UK
Cryptocurrency is becoming more and more popular area for startups in the UK, and this is likely to continue as the technology develops. There is a positive outlook for the UK in particular with the focus on exploring and welcoming innovation in this space from the very top, in UK government. We are excited to see how this will progress over the coming months and years.