How to Build a Successful Web3 Startup [Case Study]

As a business owner, you know that a successful startup starts with a clear action plan and the right team of experts. However, being inspired by the idea of creating a Web3 startup, some entrepreneurs can lack understanding of how to set this process up and usually need more guidance to come up with a successful project for their business. 

Whether you’re working on a DAO concept, dApp or have an idea of any DeFi solution – Web3 development potentially will be a part of it. So, to make the most of your product, studying the Web3 basics is not an option but a necessity today.  

In this comprehensive guide, IdeaSoft specialists will cover the basics of Web3 development for businesses, from the evolution and challenges of Web3 to the best practices for building successful startups based on our real-case examples. Finally, we’ll share proven tips on hiring blockchain developers for startups that will help you make the most effective decisions for your business.

Table of content:

1. Web3 Startup Market in 2023: Key Takeaways
2. Web3 Startup Development: Before vs Today
3. Best Practices of Building a Successful Web3 Startup by IdeaSoft
4. Main Challenges in Creating a Web3 Startup
5. Why Outsourcing Is the Best Option for Your Web3 Startup?
6. Summary

Web3 Startup Market in 2024: Key Takeaways

Over the past decade, the concept of Web3 has gone through a significant transformation and development, evolving to the model we use today. Based on artificial intelligence (AI), machine learning (ML) and blockchain, this technology gained huge interest from cryptocurrency enthusiasts, large tech companies, and venture capital firms, which are looking for a powerful and competitive blockchain solution for their projects. 

As of 2023, the global Web3 startup market was valued at $3.34 billion and is projected to grow to $49.10 billion by 2030, according to the recent Web 3.0 Market Report by Cognitive Market Research. Evolving at an impressive CAGR of 46.7% and with numerous tech advancements on the board, Web3 development became a prospective and profitable investment option for thousands of businesses across different niches.

Web3 Startup Development: Before vs Today

The Web3 ecosystem went through a complex transformation process to evolve to its present state. At the beginning of its formation, the majority of Web3 and blockchain projects had limited infrastructure, scalability challenges and a relatively small developer community.

Alla Aleksanian, IdeaSoft’s project manager has accurately described 2019’s establishment of Web3 as the “race of arms” in the crypto world, which was “driving businesses to create and launch their projects in terms of a constant growth of their assets”. In other words, most companies lack a clear focus on the final outcomes of Web3 implementations, missing lots of lucrative opportunities for their business. 

As of today, the striking development of the Web3 startup market has stimulated more and more businesses to expand their expertise within this niche.

“Now, it’s not enough to just launch a Web3-based project. You’ll need more complex and functional solutions to stay ahead of the competition”

Rostyslav Bortman, the Head of the Blockchain Department at IdeaSoft

In the table below, IdeaSoft blockchain team has created a comprehensive overview of the changes in Web3 development to help you better understand its key transformations over the past years.   

Best Practices of Building a Successful Web3 Startup by IdeaSoft

With hundreds of ideas released and concepts introduced in the Web3 market, making a powerful yet competitive product becomes a great challenge. Based on the experience from our recent projects, IdeaSoft’s developers have listed the most important aspects of Web3 startup development.

#1 Strategy, Market Research, and Idea Validation

Through market research, user needs, and industry trends always lie at the core of a successful digital product. When it comes to Web3 startups, creating a solid development strategy based on deep research and data-driven decisions can be even more helpful. In particular, it enables businesses to:

• Understand the target audience, competitors, and industry trends;
• Test the viability of your Web3 solution (through surveys, interviews, prototyping, MVP release, etc.);
• Get the data-based insights to enhance your product visualization;
• Mitigate risks, effectively allocate the resources and optimize your Web3 solution before the actual development is started. 

Moreover, you can always get professional assistance from marketing specialists and business analysts to ensure the product is fully based on the current user needs and market demands.

#2 Forming the Best Blockchain Development Team for Your Web3 Startup

The more effort invested in blockchain development vendor research, the higher your chances of launching a high-quality Web3 startup. Below we’ve listed the key aspects of choosing a blockchain dev team for a digital project. 

• Identify Key Roles and Responsibilities

Define the key roles required for your Web3 startup, such as blockchain developers, smart contract engineers, blockchain architects, UI/UX designers, product and project managers, and marketing specialists. Clearly outline their responsibilities and establish a team structure that fosters collaboration and efficient workflow.

• Look for Technical Expertise

Prioritize candidates with deep expertise in blockchain technologies, decentralized systems, smart contract development, and cryptography. Seek professionals with a strong understanding of Web3 protocols, frameworks, and other technologies relevant to your project. 

• Emphasize Collaboration and Communication

Ensure that team members have excellent collaboration and communication skills, greatly impacting the development progress. Look for individuals who can work well in cross-functional teams, contribute ideas, are proactive and result-oriented, such as dedicated blockchain developers at IdeaSoft. 

• Assess Experience and Track Record

Consider specialists with a similar project background or those who have a proven record of delivering successful blockchain solutions. Assess their ability to navigate challenges specific to Web3 development and their understanding of best practices and industry standards.

• Consider External Support

Explore the options of scaling your team to fill in the talent gaps if needed. For instance, you can collaborate with scalable outsourcing development companies or get top expertise through employee outstaffing solutions. 

#3 Technical Infrastructure

To hire Web3 startup developers that ideally match your project, it’s also important to mind its technical elements. Some of the essential components for Web 3.0 products are: 

• Blockchain Platforms;
• Smart Contract Development Frameworks;
• Decentralized Storage Solutions;
• Scalability Solutions; 
• Identity and Access Management Systems;
• Oracles and Data Feeds;
• Security and Auditing Tools;
• Developer Tools and Libraries. 

Typically, the tech-related decisions are fully tailored to the specific requirements and scalability needs of the Web3 startup. IdeaSoft developers also suggest counting other factors, such as security, performance, community support and system interoperability, to create a strong foundation for its long-term success. 

#4 Minimum Viable Product (MVP) Stage

When studying the common reasons for startup failure, Failory has discovered that MVP is one of the most valuable technical concepts that help your product to succeed. Overall, building a robust MVP allows businesses to: 

• Validate the project’s idea;
• Test its essential and most valuable features;
• Analyse customer interaction and get user feedback;
• Spot the optimization opportunities;
• Facilitate and speed up the development process;
• Ensure the efficient investment of time, costs and effort without sacrificing product quality.

Talking about Web3 projects, creating a robust MVP solution also helps raise higher funding and provides data-driven insights on why it is worth the web3 development cost. So, along with hiring expertise blockchain developers for Web3 startup, more and more businesses consider MPV as an important component of their project. 

But do you always need an MVP for your blockchain-based product? 

“It’s more than possible to launch your Web3 startup without building a minimal viable product first. However, a well-planned MVP solution for Web3 can potentially help you to get larger financing and uncover plenty of helpful insights once created.”

Rostyslav Bortman, the Head of the Blockchain Department at IdeaSoft

Whether you want to launch your Web3 startup with an MVP or jump straight to the development stage, IdeaSoft’s dedicated blockchain specialists are always here to help! With the latest solutions and technologies applied (such as agile methodology, iterative design approach and so on), our developers help businesses to create feature-rich and profitable Web3 products for any niche. 

#5 Launching and Scaling

If you’re going to launch a scalable Web3 startup, it’s crucial to accurately consider the blockchain technology and architecture of your future product. Based on these criteria, businesses can easily identify their expertise and implement the most effective blockchain technologies that align with the project’s goals and needs.

Similarly, the technologies and specifications of your blockchain-based startup greatly impact its further scalability and potential integrations with other projects. If the technology is relatively new, its efficiency and perspectives for your project should be reviewed in more detail. 

At IdeaSoft, our experienced business analysts are aware of the top-rated and effective blockchain technologies to come up with the most suitable option for your project. During the discovery phase, we make a comprehensive analysis of your Web3 product concept, which helps us to identify the expertise and technologies needed to make a powerful and feature-rich product for your business. 

#6 Fundraising: What Do Investors Pay Attention To

To successfully prepare your Web3 startup for fundraising, one of the core aspects to mind is a solid product concept. Clearly point out the problems and pain points your Web3 solution can address, with a strong focus on the current market trends and client needs. It’s advisable to include data-driven insights, market research and case studies to instill more confidence in investors. 

Additionally, demonstrate the strong sides of your project compared to the existing products to show how it can stand out. This usually includes technological innovations, proprietary algorithms, partnerships, or intellectual property that give you a competitive edge.

Make sure to uncover the market potential and scalability of your Web3 startup based on real-case examples and studies to showcase how your product can generate revenues, develop and grow. 

Finally, introduce your dedicated dev team, highlighting experience, qualifications and expertise in blockchain, smart contract development, cryptography, and other relevant Web3 technologies. 

Main Challenges in Creating a Web3 Startup

In our recent article, we’ve already discussed the advantages and prospects of Web 3.0 development. Now, let’s shift the focus to the key challenges in building a Web3 startup, which can facilitate project development and help in the troubleshooting process as well. 

Based on the extensive expertise of the IdeaSoft team, some of the most common challenges in Web3 development include: 

• Lack of a clear vision of your Web3 solution. As a business owner, you need to have a solid understanding of your final product, its features, requirements, and goals, as well as its target audience and market niche. Based on these project details, the blockchain dev team will be able to find the most relevant tech stack for its successful release.
• Getting the right blockchain developers for Web3 startup. Despite a growing community of Web3 developers, finding a talented crew of specialists can be quite challenging. An experienced team of developers, can introduce the best implementation for your Web3 concept based on their past project experience, case studies, and tech trends introduced on the market.  
• Finding relevant technologies and development solutions. In the ever-changing Web 3.0 environment, it’s really hard to constantly track all the improvements, especially for new players. To easily access the top solutions in blockchain and make data-driven and cost-effective decisions for your business, it’s worth hiring an experienced team of developers for building Web3 projects.
• Insufficient planning and cost management. Due to the rapid evolution of digital and tech solutions, meticulous and efficient planning is crucial for managing the project’s timeline and cost.

“A significant number of digital and tech solutions are evolving extremely fast, especially in Web 3.0 niche. That’s why time-efficient and detailed planning gets an exceptional role in the project’s timeline and its cost. Additionally, to comply with the development timeline and release date, business owners also have to ensure a stable source of financing.”

Alla Aleksanian, IdeaSoft web3 project manager

Being aware of these Web3 startup development aspects can help your business to effectively overcome the challenges and come up with a feature-rich and competitive product for the selected market. 

Why Outsourcing Is the Best Option for Your Web3 Startup?

Along with the best practices on how to create a Web3 startup and its potential challenges, it’s also important to consider the blockchain dev team for hire. Undoubtedly, entrusting your project to the right crew with a decent experience will help you get a functional, user-friendly, competitive, and profitable product for your business. 

Currently, outsourcing is among the most popular hiring models for Web3 development, and not without a reason. Here are the most popular benefits of the outsourced team for a blockchain project startup:

1. Enhanced Cost-Efficiency. Startups can optimize their expenses related to infrastructure, and employee benefits, and training yet remotely access the top talents for their Web3 projects at a reasonable cost. 
2. Access to Specialized Expertise. Web3 development niche is relatively new, so finding expertised blockchain developers for a Web3 startup can be challenging. Outsourcing allows businesses to effectively reach the required talents, which in turn can accelerate development, reduce the onboarding process and improve the quality of your Web3 solution. 
3. Better Flexibility and Scalability. With outsourcing, startups can hire the required expertise for Web3 development and easily scale their team up or down based on the current workload situation. At the same time, the in-house specialists can optimize their workflow by entrusting the specialized tasks to the outsourcing partner.
4. Accelerated Time-to-Market. Outsourcing companies often have established workflows, processes, and tools in place, enabling efficient project execution and delivery. So, hiring a reputable blockchain development company like IdeaSoft allows businesses to speed up development and achieve a faster time-to-market for your Web3 project.
5. Improved Management. Launching a Web3 startup through the outsourcing model reduces the management burden associated with recruiting, onboarding, and controlling your team’s workflow. In turn, it helps businesses to focus on their core competencies and strategic activities such as project planning, business strategy, marketing, customer acquisition and so on. 
6. Facilitated Post-Release Maintenance and Support. Getting round-the-clock operations and support is essential for Web3 startups serving a global market. Outsourcing providers also deeply understand your project and can provide great ideas for optimization and improvement based on your product specifications and current market needs.

IdeaSoft Experience

One of the most recent successful cases of Web3 development at IdeaSoft was the Ethereum-based project for Asymetrix. Overall, it is a decentralized, non-custodial protocol allowing ETH staking with a unique approach to yield generation upon users’ stakes. 

In addition to unique staking reward generation logic, IdeaSoft team had a task to develop DAO, which should facilitate governance and airdrop possibilities within the protocol. Integrating account abstraction into our development process, we enhanced both the security measures and user experience for the protocol.

The fruitful outcome of Asymetrix’s successful launch can be largely attributed to our team’s careful planning, strategic implementation, and profound discovery phase, coupled with our extensive expertise in blockchain development and prior experience with similar projects. Within a mere two-month timeframe, Asymetrix protocol has garnered an impressive TVL of over 20 million, which continuous to grow steadily.

By outsourcing the blockchain development services at IdeaSoft company, our clients can create a Web3 startup that is competitive, profitable and fully aligns with the key market trends and users’ needs. 

Summary

Creating a Web3 startup is a complex process that covers a wide range of aspects, from product ideation and market research to MVP development, fundraising and post-release maintenance. To stay ahead of the competition, it’s essential to follow the best practices in Web3 development, test and embed the most effective solutions and stay aware of the potential challenges. And, with the right development team for your blockchain startup, ensuring the long-term success of a Web3 product is easier than ever! 

With years of experience in Web3 development, IdeaSoft is known as one of the most reliable tech outsourcing partners in Ukraine. Our specialists will provide high-end support across all the stages of your Web3 startup, from ideation to project release and post-maintenance support. 

Contact us today to uncover the most effective strategy for launching a successful Web3 solution that fully aligns with your business goals and needs!