Criteria to evaluate before investing in Web3 startups: Buğra Ayan

In the new episode of Meta<in>vest Podcast series, our community manager Aybars Dorman hosted Buğra Ayan, one of the pioneers of blockchain technology in Turkey. We had a valuable conversation with Ayan, who continues to serve as the founding chairman of the Web3 Technologies Association, on the parameters that should be considered before investing in Web3 startups.

So what exactly is Web3? What distinguishes Web3 investments from investments in traditional projects?

Web3 is a term that refers to the third generation of the internet with blockchain technology. This generation allows users to take full control of their data and activities on the internet. Whereas in previous web generations, data and activities were often controlled by service providers, with web3, users can control access rights to their own data and activities. In this way, users can increase data security and deliver customized experiences.

Web3 startups are projects that use blockchain technology to provide services in financial services, games, social media, online education, healthcare and other areas. For example, in Decentralized Finance (DeFi) projects, users can control their own money, invest and borrow. In this way, the accessibility and decentralization of financial services can become more fair and equal. NFT games, on the other hand, use blockchain technology to guarantee that the content of the games or the items owned by the player have real value and ensure portability between games. Blockchain-based social media platforms guarantee that users' data and activities are stored and controlled in a decentralized manner.

Before investing in Web3 startups, it is important to make sure that the project fulfills a real need. For example, it is necessary to investigate whether a project offers a solution to a real need and whether this solution can actually work. It is also important to make sure that the project's team and consultants have sufficient experience. It is also important to make sure that the project's technological infrastructure is strong. For example, it is important to check that the blockchain platform used by the project is reliable and has the performance to meet its needs. It is also important to make sure that the project has a realistic token economy model. The token economy model explains how the project works and how tokens can be used. It is also important to make sure that the project has a realistic exit strategy. For example, the project should have an exit strategy that explains how it will be marketed, how it will acquire users and how it will build a business model.

Finally, when investing, it is necessary to carefully assess the future potential and potential risks of the project. This requires a careful examination of factors such as the project's whitepaper, the team's past achievements, the project's token economy model and exit strategy. In addition, factors such as whether the project offers a solution to a real need, has a strong technological infrastructure, an experienced team and a realistic exit strategy should also be considered when investing.

Interested in what you have read? Watch this week's episode of Meta<in>vest to learn more!