Updated: Aug 27, 2019
Our Head of Innovation, Sagar Tandon, shares some insights into business models, impact investment, and their applications to the blockchain space.
In 2016, my friend Shaun Robinson introduced me to the blockchain and crypto space, originally to invest in, which I have now been following since. I got intrigued by the intellectual discussions around blockchain and its potential promises to solve problems of world hunger, human trafficking, etc., but one thing that has baffled me is the lack of clarity around how to use blockchain infrastructure and architecture to achieve all this. I read various white papers including the original Satoshi Nakamoto white-paper on Bitcoin and looked at exciting projects like impak coin. Unfortunately, there was, and still is, a lot of jargon that crowds the space.
As someone who has spent time researching topics like quantum computation and cryptography; gaining experience building and failing ventures on-the-ground; plus leading investments for an impact fund - it has led me to realize one fundamental thing that is missing in this space: business model clarity and simplicity.
Hence, I want to drive simplicity in business models for blockchain projects, so that we can solve real business and social problems for customers and communities. By leveraging technology, we can keep the problems of consumers/communities first over technology. In any true solution, technology should act as an enabler, a means to an end and not an end to a means. As technologists and technology enthusiasts, we should keep reminding ourselves of this.
It’s very important to ask yourself the following questions, if you are an entrepreneur trying to leverage blockchain technologies:
Who is your customer/community? Do you know them well?
What’s the pain point that you are trying to address for your consumer/community?
Why do you think blockchain is the best way to solve your problem? Can you do without it? What will happen if you don’t use blockchain?
Can your customer/community live without your product intervention in their lives? What’s the fundamental change your product can bring to their lives?
How do you differentiate your product with already existing products in the market? If there is no competitor now, what will happen in the future if new competitors arise with similar products? How will you retain your customers?
What’s your business model?
How do you make money? What are your revenue streams or model?
What’s your unit economics? How does your gross and operating margin look like?
What’s your technology infrastructure cost?
What’s your human capital cost?
Who are your partners? Do you know them well?
What’s your brand value? Your competitive moat?
What’s your long term vision?
Have you invested to build a community around your work? Are you obsessed about your community?
Apart from ICOs, do you have legitimate ways of raising from investors? If yes, have you profiled the right kind of investors? Are you ready to raise money from mainstream investors?
At Faiā, we're working with growth-stage companies looking to solve legitimate, real-world problems through blockchain technology. We provide comprehensive Bitcoin technical consulting services, which is used to help inform, teach or direct technical teams on how to implement one of the most scaleable blockchains in the market to date: Bitcoin. These ventures can help improve everything from the competitiveness of mining operations, to implementing solutions for a tokenized future.
Setting a business roadmap for blockchain ventures?
Apart from technical integration services, we are also planning to work with various blockchain ventures on business and product model strategy, so as to bring "community obsession" & "customer-centricity" to the forefront, which can help correct, clarify, and simplify business models and strategies. This is to leverage the right approach of building a scalable venture, so that it can outlast any speculative hype of the crypto industry.
Faiā has a “No BS” approach to building customer-lovable, technologically-scalable, and investor-investable blockchain ventures.