Interview,
By Biviana
2024 April 28th
In the dynamic realm of Web3.0, strategic insights are invaluable for startups seeking to carve their niche and thrive amidst evolving landscapes. In April, global leaders in the Web3 industry gathered in Tokyo, including CFO of Telegram, chairman of the TON Foundation, managing director of SONY Investment Corporation, executives from Beta.B Group, and executives from over a dozen leading Web3 investment companies in Japan, for the inaugural business event jointly organized by TON Foundation (Telegram) and Beta.B Group, shedding light on pivotal strategies driving success in the Web3 industry. Among these luminaries was Mariya Ebirayim, Managing Partner of Beta.B Group, who shared her wealth of experience and expertise during an enlightening speech and subsequent interview.
A seasoned investor in Web3 field, Mariya Ebirayim involved in fintech in 2013 and then stepped onto the forefront of the Web3 space since 2016, establishing herself as an entrepreneur with a global perspective. As an advisor of multi web3 projects and the LP of Q91 Capital, Mariya has advised their go-to-market strategy and facilitated the success in diffident regions of numerous Web3 startups, including the TON Project, among her diverse portfolio. Her insights have has been featured in prestigious publications such as the Japanese magazine "Monthly Crypto Asset" , "40 Communication Tactics You Need to Succeed in International Business" a book by Dr.Suzuki from Tokyo university and Forbes Women Entrepreneurs, cementing her reputation as a thought leader in the industry.
Reporter:
Ms. Mariya, in your speech, you touched upon the distinction between Web3 and Web3.0. Could you elaborate on these concepts?
Ms. Mariya:
Certainly. The terms "Web3" and "Web3.0" are often used interchangeably but denote distinct concepts. Web3 refers to a decentralized web built on blockchain technology, while Web3.0 encompasses a broader spectrum including AI, IoT, and more. Essentially, Web3 is an industry, while Web3.0 symbolizes a new era of connectivity and intelligence.
Reporter:
Thank you for the clarification. You mentioned that almost 90% of web3 projects basically failed. What, in your view, are the primary reasons behind this trend, and why do investment funds continue to show interest in the Web3 industry despite this?
Ms. Mariya:
As of January 2024, the cryptocurrencies landscape boasts over 13,000 listings on CoinMarketCap. I think that although there are various reasons for the failure of projects in the market, most of them fail due to the following reasons:
Lack of Market Research: Failure to understand target users, their needs, and the competitive landscape before development.
Team Contradiction: Without responsibility, team members may not perform optimally or the team disbands.
Neglecting User Experience: Overemphasis on token price can result in complex interfaces hindering adoption.
Project Profitability Issues: Imperfect Ecosystem & Tokenomics design and cannot make a profit, resulting in a broken capital chain.
Impatient Community: Investors eager to cash out quickly can disrupt project stability.
Ignorance of Regulatory Requirements: Non-compliance with relevant laws and regulations.
Lack of Regulatory : Unclear policies can inadvertently trap companies, perhaps leading to fraud and attacks.
The second question is quite insightful. Despite the relatively low success rate of web3 projects, the Tokenomics characteristics of the web3 industry lead to a shorter cycle from project tokens to the secondary market compared to traditional industry IPOs. Consequently, investors have the opportunity for rapid cash-out, typically within 1 to 2 years, or even as quickly as half a year. With the exception of value investment strategies, most startup investment funds generate profits primarily from portfolio’s market valuation, rather than relying on dividends from the startup's operational income.
Reporter:
Understanding investors' perspectives is crucial. Moving forward, what advice would you offer to Web3 startups aiming for success?
Ms. Mariya:
Certainly, the Go-To-Market (GTM) strategy holds immense importance. Prior to tailoring our GTM approach, it's crucial to accurately position our project. Our positioning dictates our future trajectory and identifies our target market. Once we've identified our target market, we formulate a strategy for penetrating and establishing a presence in this market. I believe that whether it's a web3 enterprise or a traditional one, many GTM failures stem from incorrect positioning.
Once, following a discussion on GTM strategy, a friend involved in a web3 project asked me, "Mariya, could you share a great GTM strategy plan or marketing strategy plan ?" In truth, he wasn't the only one asking such plan. I said "Tailored suits are always the best choice."
In 2023, one of our consulting clients, a ShoppingFi( shopping and Earn) project in web3 industry. They faced challenges in user growth despite allocating significant marketing budgets to target developed regions like North America and Europe. However, the expected user growth didn't materialize.
Upon downloading their app and testing their products, I immediately identified the root cause: The misalignment between the target market and product positioning&R&D progress at that time. In affluent regions, users tend to prioritize efficiency and are less inclined to spend significant time and effort for minimal gains. Conversely, users in regions with lower per capita GDP are more willing to invest time for marginal profits.
Conclusion:
Mariya Ebirayim's insights offer invaluable guidance for startups navigating the complex terrain of the Web3 industry. By heeding strategic advice and leveraging market insights, aspiring ventures can chart a course towards sustainable success in this dynamic ecosystem.