EPISODE 5
Founders Challenges in Crypto - Gwin Scott
Financial discipline, managing market cycles, and running lean. According to Gwin Scott, these are some of the strategies and attention points founders need to keep in mind in order to succeed in the crypto and Web3 environment.
Gwin is my guest in this week’s episode of The Blockchain Startup Show. He is the co-founder of Vendible Labs, a decentralized identity project built on Algorand. With a long and successful track record in business leadership pre-crypto, and some humbling experiences post-crypto, I was excited to get Gwin’s take on the trials and tribulations of Web3 entrepreneurship.
Watch the full conversation here:
[EMBEDDED INTERVIEW]
Guest Profile
Gwin Scott
Gwin is a veteran entrepreneur who bravely took the plunge into crypto, co-founding Vendible Labs..
Having worked with businesses in many different sectors and coming from a traditional corporate background, Gwin has a special eye for early-stage business development, sustainable business models, and strategies that can help founders reach success.
Highlights From The Interview
Here are the highlights from the interview:
Introduction and Gwin’s Background (00:37 - 04:20)
Gwin discusses his background in corporate roles, such as with Time Warner and Turner Broadcasting, his transition into venture capital and blockchain.
Web3 and Other Industries (04:20 - 06:12)
We discuss how Web3 differs from other industries in terms of success conditions, business execution, and the unique challenges posed by decentralization.
Business Development in Crypto vs. Other Industries (06:12 - 07:52)
Gwin offers insights into whether traditional business development practices can be applied in crypto, debating the industry’s differences and similarities.
Sales and Marketing Trends in Crypto (07:52 - 11:19)
We explore how trends like community-led sales and inbound marketing in traditional sectors are aligning with practices that are already prevalent in crypto.
Challenges Faced by Overfunded Crypto Projects (11:19 - 13:24)
We discuss projects that raised excessive funds but failed to deliver, leading to bloated operations with little innovation or product-market fit.
Key Lessons for Crypto Founders (13:24 - 18:28)
Gwin highlights essential lessons crypto founders can learn from traditional industries, such as the importance of constraints in driving innovation and maintaining focus.
He also discusses the need for founders, especially in technical roles, to have a comprehensive understanding of the business context and how their work contributes to the broader goals.
Gwin’s Journey with Vendible Labs (18:28 - 19:40)
Gwin reflects on the journey of building Vendible Labs, sharing both successes and failures, and the lessons learned throughout the process.
Advice for Founders on Fundraising and Burn Rate Management (22:17 - 28:59)
Gwin offers practical advice on how to approach fundraising, including calculating runway needs, managing burn rate, and planning for both bull and bear market cycles.
Importance of Being Proactive in Market Cycles (29:10 - 32:47)
We talk about how founders need to be proactive rather than reactive during different market cycles, with strategies to maintain consistency and avoid pitfalls.
Importance of Lean Operations in Startups (34:06 - 37:47)
We explore the importance of lean operations and avoiding unnecessary expenses, especially during early stages when resources are limited and efficiency is critical.
Frameworks for Decision-Making in Business Expenditures (42:18 - 45:20)
Gwin shares his approach to evaluating business expenses, balancing premium investments with cost-saving measures, and making decisions based on runway impact.
The Significance of Getting to Mainnet (47:24 - 49:41)
Gwin emphasizes the importance of launching a product sooner to gain real feedback and iterate based on user needs rather than hypothetical scenarios.
“Must-Have” and “Nice-to-Have” Products (50:01 - 51:48)
We discuss the distinction between building essential products that survive market downturns versus “nice-to-haves” that often get cut during difficult economic times.
Selecting the Right Partners and Co-Founders (51:48 - 55:05)
Gwin highlights the importance of strategic partnerships and finding co-founders who complement each other’s skills, rather than relying on subjective criteria like “vibes.”
Psychological Toll of Being a Founder (55:05 - 59:37)
A deep dive into the mental and emotional challenges of being a founder, especially in a volatile industry like crypto, and the importance of resilience.
Opportunities in Crypto Without Being a Founder (59:37 - 01:01:54)
Gwin discusses how many lucrative opportunities are available in crypto even for those who aren’t founders, offering significant upside without the pressures of entrepreneurship.
Closing Remarks and Final Thoughts (01:01:54 - 01:03:58)
Final reflections on the discussion, with Gwin encouraging those suited for entrepreneurship to pursue it.
People or Resources Mentioned
