Web3: Fluid Startups

Building in web3 is a challenging prospect. The market is volatile. Technology is evolving and accelerating at a high rate of speed. Regulation is a grey area, and compliance is a moving target and a shifting goalpost. If we cannot keep up with the changes, our products become outdated quickly. We need to move faster than ever before, and the only way to do this is to rethink our approach to building companies.

The traditional startup advice is to have a clear vision of what you are trying to build and why it is valuable, test an MVP and iterate into a structured build and a structured company. In web3, we do not have the luxury of stability that would support this building process.

A fluid startup is a company or organization that can rapidly adapt to change. They are not constrained by legacy systems or dependencies on third parties. They can move quickly and easily pivot when necessary because their structure as a company is loosely defined - a collective more than an LLC - and they are not yet committed to the same rules and regulations as a more traditional business.

They typically have a small team of passionate individuals willing to work hard and move fast. The line between founders and early-stage employees can frequently blur; token ownership is often more important than share splits. There is an existential threat from potential regulatory dangers, but there is still time and room left to solve structural entity issues later. For now, the word is "build."

The definition of a startup is more grey than in traditional tech industries. A web3 startup is any collective that has come together to build, in any commercial sector, with any model, with any revenue. Venture funds, tech companies, agencies, consultancies, and exchanges are all startups in this space. There are no gatekeepers; it's an ecosystem of makers without the complexities, written and unwritten rules, and infrastructure inhibitions of the broader tech and financial world.

A fluid startup can move quickly and change direction when necessary. They are not tied down by legacy systems or dependencies on third parties. They have a small team of passionate individuals willing to work hard and move fast. The line between founders and early-stage employees can frequently blur.

They are not afraid to experiment and take risks. They are building something new and don't necessarily have all the answers yet. They will explore multiple revenue streams, from consulting to minting tokens. And they will do whatever it takes to get various products out into the world and into the hands of users. The business model itself is less important than the company's core thesis. What they believe about the world and the impact their paradigm of blockchain tech can have.

What makes a fluid startup is not the product they are trying to build but how they reflect their vision of what should be built. They have a minimum viable ecosystem, not just a minimum viable product. They focus on user adoption and exploration, not raising money and hiring a team.