3. Market Problem, Solutions & Opportunities
The Web3 venture capital market is broken. We were born to fix it!
Despite unprecedented innovation, 95% of crypto startups fail due to poor execution, lack of resources, or outright fraud. Among those that survive, many lack long-term sustainability, real-world utility, or investor trust.
3.1 What Question Are People Asking?
"How do I distinguish a real, high-quality startup from a scam or incompetent project?"
"How can I invest safely and wisely in Web3 startups?"
"Where can I find verified services and trusted experts to grow faster?"
"How can I raise funds and find trusted investors to support my project?"
💢 The Core Problems:
High Scam Rate: Up to 50% of projects are fraudulent or misleading (in memecoins at this rate are close to 100%)
Lack of Due Diligence: Most investors rely on hype, not data.
Fragmented Support: Startups juggle between multiple low-quality service providers.
Zero Transparency: No standard scoring, quality filters, or accountability.
KYC is optional or non-existent, enabling bad actors to manipulate capital flow.
Absence of Lead Investors: Startups struggle to build momentum without trusted anchors.
These challenges aren’t local — they’re global and systemic. The result is a venture environment full of noise, risk, and short-term thinking, where marketing often outweighs merit.
🛠️ Our Solutions:
TECH HY directly addresses the critical global problems in the Web3 venture space with structured, scalable solutions:
High Scam Rate → Mandatory KYC verification (via Sumsub) for all projects before they access the Investors Network, Launchpad or DAO. Only publicly verified startups are eligible.
Lack of Due Diligence → Proprietary Full Scale Project Review combined with a Comprehensive Startup Scoring Protocol (A–D grades) ensures only quality projects are endorsed.
Fragmented Support → TECH HY Service Boutique (our B2B Marketplace) offers startups direct access to 30+ curated, verified service providers and in-house services across fundraising, marketing, tech development, legal compliance, and more.
Zero Transparency → Open public Scoring Reports and Public KYC Certificates and on-chain DAO governance ensure complete visibility into startup quality and decision-making processes.
KYC is Optional or non-existent → KYC is FREE forever! For the legit and professional teams, there should be no reason to reject it. KYC Team Certification is mandatory across all onboarding, Launchpad access, DAO participation, and fundraising channels, preventing unverified teams from entering the ecosystem.
Absence of Lead Investors → TECH HY acts as a structured Lead Investor — providing service-backed validation, investment syndicate exposure, DAO funding and anchoring trust for any-stage rounds.
💡 The Market Opportunities:
$27B+ in Web3 VC funding was raised globally in recent years
AI x Blockchain, Layer 2, RWA tokenization, and GameFi are attracting institutional capital
SEA, MENA and Europe are becoming innovation hubs, reducing reliance on the U.S
Rising volatility in global markets is boosting the demand for professional consulting, mentoring, and support for startup teams.
The steady trend of merging Web2 and Web3 industries continues:
Digital businesses view Web3 technologies as a supplemental means of funding, enhancing the efficiency of business processes and marketing.
Intense competition among Web3 projects and the rise of regulatory requirements compel cryptocurrency startups to develop their business models and project economics more carefully, ensuring compliance with the standards of the Web2 industry.
The long-term trends listed will continue to impact the venture market and the entire cryptocurrency industry significantly.
The opportunity is clear:
To build a trusted platform that filters quality, supports execution, and unlocks safe venture participation for investors and founders alike.
TECH HY was born to meet this need — by becoming the Quality Standard for Web3 startups and the trust infrastructure the venture market has been waiting for.
Last updated