NFT sales volumes hit $10.7 billion in Q3 of this year, quieting the naysayers who keep incorrectly predicting that non-fungible tokens are nothing more than a here today, gone tomorrow fad. If actions really do speak louder than words, then the emergence of hundreds of NFT accelerators looking to cash in on the Metaverse are the equivalent of an air raid siren validating the staying power of tokenized digital assets and their viability as a long-term opportunity.
Investments In Early-Stage Companies
Naturally, this level of hype and success and (FOMO) have funds flowing freely into new ventures as entrepreneurs clamor to get in on the action. To compete and thrive in a rapidly evolving market that many people still don’t fully understand, a growing number of shops are aggressively seeking an infusion of funds from venture capitalists (VCs) to expand operations.
Earlier this month, value investor Mohnish Pabrai took part in a Q&A session with William & Mary College students. Q3 2021 hedge fund letters, conferences and more Throughout the discussion, the hedge fund manager covered a range of topics, talking about his thoughts on valuation models, the key lessons every investor should know, and how Read More
But is funding all you’ll need?
Not according to RCG Ventures, the new venture arm and wholly owned subsidiary backed by leading family investment office, River Capital Group Holdings (River Capital).
“Our vision is to make opportunistic investments in early-stage companies to which we can add significant value beyond investment capital,” said River Capital Group Holdings Chairman of the Board, Mario Monello. “For partners, our expansive network will open doors that accelerate business development on an unprecedented scale.”
For small and midsized companies, access to capital alone is not enough to scale quickly and effectively - and RCG Ventures is living proof. As River Capital’s new active investment strategy, RCG Ventures combines funding with access to a global business development pipeline, operations, sales, customer service, marketing, back office, and human resources support that helps emerging tech companies evolve and scale into industry leaders.
Distinguishing Successful Companies From Failures
For early-stage entities, having the right people onboard is often what distinguishes successful companies from failures. Despite the sex appeal portrayed in movies and on TV, most startups tend to fail in spectacular fashion. According to CB Insights, 70 percent of upstart tech companies fail, usually about 20 months after first raising financing.
When a company grows at an explosive rate, it often steps outside of its comfort zone and runs into issues like quality control, staffing shortages, and missed deadlines. By taking on more work than any single employee could reasonably handle, companies end up pushing themselves over the edge.
Also, growing too fast without the necessary funds to stay afloat if something goes wrong can put your company into debt that will be hard to recover from. Financial stability is critical to company growth. However, taking on investors brings inherent risks that must be considered.
As businesses grow larger and more successful, it becomes more difficult to keep track of things because there's less time for face-to-face interactions between clients and management. Unless you want customers to walk out the door, you can't sacrifice quality of service for growth. That said, you do need to prepare for the changes that come with expansion.
Your business will grow a lot faster if time-consuming workloads are delegated instead of being shouldered by yourself or a few other key people. To set your company up for success, surround yourself with a team of highly qualified individuals who’ve been where you are today, and where you want to go tomorrow.
Volatility makes it very difficult for even the most well-funded companies to scale. To navigate the choppy waters of today’s market without hitting the rocks, it is important for investors and their portfolio companies to have a well-though out strategy that goes beyond funding. The right partner should also have a wealth of experience scaling companies to profitability and sustainable success.
Make no mistake, cashflow is very important, but so is maintaining quality, marketing, employee engagement, back-office operations, and product development.
Cryptocurrency and NFTs are some of the biggest blockchain businesses. In December 2017, the total market capitalization of all cryptocurrencies was over $700 billion. In January 2018 it broke through the $800 billion barrier, and as of August 2021, was estimated to be over $20 trillion. With Bitcoin hovering at $60,000, there's no doubt the market will continue to grow, attracting new investors in the process.
For better or worse, crypto is on the cusp of mainstream acceptance. And as more countries take a hands-off approach to their regulation, this industry presents a huge potential upside with comparatively less downside risk. The same can be true with NFTs.
If your company is on the precipice of something big, then partnering with RCG Ventures could be the decision that takes your venture to unprecedented heights.
Visit www.RCGV.com for more information.