The First Problem in Blockchain Biz Dev is the Problem Itself

After tracking this for months, the same 11 problems keep surfacing.

For the first problem: it’s actually the problem itself.

What does that mean?

We see it again and again. Crypto biz dev right now has a problem set playbook. Every blockchain project, ecosystem fund, token project — they all do it. They start with the problem they’re trying to solve.

That makes sense. You need a problem. If you’re not trying to solve a problem, where’s the utility? If you’re not trying to solve a problem, you’re a hype beast, you’re an NFT PFP project with zero long-term staying power.

So they start with a problem. Usually a really big one. Here’s the thinking:

• Ecosystem fund sez: here all problems, please help solve.
• Team see wish list.Team say: we can solve.
• Ecosystem fund sez: how solve? Where team? Give good answers, we invest.
• Team say: great, our solution equals growth.
• Ecosystem fund sez: great, more solutions mean more growth.

Sounds good. But not every solution wins. And not every problem is the best problem to solve. Here’s the problem with most problems:

They’re too big.

Why big is a problem:

The bigger the problem, the more capital opportunity.
The more capital opportunity, the more capital pushed at the solution.
The more capital, the more competition.

Yes it sounds good to say you’re solving a really massive problem, but it’s not where to start.

Remember, Amazon started selling books. Google was just going to make it easier to find stuff on the Internet. Facebook was a digital version of the out-dated first year college directory (yes, there were literal facebooks before Facebook). Netflix used to send DVDs in the actual mail. Airbnb was for couch surfers.

If you’re going to start building in crypto, you need to find a very specific kind of problem.

You need a problem that’s not massive now, but has a solution that could grow to address a massive market in the future.

“Customers won’t care about any particular technology unless it solves a particular problem in a superior way. And if you can’t monopolize a unique solution for a small market, you’ll be stuck with vicious competition.” — Peter Thiel

So you need to start with a small problem. A problem with parameters. A problem that lets you own the issue at hand and the solution for it.

Doing this means finding a team that has more than the solution itself. The projects that will truly change an ecosystem and make it grow almost always bring special insight. Either into the solution itself or they’re able to define the problem differently than everyone else. They have:

Insider knowledge
Domain expertise
An unfair advantage

These things get them to a solution that gets them to a monopoly that can get past the competition.

It’s all connected. To even begin bringing on the teams who will create future growth, you have to start with the right problem.

Define your problems well, and you will have many teams come to you with solutions. Not every team or solution is going to win. From here, ecosystem funds investing in crypto projects need a filtering process to choose the right teams to work on the right solutions.

The best way to do that: create a narrative around how to solve the problem. We’ll dive into that in Part Two of this series.

If you’re interested in learning about more growth strategies for your project, we encourage you to connect on Twitter @bryancolligan. Join our Telegram for members-only alpha on projects we’re watching and DYOR resources for creating growth, credibility and engagement for your project.