Crypto startups face a choice when raising capital: limit access to a few big investors, or open the doors to everyone.
But to open those doors, founders need the right platform. CoinTerminal is the industry’s only non-token-gated launchpad that provides crypto founders access to a global network of investors. It also provides advisory support for strengthening the go-to-market strategy.
With over $23 million in total funds raised and a proven record of strong market volume on opening day, CoinTerminal has become an industry favorite for retail fundraising.
These retail investors are individual, non-professional investors who, unlike venture capitalists (VCs) and institutional investors, contribute smaller capital.
Despite being small, they impact market sentiments significantly. They actually provide crucial market liquidity, help in price discovery, influence market trends, foster financial inclusion, and promote industry growth.
So, for a crypto startup, retail investors represent a powerful force to harness.
Now, there are a myriad of benefits of capturing individual investor attention, but here are a few key effects of opening your fundraising efforts to retail:
Turn Your Users Into Investors
When fundraising for your crypto startup, you may be tempted to chase big names, but not every major logo or deep pocket is the right fit.
At the early stage of your startup journey, what you need more than prominent brands or large checks is alignment. Your investor and your startup must share an understanding of your sector, strategy, goals, and growth.
As a crypto startup, you need an investor who doesn’t just provide capital but also builds momentum and reinforces your belief in the credibility of your idea.
And what gives a startup more clarity and confidence that it is on the right path than having users?
By converting these existing users into investors, a crypto startup can achieve strong alignment immediately.
When DEX dYdX launched its token, it made its users its investors. A dYdX trader was no longer just a customer but a stakeholder, and this shared interest created stronger product loyalty because platform growth directly benefited those using it.
The key to building this large, invested community of supporters is using a platform like CoinTerminal to host your fundraising, so investors from all backgrounds can participate and contribute to your startup’s organic growth.
Retail Capital Drives Network Effect
What every startup needs and wants is a network effect, which is simply a positive feedback loop where a product becomes more valuable the more people use it.
We saw this with the SocialFi project Friend.tech, which leveraged community hype by allowing retail participants to fuel growth early. The result was viral traction because the community had skin in the game from day one.
When fundraising actively accepts and encourages retail participation, it can accelerate network effects because each new investor increases the visibility and credibility of your startup.
More investors mean more word-of-mouth marketing. As buzz grows, it brings credibility that attracts both new investors and customers.
Each retail investor is basically a potential user or promoter, accelerating your product’s adoption much faster than VC-only rounds. Platforms like CoinTerminal make this possible by providing barrier-free access to retail participants. So, by opening fundraising to retail, you can make both capital flows and community growth happen at the same time.
Broader Participation Creates Stronger Foundation
Did you know Solana (SOL) was sold to the general public at $0.22 per token? That’s right. Instead of limiting access to a handful of VCs, Solana founders used retail fundraising to welcome thousands of backers in 2020. Five years later, the SOL hit $293, a 1,000x price gain, and Solana became one of crypto’s most popular networks.
So, why limit yourself to a few VCs when you could have thousands of supporters? More participants means more funding and a community that’s actually invested in your success.
While investment complexity may present challenges, choosing the right platform removes those risks. CoinTerminal helps investors worldwide confidently participate in your startup through detailed documentation and transparent operations.
Conclusion
While gathering financial resources is the primary purpose of fundraising, opening access to retail investors also increases public awareness, builds community, and fosters deeper relationships with your supporters.
To tap into these benefits, go ahead with CoinTerminal for your fundraising. It connects you with investors worldwide and provides the support you need to succeed.
