Web3 Founders Prefer Strategic Incubation Over VC Funding by 72%

In the evolving landscape of Web3, founders are increasingly prioritizing strategic incubation over traditional venture capital funding. This shift is driven by the unique challenges of building in the Web3 space, which include rapidly changing technology standards, unclear regulatory frameworks, and the need for community alignment. Founders are seeking partners who can offer more than just capital; they want tactical help, deep ecosystem knowledge, and hands-on collaboration.

According to a 2023 survey of over 100 Web3 founders, 72% indicated that they prefer strategic incubation to traditional VC funding, even when offered larger sums of money. This preference is not surprising given the current market conditions, where funding has tightened and expectations have risen. Founders are becoming more deliberate about who they bring on board, seeking partners who understand the stack, can challenge product decisions, and help them navigate through ambiguity.

Strategic incubators are delivering on this need by providing hands-on involvement in various aspects of the project, such as shaping a token model, refining product strategy, reviewing architecture decisions, and connecting with potential collaborators and early users. This support is particularly valuable in Web3, where moving fast can lead to decisions that do not hold up over time. Having a partner who understands the tradeoffs and can help avoid common pitfalls can make a significant difference.

One example of this strategic incubation is the journey of Datai Network, a team supported by ChainGPT Labs. Datai Network was recently selected for BNB Chain’s MVB Season 9, which focuses on the intersection of AI and Web3 infrastructure. This selection provides Datai with access to critical resources, including direct mentorship from Yzi Labs, scaling support on BNB Chain, and a community of builders tackling complementary problems. This environment allows Datai to move faster through funding, collaboration, and feedback, enabling them to power AI agents, analytics layers, and dashboards while generating revenue from data services with partners like Zerion and Etherspot.

ChainGPT Labs takes a unique approach to incubation, focusing on working closely with teams to provide them with go-to-market strategies, build resilient infrastructure, and connect with the right ecosystems. This approach reflects a broader shift in the Web3 landscape, where founders are becoming more intentional about the support they seek. It is no longer just about capital; it is about finding partners who can contribute strategically, offer technical guidance, and help navigate the complexities of building at the edge of innovation.

As the lines between technologies blur and the demands on early-stage teams grow, strategic incubation models will play an increasingly important role in shaping the future of innovation. Today’s Web3 founders are evaluating the full value of capital, prioritizing partners who can help accelerate product-market fit, support responsible scaling, and contribute meaningfully to long-term success. ChainGPT Labs embraces this model, offering hands-on support, infrastructure guidance, and ecosystem access to teams like Datai Network, who are tackling foundational challenges in AI and blockchain data with discipline and clarity.