So you want financing for your NFT project?

The NFT market may be down from its 2021 peak, but founders, builders, and collectors are still pouring into the space. And many are looking for fresh capital.

While NFTs are part of the web3 world, traditional business mechanisms are inevitable for founders in the post-boom market.

An eclectic group of non-venture capitalists gathered at NFT NYC last week for a panel on how to get your NFT project funded. The speakers agreed that, as with any project, it is at least important to fine-tune and coordinate the details before looking for investors.

“We see a lot of companies looking for investment, and they want to make it right away,” said Emily Cheshire, segment leader of Aprio Cloud’s blockchain and cryptocurrency team. “I would say you have to plan it from day one and do everything you can to prepare for that investment.”

Most NFT projects have vague forecasts, roadmaps and ideas for their business models, said Ralph Kuepper, founder of Sherwood Analytics. “Very rarely do you see a business plan with predictions and ideas” for NFT projects.

Cheshire noted that by the time many NFT projects seek investment, it will be “almost too late.” Planning includes knowing who advisors are, who will include the core team, as well as simple things like understanding finances and forecasting.

“Building in this space and building an NFT business is sexy and fun, I don’t blame you. I would like to build that all day, but you also have to get the basics right,” Cheshire said.

It is also important to look at what and How investors invest, Kuepper said. There is a noticeable difference between companies buying NFTs – possibly for a PR stunt like Visa did after buying a CryptoPunk for about $150,000 in ether in 2021 – and investing in building out a project.

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