Fundraising and Onboarding Web3 Users with Max Segall, Privy | The Optimism Show

In this episode of the Optimism Show, host Kris Gligoroski speaks with Max Segall, co-founder of Privi, a B2B company that has successfully raised over $18 million in venture capital. They discuss the right timing for startups to seek funding, common mistakes founders make in the blockchain space, and the importance of market validation. Max shares insights from his journey in building Privi and emphasizes the need for engagement in the crypto market.

1. Balance Crypto-Native and Mainstream Audiences:
   Ensure your product is accessible to both crypto enthusiasts and newcomers. Make the user experience simple and intuitive without alienating either audience.

2. Leverage the Unique Benefits of Blockchain:
   Focus on the key strengths of blockchain, like interoperability and self-custody, to create a unique value proposition that wouldn’t be possible with traditional tech.

3. Founder-Market Fit is Essential:
   Make sure you have deep expertise and relationships in the industry you’re serving. This will significantly improve your chances of success, especially when tackling industry-specific problems.

4. Prioritize Organic User Behaviors:
   Identify behaviors or markets with existing demand and then enhance them with blockchain. This will make it easier to onboard users and gain traction.

5. Timing for Fundraising is Key:
   Before seeking investment, ensure you have tangible proof of your product's market fit, such as early customers, design partners, or growing user engagement. This makes for a much stronger pitch to investors.

1. Max's Background and Journey to Crypto:

   • Max transitioned from traditional finance (investment banking) to fintech (Brex) and finally to crypto. His experience with inefficient legacy financial systems pushed him to explore crypto's potential, particularly in improving money movement and instant settlement.

2. The Vision Behind Privy:

   • Privy aims to bridge the gap between crypto-native and mainstream users by offering seamless onboarding for any user, whether they use wallets like MetaMask or email sign-in.

   • The goal is to remove the complexities of onboarding and make crypto apps as accessible as possible.

3. Common Mistakes Blockchain Founders Make:

   • Companies either focus too heavily on serving crypto-native audiences or try to hide all elements of crypto, failing to strike a balance.

   • Developers must have clear reasons for building on crypto rails, leveraging its unique benefits like interoperability and self-custody.

4. Lessons Learned from Privy’s Journey:

   • Founder-market fit is critical. Successful blockchain companies align their product with their deep expertise in the industry.

   • Focus on organic user behaviors and how blockchain can enhance existing experiences (e.g., trading cards, fitness apps).

5. Fundraising Advice for Blockchain Startups:

   • Wait until there's tangible proof of market validation, like having design partners or strong user engagement before seeking investment.

   • Investors are more likely to support startups with demonstrated traction rather than just ideas.

6. The Future of Privy:

   • Max highlights the company's focus on improving user onboarding, enabling cross-app experiences, and facilitating seamless account funding. Privy is working toward making crypto apps more intuitive and valuable for mainstream users.

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