How to Secure Crypto Investments: Fomo's Angel-Powered Success Story
- THE MAG POST
- 2 days ago
- 5 min read
You’ll learn to raise capital in an unconventional way. Paul Erlanger and Se Yong Park, founders of the consumer crypto trading app Fomo, took an unusual approach to funding, and it's paying off handsomely. Their method, which involved building a network of angel investors, has proven to be a strategic masterstroke in the competitive crypto world. This guide delves into their innovative fundraising strategy, highlighting the key elements that contributed to their success. We'll explore how they built their investor network, the features of their app, and the factors that led to their impressive growth.
Fomo's Funding Strategy: A New Path in Crypto Investments
Paul Erlanger and Se Yong Park, the masterminds behind the consumer crypto trading app Fomo, have carved an unconventional path to funding, yielding remarkable returns. Their approach, a deviation from the norm, has not only secured substantial capital but has also positioned them strategically within the competitive crypto landscape. This unique strategy highlights the founders' foresight and their ability to leverage their network to build a thriving business.
The Genesis of a Unique Funding Approach
Instead of the typical seed round, Erlanger and Park devised a novel strategy. They curated a list of 200 individuals they envisioned as ideal angel investors, understanding the value each person could bring. This wasn't merely about capital; it was about assembling a team of advisors, mentors, and brand ambassadors. This approach underscores the importance of strategic networking and the ability to identify and cultivate valuable relationships within the industry.
Leveraging Networks and Cold Outreach
To realize their vision, Erlanger and Park tapped into their existing networks, capitalizing on their previous experience at dYdX, a well-regarded crypto trading platform. They sought warm introductions, but when those weren't available, they didn't hesitate to make cold calls. This proactive approach led to 140 of their dream angel investors writing checks, demonstrating their persuasive abilities and the compelling nature of their business proposition. This highlights the importance of persistence and the ability to effectively communicate the value proposition of a startup.
Attracting Crypto Luminaries
Their strategy attracted notable figures in the crypto world, including Marc Boiron, CEO of Polygon Labs; Raj Gokal, co-founder of Solana; and Balaji Srinivasan, former Coinbase CTO. While they didn't secure investment from everyone on their list, their success in attracting key industry players speaks volumes about the strength of their idea and their ability to generate excitement. This showcases the power of a strong vision and the ability to attract top talent and investors.
The Fomo App: A Vision for Crypto Accessibility
The core of Fomo's appeal lies in its vision of a super app. It aims to provide consumers with access to every crypto asset imaginable, across all blockchains, with minimal technical barriers. This user-friendly approach, coupled with a social component that allows users to follow and learn from respected traders, positions Fomo as a leader in crypto trading accessibility. This vision directly addresses the complexities often associated with crypto trading, making it more accessible to a broader audience.
Comprehensive Asset Availability
Fomo's goal is to offer a comprehensive selection of crypto assets, including major coins like Bitcoin and Ethereum, along with meme coins and altcoins. Their commitment to providing access to a vast array of assets underscores their ambition to become the go-to platform for crypto trading. This strategy caters to both seasoned investors and newcomers, offering something for everyone.
Expanding Beyond Crypto
The long-term vision for Fomo extends beyond crypto. The founders plan to incorporate additional assets like prediction markets and traditional securities, such as bonds. This expansion strategy underscores their ambition to transform Fomo into a comprehensive financial platform. This demonstrates a forward-thinking approach, aiming to diversify and broaden the app's appeal.
The Apple Pay Integration: A Catalyst for Growth
A pivotal moment for Fomo came with the integration of Apple Pay. This feature significantly lowered the barrier to entry, allowing users to quickly download and start trading. The immediate impact was a surge in users and revenue, demonstrating the importance of user-friendly features and seamless integration. This highlights the impact of simplifying the user experience and making it easier for new users to engage with the platform.
Revenue Model and Competitive Advantage
Fomo charges a modest transaction fee of 0.50%, with a minimum fee for Solana transactions, while waiving minimum fees on less-expensive blockchains. A key differentiator is that Fomo doesn’t charge gas fees, a significant selling point for users interested in holding major coins. This fee structure is designed to be competitive and user-friendly, contributing to the platform's attractiveness. This demonstrates an understanding of the market and a commitment to providing value to users.
Benchmark's Series A Investment: A Testament to Fomo's Potential
Benchmark's decision to lead Fomo's Series A round was a significant endorsement. The venture capital firm, known for its selectivity, saw Fomo's rapid growth and potential. This investment underscores the founders' ability to attract top-tier investors and their success in building a compelling business. This demonstrates the importance of building a strong narrative and demonstrating rapid growth to attract top-tier investors.
Exceptional Growth and Vision
Benchmark's Chetan Puttagunta recognized Erlanger and Park's clear vision to make crypto assets easy to discover and trade. This vision has resonated with users, resulting in exceptional growth since the app's launch. This highlights the importance of a clear and compelling vision, which is essential for attracting investment and driving growth.
Continued Success and Expansion
Since the Series A round closed, Fomo has continued to expand its asset offerings and onboard new users. The founders have reported significant growth in trading volume and revenue. This continued success underscores the effectiveness of their strategies and their ability to execute their vision. This demonstrates the importance of ongoing innovation and the ability to adapt to the evolving crypto market.
Charting the Future Landscape
Fomo's journey provides a compelling case study in innovative fundraising and strategic execution. By focusing on building relationships, prioritizing user experience, and adapting to market trends, Erlanger and Park have positioned Fomo for continued success. Their story serves as an inspiration for other entrepreneurs looking to make their mark in the crypto space. This highlights the importance of adaptability, innovation, and a strong vision for success.
Comments