Surviving the Early Months – Lessons from Supporting Founders with Tom Phipps

The Blockchain Startup Show with Harrison Wright

EPISODE 3

Ensure Your Project Addresses a Real Need - Tom Phipps

Are you guilty of building a solution in search of a problem? In such a speculation-driven market, it’s an easy trap to fall into.

Tom Phipps stresses that founders should engage deeply with their market and community, obtain real market feedback, and iteratively improve their products to ensure they are building people actually value. Too many crypto founders get caught up in the hype cycle and in the brilliance of their own ideas that they neglect the validation process..

Tom also shared his vast experience and his insights into the blockchain and Web3 ecosystem, with a particular focus on entrepreneurship and startup challenges.

The conversation also touches on the pitfalls of excessive investment, which can lead to inefficiencies and lack of innovation. Tom references "zombie crypto companies" that have raised significant funds but fail to deliver anything meaningful.

Guest Profile

Tom Phipps

Tom Phipps has long been involved in the blockchain and Web3 ecosystem. His career trajectory includes several notable phases and roles. His interest in blockchain technology began during his university years, which steered his career path towards this emerging field. Initially on a path to law school, Tom pivoted to work in venture capital, where he gained significant experience in the startup ecosystem.

Tom led the Web3 program at Entrepreneur First, a global talent investor and accelerator that supports entrepreneurs in building technology companies. He focused on helping Web3 founders during the critical early stages of their startup journey, emphasizing customer development and product-market fit.

Rather than becoming a founder himself, Tom chose to support other founders, helping them navigate the challenges of startup life, such as managing investments and stakeholders. Through his work, Tom gained insights into the common pitfalls and success factors for Web3 startups.

Key Take-Aways From The Interview

Here are the key takeaways from the interview:

Introduction and Tom Phipps' Background (00:01 - 01:03)

Harrison Wright introduces Tom Phipps, detailing his current role and previous experience.

Tom's Journey into Entrepreneurship and Web3 (01:03 - 02:23)

Tom talks about his university experience, discovering blockchain, and his transition from law school to working in venture capital.

Role at Entrepreneur First (02:23 - 03:41)

Tom discusses his role at Entrepreneur First, leading the Web3 program, and his transition from working at Creative Fund.

Supporting Founders (03:41 - 05:45)

Tom explains his decision to support founders instead of being a founder himself and the satisfaction he gets from helping startups.

Challenges of Being a Founder (05:45 - 09:17)

Tom and Harrison discuss the intimidation and loneliness of being a founder, managing investments, and the importance of a support network.

Importance of Customer Development (09:17 - 13:16)

Tom and Harrisson talk about customer development to ensure the product or service has a real use case and is not just built in isolation.

Common Pitfalls and Success Rates of Startups (13:16 - 17:07)

Tom shares that most successful startups significantly evolve their product based on customer feedback and the iteration process.

Excessive Investment and Inefficiencies (17:07 - 17:37)

Tom and Harrison talk about the pitfalls of raising too much capital, leading to inefficiencies and lack of meaningful innovation.

Zombie Crypto Companies (17:37 - 20:30)

Tom and Harrison discuss "zombie crypto companies" that have raised significant funds but fail to deliver innovative or impactful results.

Crypto vs. Other Industries (20:30 - 48:55)

Tom and Harrison talk about how the rapid changes in the crypto market differ from other more traditional industries.

Volatility and Planning in Crypto (48:55 -49:34)

Tom discusses the necessity for crypto companies to plan for volatility cycles and ensure long-term sustainability.

Focus on Revenue and Competitive Markets (49:34)

Tom finishes the conversation discussing the increased emphasis on revenue generation and the competitive nature of the maturing crypto markets.

People or Resources Mentioned

• OpenSea
• Blur (NFT Marketplace)
• EVM Ecosystem
• Entrepreneur First (EF)
• Fabric Ventures