By Angelo Tignanelli, Product Designer at Paisanos
Web3 has enormous transformative potential. Decentralization, data ownership, new incentive systems, and governance models open up possibilities that were unthinkable just a few years ago.
However, there is a recurring problem: many Web3 products fail not because of the technology, but because of the business model.
The story repeats itself. Brilliant teams build technically sophisticated solutions without validating whether they solve a real problem, whether someone is willing to pay for them, or whether they can be sustained over time.
With the intention of helping Web3 entrepreneurs face this challenge, during LABITCONF 2023 we set ourselves a concrete goal: to understand, from the ground, what the main barriers and opportunities are for those trying to build businesses in this ecosystem.
What we learned by listening to the Web3 ecosystem
Through research and experimentation dynamics with event attendees, two key insights emerged.
On the one hand, there is a clear lack of products and services that support entrepreneurs in developing Web3 businesses. Regardless of technical expertise, there is a gap between knowing blockchain and knowing how to build a viable business.
On the other hand, Web3 remains fertile ground for new business models. Decentralization and data ownership enable different ways of creating value, but they require new approaches to designing, validating, and scaling products.
When the offer looks too similar
With these learnings, and considering an increasingly evident reality (an excess of similar products with no differentiated value proposition), we decided to go one step further.
For the 2023 edition of LABITCONF, we designed an activity that not only analyzed the problem but also delivered real value to the ecosystem. We started from three observations:
- scarcity of services that support Web3 ventures,
- blockchain’s potential to innovate business models,
- saturation of solutions competing for the same space.
The response was a practical exercise: designing and validating the model of a Web3 startup incubator, focused on education and support, before building any product.
Validate before building: Why it matters
At the beginning, good and bad ideas look exactly the same.
Moving forward without distinguishing between them often ends in products nobody needs.
That is why, before investing time and resources into developing a solution, the first step is validation. Validation reduces risk, structures decisions, and forces assumptions to be tested against reality.
Step 1: Organize the Business Model
A business model describes how a company creates, delivers, and captures value. To structure that foundation, we used the Business Model Canvas.
This tool allows you to look at the business holistically and answer three fundamental questions:
- does it solve a real need?
- is it technically feasible?
- is it economically viable?
At this stage, we were not looking for certainty, but for clear hypotheses. The canvas helped us identify which assumptions needed to be tested in order to move forward with sound judgment.
Step 2: Prioritize what really matters
Not all hypotheses carry the same weight. Some, if proven false, completely invalidate the model.
That is why the second step was prioritization. We used a matrix that crosses two variables: relevance and uncertainty. This allowed us to identify which assumptions needed to be validated first to reduce the greatest possible risk.
Step 3: Experiment to learn fast
Experimentation is the phase where theory meets reality. It is about designing controlled tests that allow fast learning, at low cost, and without building a product.
At LABITCONF, we ran four experiments to validate our Web3 incubator idea.
Experiment 1: Attendee survey
We used quick surveys to collect quantitative data directly at the booth.
The results were clear: a large portion of Web3 entrepreneurs acknowledged the need for external support to validate or consolidate their ideas. Even those who had not yet launched a venture showed interest in accessing paid content and training.
In addition, both entrepreneurs and non-entrepreneurs agreed on the value of an incubator offering technical guidance, legal and accounting support, access to funding, and a strong network.
Most stated they would be willing to pay for this support, either through equity or future agreements.
Experiment 2: In-depth interviews
Qualitative interviews allowed us to dig deeper into motivations and barriers.
Entrepreneurs agreed on several points:
- they need expert support,
- value the involvement of industry leaders,
- find information about creating and scaling Web3 businesses to be fragmented.
It also became clear that specialized education is necessary, as long as it does not financially compromise the startup at early stages.
Experiment 3: Quick voting
Sticker voting allowed us to capture preferences in a massive and visual way.
The results confirmed three key hypotheses:
- people with blockchain knowledge prefer projects related to that technology,
- access to clear Web3 information is limited,
- and an incubation program with comprehensive support is highly attractive.
Experiment 4: Spontaneous sign-ups
Finally, we designed a real action experiment: a QR code with a call to sign up.
Eight people registered proactively. It is not a massive number, but it is enough to validate something crucial: there are early adopters willing to move forward, opening the door to continue iterating the model with real feedback.
What we validated in just two days
Without writing a single line of code, we validated key aspects of the business model: there is demand, there is willingness to pay, and there is a real problem to solve.
The education-focused Web3 incubator proved to be viable and desirable, at least at this early stage. More importantly, we reduced risk and learned directly from the segment we wanted to serve.
The work is just beginning
These learnings are a starting point, not the finish line.
The challenge now is to refine the proposal, deepen validation, and scale with a focus on the real needs of Web3 entrepreneurs.
Building solid businesses in this ecosystem is not about chasing the latest technology, but about designing with intention, validating early, and learning fast.
To better understand how to validate Web3 businesses before building
When Web3 and business models are discussed, some recurring questions tend to arise. These are the most common ones.
Why do so many Web3 projects fail?
Because they focus on technology without validating whether there is a real need or a sustainable economic model.
Is it possible to validate an idea without developing a product?
Yes. Experiments, surveys, interviews, and concrete actions allow uncertainty to be reduced before investing in development.
Is education key in Web3?
Yes. The ecosystem still presents comprehension barriers that open opportunities for educational and support-driven models.
Does a Web3 incubator make sense today?
When focused on business, education, and early validation, it can be a key tool to reduce failure rates and improve the quality of projects.