By Panxora Hedge Fund GP Marcie D. Terman
Every founder loves to talk about their technology. Layer 2, modular consensus, zk-rollups, sharding — the list is endless. And of course, technology matters. But when it comes to raising capital for a token project, here’s the reality: investors don’t fund code, they fund culture.
Why Tech Doesn’t Close Deals
The blockchain ecosystem is filled with technically brilliant ideas that never went anywhere. Why? Because investors — particularly those with experience — know that almost every innovation is replaceable. A new consensus mechanism, a faster transaction layer, or a clever bridge design can be replicated, forked, or simply outpaced by the next project.
What can’t be replicated so easily is a living culture around your token. Investors know this. They’ve watched projects with modest technology succeed because they built vibrant communities, while technically advanced projects withered in silence.
What Culture Means in Crypto
Culture is not hype, and it’s not just memes. In the crypto world, culture is the shared identity and set of values that makes people want to join, hold, and contribute. It’s why Dogecoin, which began as a joke, has outlived dozens of technically superior projects. It’s why Ethereum thrived after 2017 — not simply because of smart contracts, but because it inspired developers to build, experiment, and expand the ecosystem together.
Culture shows up in:
- Community engagement. People don’t just hold tokens — they advocate for them.
- A clear story about why the project matters and how it fits into the broader movement.
- The sense that founders listen, adapt, and respect the community.
What Investors Really Want to See
When an investor looks at a token project in 2025, the first question isn’t “Is your stack sharded?” It’s:
- Who’s behind you? How many engaged, credible community members are already participating?
- What does your culture stand for? What values drive the project, and why do people care?
- How durable is it? Will this community still exist six months after the market cools?
The truth is, culture is the moat. It’s what makes a project investable beyond a single market cycle.
Technology Enables, Culture Endures
Founders should build solid technology — but they should understand its role. Tech enables. Culture sustains. Investors know the difference.
So yes, refine your architecture. But when you’re talking to investors, lead with the culture you’re building and the community that lives it. That’s what makes a token project worth backing.