The Rise of Due Diligence in Web3
Investors in the blockchain space are savvier than ever. With billions lost to smart contract exploits, they now demand rigorous security checks before backing any project.
What Startups Must Prove
- Audited, tested smart contracts
- Transparent documentation
- Commitment to ongoing security
An unaudited blockchain startup is seen as high-risk, regardless of how promising its tech or team may be.
Blockchain Audits: What Investors Look For
When reviewing an audit, investors typically evaluate:
- Depth of the audit (manual + automated tests)
- Clarity of the final report
- Remediation follow-up by the development team
- Public availability of findings
A credible blockchain audit demonstrates that a startup takes security seriously.
Fundraising Benefits of Early Audits
1. Pre-Seed and Seed Stages
Securing capital at early stages is easier when founders can present a clean audit. It validates both the product and the team’s diligence.
2. Venture Rounds
Series A and beyond often require higher assurance levels. Re-audits, bug bounty programs, and security certifications are expected.
Startup Case Studies: With and Without Audits
- With Audits: Projects like Aave and copyright underwent frequent audits, helping them secure multi-million dollar rounds.
- Without Audits: Flash loan exploits and rug pulls have bankrupted unaudited startups in days.
For a blockchain startup, this is more than a checkbox—it’s a survival strategy.
Conclusion
In the competitive and volatile Web3 space, trust is your biggest asset. A professional blockchain audit sends a strong message to investors: “We’re secure, transparent, and ready.” If you're seeking funding for your blockchain startup, there's no better investment than auditing your code—and your commitment to security.