Grants, Accelerators & Hackathons: Non-VC Funding Sources for Web3 Startups
The Problem with Chasing VC Money
For most startup founders, the goal is simple: build a great product, raise capital, acquire users, and keep scaling. While many share this ambition, the reality is that coming up with the idea is often the easiest part. The real challenge lies in finding investors who believe in your vision.
In the web3 space, this is even more common. Hundreds of promising projects did not make it past the first year, not because of poor ideas or lack of innovation, but because they couldn’t secure the funding needed to survive and grow.
VC funding is brutally competitive. Thousands of startups worldwide are vying for a limited pool of capital. For many, especially in the web3 ecosystem, gaining access to venture capital funding can feel nearly impossible. Since its peak in 2022, when web3 funding hit an annual high height of $22.1 billion, funding has steadily declined, reflecting a dip in investor confidence. This is understandable considering that over 90% of web3 startups fail within their first five years. Out of the more than 30,000 web3 products launched, only around 9,000 have received any funding, and just over 500 have made it to Series C.
Geography adds another layer to the challenge. In the last decade, startups in the U.S. have received the lion’s share of web3 funding with $37.2 billion out of a total $81.7 billion, followed by China with $9.22 billion and the UK with $5.92 billion. Startups outside these regions often struggle even more to attract funding.
Despite the challenges of securing VC funding, alternative funding sources exist in the web3 ecosystem and they’re proving effective. These alternatives provide startups with initial capital to develop their products while also offering strategic mentorship and resources. In many cases, these early programs set the foundation that eventually helps startups secure rounds of funding.
A Growing Pool of Non-VC Funding Opportunities
For web3 startups, relying solely on venture capital is no longer viable, it has become necessary to explore alternative funding sources to kick-start development and gain traction.
Some of the most successful Web3 projects began their journeys with non-VC funding. These alternative means, grants, accelerator programs, and hackathons have proven just as impactful in providing early capital and support.
Take Polygon Labs, for example. Before raising $450 million from major investors like Animoca Brands and SoftBank in early 2022, they received an initial grant from the Ethereum Community Fund. Uniswap, now one of the largest decentralized exchanges (DEX) on Ethereum, started with a $100,000 grant from the Ethereum Foundation before securing a Series A round led by a16z. Similarly, 1inch got its first boost from an ETHGlobal hackathon and a grant from the Ethereum Foundation before going on to raise $175 million in Series B funding in 2021.
This trend extends across the ecosystem. Projects like Mirror Protocol, Zapper, and Arweave also tapped into grants, hackathons, and accelerator programs to get off the ground before scaling.
Recognizing this need, several blockchain ecosystems have set up robust grant programs to support early-stage projects:
- Polygon launched a decade-long $720 million grant initiative, intending to disburse up to 100 million POL tokens annually.
- Kadena committed $50 million in grants specifically for projects building in AI and real-world assets (RWA).
- SKALE introduced a $100 million ecosystem fund to support promising projects over multiple years.
Besides ecosystem grants, accelerators are stepping up to fill the funding gap as well:
- Techstars offers up to $120,000 per project.
- Adaverse provides funding between $50,000 to $750,000 for web3 startups.
- a16z’s web3 startup accelerator offers $500,000 in exchange for a 7% equity stake.
These non-VC channels not only provide capital but often include strategic mentorship, technical support, and access to VC funding, which are key for early-stage growth. For web3 startups navigating a tough fundraising environment, tapping into these options can be the difference between fading out and scaling up.
Non-VC Funding Opportunities For Web3 Startups
A. Grants
Grants are non-repayable funds provided by institutions to support specific purposes such as research, ecosystem development, education, product development or community growth. Unlike other funding sources, grants do not require repayment or equity exchange, making them an attractive option for early-stage Web3 startups.
Currently, there are over 15 active grant programs in the Web3 space designed to support innovative builders and startups.
Active Web3 Grant Programs
- Chainlink Community Development Grant: This program supports individuals and teams building a more functional, accessible, and impactful smart contract economy. Apply here.
- Polygon Community Grants Program: This program backs builders, teams, and creators committed to expanding the Polygon ecosystem. Apply here.
- Ethereum Foundation Ecosystem Support Program: This is an Ethereum ecosystem grant provided to support infrastructure and tools that strengthen the Ethereum ecosystem. Apply here.
- Gravity Ecosystem Fund: This is a $50 million initiative aimed at supporting projects building on the Gravity Blockchain. Apply here.
- Kaspa Ecosystem Foundation Grant: This grant funds research, development, and expansion of the Kaspa ecosystem. Apply here.
- Kadena Grants Program: This is a $50 million fund dedicated to supporting builders on the Kadena blockchain, especially AI and RWA focused startups. Apply here.
- InitVerse Grant Program – The Prometheus Project: This is a $10 million funding program to support startups and developers building on the IniChain. Apply here.
- bitsCrunch Ecosystem Grant Program: This is a $5 million fund empowering developers, researchers, and community builders within the bitsCrunch ecosystem. Apply here.
Advantages of Grants for Web3 Startups
Initial Capital
Grants provide the seed capital, which is needed to cover essential startup costs, marketing, and product development. This early financial support can be the difference between an idea that launches and one that never gets off the ground.
No Repayment or Equity Required
Unlike venture capital or loans, most grants do not require repayment or equity. This allows startups to retain full ownership and reinvest more into product growth without the burden of debt or dilution.
Increased Credibility
Grant recipients gain credibility due to the competitive and rigorous selection processes involved. Being selected signals to future investors, users, and partners that a project has potential and viability. This stamp of approval can open doors to further funding, partnerships, and ecosystem support.
B. Accelerators
Accelerators are structured programs designed to fast-track the growth of early-stage startups by offering mentorship, resources, and access to funding within a defined time frame. Typically lasting a few weeks to a few months, these programs help startups refine their business models, build and launch products, and connect with a powerful network of investors.
Top Accelerator Programs for Web3 Startups
- Pivot: Pivot is a global venture accelerator created by founders, for founders. Tailored specifically for web3 startups, Pivot offers milestone-focused support without a rigid curriculum. Apply here.
- Cronos Accelerator Program: This is a 3-month remote program backed by Cronos Labs, offering an immediate $30,000 stipend upon acceptance and up to $100,000 in investment. It supports startups building scalable blockchain applications. Apply here.
- Symbiote Accelerator: This is a fully remote program offering wholesome support in operations, legal, marketing, tech, and tokenomics. Symbiote helps startups test business models and find product-market fit. Apply here.
- Haven1 Growth Camp (in partnership with Yard): This is an 8-week accelerator program by Haven1 and Yard[hub], kicking off July 14, 2025. This program offers expert mentorship, grant opportunities, and free credits for tools and services, helping startups build and scale without financial strain. Apply here.
Yard[hub] Web3 Growth Camp 4: Web3 Growth Camp Cohort 4, designed by Yard specifically for early-stage web3 startups, provides essential knowledge, tools, and networking needed to build a thriving Web3 business. Apply here.
Denarii Labs Cohort 3: The Denarii Labs accelerator program, Cohort 3, is a 12-week program offering access to capital, strategic mentorship, and a strong network to help founders launch and grow confidently. Apply here.
Advantages of Accelerator Programs
Access to Investor Networks
Accelerator programs provide access to investors, VCs, and ecosystem partners. These connections can be crucial in securing future funding and scaling your startup effectively. In some cases, startups with outstanding ideas get VC funding while rounding up the accelerator program.
Expert Mentorship
Mentorship is one of the most valuable aspects of accelerator programs. Founders gain insights from experienced entrepreneurs and industry experts who’ve navigated the startup journey, helping them avoid costly mistakes and make smarter decisions.
Community & Shared Success
Being part of an accelerator also means joining a community of founders who’ve faced similar challenges. This shared experience builds resilience and confidence while creating opportunities for collaboration, support, and knowledge exchange.
C. Hackathons
Hackathons are events where individuals or teams come together to build innovative solutions to specific challenges, often within a specified period. These events foster rapid ideation, creative problem-solving, and collaboration.
In the web3 space, hackathons play a crucial role in encouraging experimentation, and launching early-stage projects that sometimes grow into fully funded startups. By offering technical support, mentorship, and bounties, hackathons serve as both a proving ground for talent and a launchpad for real-world applications.
Ongoing & Upcoming Web3 Hackathons
- CHROMION Chainlink Hackathon
Date: May 30-June 29 2025.
Bounty: $200k+ total price.
- Core Connect Global Hackathon
Date: June 2nd – August 10th, 2025.
Bounty: Up to $1.2 million in Rewards.
- Hedera Africa Hackathon
Date: August 1st – September 30th, 2025.
Bounty: $1 million Price Pool.
- Vietnam Aptos Hackathon
Date: June 19th – July 18th, 2025.
Bounty: $400k Price Pool.
- HyperHack Hackathon
Date: May 15th – August 16th, 2025.
Bounty: $200k Price Pool.
- Hedera Hello Future Hackathon
Date: 10th June – 26th July, 2025.
Bounty: $150k Price Pool.
- Legal Tech Hackathon
Date: June 16th – 6th November, 2025.
Bounty: $32k Price Pool.
- ChainOpera Hackathon
Date: 27th June – 27th July, 2025.
Bounty: $10k Price Pool.
Advantages of Hackathons
Team Building & Collaboration
For startups with lean teams, hackathons present a valuable opportunity to connect with like-minded individuals who share the same passion and work ethic. Hackathons enable founders to meet potential co-founders, developers, designers, or marketers equally committed to solving real-world problems. These collaborations often extend beyond the hackathon itself, forming the core of future startup teams.
Skill Acquisition for Product Development
Hackathons provide an intensive learning environment where participants can pick up valuable skills. From new programming languages and design tools to understanding how to build on various blockchain protocols.
Many hackathons include mentorship from industry experts, developers, and subject matter specialists in the program. These mentors volunteer their time to support participants with technical guidance, strategic feedback, and product development tips, thereby accelerating the learning curve for startup teams.
Initial Funding & Exposure
Winning a hackathon can do more than boost confidence. It provides the first capital for the product development. Prize pools often reach as high as $100,000 for top teams.
Asides prize money, winners also receive marketing support from organizers, exposure across community channels and social media and credibility that can attract future investors and early adopters.
Limitations To Alternative Funding Sources: What Founders Should Know
While grants, hackathons, and accelerator programs are powerful alternatives to venture capital funding, they also come with their own set of limitations that startup founders need to be aware of.
- Highly Competitive Selection Process
Grants and accelerator programs are extremely competitive. With limited funding and slots available, only a fraction of applicants are selected. Accelerators typically admit startups in cohorts, selecting only the most promising teams for each batch. This level of competition means not every great idea will be accepted.
Founders should approach the application process with realistic expectations and carefully weigh the time and effort involved against the potential outcomes.
- Limited Flexibility in Fund Usage
Grants and accelerator funds often come with conditions. Startups may be required to use the funds for specific initiatives, such as research, ecosystem development, or product milestones that may not align with their immediate business needs.
This lack of flexibility can frustrate startup growth plans, especially in a fast-evolving ecosystem like Web3, where trends and priorities shift quickly. Founders should always review the terms and conditions of any grant or accelerator program to ensure they align with their goals and stage of growth.
- Time-Consuming Application Process
Applying for grants and accelerator programs can be resource intensive. It often involves crafting detailed proposals, gathering supporting documents, completing interviews, and aligning the startup’s vision with the funder’s objectives. While the potential payoff is significant, the effort required can take time away from building and executing on core business operations.
- Risk of Overdependence
Relying too heavily on grants or accelerator support can create financial vulnerability. These programs are usually short-term and milestone-based, and when they end, the startup must find new funding sources to sustain operations. To avoid this trap, founders should treat grants and accelerator programs as springboards, not lifelines. A clear path to long-term sustainability, whether through revenue, customer growth, or future investment, must always be in view.
Conclusion: Think Beyond VC
It might interest you to know that not all great startups raise VC funding early, and that’s okay. The path to success in web3 doesn’t always begin with a venture check. What matters most is getting the resources to build and prove your idea.
Grants, hackathons, and accelerator programs are not just fallback options; they are strategic funding vehicles for Web3 founders looking to secure early stage capital, mentorship, and credibility.
To make the most of these opportunities:
- Start tracking relevant programs monthly
- Build your pitch deck and grant proposal templates early
- Actively engage with ecosystem communities and networks
The earlier you start looking for alternative funding opportunities, the better your chances of building a good foundation and scaling sustainably.
