5 min read
Why Ecosystem Funding Is Broken
The current model of ecosystem funding creates perverse incentives that work against genuine innovation.
John Connor
Technology Strategist
The Problem with Current Funding Models
Ecosystem funding has become a game of metrics manipulation rather than value creation. Teams optimize for vanity metrics instead of building sustainable products that serve real users.
Key Issues
- Short-term thinking dominates long-term vision
- Capital allocation favors hype over substance
- Genuine builders get drowned out by growth hackers
A Better Path Forward
We need funding models that align incentives with long-term value creation. This means:
- Milestone-based funding tied to real usage
- Community-driven allocation mechanisms
- Focus on sustainable unit economics from day one
The future of ecosystem funding isn't about bigger rounds or faster deployments. It's about building systems that reward genuine value creation over financial engineering.