Wirex is a 1.v-yr old company that has weathered many challenges to get to where nosotros are today: a hybrid personal finance platform combining cryptocurrency and fiat currencies with hundreds of thousands of users.

Navigating yourself in uncharted territories is non easy. This is true for many things - from the literal, geographical sense, to the world of Bitcoin and blockchain startups.

Some of our challenges are predictable, experienced past every other startup out there. Others are wholly unique to this industry. In this piece, we would like to talk about the issues and challenges nosotros face as a Bitcoin and blockchain startup.

Our business model

Before we dive into the challenges we face, we have to share a lilliputian bit about what we do for some background context. Basically, nosotros offer deject-based cyberbanking accounts that anyone can open with just internet connectivity. Our hybrid banking is a combination of 1 secure Bitcoin wallet and upwardly to three stable fiat accounts - one each in US Dollar, British Pounds, and Euro.

This is in fact quite a big deal, and we are very proud that we are able to offer not one, only up to four currency accounts. The hybrid system of cryptocurrency and fiat currencies works amazingly well together. Think of it similar a great spousal relationship, where each party becomes the better versions of themselves.  The Bitcoin wallet allows instant peer-to-peer funds transfers (or in other words, remittances without third parties) while the fiat accounts are also debit cards with payment processor giants Visa and Mastercard.

We imagined the possibilities early and what this meant for some of our customers - including the two billion people who are underbanked and unbanked. We imagined their happiness at finally beingness catered for after being neglected by traditional financial institutions for then long. We imagined greater financial freedom afforded to people who are constrained by the limitations of existing financial services. We imagined millions of dollars saved in banking-related expenses, directly and indirectly bettering the lives of people everywhere. With this ideal in listen, our goal is to make the accounts as easy as possible to open.

Tough task: opening our own bank account

Ironically, this was our showtime problem. Before nosotros tin can offer banking to the masses, we had to have our own bank account to begin with, for legitimate business reasons. Information technology was tough for Wirex to open up ane as not many banks were keen to have Bitcoin-related businesses as their customers. As a startup in an industry riddled with doubt (regulatory-wise), it was hard to convince a bank to take the states on. In that location is too much grey area in Bitcoin regulations (or lack thereof), which is off-putting for banks, where clearly divers blackness and white is preferred.

Challenges in getting funding

Nigh every startup will face funding bug - we expected the usual hustle to attract and convince investors on our business model. However, the investors (in Europe, at to the lowest degree) are more interested in other well-known and understandable sectors, not a new sector built from a new digital currency that is barely 8 years old. Investors also prefer straightforward business organisation models with higher entrance barriers with lower competition, that are fully scalable and with protected IP.

Startup teams should have experts in unlike sectors, who also have relevant experiences and sound track records with successful exits. Plainly, there is a very express number of startups that would meet all these requirements. Therefore, for all others, funding largely depends on luck, connections and presentation skills.

The perfect squad

Every bit any startup will know, the team composition is crucial during the early stages. A new startup oft does non have enough resources to use many people for the unlike roles required, so every team member should be able to fill each others' gaps when needed. That said, there are specific roles which are indispensable.

For example, as a startup in a technology-centric manufacture that is still shaping itself, nosotros need a tech guru amongst our founders. This is a non-negotiable element in Bitcoin and blockchain startups. Lacking one will be admittedly disastrous and shows an absence of a long-term sustainability plan.

Some other role that is an important component is people with entrepreneurial experience. If no one has such experience, it might be difficult to execute the idea into a business. For u.s., getting the right people with a combination of both entrepreneurial and financial experience was a great advantage.

Resilience in Bitcoin and blockchain startups

Like other businesses, the get-go ii years are unremarkably very tough. It is always amend to be patient and prepared - the slow and steady win the race. Being resilient means that 1 tin can accept on bumps as they come along and react to information technology quickly, whether it is in the form of new regulations or outdated applications of the technology.

Resilience as well means being prepared to react to new opportunities every bit they nowadays themselves. Bitcoin and blockchain is a very competitive industry with a great number of tech geniuses constantly trying to outdo one some other. The fast-paced nature of this sector ways that Bitcoin and blockchain startups cannot beget to be left behind, technologically speaking. If they exercise, customers are more than willing to move on to the next startup. In the bridge of Wirex's (and E-Coin'south) operations, we accept seen a number of Bitcoin and blockchain startups fold due to this very reason.

The bottom line

Nosotros believe in that location will be more challenges set in the time to come for us beyond what we highlighted above, because this route is currently facing a lot of resistance from traditional financial sectors. Nonetheless, our high growth proves that in that location is a huge need for our services, and the basics of any business is to provide a supply for the need.

For us, being in the Bitcoin and blockchain industry is exhilarating. In thousands of instances, we are our customers' offset sense of taste and introduction to Bitcoin. How exercise we make our core products - highly technical as they are - like shooting fish in a barrel to utilize and operate for a not-Bitcoin user? How do we get more people to use Bitcoin debit cards, which act as rails towards wider Bitcoin adoption? How practise we play our function in the prophesied future where global (not local) currency will become the norm?

Heady times lie ahead.

About Wirex

Wirex is a fintech blockchain startup founded by experienced financial experts and technology entrepreneurs.  Wirex is based in London, UK and serves more than than 130 countries worldwide.

Co-founder Pavel Matveev has been a solutions architect for international It companies. He has worked on high level Information technology projects with Barclays Capital, Morgan Stanley, BNP Paribas, Societe Generale, Credit Suisse and others. A FinTech adept, Pavel has been a blockchain consultant for some of the world'due south largest investment banks.

Co-Founder Dmitry Lazarichev is an experienced professional person in finance, company valuation, consulting and is also a serial entrepreneur who has set many international companies.

Pavel Matveev and Dmitry Lazarichev

- Pavel Matveev and Dmitry Lazarichev

Commodity By Tim Frost