SparkGate Pivot: What Happened and What’s Next?
"Uber for influencer marketing" was the hero we needed but not the one we deserved (yet)
It’s been a while since my last post—apologies for the radio silence. I’ve been deep in the trenches testing the “Uber for influencer marketing” concept I mentioned previously. The result? A major pivot in our positioning. Let’s dive into the why and what’s next.
Coming from a VC background, I approach potential products through a structured lens: problem, market size, timing, solution, secret sauce, and team. My typical process involves prototyping, creating a pitch deck, and testing the idea by speaking with VCs and potential clients at major conferences. Since August, I’ve attended two of the biggest crypto events: Token2049 in Dubai and Devcon in Bangkok (check out my insights post here). These conversations were illuminating and made me realize that the “Uber for influencer marketing” concept wouldn’t reach the decacorn status I aspire for with SparkGate.
What Went Wrong with “Uber for Influencer Marketing”?
The hypothesis held promise: influencers are untapped goldmines in Web3, and startups failing to engage them effectively leave billions on the table. Early product feedback was strong, and massive budgets are spent on influencer campaigns. However, the "why now" didn’t hold up in conversations with VCs and clients.
What I Learned from Web3 VCs:
Lack of conviction in influencer marketing:
99% of VC decision-makers are business or tech-oriented, with no GTM/marketing experts to champion ideas in this space;
No $1B+ success story exists in this category, and VCs hesitate to back a first-mover (Tesla and Apple weren’t first either).
Many VCs have a negative bias against influencers, sometimes stemming from past scams by so-called KOLs. This creates resistance toward solutions that might empower influencers further.
What I Learned from Web3 Founders:
Influencer marketing transparency is a zero-sum game:
For one party to win, another must lose, making trust hard to sustain.
Short-term wins over long-term partnerships:
Founders prioritize “pumping bags” and using influencer communities as exit liquidity rather than building lasting collaborations.
Many said: “Great product—I’ll reach out a few weeks before TGE.”
Market dynamics aren’t favorable:
During bull markets, founders are fine overpaying agencies to boost token volumes.
During bear markets, budgets shrink, and founders expect you to do all the legwork while being unsure they’ll even approve your budget. Essentially, it feels like “free babysitting.”
Key Takeaways from the Pivot
The lack of a strong “why now” made me realize that “Uber for influencer marketing” couldn’t be the core foundation for SparkGate. The tools we built are valuable but are “nice-to-haves” rather than “must-haves.” However, there’s a silver lining:
We’ve compiled a global list of ~3,000 influencers, representing over 85% of the market, via 10+ KOL managers.
What’s Next for SparkGate?
There’s a massive opportunity for anyone with broad distribution to launch a crypto investment business. Influencers fit the bill but face challenges: they’re often inexperienced, operationally lazy, and wary of legal and blockchain complexities. They need a solution that abstracts away the heavy lifting, leaving them with minimal effort—ideally, just a few clicks.
SparkGate aims to fill this gap.
The New “Why Now”
The stars are aligning for SparkGate:
Market Tailwinds: With BTC approaching $100K and ongoing shifts from events like FTX claims, crypto interest is surging.
Regulatory Clarity: Frameworks like MiCA and geopolitical shifts (Trump presidency) are making crypto adoption more mainstream.
This confluence of factors will drive a wave of new retail investors looking for “alpha.” It’s time to ship.