Florida's startup scene, once buzzing with the promise of becoming the next Silicon Valley, is facing a harsh reality check. Funding is plummeting, potentially hitting multi-year lows. Miami, for all its newfound fabulousness, ain’t the sole reason the state is on the way to We don’t blame you for catching a case of the shivers, asking if the Sunshine State’s entrepreneurial summer has come to an end.

Now, before you all go and sell your homes and race back to the Bay Area, settle down just a minute. Or if you plan to be in Asia — get ready! This isn't a unique crisis. It’s a pattern. And guess who's seen this movie before? Asian founders too, especially those tracing the whipsawing path of commerce through the blockchain startup incubator. The upside is, they’ve suffered these defeats and learned valuable lessons the hard way that Florida can, and must, accept and implement.

Beyond VC: Diversify or Die

We would all like to think we are the siren call of venture capital. It’s the shortcut, the rubber stamp, the jet propellant. If you rely solely on VC, particularly in a downturn, you’re betting the whole farm on red. Asian founders felt this when crypto winter came, thawing out other non-crypto funding sources.

So, what did they do? They hustled. They networked with angel investors who typically have deep industry experience. These investors are willing to absorb risks on new enterprises. They began looking at crowdfunding platforms, creating communities around their projects and gaining investments directly from their future users. They pursued federal government grants, especially those aimed to support innovation and tech development. They built smart partnerships between themselves and the big guys—big corporate partners who could provide muscles and market access.

Consider, for example, a Singapore-based blockchain startup that I mentored several years ago. As soon as VC funding dried up, they turned on a dime. They recently landed a partnership with a large logistics firm, using their blockchain tech to improve transparency in global supply chains. They did it without taking the glamorous unicorn route they had originally hoped for. Rather, they focused on survival, iterated on their product, and positioned themselves for success in the long run.

Florida, listen up! Please, quit foaming at the mouth over Miami and their VC scene. Look beyond the usual suspects. Encourage angel investing across the entire state. Support crowdfunding initiatives. And for God’s sake, think outside the box in forming partnerships. Newsmax's IPO shows the power of alternative routes, even if the stock's trajectory is currently uncertain.

Real Utility: Ditch the Hype, Build

The crypto boom was fuelled by hype. Decentralized utopias, tokens to revolutionize everything and get rich quick schemes. When the music stopped, too many of those projects were left holding the bag with little to no real world usefulness or ongoing profitable revenue sources. Asian founders, especially economically, their cousins down the Southeast Asian archipelago, who had to go through this lesson the hard way. For some that made the leap, the focus really did shift towards building real solutions to real problems.

They were getting away from the idea of speculative token sales. Nowadays, their attention has shifted to creating blockchain-based ecosystems for supply chain management, cross-border payments, and digital identity verification. Unlike the pop culture fads of their teen years, they honed in on developing products that addressed genuine pain points for companies and consumers alike—not just the hottest thing. Unlike many of their peers, they focused on profitability and resilience, not just fast, irresponsible growth.

One founder I met in Vietnam started out wanting to create a Vietnamese metaverse. After that market cooled, he had to totally pivot his business model. He understood the deep bench of AI and machine learning prowess on his team. Driven by this realization, he dropped everything to design AI-powered solutions for the manufacturing sector. It may not have been as “sexy” as the metaverse, but boy was it sustainable.

Florida, the lesson is clear: It's not enough to have a cool idea or a flashy website. You have to prove you can build something that solves a real problem and creates enough real revenue. Forget the hype, think utility, and build the sort of business that will carry you through the market’s eventual swings. Hut 8’s stock merger might be a short term lifeline for the crypto scene, but long-term success depends on solving real world problems.

Ecosystem: Collaboration Trumps Competition

In this cutthroat world of startups, competition is cute and secondary to something pivotal—understanding your fellow companies as potential partners. What Asian founders have discovered is that teamwork and cooperation is essential to developing a healthy and productive ecosystem. They share resources, knowledge, and networks. They support one another, advise one another, invest in each other’s companies, and cheer each other’s triumphs. They know that when a tide comes in, it raises all boats.

This spirit of collaboration is particularly strong in regions like South Korea and Taiwan, where government initiatives and industry associations actively foster collaboration between startups, universities, and large corporations. This builds a virtuous cycle of innovation and investment that leads to jobs and economic growth.

I still vividly remember going to a blockchain conference in Seoul. Founders from non-competing companies openly shared their marketing strategies and best practices with each other on the floor. It was a welcome change from the cellars of secrecy and paranoia that generally shrouds the Silicon Valley startup culture.

Our message is simple Florida, you have the runway and foundational elements to create a world-class startup ecosystem. To do that, you have to create a culture of collaboration, not just a culture of competition. Help facilitate the opportunities for founders to share their knowledge and resources. Create platforms for networking and mentorship. Invest in programs that connect startups with universities and large corporations. Change the mindset of seeing other Florida cities as competitors and instead having them be seen as partners. The funding majority concentrating in Miami is a concerning indicator. It chokes development in other more creatively fertile territories. Spread the love and the capital!

That’s a blow to the entire Florida startup scene, to be sure. It's not a death sentence. With these measures in place, Florida is poised to incubate a more resilient and innovative startup ecosystem. It will do this by building a curriculum based on the learnings from Asian founders, diversifying their funding sources, prioritizing sustainable business models, and fostering regional collaboration. The year-round warm weather and no state income tax are still alluring, but that’s not enough. It's time to get to work, Florida. The future is yours to build.