Most EU crypto companies aim at short-term profits by trying to get revenue as quickly as possible without understanding that this might be detrimental to their long-term gain. Many of these startups focus on revenue instead of the growth of the company.

Fremont, CA: Many investors depend on the fintech industry because of almost every industry is being digitalized. Fintech startups are gradually emerging, playing an important role in the expansion of national economies. But the success of any startup relies on the strategies investors use to help companies grow. Although many leading startups worldwide are switching to behavioral finance, most European businesses still depend on traditional finance.

Companies using traditional finance believe that the investor and the market are rational. Thus, making decisions based on the given data and collect all the vital information. Behavioral finance suggests that people are usually irrational. And how they feel at the moment is critical for making decisions about investments. As such, the fear and overconfidence of investors need to be considered before planning a startup.

Most EU crypto companies aim at short-term profits by trying to get revenue as quickly as possible without understanding that this might be detrimental for their long term profit. Many of these startups focus on revenue instead of the growth of the company. For instance, the success of Silicon Valley blockchain startups is because of the fact that they try to progress, which contributes to continually bringing innovation to the market. However, what Europeans are doing is to prevent a failure instead of failing and learning, making opportunities to increase a large capital in the country low.

Thus, most European entrepreneurs try to produce profits at the beginning to survive without focusing on expanding the business. On the contrary, successful startups try hard to grow and expand without expecting instant revenue. Therefore, European startups need to change their strategies and introduce new mechanisms. For now, it is crucial to focus on long-term profits instead of instant revenue generation as well as adopt an alternative and effective method to avoid failure.