It is often said that the past is prelude. Recently, we have seen an increase in optimism in the technology space, especially among the Web3 and AI communities. And in my opinion, this growing momentum is a prelude to an epochal change that will gather speed with the arrival of the new year.

December is always a time for thinking and planning, and there’s always plenty of action left in the days after the presents are unwrapped and the confetti swept from Times Square.

What does all this mean for startup founders?

I don’t have a crystal ball, but some broad trends are apparent to those involved with startups, especially blockchain and AI projects, over the last few years.

First, the regulatory winds seem set to change. Over the past four years, whatever the government’s policies, people in the tech and startup sectors have perceived a hostile attitude from regulators. These adverse actions have been led by Securities and Exchange Commission Chairman Gary Gensler, who has launched notable campaigns against cryptocurrencies as well as popular financial vehicles such as special purpose vehicles, and Federal Trade Commission Chairman Lina Khan, who has worked to block major mergers. across technical and other industries.

Whether intended or not, this animosity has led a significant number of tech leaders to forge relationships with key Republicans, including President-elect Donald Trump. As a result, the incoming administration has positioned itself as overtly more tech-friendly, announcing a new Department of Government Efficiency to be headed by tech veterans Elon Musk and Vivek Ramaswamy, as well as an artificial intelligence and White House crypto-car.

All of this seems to bode well for technology in the new year, especially the fast-growing sectors in Web3. So regardless of your politics, this is an exciting time for people building new companies who want to take advantage of and expand these tools. And as at any inflection point, important decisions must be made. As someone who has worked closely with top businesses and founders for years, I’ve learned a few things about what gives a business the best chance of success.

Momentum is good, but not enough

As a communications specialist and former journalist, I understand the importance of capturing the attention of young companies. In a crowded world, it’s more important than ever to stand out. In a bull market, it’s easier because investors are looking for new projects to invest in and journalists want to write about growing sectors. A bull market can be the best time to take the initiative – to get real traction for your business with your game.

Timing is essential in most areas of life, but it is not enough. To take advantage of market tailwinds, you need to start building before the hype builds. Projects that are truly bound for success will be conceived with a genuine belief in a new way to solve a real problem, not in a rush to follow the hype.

Those projects that have the right stuff – of which I have the privilege of knowing many – still have to take care not to get carried away by euphoria, to take shortcuts in their development, to capitalize on the current waves, or to not lose their vision. this prompted them to start a company. In the end, the key to success is still quality and substance. If you give people a good product that solves a real problem, overall you will flourish.

However, building initial momentum can be the most difficult phase of company development. That’s why bull markets are often the best time to announce yourself to the world and start building a reputation as a brand worth following. If you’ve come up with and built a good business, now might be the best time to start promoting yourself.

No one knows what the future will bring. But the simple fact is that markets are cyclical. I have always advised entrepreneurs to build in bear markets. When the bull market comes—and it seems to be coming—these founders can ride the wave of market optimism to establish growth and momentum that will last this cycle and many more.

Saul Hudson is the managing partner at the company Angle 42a strategic communications agency for fast-growing startups in Web3, AI and other emerging technology industries.