The founder of the NFT rental agreement Rentable: Why We Failed

Original title: " The NFT leasing agreement Rentable announced its closure, and the founder described three "failure lessons" "

Original author: 0xrose, Shenchao TechFlow  

On September 13, the NFT leasing agreement Rentable announced the closure, from 10 From April 14th, all services will stop, co-founder Emiliano Bonassi said, "We have not found a product suitable for the market, and our runway is over. After many careful considerations and conversations, we prefer to move in the direction of closing , rather than further financing.”

At one time, NFTFI was still a hot track, especially after the NFT leasing agreement standard ERC-4907 was passed in June , Many people are optimistic about this track, but in just a few months, the sky has changed. Regarding the reasons for the "failure", the founder also reflected on it. Here are his three-point summary:

1. Narrow track

The definition of the track is to set the root of the specific problem you want to solve, and to implement it focus. First you have to evaluate, apply your solution to a wider range of similar problems, and target a larger market, but you must choose carefully.

From my experience in DeFi, I am biased, that is, solve one general ERC20 problem and you can solve all problems. So, I think by solving the problem of a general NFT, you can solve all the problems.

The mistake is that this method may be effective in DeFi, because in the end all Tokens are the same, but in the lease Not so.

Each NFT has its own idiosyncrasies, leasing may be similar to a loan, but "lease x NFT" has a different meaning, depending on the " What does "x" stand for. Note that this is for leases, say, for transactions, the generalization is fine.

We can do better, conduct more in-depth research on various NFTs, and choose a specific market to better understand and build a vertical A custom solution rather than an agnostic generic solution.

2. Resource allocation

Time is the scarcest resource for everyone, from partners To investors, and of course users. It's hard for them to engage without a commitment after the first call or a few feedbacks, unless they do it for free for some reason.

Since we don't need outside capital to build MVP, I completely underestimated this.

We actually need capital to adjust interests, each investor and partner will bring their specific value, it is very important to know how to use it. So planning what they can bring, from capital to recruiting or just reputation, is a must.

3. Better validation

Validation is a huge topic, but it can It boils down to goal setting, hypothesis framing, experimentation, and data collection.

We made a mistake: as soon as we found a good technical solution to enable leasing, we implemented it as soon as possible.

Furthermore, our assumption is that users do not yet have any leasing mechanism, if there is a solution (i.e. "out there") , we'll see new dynamics.

We need to do more validation "on paper", shorten iteration cycles, reallocate engineering efforts to focus more on partners / Users' leasing motivations and goals.

Summary

The author thinks that the founder's summary is very sincere and directly hits the pain point.

First of all, whether it is a real demand and whether the demand/track is large enough, NFT leasing looks very good, but imagine a specific scenario, a blue-chip NFT is a For social display, the owner is usually a bigwig/rich in the industry. Are you willing to rent it out? And are there too many people willing to lease? This is a bit similar to renting second-hand luxury clothes. It feels that there is a demand, but it is very small, and it is far less than a vertical market such as game NFT rental.

Secondly, the team feels that it does not need external funds to make products and push them to the market because there is no financing, but in the encryption market, financing is not just for money, Endorsement, BD resources, establishing contact with important partners, assisting recruitment... All kinds of external resources can be connected through Cap table.

Finally, it is best for a product or solution to be verified and comprehensive Push it to the market instead of acting immediately, and you can't eat hot tofu in a hurry.

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