Solana Labs Launches Incubator to Accelerate Ecosystem Growth

In a recent episode of the Lightspeed podcast, Emon Motamedi, who leads product at Solana Labs, discussed the company's new incubator program aimed at finding and nurturing the next generation of killer apps in the Solana ecosystem. This initiative represents a significant step in Solana's efforts to accelerate ecosystem growth and support innovative projects building on its high-performance blockchain.

Solana Labs: Driving Innovation in the Ecosystem

Solana Labs is the for-profit arm of the Solana ecosystem, distinct from the non-profit Solana Foundation. While the Foundation focuses on overall ecosystem advancement with a neutral stance, Solana Labs takes a more opinionated approach in building products and tools to push the ecosystem forward. With a team of 50-100 highly technical individuals, Solana Labs has been instrumental in developing key primitives and reference implementations that have become cornerstones of the Solana network.

Some of the notable projects that have emerged from Solana Labs include:

• The first validator client for Solana
• Metaplex
• Realms
• Token 2022
• NFT compression

This track record of innovation positions Solana Labs uniquely to support and accelerate new projects entering the ecosystem.

The Solana Labs Incubator: A New Frontier for Builders

The newly announced Solana Labs Incubator represents a strategic shift in how the company aims to foster growth within the ecosystem. Recognizing the challenges faced by teams building in Web3, particularly on Solana, the incubator seeks to provide comprehensive support that goes beyond traditional accelerator programs.

Genesis of the Incubator

The idea for the incubator grew out of Solana Labs' experience in creating reference implementations for various DeFi products. Through this process, they realized the significant value they could add to teams not just in technical implementation, but also in areas such as ecosystem connections, fundraising, and go-to-market strategies.

Emon Motamedi explained the rationale behind the incubator:

"We realized that we are in a really unique position in the ecosystem, where we have all the bruises and the learnings from the years of development that we've gone through for our own products. We've built up the blockchain expertise, the connections in the ecosystem. And so we said, hey, is there a way for us to scale these to teams in the ecosystem, rather than just leveraging these for ourselves to build our own products?"

A Hands-On, Build-Alongside Experience

Unlike traditional incubators or accelerators that may work with hundreds of teams, the Solana Labs Incubator is designed to be an intimate, hands-on program supporting only 4-6 teams per cohort. This approach allows for a deep level of engagement and collaboration between Solana Labs and the participating teams.

The incubator offers a "build alongside" experience, where teams work directly with Solana Labs' blockchain developers, design team, and marketing experts. This could involve Solana Labs engineers writing parts of a team's smart contract, reviewing pull requests, or assisting with integrations. The design team helps with user experience and product-market fit iterations, while the marketing team aids in go-to-market strategy and provides access to Solana Labs' distribution channels.

Motamedi emphasized the comprehensive nature of the support:

"It's truly how do we put the full weight muscle of Solana Labs behind these teams to push them towards success?"

Targeting the Next Big Thing

The ambition of the Solana Labs Incubator is not just to foster incremental improvements or minor successes. Instead, the program aims to identify and nurture projects that have the potential to become the next major players in the Solana ecosystem – comparable to established names like Jupiter, Tensor, Magic Eden, and Phantom.

Who Should Apply?

The Solana Labs Incubator is open to a wide range of projects at various stages of development. While initially expecting mostly early-stage teams and hackathon winners to apply, the program has seen interest from more established projects, including some at Series A and Series B stages.

Key Qualities Sought in Applicants

1. Strong Technical Founders: The program prioritizes teams with robust technical capabilities, although prior experience with Solana or Rust is not a prerequisite.

2. Building on Solana: Applicants should be committed to building on the Solana blockchain or have concrete plans to do so.

3. Demonstrated Progress: While not a strict requirement, the incubator prefers teams that have already made some progress, either in development or with an existing product in the market.

4. Right Motivations: Teams should be seeking more than just funding; they should value the unique blockchain expertise, go-to-market support, and ecosystem connections that Solana Labs can provide.

5. Sustainable Business Models: The incubator places a strong emphasis on projects that have thought through their monetization strategy and have plans for long-term sustainability.

Stage and Vertical Agnostic

Interestingly, the incubator is both stage and vertical agnostic. This means that projects from various sectors within the blockchain space are welcome to apply, regardless of whether they are pre-launch or already have significant traction in the market.

Motamedi clarified:

"We are vertical agnostic, we're also stage agnostic. We would prefer folks who actually do have a product out in the market, who maybe have a little bit of traction. We'll probably take maybe one or two folks who are pre-launch, but who've shown meaningful progress to date."

The Application Process

Applications for the first cohort of the Solana Labs Incubator are due by November 30th, 2023. The program encourages honesty and transparency from applicants about their current status, challenges faced, and what they hope to gain from the incubator.

Motamedi advised potential applicants:

"We have a pretty good fluff detector. And so I would really encourage teams to just be genuine about where they're at, what they're trying to do, what they need from this program."

Beyond Solana: Multi-Chain Strategies

An interesting aspect of the incubator's approach is its openness to multi-chain strategies. While the primary focus is on building for Solana, the program recognizes that sustainable businesses may need to explore opportunities across multiple blockchains.

Motamedi expressed support for thoughtful multi-chain approaches:

"If folks are looking elsewhere and saying, hey, we've captured the Solana market, where can we grow from here and we see an opportunity to go multi-chain, and we think our product is bringing a lot of value by being multi-chain, we definitely encourage that."

This flexibility extends to teams from other ecosystems looking to expand onto Solana. The incubator welcomes applications from EVM-based projects that see potential in Solana's scalability and want support in making the transition.

Funding and Equity

While the primary focus of the incubator is on providing expertise and support, funding is also a consideration. Solana Ventures, which sits within Solana Labs, may consider funding opportunities for incubator participants on a case-by-case basis. However, Motamedi emphasized that cash is fungible, and the real value of the program lies in the unique blockchain expertise, go-to-market support, and ecosystem connections that Solana Labs can provide.

Building Sustainable Businesses

A key focus of the Solana Labs Incubator is on fostering sustainable businesses that can stand on their own and generate revenue. This approach differentiates the incubator from grant programs that might focus more on public goods.

Motamedi explained:

"For us, sustainability is a big piece of this as well. You know, how do we build sustainable businesses that will stand up on their own legs and actually generate revenue and be able to survive on their own? You know, it's not enough just to put public goods out into the ecosystem."

This emphasis on sustainability reflects a maturing perspective in the blockchain space, moving beyond speculative projects to businesses that can create long-term value.

Addressing Ecosystem Gaps

The Solana Labs Incubator is part of a broader strategy to address gaps in the ecosystem. Motamedi cited the example of GameShift, a gaming API developed by Solana Labs to make it easier for Web2 game developers to incorporate Web3 elements into their games. This strategic approach to product development aims to solve unaddressed problems and create opportunities for growth in the Solana ecosystem.

Tips for Founders in the Solana Ecosystem

Motamedi offered valuable advice for founders building in the Solana ecosystem, emphasizing the importance of focusing on end-users and real-world problems:

1. Focus on the End Customer: Avoid getting lost in the technology and Web3 mechanics at the expense of solving real user problems.

2. Rapid Prototyping: Consider building Web2-style prototypes to gather user feedback quickly before committing to full Web3 implementations.

3. Look Beyond the Crypto Bubble: Seek opportunities to solve problems for users outside the immediate crypto community, potentially bringing new users into the ecosystem.

4. Embrace Iteration: Be willing to pivot based on user feedback and market response, rather than becoming overly committed to initial ideas.

The Future of Solana Labs and the Ecosystem

The launch of the Solana Labs Incubator marks an important evolution in the company's role within the Solana ecosystem. As the ecosystem matures and more developers enter the space, Solana Labs is positioning itself as a strategic partner for innovative projects, rather than trying to build everything internally.

This shift reflects a growing confidence in the broader Solana developer community and a recognition that the next wave of innovation will likely come from independent teams building on the platform. By providing targeted support to promising projects, Solana Labs aims to accelerate the overall growth and development of the ecosystem.

Conclusion

The Solana Labs Incubator represents an exciting new chapter in the development of the Solana ecosystem. By offering hands-on support, access to expertise, and strategic guidance to a select group of promising projects, Solana Labs is taking a proactive approach to fostering innovation and growth on its platform.

For founders and teams building on Solana, this initiative offers a unique opportunity to accelerate their development and tap into the deep well of knowledge and connections that Solana Labs has accumulated. As the first cohort begins to take shape, the broader crypto community will be watching closely to see what new killer apps emerge from this collaborative effort.

The success of this incubator could have far-reaching implications not just for Solana, but for how other blockchain ecosystems approach the challenge of nurturing and supporting the next generation of decentralized applications. As the crypto space continues to evolve, programs like this may become increasingly important in bridging the gap between innovative ideas and successful, sustainable blockchain businesses.

Facts + Figures

• Solana Labs has a team of 50-100 highly technical individuals.
• The Solana Labs Incubator will support 4-6 teams per cohort.
• Applications for the first cohort are due by November 30th, 2023.
• Over 150 teams have applied to the incubator program so far.
• The incubator is both stage and vertical agnostic.
• Solana Labs has developed key primitives including the first validator client, Metaplex, Realms, Token 2022, and NFT compression.
• The incubator aims to find and support projects that could become as significant as Jupiter, Tensor, Magic Eden, and Phantom.
• Solana Labs' GameShift API is designed to help Web2 game developers incorporate Web3 elements.
• The incubator emphasizes building sustainable businesses that can generate revenue.
• Solana Ventures, which sits within Solana Labs, may consider funding opportunities for incubator participants.
• The program is open to teams from other ecosystems looking to expand onto Solana.
• Solana Labs is distinct from the non-profit Solana Foundation, allowing it to take a more opinionated approach to ecosystem development.
• The incubator offers access to Solana Labs' distribution channels and brand for marketing purposes.
• The program encourages rapid prototyping, even using Web2-style implementations to gather quick feedback.
• Solana Labs sees itself transitioning to a more strategic role in the ecosystem, supporting independent developers rather than building everything internally.

Questions Answered

What is the Solana Labs Incubator?

The Solana Labs Incubator is a new program designed to support and accelerate promising projects building on the Solana blockchain. It offers a hands-on, "build alongside" experience where selected teams work directly with Solana Labs' engineers, designers, and marketing experts to develop and launch their products. The incubator aims to foster the next generation of killer apps in the Solana ecosystem by providing comprehensive support in areas such as blockchain integration, user experience design, go-to-market strategy, and ecosystem connections.

How many teams will the Solana Labs Incubator support?

The Solana Labs Incubator will support 4-6 teams per cohort. This limited number allows for a more intimate and hands-on experience, ensuring that each team receives substantial support and attention from Solana Labs. The small cohort size differentiates this program from larger accelerators or incubators that might work with hundreds of teams at a time, enabling a deeper level of collaboration and mentorship.

What kind of projects is the Solana Labs Incubator looking for?

The Solana Labs Incubator is looking for projects with strong technical founders who are committed to building on Solana. While the program is stage and vertical agnostic, it prefers teams that have already made some progress, either in development or with an existing product in the market. The incubator is particularly interested in projects that have the potential to become major players in the Solana ecosystem, comparable to established names like Jupiter, Tensor, Magic Eden, and Phantom. Importantly, applicants should have a clear vision for a sustainable business model and be seeking more than just funding.

How does the Solana Labs Incubator differ from traditional accelerator programs?

The Solana Labs Incubator differs from traditional accelerator programs in several key ways. Firstly, it offers a much more hands-on, collaborative experience, with Solana Labs engineers potentially even writing parts of a team's smart contract or assisting directly with integrations. Secondly, it provides access to Solana Labs' deep blockchain expertise and ecosystem connections, which are unique to this program. Lastly, while funding may be available through Solana Ventures, the primary focus is on providing technical, strategic, and go-to-market support that goes beyond what most accelerators offer.

What is Solana Labs' stance on multi-chain strategies for incubator participants?

Solana Labs is open to and supportive of thoughtful multi-chain strategies for incubator participants. While the primary focus is on building for Solana, the program recognizes that sustainable businesses may need to explore opportunities across multiple blockchains. This flexibility extends to welcoming applications from teams currently building on other chains (like Ethereum) who see potential in Solana's scalability and want support in expanding to or transitioning to Solana. The key is that multi-chain approaches should be pursued for strategic reasons that add value to the product and its users.

How does the Solana Labs Incubator aim to address gaps in the Solana ecosystem?

The Solana Labs Incubator aims to address gaps in the Solana ecosystem by strategically supporting projects that can solve unaddressed problems or create new opportunities for growth. This approach is exemplified by initiatives like GameShift, an API developed by Solana Labs to help Web2 game developers incorporate Web3 elements into their games. By identifying areas where the ecosystem lacks critical infrastructure or applications, and then either building solutions directly or supporting teams working on these problems, Solana Labs seeks to accelerate the overall development and maturation of the Solana ecosystem.

What advice does Solana Labs offer to founders building in the ecosystem?

Solana Labs advises founders to focus primarily on solving real user problems and addressing customer needs, rather than getting overly caught up in blockchain technology or Web3 mechanics. They encourage rapid prototyping, even using Web2-style implementations to gather quick user feedback before committing to full Web3 builds. Additionally, founders are advised to look beyond the immediate crypto community for opportunities, potentially bringing new users into the ecosystem. The key is to remain adaptable, willing to iterate based on user feedback and market response, rather than becoming too attached to initial ideas or implementations.