A Primer on Web3 Fundraising
Venture funding isn't just about investment; it's a strategic partnership that propels your Web3 project toward success. If you're a founder looking to scale your Web3 project through venture capital financing, here's a handy guide to navigating the fundraising journey.
💵 Equity Fundraise: Many Web3 projects set up a development company (devco) owning intellectual property. Many projects will fundraise by selling equity in devco through SAFE Agreements (an agreement for future equity in the company).
💰 Token Fundraise: In many web3 projects will also issue a token, which requires a token registration company in a crypto-friendly jurisdiction, a well-structured tokenomics, and a token opinion letter. Tokens are often sold through SAFT Agreements or on public launchpads.
🔍 Due Diligence: Venture capital investors dig deep into due diligence thus projects must have a clean company setup, have protected their intellectual property and have all of their investor documents ready. A well-prepared legal foundation is essential to a smooth fundraise process.
Proper setups for VC fundraising are the difference between closing deals or leaving empty-handed. At Meta Law, we specialize in guiding Web3 projects through the fundraising journey, offering strategic insights and legal expertise. Follow us for more legal content.
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