<aside> <img src="/icons/checkmark_gray.svg" alt="/icons/checkmark_gray.svg" width="40px" /> We will need to do at least 3 rounds of fundraising prior to a token launch. After token launch no more VC money comes in. Everyone with common stock also has liquidity at this point.
We ideally reach this point without VC’s controlling the majority of the stock, otherwise it can effect the token uptake, as community sceptical of VC’s.
The token launch should fund development for a long time. The goal is to raise as little as possible to get to this point.
</aside>
| Pre-Seed ☑️ | Seed (In Progress) | Series A 🔲 | Token Generation Event 🔲 | |
|---|---|---|---|---|
| Rough Amount Raised | USD 1.04M | USD 3M | USD 20M | USD 100M-300M |
| Governance | Alex sole director | Alex sole director | Board appointed, VC’s take board seats. Governance negotiated at this point. Common stock holders (us) must, and should, retain control. | Community governance |
| Dilution | 8% | 10% → 11.4% | 10% | |
| Expected VC ownership (Total) | 8% | 15-20% | 25-35% | 35% |
| Instrument | SAFEs | SAFEs | Equity Financing. SAFE notes all convert. This is the big round. | Token Issuance |
| Timeline | Done | Late 2024 | Mid 2025 | Early 2026 |
| Purpose | A very small amount of capital that gets the ball rolling. You take money from the best person who will intro you to people that you can raise the seed from. |
In Pluralis’s case, we needed a top crypto VC in order to move into that world. | A large margin of safety to deliver on what you need for the large Series A round. This money should be mostly used to address technical risks. | The money that takes you to a functional, working protocol, based on the PoC work that is done in the prior rounds. There should be low technical risk at this point, and mostly execution risk. i.e. integrating what we’ve done on the training and unextractibility with a working blockchain.
The round also doubles as a significant marketing event, and it’s important to have a name-brand VC. | The protocol is live, and value accrual should occur to protocol participants.
It is actually also possible to TGE without a working protocol by offering utility tokens to fund development. It’s likely we would not pursue the strategy as its easier to just get money from VC’s. | | Investor Profile | Coinfund. Tier 1 Crypto VC | Multiple tier-1 crypto VC’s. | Tier 1 traditional VC. A16z, lightspeed, USV, Sequoia etc. | Community/Retail | | Milestones required | Done | - Core science team on board