Denarii Labs Cohort 1 — Fundraising: Week 11 Recap
In the latest installment of the Denarii Labs program, our cohort delved into the critical aspects of fundraising and investor relations for Web 3 projects, guided by the expertise of Mitchell Wilburn, Andrew Albertson, Benjamin Helfman, and Justin Anderson.
Mitchell Wilburn from Red Beard Ventures
Mitchell Wilburn’s session was centered around effective fundraising strategies for Web 3 projects. He emphasized the importance of regulatory compliance, particularly in private sales to institutions or qualified investors. The discussion covered a gamut of funding methods including equity financing, token sales, convertible debt, strategic partnerships, and grants.
A focal point of Mitchell’s talk was the potential benefits and regulatory considerations of using tokens for fundraising. He also explored the concept of token distribution, with a special focus on airdrops, and underscored the importance of maintaining solid relationships with early investors while being cautious in discussions about token prices or potential returns.
Andrew Albertson and Benjamin Helfman from Fenwick
In their session, Benjamin Helfman and Andrew Albertson delved into the complex relationship between fundraising and tax planning in the shift from Web 2 to Web 3 ecosystems. They dissected the structure of their entity and the significance of tax optimization, discussing the nuances of setting up a founders’ round for token allocation.
The duo also navigated through the evolving landscape of token-only financing models, the concept of a centralized entity, and the Dow wrapper strategy. A crucial part of their talk was dedicated to token valuation and allocation strategies and the potential tax implications of forming a Delaware company and distributing tokens.
Justin Anderson from Solidea Capital
Justin Anderson from Solidea Capital brought a unique perspective to the meeting, focusing on strategic thinking in fundraising. He highlighted common pitfalls for startups and the importance of value-added milestones. His concept of “trajectory management” shed light on the risks associated with underfunding and overfunding a project.
The conversation also ventured into the realms of exits and acquisitions, exploring different deal structures and the treatment of tokens in business exits. Justin wrapped up his session by discussing the complexities inherent in valuing blockchain companies, offering crucial insights for the cohort’s aspiring entrepreneurs.
Conclusion: A Deep Dive into Fundraising and Investment Strategies
This week’s sessions provided an in-depth exploration of fundraising and investor relations, equipping our founders with the knowledge to navigate the intricate and evolving landscape of Web 3. From regulatory compliance to strategic fundraising and investor relations, the insights shared by our speakers are invaluable tools for anyone looking to succeed in the blockchain space.
