** Note: Published 1st April 🙂 **
SeedLegals powers the UK startup ecosystem, more than one in six of all UK funding rounds are now done on SeedLegals.
Using data from thousands of funding rounds, we wanted to work out what made for the most valuable companies, and what helped companies raise more, faster.
After crunching the numbers, one key metric stood out: The less understandable your proposition was to the average person, the higher your valuation. Basically, to get the highest possible valuation and raise the most money, you need a pitch deck and proposition that almost nobody understands. And those who claim to understand it, actually don’t.
So, in line with our mission to help companies, today we’re launching the world’s first hybrid funding round, combining the widely unknown workings of Web3, NFTs and crypto with the well-known optimism of traditional fundraising. Non-Fungible meets Fungible.
How it works: NFT + Term Sheet
When you create your round on SeedLegals, just pick the amount you want to raise, then use the slider to choose how much is in crypto, how much in fiat.
For their fiat investment, your investors get shares, with the usual liquidation preference, anti-dilution, board seats, etc.
The crypto part of each investor’s funds will buy them a much more valuable Bored VC NFT that is uniquely created by the platform just for them.
Using machine learning, LinkedIn image scraping, AI, a roomful of graphic artist interns and a lot of stimulants, we create combined images of them, their investment amount, a bunch of well-used memes and common caricatures of investors to create an NFT whose quality and value is proportional to their investment amount.
An example of a seed round-level Bored VC
Increasing your company value
By greatly increasing the “we have no idea what the heck you do, so it must be the future” factor, companies are able to increase their valuation by 3X to 10X, depending on the NFT-factor they specify for their rounds.
This is where the real value lies, the NFTs can be readily sold on well-known exchanges. So while your shares are locked up for years, your unique Bored VC image is instantly tradable, allowing you to realise an immediate gain on your investment, while still maintaining your shareholder rights.
Create your hybrid round now
- Log into SeedLegals and go to Raise
- Select your funding round and choose Hybrid Round from the list
- Drag the slider to select how much of the investment will be in crypto/NFT vs. fiat/shares
- Answer the questions to create your Term Sheet
- Add investors and their investment amounts.
- Share your Term Sheet with investors on SeedLegals
- Your long-form documents are automatically generated by SeedLegals
- Investors sign the Term Sheet and long-form docs
- Our NFT generator does its magic and creates a Bored VC NFT for each
- Investors receive their share cert and Bored VC NFT instantly
- You close the round, start spending the funds raised
Remember, with NFTs your investors don’t own shares in your company, instead you’ve earned money from them for absolutely no stake in your company at all.
By dialling the NFT-factor in your round to 100%, founders are finally able to raise investment with zero dilution and no debt.
Combining Web3 and crypto with traditional funding rounds finally makes it possible to escape the centuries-old trap of businesses being valued on fundamentals rather than intangibles. Welcome to the future.
Images by Dalton Vaughn daltonvaughn.com