Raising a pre-seed round in crypto.
At pre-seed, crypto investors back builders with a reason a blockchain makes the product better, not just different. Expect early questions on equity versus tokens and on legal structure.
Crypto / Web3
Crypto investors judge three things before anything else: real usage beyond speculation, a clear choice between equity and tokens with legal advice behind it, and a team that can operate through regulatory change and market cycles.
What pre-seed investors expect in crypto
There is little usage to judge yet. Investors look at three things instead.
Builders with a track record
- Shipped smart contracts, protocols or wallets before
- Security habits: audits, reviews and careful key handling
- Standing in the developer community you build for
A real reason for a blockchain
- What openness, ownership or settlement adds for users
- Why a regular database would not do the same job
- Who uses it when token prices fall
A structure you can defend
- Whether you raise equity, tokens or both, and why
- Early legal advice on how your token may be treated
- Where the company and any foundation will be based
How the round comes together
Pre-seed crypto money comes from builders and crypto-focused funds who know the technical stack.
- Builder angels
- Crypto-focused funds
- Ecosystem grants
Angels
Often leads
Protocol founders and engineers write early checks and vet your technical design.
Pre-seed & seed funds
Often leads
Crypto-focused pre-seed funds lead small rounds on strong builders.
Grants & non-dilutive
Sometimes
Protocol foundations and ecosystems fund teams building on their networks.
Accelerators
Sometimes
Crypto programs offer small checks, technical help and ecosystem introductions.
Equity, tokens or both?
Many crypto pre-seed rounds are SAFEs, sometimes with a token side letter or token warrant that gives investors rights to future tokens. How tokens are treated under securities law is unsettled and changes, so get legal advice before you promise any.
The slides investors read first
Team
Who has shipped on-chain products before?
Why on-chain
What a blockchain adds that a database cannot.
Users
Who uses it and why, even in a down market.
Structure
Equity, tokens or both, with the reasoning.
The ask
Amount, instrument and the milestones it buys.
Questions founders ask
Should I raise equity or tokens at pre-seed?
Many teams raise equity on a SAFE first and decide on a token later. Token rights can be added through a side letter or warrant. A lawyer who works in digital assets should review either path.
Do I need a token to raise in crypto?
No. Plenty of infrastructure, tooling and service companies raise on equity alone. Investors want a token only when it does a real job in the product.
Sources
Sources: regulator statements and guidance on digital assets; investors' published criteria; industry reports. Editorial content, reviewed quarterly. Not financial, legal or tax advice.
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