Summary of Jesse Walden: Fundraising and Deal Structure

00:00:00 - 00:35:00

Jesse Walden discusses different types of capital that can be used in a crypto startup, and how they can be used to help the network grow. He also discusses the importance of human capital in crypto networks, and how they can help the network grow.

• 00:00:00 Jesse Walden discusses considerations for fundraising and deal structure in crypto startups, focusing on equity as the most common form of financial capital. Equity allows for long-term alignment between founders and investors, and eliminates any obligation for a startup to pivot.
• 00:05:00 Jesse Walden discusses the importance of flexible deal structure in order to align investors with founders and achieve product market fit for a crypto startup. He also provides an example of a seed round where the company commits to a token upfront, which leads to dilution for the founders and investors. He concludes by emphasizing the importance of community ownership in crypto networks, and how it benefits both founders and investors.
• 00:10:00 Jesse Walden discusses the benefits of equity-based token distribution structures, and outlines a few examples of networks with different monetary policies. He also discusses the importance of having a clear plan for token distribution in order to ensure long-term stability for founders and investors.
• 00:15:00 Jesse Walden discusses the different sources of capital available to crypto startups, highlighting crowdfunding and crypto hedge funds as two examples. He discusses the advantages and disadvantages of each, pointing out the importance of weighing the trade-offs before deciding on a fundraising route.
• 00:20:00 Jesse Walden discusses the importance of understanding how crypto fundraising is different from traditional start-up fundraising, and how specialization goes a long way in achieving success. He also discusses the transition process for a community to become owners and participants in a network. Finally, he gives his estimate for when a norm for community ownership will be established.
• 00:25:00 Jesse Walden discusses how networks and decentralization impact fundraising and credibility. He also discusses how lockups can be a useful tool in managing a community.
• 00:30:00 Jesse Walden discusses the differences between traditional startup fundraising methods and token-based fundraising methods, and how token-based fundraising can allow for a more defensible network. He also discusses the potential for multiple classes of tokens, and how this could distinguish the roles of founders, investors, and the community.
• 00:35:00 In this video, Jesse Walden discusses the different types of capital that can be used in a crypto network, and how they can be used to help the network grow. He also discusses the importance of human capital in crypto networks, and how they can help the network grow.