Raising Capital

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Overview

You can raise capital by selling shares of your personal token through discrete fundraising “rounds.” This process allows you to set your own terms, choose your investors, and receive immediate funding while maintaining control over your cap table.

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How Fundraising Works

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Setting Up a Round

When you initiate a fundraising round, you specify:

• Number of shares to sell - How much of your token you’re offering
• Price per share - Your valuation of each share
• Round duration - How long the round will remain open
• Investment minimums/maximums - Size constraints for individual investments

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Valuation Example

Selling 1 million shares (10% of your token) at $1 per share values your entire token at$10 million:

• Shares for sale: 1,000,000 (10% of total)
• Price per share: $1.00
• Total raise: $1,000,000
• Implied valuation: $10,000,000

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The Investment Process

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1. Share Your Round

• Generate a unique link for your active round
• Share with prospective investors
• Control who can view and access your round

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2. Receive Interest

• Investors indicate their interest through the platform
• They specify their proposed investment amount
• You can see all expressions of interest in one place

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3. Curate Your Investors

• You maintain complete control over investor selection
• Review each investor’s profile and proposed investment
• Accept or decline each investor individually
• Build your cap table strategically

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4. Complete the Round

• Once you’ve accepted sufficient investments, close the round
• Funds are immediately deposited into your personal token wallet
• Ownership records are automatically updated across the Network
• New shareholders receive their shares proportional to their investment

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Investor Protections

To create alignment with early investors who take the highest risk, personal tokens include several protections:

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Pro Rata Rights

• Existing shareholders have the right (but not obligation) to participate in future rounds
• Allows early investors to maintain their ownership percentage
• Provides opportunity for continued support without dilution

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Information Rights

• Shareholders must receive notice of upcoming fundraising rounds
• Minimum 7 days advance notice required
• Gives existing investors time to exercise their pro rata rights

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Anti-Dilution Provisions

• Protection against “down rounds” (fundraising at lower valuations)
• Automatic adjustment of share allocations for early investors
• Similar to weighted-average anti-dilution provisions in traditional VC

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Example Fundraising Scenario

Let’s walk through a typical fundraising round:

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Best Practices

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Setting Your Valuation

• Consider your track record and potential
• Look at comparable personal tokens in the Network
• Factor in your current assets and investments
• Be realistic but confident in your pricing

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Choosing Investors

• Prioritize investors who add strategic value
• Consider their network and expertise
• Look for long-term alignment
• Diversify your investor base

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Communication

• Keep investors updated on your progress
• Share major wins and milestones
• Be transparent about challenges
• Build lasting relationships

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After Your Round

Once you complete a fundraising round:

1. Funds are immediately available in your personal token wallet
2. Use capital for investments in other personal tokens or opportunities
3. Generate returns through dividends and capital appreciation
4. Keep shareholders informed about your progress and performance