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Business Structure

When should you raise capital?

Structures​

What structures will provide a defensive moat while remaining agile to take opportunities to grow?

  • Shared Ownership
  • Horizontal
  • Vertical
  • Acquisition

Keep operations lean and tight with accountability, transparency with full commitment to seeing decisions through.

Shared Ownership​

As tokenization becomes standardised, every business will need to embrace this structure to remain competitive.

Horizontal​

Expanding activities into other geographic regions or the range of products and services offered to the current markets.

Expansion into adjacent markets. For example Amazon selling electronics after successfully selling books.

Vertical​

Taking over a function previously performed by a supplier or distributor.

Vertical growth is further expansion along the supply chain.

Acquisition​

With workflow systems and a strong admin team in place, a well-run business has the opportunity to grow by acquisition or by creating a branded franchise business.

  • Growth by acquisition
  • Franchise

Fundraising​

Bootstrapping, angel investors, venture capital, crowdfunding, and bank loans.

  • Networking: Build relationships with investors and mentors that provide not only capital but also guidance and connections.
  • Pitching: Develop a compelling pitch that clearly communicates the business idea, market potential, and financial projections to potential investors.
  • Tokenization: Real Estate is one of the biggest expenses, use tokenization to invest in the business indirectly through rent
  • DeFI: Automatic loans based on a standardized business plan protocol backed by onchain credibility?

Venture Capital​

What are investors looking for?

The unspoken truth:

  1. Trust
  2. Vision
  3. Integrity
  4. Commitment
  5. Humility
  6. Hunger
  7. RoI

Top Criteria​

  • Technical founders
  • They ship faster
  • Don't rely on hiring devs or worse outsourcing IT
  • Burn less $ to get to MVP

Research​

What can be learned from following venture capital firms strategy and investment thesis?

  • What are they investing in?
  • Why are they investing there?
  • What do they expect in return?

Deal Flow

  1. Where is the capital flowing from and to?
  2. Which type of projects, how much?
  3. What specific characteristics?

Grants​

Funding open source software projects.