VC terms you need to know

Many crypto startups raise traditional venture capital to fund product/market fit discovery, often under a Simple Agreement for Future Tokens (SAFT), a structure developed by Protocol Labs and Cooley that’s similar to Y Combinator’s SAFE, except that it converts into tokens instead of equity should the company issue tokens in the future.

Some people may think the rolling fund structure looks like a shiny flash-in-the-pan opportunity, but as we know, the greatest innovations historically have looked like toys at inception. This rolling fund structure will be the beneficiary of many other macro trends underway.

This blogpost explores venture portfolio construction and the various trade off implications a GP must consider and enables you to construct your own portfolio to understand how various assumptions impact returns to LPs and GPs. 

While big funds need to have sharp elbows -- they need to prove to founders that their money is better than their rivals’ -- solo GPs can pull together Liquid Super Teams of other solo GPs who, together, would give the company a better chance of success. Companies like Party Round will make this even easier and more common.