If your project is looking to raise funds you’ll need to make some critical decisions on which fundraising instrument to use. This process can be challenging for new founders. Which instrument you’ll pick depends heavily on what stage you’re at and under which jurisdiction you choose to be incorporated. In this chapter we’ll go over the various fundraising instruments that are commonly seen in Web3 as well as the reasons why some might be more suitable in some cases than others.
We believe our research on the best practices for Web3 founders should be freely accessible for everyone. However, please note that we are not lawyers. We just want to get this information out there so you have a starting point before seeking legal council.
When to use a SAFE/Convertible Note + Token Side Letter OR Token WarrantToken Warrants VS Side Letters - Key DifferencesWhen to use a SAFT: Understanding the implicationsAgreement Templates