Y Combinator is another approach, but it can take as much as 8% in founder’s equity from entrepreneurs for providing the “network” for them to attract investors and learn startup best practices. There are forums like AngelList, but they take asymmetric fees just for the privilege of investing in startups that have signed up on their website. ![]() Generally, the only people who can access early stage investments in tech companies are VC funds or those in the right “networks”, and founders must have a strong relationship to secure funds. By opting for this fundraising route, DevRev is sticking to its mission of opening its technology to everyone: developers, customers, and other advocates of the DevRev platform.ĭevRev realized a lot of its end users - developers and engineers on the DevRev platform - want to be investors too, and digitizing their fundraising process enables anyone to invest. How it works: the DevRev SAFE token is offered under a Reg D filing with the SEC, and it represents a digital version of a typical SAFE security. Last month, DevRev has raised $20 million by tokenizing its funding process. DevRev’s founders took such an approach at Nutanix, where its employees and stakeholders owned and benefited from its success. There may be a new way for early stage companies to be creative with how they raise money.ĭevRev is testing ways to democratize fundraising whereby its community can align with its mission by also becoming partial owners, not too dissimilar from how Silicon Valley introduced equity as a form of compensation to all its employees decades earlier. It’s the same approach for fundraising: you start small and grow, and you gain investments over time. ![]() You start small, and then you grow over time. ![]() In a typical SaaS world, everything is buy-side. DevRev just innovated a new approach to fundraising - here’s why they did it
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