Over the last 7 months at @AscensiveAsset we’ve reviewed almost 1,000 unique early stage deals. Here’s an update on how everything is shaking out during the bear market 👇 twitter.com/i/web/status/1…
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There’s been a massive shift from SAFTs (tokens) to SAFEs (equity) over the past 12 months in the fundraising world of crypto. What does this mean for investors? It means you should lengthen your time horizon and underwrite lower return multiples. More below 👇
Historically, tokens have provided a much quicker path to liquidity (1+ yrs) compared to equity (5-7+ yrs), and thanks to the advent of #defi, it’s easy to setup an active market on a dex for your token once its liquid so long as you have some funds to seed your pool.
Once a token is liquid, everyone involved (founders, investors et al) are incentivized to maximize FDV by jamming $ into low float. And because crypto is 24/7 and unregulated, it creates a casino’esque environment that perpetuates huge booms (ie 100x returns and unicorns galore).