RWA Inc:- Venture capital (VC) funding plays a very dominant role in the crypto startup landscape, especially for early- and mid-stage projects. According to the reports, over 70% of total crypto funding comes from VC-led deals with large check sizes and network access.
This is particularly true in case of token-based projects. VCs often negotiate favorable terms such as discounted prices and vesting schedules that retail investors can’t match. By the time tokens reach a public sale or exchange listing, the price has often already appreciated significantly from VC entry prices.
In a move set to redefine early-stage funding dynamics in the crypto and Web3 sector, British Virgina based RWA project – RWA Inc – has launched its fully on-chain Private Investor Platform. It is designed to give retail and accredited investors direct access to startup deals traditionally dominated by venture capital (VC) firms.
With a minimum investment requirement of $1,000, the platform promises to democratize access, speed up execution, and enhance transparency in private crypto funding.
How RWA Inc’s Platform Work on Reshaping Web3 funding dynamics
According to Kevin Yunai, Founder & CEO of RWA Inc, “the early rounds of funding in crypto startups have been the exclusive domain of deep-pocketed VCs and high-net-worth individuals.”
In order to solve this, RWA Inc’s private investor platform operates entirely on-chain. It automates SAFT (Simple Agreement for Future Token) execution, a token-based analog of Y Combinator’s SAFE (Simple Agreement for Future Equity), but specifically tailored to crypto projects. execution. SAFT provides accredited investors with rights to receive tokens at a later date at the time of the TGE in exchange for upfront funding.
A Project up for Funding on RWA Inc’s Platform | Source: Official Website
RWA Inc’ platform also makes KYC/AML compliance, funding transfers, and documentation through smart contracts faster and automated. This approach can significantly help in cutting down transaction times from weeks to minutes and eliminates layers of costly intermediaries.
With this, the small or retail investors can browse vetted early-stage deals listed on the platform. Its dashboard allow investors to review project details, financials, and tokenomics. With legal agreements digitally, they can fund their investments securely through integrated blockchain payment rails.
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Can it Curb VC Dominance?
RWA Inc’s platform does seem promising. In less than a week of its launch, it has seen the biggest single day inflow with more than 42,500 USDC invested through the platform in an web3 entertainment-focused project – Backstage.
For startups, the platform offers an alternative fundraising channel that can complement or even replace traditional VC rounds. By opening up access to a global pool of retail and smaller institutional investors, Web3 projects can diversify their funding sources. This will reduce dependency on a small number of powerful backers say VCs and potentially achieve more decentralized governance from the outset.
It is also working on integrating other web3 projects as well – from AI to Quantum, L1s, L2s, and more. This can perhaps make it an alternative platform for investors looking for early-stage web3 startup exposure.
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