Seed Club

Summary

Since our inaugural cohort in 2021, Seed Club has accelerated close to 100 teams building incredible internet native organizations – or DAOs. This year, Seed Club will be taking its learnings and bringing it to the next version of our potent Accelerator; the Consumer Crypto Accelerator.

The Consumer Crypto Accelerator will be focused on finding the best founders who are building at the intersection of culture, community and crypto. Our goal as an organization is to create and incubate the canonical examples of crypto consumer products that prove the inevitability of web3.

This proposal outlines our motivations, and if passed, our plans for funding the next cohort of Accelerator participants.

Motivations

Funding Accelerator DAOs & Companies

Seed Club is ready to extend the model to an ambitious broad spectrum of projects. To do this we’re now going to accept companies in addition to DAOs for the first time.

In addition to our expanded aperture, we’re also going to invest capital into these projects or companies. Early stage consumer crypto startups are finding it difficult to raise money amidst the current market uncertainty. We believe providing capital to these projects is necessary for us to attract the best talent, and allow teams to focus on building rather than fundraising.

Implementation

If implemented, this proposal aims to allocate $2.5M USDC from the Seed Club Treasury to the Seed Club Foundation, which will distribute USD or USDC to accepted projects or companies.

The distribution of the allocated 2.5M will take place in two phases:

• Phase 1 [Q2 2023]: Aimed at working with a broad subset of teams that demonstrate the types of ideas and founders that are a great fit for the Consumer Crypto Accelerator.
  • Up to $200k will be allocated to teams accepted into the accelerator.
  • Valuations will be determined on an ad-hoc basis.
• Phase 2 [Q3 & Q4 2023]: Aimed at exploring additional, sustainable funding structures and vehicles in consultation with legal counsel.
  • Funds will be allocated to a minimum of 5 teams with additional funding options from:
    • A Seed Club Fund
    • A Seed Club Syndicate
    • Partnerships with other Funds from the Seed Club Network

Management

How does value flow back to the Seed Club Treasury and to $CLUB holders?

In case of a liquidity event, any capital returns will be allocated back to the Seed Club Treasury, which is governed by $CLUB holders.

All proceeds are ultimately used for the progression of the Seed Club DAO. It’s important to note that $CLUB holders will not be beneficiaries of the holdings, i.e. $CLUB holders have no rights or claims against the portfolio, nor will receive any distributions of equity or proceeds from any disposals.

Who will be overseeing and managing the portfolio?

The core day-to-day management will be led by Jess Sloss & Josh Cornelius, supported by

3-5 other members of the community with notable experience in growing and backing consumer projects or companies.

Each deal will be negotiated with accepted teams on a case-to-case basis.

How can $CLUB holders impact, approve or veto investment decisions?

While we’ve previously experimented with how the community can select projects, we’ve ultimately realized that there is a high correlation between the experience and time spent working directly with founders, and the ability to select them.

For the Consumer Crypto Accelerator, we’ll be delegating selection to the small team working closely with the project/company founders, and managing the portfolio. We are committed to evolving our selection process along the way to continue backing the best consumer crypto projects and companies on the internet.

How does this impact the existing Seed Club portfolio?

Seed Club will honor the existing agreements (token swaps) it entered with the current portfolio (SC01-SC05).

Vote

Yes - Approve and implement this proposal

No - Do not approve this proposal