Continuous Organizations from zero


#1

How would an organization get from zero to being in a position to attract investment in a DAT?

I’m basically in this position, myself. I don’t have sufficient investment or visibility to get traction via a Continuous Organization investment model.

I envisage therefore something like a hybrid, where the angels and other early investors take a fixed % of the company in exchange for seed capital, with further ‘classic’ VC investment rounds replaced by a DAT.

What are your thoughts?


#2

There really is no right answer, but I think as a community we can submit some personal strategies:

  1. Make sure there is a clear product that the continuous organization (CO) is offering. The important part is funding a product, not the organization itself.

  2. Ideally the CO’s token is the same for users, investors, employees etc. The more types of tokens, or equity, the less aligned the CO’s community is.

  3. Spread awareness about how a CO is only possible with Blockchain technology, and that it is entirely trustless and doesn’t require a centralized party to continue.

I’ve found all of these to be an effective framework.


#3

Each project is different but to complement @Tsankov’s answer, here are my thoughts:

  • All huge projects started as small projects, which means that you don’t need to convince the world at the beginning but only your close community. As goes the saying, it’s much better to have 100 users that are in love with what you do rather than 1000 users that kind-of like what you do. So you should focus on getting those 1st users or ambassadors that deeply believe / need what you do.
  • The same goes with investment, no project raises $1M without prior market validations / social proofs. Examples of market validations: finding a co-founder (your 1st follower), gaining a grant, getting early users, being accepted in an accelerator etc… etc… and this is where the CO model makes a lot of sense: in the VC model, you cannot make an fundraising at every step, the work required to fundraise is the same and does not depend on the amount. As it is long and complex, you’d better raise once! With the CO model, at every step, you can convince people to invest in your project. At the beginning, people will invest small tickets, like $10 or $100, maybe $1000 but the more investments you get, the more confident people become (because they see there are other people that believed in your project already) so the chances of getting bigger investments increase! On top, as in the CO model, the earlier you invest, the bigger your potential returns, it makes sense for people to invest if they believe in you, even if you’re just starting. They will just not put big amounts… and that’s fine.
  • Those 1st investors are now strongly aligned with your project and will help it gain traction or visibility if they can. Hopefully, you can bootstrap a vertuous circle from there.

Fundraising as a CO means also that you need to be very open and transparent with your community. First to build trust with your community but also to give your community materials and tools so that they can help you and your project.

It’s obviously not exhaustive but I hope this helps! Let us know if it doesn’t!
Happy thanksgiving :slight_smile: