Web3 fundraising a new paradigm for building community and sharing ownership
Julian Kwan
CEO and Co-founder InvestaX and IX Swap. Host of the Infinity and Beyond Podcast.

At InvestaX, we understand that the essence of fundraising is sharing equity in exchange for investment. By rolling out the InvestaX Launchpad, it is our goal to increase the power of fundraising both for the company and the investors alike. 

The InvestaX Launchpad is InvestaX’s next-generation investment offering that paves the way for startups to raise capital through the platform and our partners via a security token offering (STO), which includes access to the governance/platform token in parallel. 

Usually, when a startup launches a governance/platform token, VCs get access to the seed round and then the private sale before the token is offered in a public sale accessible by a small set of individuals. 

This is the typical scenario of a startup trying to raise funds, but the fight is always on as the VCs get access to the seed round and private sale, where the token is sold at a significantly lower price, while individual investors can only access the token when the public sale starts.

The token’s price difference from the seed round and private sale round can vary significantly compared to the token’s public sale price, as illustrated below:

  • Seed Round - 5,000,000 tokens offered on January 1st at $0.05 USD (24-month release schedule) 
  • Private Sale - 10,000,000 tokens offered on March 1st at $0.15 USD (18-month release schedule)
  • Public Sale - 15,000,000 tokens offered on July 1st at $0.30 USD (immediate release and starts its public trading, often rising multiple times the public sale price)

The startup raises equity earlier or later to the above sale, which is typically done in a standard Silicon Valley manner – with a SAFE note, seed round, series A, B, C, and so on.

Investors often receive warrants or special deals in these token sales, effectively getting a two-for-one deal. Hence, they are arguably the most desirable way to invest, with the liquidity of the platform token plus the equity upside of a traditional investment. However, the equity part is often illiquid and unavailable to individual investors.

With the InvestaX Launchpad, we have changed the fundraising game for everyone and now offer investors, big and small, access to invest in startups and equity in the form of security token offering (STO) and token warrants. 

For startups, this provides tremendous value as it helps the project while selling equity and growing its user base at the same time. 

To drive home the point, here’s something to think about - would you prefer to have one investor inject $1M USD investment into your startup or would you rather have 1,000,000 investors, who are also actual users of your platform, help grow your project by investing in it?

This is an extreme scenario, but we want to highlight and push forward the value of democratizing access to investments opportunities to investors of all sizes.

At the same time, we don’t want to discount the immense value that professional investors like blockchain VCs bring – from leading rounds, doing due diligence, helping with networking and growth, negotiating lead investor terms, and bringing credibility to the whole fundraising process.

The goal of the InvestaX Launchpad is to truly democratize access to investment opportunities for investors of all sizes. In doing so, we increase the value of the pie by bringing more to the table for both startup and investors alike. 

As we roll out the InvestaX Launchpad, we are excited for investors to access the best of both worlds. There is no question that startups are risky and most do not make it, but with this new structure, startups are empowered with more chance of success by giving equity to their user base, elevating their investment in the project from being mere token buyers who are often only in for a short pump-and-dump with no intentions to support, use, and see the platform through. Connect with the team of InvestaX by sending us an email at support@investax.io today.

At InvestaX, we offer the leading Singapore Licensed Tokenization Service-as-a-Software (SaaS) platform for Real World Asset Tokens (RWA) and Security Token Offerings (STO). We provide a one stop shop for tokenized assets for global investors, including real estate, private equity, venture, ESG, startup, private credit/debt and more. We also provide IX Swap, the first legal and compliant Automated Market Maker (AMM) for RWA and STO.

If you are interested to learn more about how you can build your business on top of our infrastructure and what we can offer you as your tokenization partner, then contact us here. Thank you.