(Series) Planning to build a Dapp on Lisk: Seed round funding & Use of funds.

By on December 1st, 2017 in Development

Welcome back to Planning to build a dapp on Lisk. Today we are covering a pretty important section to think about in our business plan.

If you have a great idea and can build it yourself or with a small group of friends working for free, and the product is so great it can market itself, then awesome go and execute!

You don’t need this section, however if getting this dapp to launch requires a bit more effort then you will need funds to get it going.

Great ideas can’t fund themselves.

Here are the first steps to check when you first realize you need funding.

  1. Write down the expected budget for each item you may need
    1. Server costs
    2. Development costs
    3. Marketing etc
  2. Create a contact list for the 3 Fs.
    1. Friends, Family & Fools (Ask these people for money first)
  3. Create a contact list for people that can introduce you to whales.

Once you get step 3 done, it’s time to plan the funding and use of funds section of your business plan.

Visiting our Futuratum prediction engine example again:

5 SEED ROUND FUNDING

We are seeking a $500k seed round to help setup the Futuratum Foundation in a cryptocurrency friendly nation, obtain legal compliance and ICO advisement and marketing.

  • Legal compliance and Foundation creation in Switzerland or Singapore.
  • 45k for ICO microsite design by Griflan Design.
  • Brand message, White paper design and ICO marketing by What.digital.
  • A percentage will go into Bitcoin asset holding.
  • Communications Lead 50k salary.
  • Data scientist initial salary 50k.
  • Travel to conferences as well as to meet with legal companies, and the Lisk Foundation/LightCurve for advisement.

In the event of a successful raise 4.6 million*, the initial investor will be gain a 20% return on investment.

6 USE OF FUNDS

The Futuratum foundation will store the Bitcoin in reserve to be used for future business and network development.

Lisk assets will be liquidated once a month to continue funding salaries and operational costs. Lisk liquidation can either be directly sold into USD, or into BTC which will then allow spending via Shift payment cards linked to the foundations Coinbase account.

* Minimum Viable Raise

A successful token raise must be a minimum of $4.6 million in assets. Which will allow Futuratum to pay the initial investor $600 thousand and keep $4 million for a 2 year run-way for development and operations.

In the event of an unsuccessful raise, less than $4.6 million, the Futuratum foundation will be dissolved and funds raised will be returned to all ICO participants.


It’s important to state in these sections how the investor gets their ROI back. Again it is important at this stage to hire legal counsel to help with 1) registering the company/corporation and 2) creating, editing and reviewing the fund raising sections.

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