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Decentralized venture capital ecosystem

A mobile app and toolset for investors to access vetted deals, organize investor communities around their brands and contribute to the success of portfolio companies

Decentralized investment network

for VCs, Family Offices and Angel investors

Find great deals coming from peer investors

Share your deals with likeminded investors

Build investment club around your brand

Create my investment club

Why we do it?

Finance is being disrupted by Bitcoin and “smart contracts”. Draper Decentralized is here to address the emerging needs of this transformation.

Fund managers lack tools for building and maintaining long-term and trustful relationships with their former, existing and prospective Limited Partners and co-investors.

Venture Capital is becoming more accessible. Number of Family Offices willing to actively participate in Venture Capital is growing.

Family Offices are willing to invest directly and looking for investors with solid track record to co-invest together.

How we do it?

Draper Decentralized is a network of private investment clubs. Tim Draper runs a club of family offices which co-invest with him. All clubs are interconnected and share deals with each other, including Tim’s club.

Investors can join Draper Decentralized if they are referred by an active member (investor) of one of the clubs.

Club Managers and other members can introduce startups to raise capital from their clubs or Tim Draper.

All investors are provided with tools to organize their own investment clubs and contribute to the success of portfolio companies.

Beta

Beta product comprises a web portal and a mobile app.

Among early adopters are emerging VC funds, Family Offices, and other investors and entrepreneurs.

In the scope of Beta the investors will be able to explore vetted deals, create their investment clubs by inviting their fellow investors and make investments seamlessly.

The goal of the Beta is to receive customer feedback for adjusting and enlarging the product functionality according to customer needs.

Bitcoin Studio

A 3-month program for teams working on making Bitcoin not only a firm asset class, but also a global payment network, global money network and, eventually, a global social network.

Learn more

FAQ

Draper Decentralized is a family of invite-only private investment clubs. Each club is facilitated by its Manager (an individual or organization) who usually establishes it and invites both investors and entrepreneurs. Managers decide the strictness of rules towards investors they invite and startups eligible to raise from their clubs. Among other clubs, Tim Draper established his private investment club where he invites leading Family Offices and prominent investors for making joint investments in startups.

Club managers get the opportunity to introduce their deals to Tim Draper as well.

Investors are welcome to introduce deals without any geographical, industry and stage constraints. The general expectation is that the startups are early stage companies (seed round/Series A) with the round sizes being between $1,000,000 to $10,000,000.

Platform is free for startups and Club Managers. Draper Decentralized may charge a one-time management fee of up to 3.7% from the raised amount for covering the costs associated with the SPV creation and its lifetime maintenance. In case of an exit event, according to our standard terms, a 5% carried interest is distributed to Draper Decentralized if a startup ends up raising from investors outside of its lead’s network.

The entrepreneurs have full discretion to determine the equity stake they are willing to give away. Our recommended threshold for the equity stake is 15%. The recommended minimum amount of fundraising is $1,000,000.

Entrepreneurs can choose a floating type of fundraising, meaning the equity size for the round remains unchanged while the valuation of the company automatically rises if there is more demand from investors.

Another type of fundraising is the standard fixed round size fundraising, where entrepreneurs set a certain amount of equity in exchange for a certain amount of capital. The fundraising will be closed as soon as the fundraising goal is reached before the round deadline.

If the fundraising goal set by entrepreneurs is not met by the deadline, the round is considered to be cancelled.

Draper Decentralized partners with several SPV and Fund Administration service providers, responsible for smoothly organizing the investment process. Investments are usually done directly via SPVs (Special Purpose Vehicle, usually structured as a Delaware LLC). On the company’s cap table, investors will be represented with one entity - the SPV.

Investors acquire membership interest (not shares yet) in the SPV, while the interest constitutes an ownership percentage and their personal property. For some of the cases, there is also a lock-up period following the investment, when the transfer (sale) of the acquired assets is restricted at least for a year. Distributions in the form of securities and/or cash follow a liquidity event.

Club Managers at Draper Decentralized have the opportunity to invite any accredited investors to their club as new members. By inviting new members they can share deals and co-invest with them. Investors can invest as many times as they want on the platform.
We will gradually roll out blockchain functionality on the platform and enable investments with stablecoins into tokenized equity in the near future. Moreover, we are providing necessary tools to Club Managers on the platform for building their own investment clubs with the perspective that some of the clubs will gradually turn into DAOs.

Contact us

Do you have a question or need help?
We would love to hear from you!
Contact us at support@draperx.vc