Funding Stages: From Zero to Series A¶

Y Combinator Model Adapted for D2G2M¶

The D2G2M Foundation follows a four-stage funding progression based on Y Combinator's proven model, adapted for German legal structure and crypto-native funding.

Overview¶

┌─────────────────────────────────────────────────────────────┐
│                 D2G2M FUNDING ROADMAP                       │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  STAGE 1: LOVE MONEY (Month 1-2)                           │
│  ├── Source: Friends, Family, Personal                     │
│  ├── Target: €10,000 - €25,000                             │
│  ├── Instrument: Simple loan or gift                       │
│  └── Purpose: Legal formation + MVP                        │
│                                                             │
│  STAGE 2: SEED (NFT + Token) (Month 3-6)                   │
│  ├── Source: Community, Crypto natives                     │
│  ├── Target: €50,000 - €180,000                            │
│  ├── Instrument: NFT sales + Juicebox                      │
│  └── Purpose: Product development + Team                   │
│                                                             │
│  STAGE 3: ANGEL/SAFE (Month 6-12)                          │
│  ├── Source: Angel investors, HNWIs                        │
│  ├── Target: €150,000 - €500,000                           │
│  ├── Instrument: Y Combinator SAFE                         │
│  └── Purpose: Scale operations + Marketing                 │
│                                                             │
│  STAGE 4: SERIES A (Month 12-24)                           │
│  ├── Source: VCs, Strategic investors                      │
│  ├── Target: €1,000,000 - €5,000,000                       │
│  ├── Instrument: Equity (preferred shares)                 │
│  └── Purpose: Multi-industry expansion                     │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Stage 1: Love Money (€10K-25K)¶

Timeline¶

Months 1-2 after legal formation

Sources¶

Friends & Family - People who believe in you
Personal savings - Founder capital
Small angels - €1K-5K per person

Instruments¶

Simple and informal: - Verbal agreement (if family) - Simple loan agreement with 0% interest - Gift (if donation to e.V.)

Use of Funds¶

Category	Amount	Description
Legal formation	€2,000	e.V. + UG registration, notary
Initial development	€8,000	Developer hours, hosting
Design/branding	€3,000	Logo, website, brand identity
Contingency	€2,000	Unexpected costs
TOTAL	€15,000

Milestones¶

✅ e.V. registered
✅ UG registered
✅ MVP deployed (basic MORELO features)
✅ First dealer onboarded

Risks¶

⚠️ Personal relationships - Mixing money and friendship
⚠️ No formal protection - Simple agreements
⚠️ Reputational risk - Failure affects personal network

Mitigation¶

Clear written agreements (even if simple)
Realistic timelines communicated upfront
Regular updates to investors

Stage 2: Seed (€50K-180K)¶

Timeline¶

Months 3-6 after MVP launch

Sources¶

NFT sales - Genesis membership collection
Juicebox - Crypto crowdfunding
Crypto angels - Blockchain-native investors

Instruments¶

NFT Sales (Primary)¶

4-tier Genesis membership:

Tier	Price	Supply	Total Revenue
Bronze	0.01 ETH (~€30)	500	€15,000
Silver	0.05 ETH (~€150)	300	€45,000
Gold	0.1 ETH (~€300)	150	€45,000
Diamond	0.5 ETH (~€1,500)	50	€75,000
TOTAL		1,000	€180,000

Benefits per tier: - Bronze: Discord access, early updates, 1 vote - Silver: + Private calls, 3 votes - Gold: + Revenue share (0.1%), 5 votes - Diamond: + Advisory role, 10 votes, exclusive events

Juicebox (Secondary)¶

Crypto-native crowdfunding platform: - Accept ETH/stablecoins - Automatic token issuance ($D2G2M) - Transparent treasury on-chain - Built-in refund mechanism

Configuration:

Funding target: €100,000
Duration: 30 days
Token rate: 1,000 $D2G2M per €1
Overflow: Refundable if target not met

Use of Funds¶

Category	Amount	Description
Team salaries	€80,000	2 developers x 6 months
Infrastructure	€20,000	Servers, blockchain, IPFS
Marketing	€30,000	Content, ads, community building
Legal/compliance	€15,000	Token legal opinion, audits
Operations	€15,000	Office, tools, travel
Contingency	€20,000	Buffer
TOTAL	€180,000

Milestones¶

✅ 500+ NFTs sold
✅ $D2G2M token launched
✅ 10+ dealers using platform
✅ 100+ vehicles with NFT ownership
✅ First community governance vote

Risks¶

⚠️ Market volatility - ETH price fluctuation
⚠️ Low NFT demand - What if nobody buys?
⚠️ Smart contract bugs - Technical exploits

Mitigation¶

Stablecoin option (USDC) for risk-averse buyers
Multi-tiered pricing (accessible entry point)
Audited contracts (OpenZeppelin standards)
Marketing blitz pre-launch

Stage 3: Angel/SAFE (€150K-500K)¶

Timeline¶

Months 6-12 after product-market fit

Sources¶

Angel investors - High-net-worth individuals
Crypto VCs - Early-stage blockchain funds
Strategic partners - MORELO, industry players

Instrument: Y Combinator SAFE¶

SAFE = Simple Agreement for Future Equity

Key terms:

Investment amount: €250,000 (example)
Valuation cap: €2,000,000
Discount: 20% (optional)
Trigger: Next equity round (Series A)

How it works: 1. Investor gives €250K now 2. No equity issued yet 3. At Series A (e.g., €5M valuation): - SAFE converts at lesser of: - Valuation cap: €2M → 12.5% ownership - Discounted price: 20% off Series A 4. Investor gets shares at better terms than Series A

Why SAFE? - ✅ No immediate valuation needed - ✅ No board seats (yet) - ✅ Fast closing (1-2 weeks) - ✅ Founder-friendly terms

SAFE Template (German Adaptation)¶

SIMPLE AGREEMENT FOR FUTURE EQUITY

This certifies that in exchange for the payment of €[AMOUNT] 
(the "Purchase Amount") by [INVESTOR NAME], D2G2M Tech UG 
(haftungsbeschränkt) (the "Company") issues to the Investor 
the right to shares of the Company's equity, subject to the 
terms set forth below.

1. EVENTS
   (a) Equity Financing: If there is an Equity Financing before 
       termination, the Company will issue shares to the Investor 
       equal to the Purchase Amount divided by the Valuation Cap.

   (b) Liquidity Event: If there is a Liquidity Event before 
       termination, the Investor will receive the greater of:
       - Purchase Amount, or
       - Purchase Amount × (Company Sale Price / Valuation Cap)

2. DEFINITIONS
   Valuation Cap: €[AMOUNT]
   Equity Financing: Sale of preferred shares ≥ €1,000,000
   Liquidity Event: Merger, acquisition, or IPO

3. COMPANY REPRESENTATIONS
   The Company is duly organized under German law...

[Full legal template available from YC or German legal counsel]

Use of Funds¶

Category	Amount	Description
Team expansion	€200,000	5 employees x 12 months
Sales/marketing	€100,000	Dealer acquisition, events
Product development	€80,000	New features, integrations
Legal/compliance	€30,000	Series A prep, IP protection
Infrastructure	€40,000	Scaling servers, security
Contingency	€50,000	Runway buffer
TOTAL	€500,000

Milestones¶

✅ 50+ active dealers
✅ €500K+ annual recurring revenue
✅ 1,000+ vehicles with NFT ownership
✅ DAO governance active (100+ proposals)
✅ Series A pitch deck ready

Risks¶

⚠️ Founder dilution - Valuation cap too low
⚠️ Investor control creep - Side letters with rights
⚠️ Series A not happening - SAFE never converts

Mitigation¶

Set valuation cap at fair market value
No board seats or veto rights in SAFE
Include long-stop date (SAFE expires if no Series A in 3 years)

Stage 4: Series A (€1M-5M)¶

Timeline¶

Months 12-24 after scaling proof

Sources¶

Venture capital funds - Traditional tech VCs
Crypto-native VCs - Blockchain-focused funds
Strategic corporate VCs - Automotive, logistics

Instrument: Preferred Equity¶

Term Sheet Key Terms:

Investment: €2,000,000
Valuation: €8,000,000 pre-money → €10,000,000 post-money
Investor ownership: 20%
Liquidation preference: 1x non-participating
Board seats: 2 of 5 (investors get 2, founders keep 3)
Anti-dilution: Broad-based weighted average
Voting rights: Protective provisions on major decisions

Protective Provisions (investor veto rights): - Sale of company - Issuing senior securities - Changing business purpose - Annual budget approval

Use of Funds¶

Category	Amount	2-Year Plan
Team	€1,200,000	15-20 employees
Product	€400,000	Multi-industry platform
Sales/Marketing	€600,000	International expansion
Infrastructure	€200,000	Enterprise-grade scaling
Legal/Compliance	€100,000	Multi-jurisdiction compliance
Contingency	€500,000	6-month runway buffer
TOTAL	€3,000,000

Milestones¶

✅ 500+ dealers across industries
✅ €3M+ ARR
✅ 10,000+ assets with NFT ownership
✅ International expansion (3+ countries)
✅ Series B readiness (€10M+ valuation)

Risks¶

⚠️ Loss of control - VCs demand board majority
⚠️ Misaligned incentives - VC wants exit in 5-7 years
⚠️ Down round risk - Future raise at lower valuation

Mitigation¶

Founder-friendly terms (see YC SAFE + Series A guide)
Maintain board control (3 of 5 seats)
Anti-dilution protection
Long-term vision alignment with investors

Founder Equity Dilution Model¶

Dilution Over Funding Rounds¶

Stage	Raise Amount	Valuation	Investor %	Founder % (from 100%)
Formation	€0	-	0%	100%
Love Money	€15K	-	0% (loans)	100%
Seed (NFT)	€180K	€1M	18%	82%
SAFE	€500K	€2M cap	25% (at SA)	~60%
Series A	€2M	€8M pre	20%	~50%

After Series A: - Founders: ~50% - SAFE investors: ~15% - NFT holders: ~15% - Series A VCs: ~20%

Notes: - Assumes no additional dilution from employee stock options (ESOP) - Typical ESOP pool: 10-15% reserved for employees - Actual dilution depends on execution, valuations, and negotiation

Funding Decision Matrix¶

Which instrument when?¶

Amount Needed	Best Instrument	Why
€0-25K	Love money, personal savings	Too small for formal investors
€25K-200K	NFT sales, Juicebox	Crypto-native, community building
€200K-500K	SAFE	Fast, founder-friendly, no valuation
€500K-2M	SAFE or Series A	Depends on traction and VC interest
€2M+	Series A equity	Only VCs write checks this big

Fundraising Timeline¶

gantt
    title D2G2M Fundraising Roadmap
    dateFormat  YYYY-MM

    section Legal
    e.V. Formation           :2026-02, 2M
    UG Formation            :2026-02, 2M

    section Love Money
    Friends & Family        :2026-03, 1M

    section Seed
    NFT Collection Design   :2026-03, 2M
    NFT Launch              :2026-05, 1M
    Juicebox Campaign       :2026-06, 1M

    section SAFE
    Investor Outreach       :2026-08, 3M
    SAFE Closing            :2026-11, 1M

    section Series A
    Pitch Deck Prep         :2027-01, 2M
    VC Meetings             :2027-03, 4M
    Series A Close          :2027-07, 2M

Frequently Asked Questions¶

Can we skip stages?¶

Yes. If you have strong traction, you can jump from Love Money to Series A. But staged approach reduces risk.

What if NFTs don't sell?¶

Fallback: Focus on SAFE from angels. NFTs are nice-to-have, not must-have for survival.

Do we need all €180K from NFTs?¶

No. Even €50K is enough to extend runway. Adjust supply/pricing if demand is low.

How do we value the company for SAFE cap?¶

Method: 1. Comparable companies (other dealer platforms) 2. Revenue multiple (5-10x ARR) 3. VC market standards (€1-3M for pre-Series A)

Rule of thumb: Set cap at 2-3x current valuation estimate.

What if Series A doesn't happen?¶

SAFE holders: - Option 1: Convert at last valuation (if long-stop date reached) - Option 2: Get money back (negotiable) - Option 3: Extend SAFE term

Resources¶

SAFE Templates¶

Y Combinator SAFE (original, US-focused)
German SAFE adaptation (UK/EU version)
Legal counsel recommendations

NFT Platforms¶

OpenSea - Largest NFT marketplace
Juicebox - Crypto crowdfunding
Adobe Express - NFT design tool

VC Resources¶

Crunchbase - Investor database
AngelList - Startup fundraising platform
German VC List - German-speaking VCs

Related: - Legal Structure - D2G2M Vision - Token Economics