Framework Ventures Partner: 10 Things Crypto Founders Must Know

Original title: "Framework Ventures Partner: 10 Things Encryption Project Founder Must Master"

Original author: daniel, Framework Ventures Platform and Operation Partner 

Original compilation: MK, MarsBit

10 things every cryptocurrency founder needs to know.

Entity Settings

Fundraising

Salary (Salary + Token) 

Recruitment Developers and Executives

Based on first-hand experience with Framework Ventures. It has invested in more than 100 companies and witnessed the process of dozens of companies from start-up to hypergrowth.

Entity setup Web2 enabled? DE C-Corp

Web3 Launch? This is more complicated. Many companies are centralized (OpenSea, Alchemy, etc.). Or a hybrid that shifts over time (eg, corp DAO). The best choice often changes with practice. Please plan a tentative roadmap and communicate with an attorney.

Fundraising for a Web2 startup? YC SAFE

Launching on Web3? Best practices are constantly changing. C-Corps in the US are likely to raise capital in the form of equity. In some overseas jurisdictions, you have other options. You can combine incentives with warrants or future Token The warrants are combined. Again, discuss this with an attorney.

Office and Remote Work

I personally believe that teams will co-locate, but 74% of companies of people are fully or mostly telecommuting, and 0% are fully centralized. In the early days, we often saw teams co-located, but looking to recruit the best talent (especially technical talent) from around the world.

How much do you pay yourself?

The founder’s salary in the early stage = 120,000-160,000, and the highest is about 180,000. It depends on cost of living, household expenses, etc. Your upside should be in the business, not the cash. Later-stage founders (Series A+) earn closer to market salaries, up to $225K-$250K/year.

How to pay your team (cash)?

For US-based teams, dollar-based solutions like Gusto, Rippling, etc. can save time on payroll and benefits.

Internationally (for DAOs), USDC is king. Payments in cryptocurrencies are still tricky. Emerging cryptocurrency payroll platforms help simplify the process.

Provide your team with Token

Team incentives with equity should mirror the fundraising structure. Companies in the U.S. pay employees in the form of equity. DAO to Token form to pay employees. A hybrid structure (or future DAO) could offer equity + future to employees Token Compensation warrants to adjust for upside.

How much do you pay the developer?

Crypto-native (solidity, rust) developers are expensive. Developer salaries based in the US range from $125,000-$160,000, with top talent earning $300,000.

Assumptions Token The ratio is half of the equity ratio. (For example, a 1% stake is equivalent to a fully diluted Token 0.5% of supply.

Early = pre-seed or seed recruitment; late = A round or late recruitment.

Early Junior = 0.20% - 0.50% Equity

Early Senior = 0.50% - 1.25% Equity

Late Junior = 0.10% - 0.25% Equity

Late Advanced = 0.25% - 0.60% equity

How much do you pay executives?

The salary of non-founder executives ("Head of..." or "CXO") is $120,000-160,000 in the early stage, and $22-30 in the later stage over ten thousand dollars. It is expected to have 2-4% equity in the early stage and 0.5%-2% equity in the later stage.

Engineering and BD/Sales are the most expensive hires of all stages.

Conclusion

Building a cryptocurrency start-up company is difficult, because the law is still being explored . Everything represents the best practices of today's top cryptocurrency startups.

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