Seed Club’s Consumer Crypto Fund

Summary

This proposal provides an update on the last two consumer crypto accelerator cohorts (SC06 & SC07), and presents a plan for establishing a consumer crypto-focused fund, including a budget to unlock funding for Seed Club’s 8th cohort (SC08), which will later be acquired by the fund at cost.

Our goal is to provide insight for the Seed Club community into its operations. Once approved, the Seed Club team will be responsible for executing the outlined objectives in this proposal.

Context

Since its inaugural cohort in 2021, Seed Club has incubated seven cohorts and >100 teams. In the past year, we launched two consumer crypto-focused cohorts (SC06 & SC07), driven by the deep belief that imaginative consumer crypto experiences are core to the development of our ecosystem and the internet broadly.

SC06 and SC07 were also the first cohorts where Seed Club actively invested capital into projects, reflecting our commitment to this vision. Here is a summary of how we’ve executed on our plans:

• 17 canonical consumer crypto companies were backed.
  • Nine companies in SC06, including:
    • Sofamon
    • Interface
    • Pods
    • MintStars
  • Eight companies in SC07, including:
    • Chipped
    • Bracket.Game
    • Official Unofficial
    • Ponder
    • Sidequest
• Seed Club allocated a total of $3,120,250 USDC of the budgeted $4M USDC towards SC06 & SC07 teams.
  • $1,520,250 allocated to SC06
  • $1,600,000 allocated to SC07
• Seed Club allocated $32,958.6 USDC towards associated legal fees for both cohorts.
• A balance of $846,791.4 USDC of the allocated $4M remains undistributed.

Proposal Objectives

Objective #1: Raising a consumer crypto fund in Q1 2025

Seed Club is aiming to raise a $20m dedicated consumer crypto fund focused on being the first cheque into category-defining consumer crypto projects. We’re entering the golden age for consumer crypto startup building where these future-dominating, category-defining projects are going to be built.

Investment focus:

• First-money into consumer crypto projects
• $250K – $500K cheques
• $5M - $10M valuations with 5% – 7% target ownership

Objective #2: Unlocking funding for SC08

As we dedicate time and resources to structuring the consumer crypto fund, we want to continue building on our momentum and pushing on emerging opportunities in the coming months.

Seed Club is proposing to allocate $1M from its treasury to the Seed Club Foundation to run its next batch and continue investing in the interim. This funding is aimed to bridge between our current and future state. SC07 and SC08 investments will be warehoused into the new consumer crypto fund, and capital will be reimbursed to the Seed Club Foundation once the fund structuring is complete.

Investment focus:

• First-money into consumer crypto projects
• $200K cheques
• $5M - $10M valuations with 2% – 5% target ownership

Implementation

If approved, the Seed Club team will move forward with the necessary steps to:

1. Raise a $20M dedicated consumer crypto fund.

2. Allocate up to $1M from the Seed Club Treasury to run SC08 during the fund-structuring period, which will later be warehoused and acquired by the fund at-cost.

Vote

Yes - Approve and implement this proposal

No - Do not approve this proposal