Fund Usage

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Transcript

Next, we're talking about the fun usage or distribution. And so this is where you have a graph chart and you divide up the funds as in looking forward to what you're going to do with the money once you raise it, and you can you want to discuss what you're going to do break down each piece, but also want to chart because it's just it's kind of standard operating procedure. Now, some of the common areas are product and platform development operations, which can include things like salary, or you can break it out, you know, into a staff or technical development part. You also want to consider marketing, business development, platform acquisition, legal costs, because you're going to want to, you know, maybe incorporate a few companies operate in different countries, there's a lot of things you're gonna have to do. You also have support, you also going to need working capital, then there's going to be some sort of growth plan, which it's going to have unexpected or unplanned expenses.

So let's look at rent berries an example. Here, they call it the budget allocation. And so they have a quick intro paragraph and it's from sale the very token you have 30% it development 20% marketing, sales, acquisition partnerships, international expansion, and then up, Development Fund 5% legal and a bug bounty program. So this is a really good example, broken down into the major cost components with a graph and then a paragraph describing each one. So this is what they're gonna do. It clearly telling you what international expansion means with development fun with legal means.

And let's take a look at a couple more. So plenty x here talks about raising 10 million fiat currency and so they give the price to token and reiterate the number and then they talk about what we're able to build. So they have product Dev and maintenance, business growth and Dev, marketing customer customers. reserve fund, operations and legal and here they reiterate the core operating principles and talk about when and how they'll allocate the money from the sale. So as you see, there's a few ways of doing it. That's a pretty good example.

And so we'll look at one more, we'll look at the funds distribution for the Legion, Legion white paper. And here you have a hard cap of 19 million in there assuming equal distribution based on 19 million, but let's say it's 10 million, the percentages still hold up. And that's why you really want percentages instead of monetary value because you just don't know what the final number and so 5% legal 5% partnerships 20% reserve 40% product development, these numbers may depend on what kind of platform you have and what stage you are at the time of launch and sale. So for example, you may only need 30% for development. You may put this cut 10 from here and 10 from here and call it operational but This is a quick overview and it gives you a guideline.

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