Revolutionizing Cap Table Management for Web3 Startups: LiquiFi’s Innovative Approach

LiquiFi, a new upstart in the world of web3 startups, is making waves with its innovative approach to cap table management for crypto companies. Unlike traditional startups that issue equity as a form of incentive alignment, crypto companies often issue tokens that represent ownership, creating a whole new set of complexities and regulations to navigate.

Founded by CEO Robin Ji and CTO Oliver Tang, LiquiFi is part of Y Combinator’s winter 2022 batch and aims to automate token vesting, manage token cap tables, and issue token grants in compliance with regulations. The company has already gained traction in the market, with a customer list that includes both large DeFi protocols and smaller startups launching tokens for the first time.

One of the key differences between token management and equity management, according to Ji, is the dynamic nature of tokens. Tokens can be used for voting, staking, lending, and providing liquidity, making them more versatile than traditional equity. Additionally, the transfer of tokens involves assets moving on a blockchain, requiring a different set of technology and compliance processes.

To address these challenges, LiquiFi offers a suite of tools that help companies manage their token allocation and compliance processes. The company recently announced a $5 million seed funding round led by Dragonfly Capital Partners, with participation from other prominent investors in the crypto space.

With plans to invest in product development, design, marketing, and sales, LiquiFi is poised for rapid growth in the coming months. Ji emphasized the importance of keeping pace with the fast-moving crypto market to avoid being left behind.

As the demand for token-based compensation continues to grow in the web3 space, companies like LiquiFi are paving the way for a new era of cap table management tailored to the unique needs of crypto startups.