# Financing Strategy Every decision and lack-thereof has a tangible impact on ability to finance well. We consider a financing strategy here. ## Context * Approaching feature completeness -- accepts various model types (NN, trees, etc.), implements python library to easy integrate into Jupyter Notebook / provide good DevX, provides enterprise-grade product via the Hub. * Launched publicly via a [website](https://ezkl.xyz/), [open source repositories](https://github.com/zkonduit/ezkl), and conference/hackathon presence. Significant grassroots traction and hackathon projects. Still need to build up branding with Twitter, improved website, etc. * Awaiting formal crypto and non-crypto audits to achieve production ready and SOC2 compliance status. This will require significant cash. * Experimenting with pricing / service offering for enterprise clients, signing initial client contracts now. Need to forecast and set a revenue target, and design a complete enterprise client product flow. * Incoming terms from crypto and non-crypto native funds. Core competitor (Modulus Labs) announced $5MM seed from Variant and 1kx after completing AllianceDAO accelerator in September 2023. Received terms from Tier 1's including Blockchain Capital, introducing some restraints on EZKL funding due to non-compete. * Previously funded via grants and 0xPARC. ## Questions **Is financing neccessary?** * What is our current runway? * Where would prospective funding be allocated? * Why is now the right time? (consider market forces) **What are financing options?** * Are accelerators valuable? (Alliance, a16z, YC) * Or would an explicit round be higher EV? * What types of funds should we prioritize? (crypto-native, AI, deep tech, defense, or generalist software/tech) * Or do we want to prioritize angel investors? * What are the T1 funds/individuals within the above types? * Which funds have demonstrated interest? * Which funds have given terms? **How to approach financing?** * What is the anticipated timeline? * What is the raise target? * How are we currently perceived by investors? Deferring questions related to valuation until the above are complete. ## Initial Thoughts * Competitor fundraising should not be a reason to raise. * Prioritized investors will provide the most value in enterprise connections and prospective contracts * Two programs are open: YC (due October 13) and a16z crypto startup school (due October 20). These may be worth for (1) reputation with clients, (2) client acquisition from within the cohort and advisor networks, (3) clean slate against investors. * It's possible to raise concurrently or staggered (slightly after) a prospective accelerator. * Investors may have hesitancies with EZKL's financing intentions, so the strategy will need to instill confidence. ## Angels * Anand Iyer * Illia Polosukhin * Spencer Bogart (Blockchain Capital)