Thread by @DoctorJayPeg

Missed the @dust_labs AMA? Well I didnt. Let me break down what you missed.👇

a 🧵#Solana #SolanaNFTs #Degods #y00ts

First off I want to say that a lot of great information was shared at the AMA and I would recommend that anyone interested listed to the recording. Below I will summarize what I beleive were the major takeaways and some of my thoughts coming out of the call.

What did we learn about @dust_labs?
- B2B Saas company (sells subscription software to businesses) focued on companies in the NFT space
- Plans to target both the SOL and ETH ecosystems
- First product will be Scholarships
- Already has inbound customers

What did we learn about @kevindegods?
- 2x founders of software business that have 100+ employees (one being a mobile first buisness)
- 20 years of experience with a background in engineering
- Grew up on a pig farm 🐷
- No current plans to doxx in the near future

What did we learn about the raise?
- Round was a rolling close that originally closed 6 weeks ago
- The $Dust came from the @y00tsNFT mint
- The additional $3.5M was raised via the issuance of a SAFE (cap was not disclosed at this time)
- Was done so the company could move faster

What did we learn about $Dust?
- The price investors recieved $Dust at was an average over a period of time (exact $ value not yet disclosed)
- @dust_labs is not responsible for and will not prop up the price of $Dust (agreeing to prop up the price could have legal implications)

- It is on the community/ecosystem to continue to develop use cases for $Dust
☝️ This gets it own tweet becuase I want to be very clear. This was always the case for $Dust. This doesnt mean the Degods/y00ts team wont be working on stuff for it. Just isnt Dust Labs #1 priority.

What is a SAFE?
- A SAFE (simple agreement for future equity) is an investment vehicle that allows startups to raise capital without taking on debt or selling equity
- They provide investors the right to purchase equity in a future round up to a certian company valuation cap

- Was made popular by @paulg and YC (extremely exclusive startup accelerator of which @frankdegods is an alum)
- SAFEs are fairly common practices in early stage investing

If interested in what a SAFE is please feel free to read more here 👇

fundersclub.com/learn/safe-pri…

Why would someone issue a SAFE?
- Company is difficult to value at the time of the raise
- Allows founders to raise capital quickly since a formal valuation is not needed (this means less due diligence required by investors)
- Does not include an interest rate like debt would

What did we learn about DeLabs?
- Seperate entity from @dust_labs
- Owns IP behind @DeGodsNFT/@y00tsNFT
- Ownership of the DeLabs and Dust Labs does overlap (I see you @frankdegods)
- Wasnt include in the raise becuase it is a well funded entity that doesnt need outside capital

What will the raise be used for?
- Hire engineers (capital will be used to hire other roles as well but as @kevindegods points out on the call, engineers are difficult to hire and will require more $$. Other roles mentioned include Ops, Customer Support, Sales, Biz Dev, and HR)

Now I will summarize a few of my personal thoughts coming out of the call.
- @kevindegods seems to be an experienced founder that the team is lucky to have. It is tough to take away much from a 1 hour AMA but he answered questions like an experienced operator.

- My last thread I outlined a $35M valuation of @dust_labs. This is not the case as a SAFE doesnt place a valuation on the business. That being said the 10% number was not one I made up. After giving it some thought I believe they unintentionally leaked the cap on the SAFE.

It sounds like it is a $35M cap & the 10% would be the minimum investors would recieve in the instance of an additonal raise (could recieve more if valuation of next raise is sub $35M)
- It is a really good sign the company has inbound customers reaching out already. The two...

most important things for @dust_labs right now are developing a full flushed out product and finding product market fit (proving people will actually pay for what youre selling). Customers reaching out are a good sign they already have the second one solved.

- The company is tackling both the SOL & ETH ecosystems which shows they are thinking big. @Mysten_Labs (developers behind the Sui blockchain) is also on thier cap table and Kevin indicated how easy he beleives it will be to integrate into additonal chains. From what I've seen...

most web3 startups start on one chain and try to gain market share. When they try to expand cross chain they typically have adoption issues as they are viewed as other as they are not native to the new chain (think about Opensea supporting SOL NFTs). For this reason I like the...

idea of coming out with an omnichain approach out the gate. Few companies have attempted this strategy so will be fun to watch play out.
- My last major takeaway is that the team is still figuring things out and I dont believe that is a bad thing. Web3 is hard not just becuase...

the tech is new but because the landscape in which you're operating in is changing at a rapid rate. As @frankdegods learned, having too rigid of a plan early on could force you down a path that made sense at one point but doesnt anymore. Lets watch how the team adapts over time.

I wrote this thread while drafting my fantasy team so im sure there are some typos/grammatical errors. If there is anything major you think I missed from the call please call it out below. will try to answer any Q's too. Only my 3rd thread so would appreciate any feedback or a RT