Appendix b โ ๐ฐ Fundraising Strategy
Fundraising Strategy: The $2.5B Activation Energy
Executive Summary
The capital required for the 1% Treaty is not for ongoing operations, it is a one-time โactivation energyโ to overcome political inertia and unlock $27+ billion annually for global health.
Total Requirement: $1.2B - $2.5B over 36 months
Multi-Phase Strategy
Phase 1: Seed Round ($250M - $400M)
- Build referendum platform and legal frameworks
- Prove model in pilot countries
- Milestone: 50M verified participants OR pro-treaty majority in G20 nation
Phase 2: Series A ($500M - $1B)
- Scale to all G7 nations
- Achieve 3.5% global participation (280M people)
- Milestone: 3.5% threshold OR first G7 treaty commitment
Phase 3: Growth Round ($500M - $1.1B)
- Secure ratification in major powers (US, EU, China)
- Capitalize DIH treasury for first year
- Milestone: First $1B disbursement
Key Innovation: Pay-for-Success Model
All major expenditures are structured with performance incentives:
- Legal fees: Success fees paid in VICTORY bonds upon ratification
- Political campaigns: Competitive prize ecosystem for first ratifications
- Tech development: Bonuses tied to platform performance
- Team compensation: Equity-heavy, mission-aligned incentives
Hybrid Communication Strategy: Simple Targets, Sophisticated Mechanics
The Marketing Message (The โHookโ)
For marketing and high-level communications, lead with a simple, audacious target:
โThe model targets returns superior to the worldโs most elite hedge funds (~270% annualized). The financial model is governed by a simple principle: investor payouts never exceed 50% of income, guaranteeing the mission is always protected.โ
The Backend Engine (Market-Driven Pricing)
For sophisticated investors, use efficient market mechanisms:
- Dutch Auctions for public funding tranches
- Market-based price discovery for optimal capital efficiency
- Smart contract escrows with automated refunds
De-Risking with Assurance Contracts
The primary risk elimination mechanism:
- Smart Contract Escrow: All funds locked until funding goals met
- Automatic Refunds: If targets missed, money returns automatically
- No Collective Action Problem: โMoney-back guaranteeโ eliminates investment risk
- Dominant Assurance Contract: Bonus rewards if goals achieved
Whale & Billionaire Targeting Strategy
Why Target Whales
Speed vs. Scale Trade-off:
- 1 meeting โ $50M check vs. 50,000 meetings โ $50M in small checks
- 6-12 months vs. 18+ months timeline
- Lower legal complexity with fewer investors
Unit Economics Advantage:
- Higher success probability with mission-aligned billionaires
- Larger check sizes ($10-100M vs. $1-10K)
Target Categories & Prospects
Category 1: Crypto Whales & Protocol Treasuries ($500M-1B potential)
Individual Crypto Billionaires:
- Vitalik Buterin (Ethereum) - Mission-aligned, understands governance
- Brian Armstrong (Coinbase) - Health tech investor
- Changpeng Zhao (Binance) - Global reach, massive liquidity
Protocol Treasuries (DAO-to-DAO):
- Uniswap Labs ($4B+ treasury) - Understands DAO governance
- MakerDAO ($8B+ treasury) - Health-aligned investing
- Compound Treasury - DeFi protocol experience
Category 2: Health & Pharma Billionaires ($750M-1.5B potential)
Pharma Executives:
- Albert Bourla (Pfizer CEO) - Would get 2-5X more R&D funding
- Pascal Soriot (AstraZeneca CEO) - Global operations
- Emma Walmsley (GSK) - Vaccine/global health focus
Health Tech Billionaires:
- Patrick Soon-Shiong (NantHealth, $7B) - Cancer research focus
- Anne Wojcicki (23andMe) - Genomics, patient data
Category 3: Mission-Aligned Mega-Foundations ($500M-1B potential)
Health-Focused Foundations:
- Gates Foundation ($70B endowment) - Global health mandate
- Chan Zuckerberg Initiative ($45B) - Science/health focus
- Wellcome Trust ($38B) - Medical research
Effective Altruism & Longevity:
- Open Philanthropy (Dustin Moskovitz) - EA cause prioritization
- Schmidt Futures (Eric Schmidt) - Technology + health
Outreach Templates
Template 1: Crypto Whales (Governance Angle)
Subject: Invitation to govern $27B health treasury (Bitcoin-level impact)
โThe initiative builds the worldโs largest decentralized health treasury ($27B annually) using proven DAO models from MakerDAO/Uniswap. Early VICTORY bond holders will govern allocation of this treasury across global health research.
This isnโt just an investment - itโs a chance to direct more capital than the NIH budget toward curing diseases through 80X more efficient decentralized trials.โ
Template 2: Health Billionaires (Industry Advantage)
Subject: 2-5X your R&D budget (backed by government treaties)
โThe 1% Treaty redirects 1% of global military spending ($27B annually) into health research using Oxford RECOVERY trial methods (80X lower cost). Early investors get governance control over allocation.
For [Company], this means 2-5X more R&D funding for the same work youโre already doing, plus governance votes on priority areas.โ
Template 3: Foundations (Mission Multiplication)
Subject: 10X your health impact without additional donations
โYour $50M investment would give [Foundation] voting control over $2.7B annually - 54X leverage on your committed capital, in perpetuity.
This uses the same proven model that created $7T in fossil fuel subsidies, but directed toward saving lives.โ
Detailed Budget Breakdown
Phase 1: Seed ($250M - $400M)
| Category | Lower Bound | Upper Bound | Justification |
|---|---|---|---|
| Operations (Core Team) | $10M | $15M | Lean founding team (15-20 people) with VICTORY tokens |
| Platform & Tech MVP | $50M | $75M | Engineering costs with 50% cash / 50% token split |
| Legal & Framework (Pilots) | $40M | $60M | Top-tier law firms with success fees in VICTORY bonds |
| Pilot Independent Expenditure | $100M | $150M | Competitive prize for best electoral results |
| Referendum Points System | $5M | $10M | Infrastructure for non-financial incentives |
| Contingency | $45M | $90M | 20-30% buffer for high-uncertainty political startup |
Phase 2: Series A ($500M - $1B)
| Category | Lower Bound | Upper Bound | Pay-for-Success Model |
|---|---|---|---|
| Scaled Independent Expenditures | $300M | $600M | Competitive Prize Ecosystem: $100M, $50M, $25M prizes |
| Strategic Incentive Alignment | $50M | $100M | Performance-based incentives to co-opt MIC players |
| Platform Scale-Up | $100M | $150M | Scale to 300M+ users with performance bonuses |
| Global Legal Expansion | $40M | $80M | Success-fee-based retainers in all target nations |
| Contingency | $10M | $70M | Operational buffer for scaled global campaign |
Phase 3: Growth Round ($500M - $1.1B)
| Category | Lower Bound | Upper Bound | Success-Based Structure |
|---|---|---|---|
| Global Saturation Campaigns | $300M | $750M | Competitive prize model for final holdout nations |
| MIC Co-Opting (Final Tranche) | $50M | $100M | Entirely success-based corporate incentives |
| Treasury & Governance Launch | $100M | $150M | Developer bonuses tied to flawless $1B launch |
| Contingency | $50M | $100M | Final buffer for most critical campaign phase |
Bottom-Up Budget Justification
Operations Budget
- 20-person team at $250k/year fully-loaded cost
- 2-year runway for seed phase
- Heavy equity/token compensation to align incentives
Platform Development
- 50-person engineering team/contractor budget
- 3 independent security audits ($5M)
- Global cloud infrastructure ($10M)
- Compliance features (GDPR, etc.)
Legal & Lobbying
- 5 top-tier global law firms ($5M/year each)
- 3 lobbying firms ($5M/year each)
- 2-year retainer for pilot phase
- Success fees paid in VICTORY bonds
Independent Expenditures
- Average competitive U.S. Senate campaign: $50-75M
- Replicated in 2 key pilot regions for Phase 1
- Scaled to 5-10 G7 campaigns for Phase 2
- Prize model creates competitive dynamics
Legal Structures for Large Investments
Option 1: SAFT (Simple Agreement for Future Tokens)
- Best for: Crypto whales who understand token mechanics
- Timeline: 2-4 weeks to close
- Minimum: $5M investment
Option 2: Convertible Note
- Best for: Traditional investors/foundations
- Structure: Debt that converts to governance tokens
- Timeline: 4-8 weeks to close
- Minimum: $10M investment
Option 3: Series Seed Equity
- Best for: VCs and institutional investors
- Timeline: 8-12 weeks to close
- Minimum: $25M investment
Execution Timeline
Month 1-2: List Building & Warm Intros
- Finalize top 100 target list with contact information
- Secure warm introductions through mutual connections
- Prepare legal structures for different investor types
Month 3-4: Direct Outreach Wave 1 (Top 25 targets)
- Send personalized outreach to highest-probability targets
- Target: 5-10 serious conversations, 2-3 term sheets
Month 5-6: Closing Wave 1 ($150-300M)
- Close first 3-5 major investors
- Use social proof from Wave 1 for Wave 2 outreach
- Target: $150-300M closed
Month 7-9: Outreach Wave 2 (Next 50 targets)
- Leverage Wave 1 investors for introductions
- Target: 8-12 serious conversations, 5-8 term sheets
Month 10-12: Closing Wave 2 ($400M-1B)
- Close remaining funding to reach $500M-1.3B total
- Target: Total raise of $1-2.5B
Success Metrics
- Month 3: 25 outreach attempts, 10 meetings scheduled
- Month 6: $250M committed, 5 investors closed
- Month 9: $500M committed, 10 investors closed
- Month 12: $1B+ committed, 15+ investors closed
Risk Mitigation
Regulatory Risk
- Use established legal structures (SAFTs, convertibles)
- Engage top-tier securities lawyers from day one
- Structure as utility tokens, not investment contracts
Market Risk
- Focus on mission-aligned investors, not pure profit seekers
- Create vesting schedules to prevent quick flips
- Build in treasury protections against volatility
Execution Risk
- Over-recruit targets (100 targets for 20 closes)
- Multiple legal structures for different preferences
- Clear milestones with investor updates
The Economic Reality
This isnโt traditional fundraising, itโs political arbitrage. The approach adopts the defense industryโs massively profitable playbook: turn $14 million in lobbying into $70.8 billion in contracts.
The twist: offer them an even better deal to fund cures instead of wars.
The math is simple:
- Investment: $1.2-2.5B once
- Return: $27B+ annually in perpetuity
- ROI: 10-20x political arbitrage + 463x economic arbitrage via dFDA
This phased approach ensures capital efficiency while maximizing probability of success through aligned incentives and competitive dynamics.