Executive summary
YieldGuard will raise growth capital in staged tranches that match delivery milestones. The opening seed tranche is modest by design, that we preserve dilution and create proof with shipped software, live partner flows, and measured investor adoption.
Round status
We are opening our initial seed tranche. Proceeds finance core system build‑out and early integrations. This is a small cheque round that validates the engine with working demonstrations and clean investor workflows.
Target for initial tranche
€200k from a small set of aligned investors. Spend concentrates on engineering, integrations, and onboarding tooling.
Instrument and terms
Instrument
Market‑standard seed SAFE with discount to the next priced round and pro‑rata rights. Final terms are shared with qualified investors upon request.
Key governance
Structured reporting, transparent use‑of‑funds tracking, and investor updates at a regular cadence.
Funding plan and milestones
- Stage 1 — Initial seed tranche (this round): Complete core system and essential integrations. Run pilot flows with design partners.
- Stage 2 — Follow‑on seed / larger tranche: Finance independent audits. Formalise Luxembourg fund structure. Prepare for broader launch.
- Stage 3 — Post‑audit expansion round: Scale distribution and extend asset coverage. Strengthen risk and compliance operations.
[Exhibit] Milestone gates
- Working system and partner demos
- Audit sign‑off and fund structure in place
- Commercial scale‑up and enlarged asset menu
Use of funds
- Engineering and product: core engine, investor UX, monitoring.
- Integrations: custody, data sources, execution, and issuer connections.
- Risk & monitoring: controls, alerting, and reporting.
- Initial legal and fund setup: RAIF/AIFM workstream, documentation.
- Audit preparation: scope, readiness, remediation budget.
[Exhibit] Sources and uses (narrative)
Source: Seed SAFE (€200k).
Uses: Build product to audit‑ready state, integrate essential partners, assemble fund scaffolding.
Core Team
| Name | Role | Highlights & Prior Track Record |
|---|---|---|
| Co-founder 1 (Chris) | CEO / PM | 10 y fintech, IBM AI coach |
| Co-founder 2 (Open Role) | Hedge Fund & Finance | Experience in investment strategy and institutional sales. |
| Co-founder 3 (Open Role) | CFO / Regulation | Big-4 structuring, set up three Luxembourg RAIFs totalling €750 m |
| Co-founder 4 (Open Role) | BizDev & Partnerships | Led growth for a leading DeFi protocol, securing key integrations. |
| Co-founder 5 (Open Role) | Marketing & Comms | Experience in brand strategy and community building for financial tech. |
| External CTO | CTO / Solidity Lead | Former smart-contract auditor (Sigma Prime), wrote vault logic for top-5 DeFi protocol |
| External Advisor 1 | Fixed-income | Ex-EIB trader, €10 bn Treasury-bill desk P&L |
| External Advisor 2 | Compliance & Legal | Partner at a top-tier law firm specializing in financial regulation. |
| External Advisor 3 | Cybersecurity | Former head of security for a major cryptocurrency exchange. |
Open roles: Senior FE/React developer, DevOps, BD lead—budgeted in runway.
Why a staged approach
Staging reduces dilution, aligns capital with externally verifiable milestones, and concentrates spend where it matters first. Software and live data provide evidence before heavier legal and audit budgets commence. The larger raise follows independent validation and fund formalisation.
Unit economics and pricing (for completeness)
- Streaming fee follows a TVL‑tiered ladder of 20 → 15 → 12 → 8 → 5 bp, with marginal volume discounts and tenure rebates and a 5 bp minimum effective fee.
- Exit fee: 0.05%, retained by the vault for remaining holders.
- No performance fee.
Financial outlook (illustrative; 1 bn TVL)
[Exhibit] 12‑month unit economics
Average NAV assumed: $1,000,000,000; effective streaming fee 5 bp; zero switching tolls; exit fee retained by the vault (not protocol revenue); five rebalances.
Results from the simulator (12 months):
- Net gain to investors: $52.44m
- Net APY (CAGR): 5.24%
- Gross yield accrued: $52.96m
- Total protocol fees: $0.513m (streaming only, ~5 bp on average NAV)
- YieldGuard revenue: $0.513m
- Spread vs equal‑weight: +$0.704m (~+7 bp/yr)
- # of rebalances: 5; turnover: ~100%
Sensitivity — fee tier (revenue only, 1 bn average NAV)
5 bp → $0.50m; 8 bp → $0.80m; 12 bp → $1.20m; 15 bp → $1.50m; 20 bp → $2.00m.
Scale view (streaming revenue at 5 bp floor)
TVL $5bn → $2.5m; $10bn → $5.0m annual.
Use‑of‑proceeds coverage at scale
Streaming revenue is intended to cover ongoing platform costs; Stage‑2 proceeds ring‑fence one‑off structuring and assurance: RAIF setup, AIFM onboarding & retainer, Depositary onboarding & retainer, Independent audit year‑one fees.
*Illustrative, not a forecast; figures depend on yield conditions, allocation, fee tier and flows.
Reporting and governance
- Monthly investor update, including delivery progress and use‑of‑funds roll‑forward.
- Quarterly KPI review (AUM, churn, risk events, integrations live).
- RAIF oversight with authorised AIFM and depositary when the fund vehicle completes.
- External audit prior to broader launch, followed by an open remediation log.
Risks and mitigations
- Execution risk: Mitigation: tight scope for Stage 1, partner‑led pilots, weekly burn review.
- Regulatory and structuring risk: Mitigation: Luxembourg RAIF path with experienced counsel and staged budget.
- Counterparty risk: Mitigation: issuer caps, proof‑of‑reserve/NAV liveness gates, and formal approvals.
Disclosure
For professional and well‑informed investors. This document is not an offer or solicitation. Performance data are illustrative. Fees are described on a net‑of‑protocol basis and may exclude investor‑specific costs.
VC/.ms
We aggregate tokenised T-Bill wrappers into one vault.
We take eligible USDC deposits into an audited ERC-4626 vault, allocate the capital across allow-listed tokenised U.S. T-Bill wrappers, and rebalance daily to capture the highest net yield within strict risk limits. Investors receive a single receipt token, yTBill, that accrues value automatically.