Investment Structure
A strategic three-round approach that balances investor opportunity with founder control
Our Investment Philosophy
FractalWaves has developed an investment structure that maintains the integrity of our revolutionary technology while providing substantial value to early believers.
Our approach ensures that founder control remains intact throughout the growth cycle, allowing for consistent vision execution while enabling investors to participate in the exceptional value creation journey.
Architectural Sovereignty: Founder retains full control of the structure.
Clean Economic Upside: Investors receive defined equity stakes with protection against dilution.
Capital Efficiency: The structure doesn’t rely on external funding to survive.
Balanced Growth
Investor Value + Founder Control
Three-Round Investment Approach
Our investment strategy is structured as a methodical three-round process to ensure controlled scaling and value creation
Amount: $200,000
Post-money valuation: $2,000,000
Equity: 10% of Class B shares
Round One (LLC Stage)
Initial investment to support the founder through critical development phase
- •Structured through a Simple Agreement for Future Equity (SAFE)
- •Covers founder’s salary and operational expenses for 6-12 months
- •Timeline: 6-12 months to Round Two, triggered by first license income
Amount: $1.6M-$2M
Post-money valuation: $20,000,000
Equity: Up to 10% of Class B shares
Round Two (C-Corp Formation)
Activated upon achieving initial licensing income, funding the LLC to C-Corp transition
- •Trigger event: Receipt of initial licensing income
- •Funds legal/administrative costs for LLC-to-C-Corp transition
- •Expansion of licensing infrastructure and operational scaling
- •Optional liquidity: Round One investors may sell up to 2% of their equity
Target: $20M
For up to 10% of Class B shares
Trigger: $25M+ total signed licensing revenue
Round Three (Optional)
Only considered when total signed licensing revenue exceeds $25M
- •Entirely optional - no future capital required to sustain or grow
- •Class B equity cap remains under 30% total post-Round 3
- •Exists primarily to crystallize upside for early believers
- •Strategic roundtable for $20M+ allocation planning
Share Class Structure
A carefully designed structure that maintains founder control while providing investor value
Class Structure
Voting Power & Economic Rights
Class A Shares (Founder Control)
- • 10:1 Voting Rights - Maintains founder control
- • Non-transferable - Ensures architectural sovereignty
- • Full Control - Architectural sovereignty maintained
Class B Shares (Investor Equity)
- • No Control - Economic rights without governance power
- • Full/weighted anti-dilution - Strong investor protection
- • Buyout path - Clear liquidity opportunity in Round 3
Class C Shares (Ecosystem/Allies)
- • Fully dilutable - No special protections
- • No governance power - Maintains founder control
- • Strategic alignment - Used for ecosystem building, not funding
"I control the structure. You get clean economic upside. You don’t have to manage me—and you never get diluted by chaos."
This is how the system survives. This is how your investment actually pays off.
Investor FAQ
Common questions about investing in FractalWaves
Why does the founder retain full control?
We’ve carefully designed this structure to minimize investor risk without compromising architectural sovereignty. The founder built the system first, structured licensing for real revenue, and wrote the full legal and capital structure. This ensures the integrity of the technology and provides the best chance for your investment to succeed.
What is the ecosystem distribution model?
Ecosystem contributors may retain up to 90% of net revenue from orbit-layer products they operate, with approximately 10% allocated to FractalWaves. This enables growth without diluting the core substrate. The founder retains full control over the substrate, licensing terms, and evolution of the protocol. Contributors do not receive governance rights or equity unless granted explicitly via Class C terms.
What happens after Round Three?
Round Three exists primarily to return value to early believers, offering optional investor buyouts and strategic scaling opportunities if aligned. The third round is not needed for survival but is a feature to provide liquidity and reward early investors. The system is designed to be self-sustaining through licensing revenue without dependence on external funding.
What is the C-Space Engine?
The C-Space Engine is a foundational infrastructure technology, comparable to CUDA or LLVM. It’s a new computational substrate for AI, data compression, and dynamic reasoning. This is a general-purpose engine for scalable, symbolic, and semantic AI inference, high-efficiency data representation and transformation, and computational geometry for meaning, compression, and structure.
How is the technology monetized?
Our core monetization is through enterprise licensing of the C-Space engine and compression system. Additionally, the ecosystem expansion model allows partners to build devtools, APIs, hosting services, fine-tuning pipelines, and more with a 90/10 revenue split, creating aligned growth without diluting the core technology.
Interested in Investing?
Connect with our team to learn more about current investment opportunities and our vision for the future of computational infrastructure.