To avoid VC control, Web3 startups should diversify funding sources, such as crowdfunding, DAOs, or token sales, to reduce reliance on VCs. Negotiate term sheets carefully, prioritizing founder-friendly clauses like protective provisions and board seat allocations. Retain majority equity by raising smaller, strategic rounds and bootstrapping when possible. Build a strong community to drive organic growth and leverage decentralized governance to align incentives. Maintain clear communication with investors to set expectations early. Focus on sustainable revenue models to minimize dilution. Lastly, consult legal experts to safeguard autonomy.

Resource:

To avoid VC control, Web3 startups should diversify funding sources, such as crowdfunding, DAOs, or token sales, to reduce reliance on VCs. Negotiate term sheets carefully, prioritizing founder-friendly clauses like protective provisions and board seat allocations. Retain majority equity by raising smaller, strategic rounds and bootstrapping when possible. Build a strong community to drive organic growth and leverage decentralized governance to align incentives. Maintain clear communication with investors to set expectations early. Focus on sustainable revenue models to minimize dilution. Lastly, consult legal experts to safeguard autonomy.

Resource: https://www.ycombinator.com/library/8g-how-to-raise-money