Welcome to today's presentation on the transformative potential of M&A transactions in the crypto space. Mergers and acquisitions (M&A) are commonplace in the dynamic and rapidly growing startup ecosystem let alone one as volatile as crypto. While proper M&A deals are not yet common, vampire attacks and fast forks can be seen as a coordination failure from the lack of tooling and liquidity for teams to merge together.

Flexible Repayment Structure: RBF offers buyers a repayment structure tied to revenue, which is particularly advantageous in the crypto startup space. Startups in this industry often experience volatile revenue streams, and RBF aligns repayment obligations with the fluctuating nature of their business, providing more manageable repayment terms. Since sellers are using the Spigot contract to bundle and sell their revenue streams to buyers, the buyer can use their new revenue streams to repay debt used to make the purchase or create a new line of credit to finance their new operation.

Preserving Cash and Equity: Buyers can leverage RBF to finance acquisitions without depleting their available cash or diluting their equity. By using debt financing, buyers can conserve their cash reserves for other essential business operations and growth opportunities.

When new protocols begins draining liquidity from other projects there can be positive-sum effects to both protocols like how UNI liquidity increased during and after the original SUSHI “attack” but its still an inherently adversarial relationship. Instead of causing the collapse of the weaker project, infighting in the community, and dissipated talent and attention, we can create a more regenerative model for change using M&A deals. The “attacking” protocol can crowdfund capital to buyout the suboptimal protocol and take it private instead of having to constantly compete with them forever. This integration allows the smaller project to benefit from the resources and user base of the dominant protocol, eliminating the risk of a vampire attack and preserving the value and trust of its user community. By merging their efforts through an M&A transaction, they combine their resources, expertise, and user bases, creating a stronger and more comprehensive platform that attracts a larger user community and provides enhanced services. Integrating the failing project into a stronger entity, users are reassured that their investments and interactions will continue to be supported, fostering confidence in the ecosystem.

RBF enables sellers to unlock the value of their company while maintaining operational control. Sellers also get an easy out, running a crypto project is a hard, unloved position. When founders eventually want to move on, they dont have to hard rug or quiet rug the community they have built up, the can sell out and soft rug to a new, hopefully better, operator for the community to live on. Unlocking a better crypto M&A market soft rugs. By utilizing an RBF, the investment firm secures the necessary funds to complete the acquisition while preserving cash and retaining equity. RBF also aligns the interests of buyers and sellers by connecting the repayment terms to the acquired company's performance. Sellers become incentivized to support the growth and success of the acquired business

The use of a revenue-based line of credit (RBF) in financing M&A deals within the crypto startup space offers numerous benefits to both buyers and sellers. Buyers can preserve cash, capture immediate value, and enjoy flexible repayment terms, while sellers gain access to capital, mitigate risk, and maintain equity ownership. RBF aligns the interests of both parties, enabling them to work together to drive business growth and achieve mutual success in the dynamic and evolving crypto startup landscape.