Why We Invested: Magna

Shima Capital is delighted to have incubated Magna, the leading token cap table, on-chain vesting token distribution, and token fund admin platform. Magna helps to track your fundraise, execute your TGE, and manage your token unlocks in one compliant cap table platform.

We incubated Magna under the thesis that tokens are the primitive core of Web3, an atomic unit of programmatically transferable value. ​​While many resources have sprung up for managing token spend, there are surprisingly few platforms for managing tokens as programmable value capsules and securely distributing them to key stakeholders. It is rare to come across a team as strong as Magna’s with a project that directly addresses such a pressing, significant industry-wide issue.

Before Magna, crypto companies would manage the planning, distribution, and maintenance of tokens through a mix of Excel spreadsheets, manual work to verify wallets and transactions, and custom contracts for the actual token delivery. If we wish to accelerate the pace at which tokens become the world’s unit of capital, inefficient and problematic industry standards like this must be abandoned.

Through their veteran experience and stellar abilities, the Magna team is well-positioned to build the system of record for token ownership and the main platform through which teams manage their token distribution. Beyond token vesting, Magna will expand to cover other workflows adjacent to token distribution such as tokenomics benchmarking, tax tracking, lending based on vesting token positions, and mirrotable tokens (tokens that represent a future token position).

At Shima, we have hundreds of portfolio companies and several have tried to build token distribution mechanisms in-house to no avail. These tools should exist as a primitive core and require battle-tested smart contract code, extensive security audits, and a usable interface to get right.

Magna is currently live on Solana and is launching on Ethereum in the coming months.

The overall crypto market cap can be expected to once again surpass $1 trillion dollars in the near future (if it hasn’t already by the time this is published). An estimated 20–40% of all tokens in reputable projects will need to be transferred according to vesting schedules. Shima Capital intends to be at the forefront of this through our investment in Magna as we participate in every step of the process with them. From working with their team to thinking through the problem space, giving tokenomics recommendations, introducing them to other top-tier investors, and working alongside them as part of their team, we will be there.

Recently, Magna founder and CEO Bruno Faviero tweeted this about incubation with Shima Capital:

We run through walls for our founders.

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This article was also shared at yidagao.com
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About Shima Capital

Shima Capital is a leading early stage VC firm investing in disruptive blockchain companies. The fund is deeply focused on taking a hands-on approach and working closely with its portfolio companies to provide the most sweat equity per dollar invested. As teams in Web3 push the frontier of innovation, Shima helps hire talent, build community, amplify narratives, and foster the acceleration of technical research and development. Shima is composed of seasoned investors, accomplished operators, and former founders who align on a mission to support all-star teams with building and scaling generational companies. Learn more at www.shima.capital.

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