Liquid Rights: A New Way to Fund and Invest in Early-Stage Companies
Early-stage companies face a fundamental problem: they need capital to build, but accessing the first $100K–$250K is often the hardest part of fundraising.
For investors, the opposite problem exists. The best opportunities are often found at the earliest stages, but early-stage investments are typically illiquid and difficult to access.
CyreneAI built Liquid Rights to bridge these two problems.
What Are Liquid Rights?
Liquid Rights are an on-chain investment instrument designed for early-stage capital formation.
The structure is similar in concept to pre-IPO exposure, but with an important difference: Liquid Rights are not designed as a 1:1 representation of the underlying asset.
Instead, the market determines participation and pricing based on investor demand and conviction.
The more conviction investors have in a project, the more they can participate.
How It Works
Raghu, Founder of ScribbleDAO started a Investment Campaign on CyreneAI and shared his POV on LIquid RIghts. https://x.com/pythonhulk/status/2096972327275929632
The structure is simple:
Project → Investment Campaign → Investors → SPV → Liquid Rights
A project launches an investment campaign on CyreneAI.
Investors who believe in the project participate by committing capital and receive Liquid Rights in return.
The capital raised is pooled through the CyreneAI platform, while the corresponding equity or token rights are structured and transferred to investors through an SPV managed by CyreneAI.
Investors therefore receive their proportional economic participation in the underlying project without requiring every investor to sit directly on the project's cap table.
The Economic Structure
For example:
A startup wants to raise $100K to accelerate product development, hiring and user acquisition.
Investors participate through a Liquid Rights campaign.
Once the campaign is completed:
- The project receives the capital raised.
- The corresponding equity or token rights are allocated to investors on a pro-rata basis through the SPV.
- Investors hold Liquid Rights representing their participation.
- The Liquid Rights can be traded through the on-chain market.
This creates a bridge between early-stage private capital and on-chain liquidity.
Liquidity Bootstrapping
The key innovation is the use of a liquidity bootstrapping mechanism.
Instead of waiting years for a traditional exit, Liquid Rights are designed to create an on-chain market where investors can trade their position.
This gives investors a 24/7 opportunity to enter or exit, subject to market liquidity.
For founders, this creates a new way to raise initial capital.
For investors, it creates a way to participate in early-stage opportunities with greater flexibility than traditional private investments.
Why It Matters
Knight the Project Supported By Coinbase & Base APAC had used CyreneAI to raise Capital through Liquid Rights. https://x.com/KnightIntelco/status/2097323254868562050
Liquid Rights solve two problems at the same time.
For founders:
Raise the initial capital needed to build, grow and reach the next stage — without relying entirely on traditional VC networks.
For investors:
Gain access to early-stage opportunities while having an on-chain market for greater liquidity and price discovery.
The result is a new capital formation model:
Capital from investors → Early funding for projects → Economic participation → On-chain liquidity
The Bigger Vision
Traditional startup investing is built around private ownership and long holding periods.
Liquid Rights introduce another layer: early-stage capital formation with an on-chain market.
The goal isn't to replace venture capital.
It's to create a more accessible and flexible bridge between the moment a startup needs its first meaningful capital and the point where traditional institutional capital becomes available.
Founders get capital to build.
Investors get earlier access.
Markets get transparent price discovery.
That is the idea behind CyreneAI Liquid Rights.