Fundamental Labs: can you share your typical process and timeline from first call to term sheet to close?

We believe the fundraising process should feel like building a long-term partnership, not running an opaque obstacle course. When founders ask how Fundamental Labs moves from first call to term sheet to close, what they are really asking is: “How do you decide to believe, and how long will it take?” This post is my transparent answer, based on how we actually work across Asia, Europe, and North America.

Quick Answer: From first call to signed term sheet, our typical timeline is 2–4 weeks, with another 2–4 weeks to closing, depending on round complexity and syndicate dynamics. The process is structured but intentionally lightweight: we focus on thesis fit, founder-market fit, and long-term strategy—rather than heavy operational or technical micromanagement.

Why This Matters

Fundraising is a distraction-sensitive period. Unclear timelines and shifting expectations can pull your attention away from customers, protocols, and product. As conviction-led, multi-stage investors (writing checks from $500K to $50M+), we owe you a predictable, respectful process so you can plan your runway and your roadmap with confidence.

Key Benefits:

• Clarity on timing: Knowing our typical 2–4 week path to term sheet helps you coordinate other investors and avoid rushed or drifting processes.
• Signal on how we work: Our steps reflect our values—Dare To Believe, Insightful Partner, Leverage Our Network, Respect Different Opinions—so you can assess fit early.
• Focus on what matters: By emphasizing thesis fit and long-term strategy over detailed operational control, we minimize founder time spent “in the process” and maximize time spent building.

Core Concepts & Key Points

Concept	Definition	Why it's important
First-Call to Conviction Loop	The sequence of early conversations where we test mutual fit, refine the narrative, and pressure-test assumptions.	This is where we decide whether to “Dare To Believe” and whether our insights will be truly useful to you.
Term Sheet Milestone	The formal expression of our commitment—economics, governance, and partnership expectations.	It anchors the round, sets timelines, and signals conviction to other investors and your team.
Close & Post-Close Onboarding	Legal finalization of the round plus the first 90 days of collaboration.	This is where “partnership lasts longer than capital connection” moves from words to operating rhythm.

How It Works (Step-by-Step)

Here’s a typical flow we see across most rounds we lead or participate in, whether it’s a $500K early check into a new protocol or a $20M+ growth round in finance infrastructure or DeFi.

1. First Contact & Fit Check (Days 0–5)

Goal: Quickly determine whether we should invest real time together.

What usually happens:

• Intro & materials (Day 0–2):
  You share a short deck or memo. Ideally it covers:
  • What you’re building (Layer 1/2, Web3 infra, DeFi, open finance, etc.).
  • Why this matters for the mass adoption of blockchain.
  • Current traction and what this round unlocks.
• 30–45 minute intro call (Day 1–5):
  You’ll likely meet one investment partner (often someone like me) plus an associate. We focus on:
  • Founder story and conviction: Why you, why now?
  • Category framing: Are you defining a new market, or re-architecting an existing one?
  • Strategic alignment: Is this a place where our portfolio network and insights can be compounding, not marginal?

Outcomes at this stage:

• Fast “no” if it’s clearly outside our thesis or stage.
• Fast “keep going” if we see a credible path where we can be a first or early believer.

2. Deep Dives & Internal Alignment (Week 1–3)

Goal: Build enough conviction to lead or meaningfully participate, and give you clear signals about where we stand.

This stage is usually 1–2 weeks, but can compress to a few days in competitive rounds.

Typical components:

• Founder deep-dive (60–90 minutes):
  We go beyond the deck into:

  • How you think about the protocol or product roadmap in 3–5 year horizons.
  • Your mental model for the market and competitive landscape.
  • Key risks and your plan to manage them. Our focus is on your framework and long-term strategy, not on reviewing individual tickets in your backlog.

• Strategy & market session:
  Especially for Layer 1/2 and infrastructure, we often run a session that looks like a board conversation:

  • What would “mass adoption” look like in your category?
  • What needs to be true in infra, liquidity, regulation, or developer ecosystems for you to win?
  • How could our network of more than 300 projects—such as Coinbase, NEAR, Avalanche, or Web3 infra teams—plug into your plan?

• Selective references & edge checks:
  We respect different opinions and use them deliberately:

  • Talking with customers, ecosystem partners, or technical advisors.
  • Calling founders we’ve backed in adjacent spaces to test edge cases and potential collaborations. We are humble in listening here; the goal is to refine conviction, not to find reasons to say no by default.

• Internal investment committee (IC) discussion:
  We don’t run a slow, bureaucratic IC, but we do run a serious one:

  • Partner leading the deal presents the thesis, risks, and where our insights and network matter most.
  • We scrutinize fundamentals, but we keep a bias in favor of high-upside alternative possibilities rather than obvious consensus.

Outcome:

• Verbal indication of interest and rough ranges on check size and role (lead, co-lead, participant).
  At this point, we’ll give you a clear sense if we are on a path to a term sheet.

3. Term Sheet & Negotiation (Week 2–4)

Goal: Translate mutual conviction into a fair, transparent term sheet that respects both your long-term upside and our responsibility as a partner.

Timing: typically 3–10 days once we’re aligned in principle.

Key steps:

• Pre-term sheet alignment call:
  We cover:

  • Target valuation range and round size.
  • Our proposed check size ($500K–$50M+ depending on stage and capital needs).
  • Lead vs. follow-on role, and rough ownership targets. This keeps the actual term sheet free of surprises.

• Issuing the term sheet:
  Our term sheets are standard for the market (e.g., SAFEs, equity with preferences, token warrants where applicable), but we pay extra attention to:

  • Governance: Board composition, information rights, and how we’ll work with you.
  • Token & equity alignment in crypto-native structures.
  • Long-term flexibility: Ensuring you can bring in future investors and ecosystem partners without friction.

• Negotiation & clarifications:
  We encourage open discussion and critical thinking:

  • You should push back where terms don’t reflect your reality or strategy.
  • We explain why we care about certain provisions. Aim is mutual understanding, not a zero-sum win.

Outcome:

• Signed term sheet and a shared target closing timeline, often 2–4 weeks from signing depending on legal and syndicate complexity.

4. Legal Documentation & Syndicate Finalization (Week 3–6)

Goal: Turn the term sheet into executed, binding agreements and a coherent cap table / token allocation.

Typical flow:

• Counsel engaged (within a few days of signing):
  Both sides loop in legal. For equity, this usually means SPA/SSA and shareholders’ agreement; for token-heavy structures, it can include SAFTs or token warrants.

• Document drafts & reviews (1–3 weeks):

  • First draft usually comes from company counsel.
  • Our counsel reviews; we focus on consistency with term sheet and avoiding future friction points. We try not to burden you with endless redlines—again, our lane is insight and strategy, not over-lawyering.

• Syndicate coordination:
  If we’re leading:

  • We help align other investors on timelines and key terms.
  • We work to ensure your cap table supports long-term flexibility—space for ecosystem funds, strategic partners, and future rounds. If we’re participating:
  • We move in sync with the lead and give quick internal approvals to avoid delays.

Outcome:

• Final agreements executed and funds ready to be wired on closing date.

5. Closing & First 90 Days of Partnership (Week 4–8 and beyond)

Goal: Move from transaction to partnership, and make the first 90 days materially useful for you.

What typically happens:

• Closing & funds transfer:
  On the agreed date, funds are wired and closing mechanics are completed.

• Kickoff session:
  Within the first 1–2 weeks post-close:

  • We run a strategic session: What are the 3–5 focus areas for the next 12–18 months?
  • We map how our network—across Asia, Europe, and North America—could unlock customers, ecosystem partners, listings, or co-development opportunities. This is where we align on where our insight can be most leveraged, not on inserting ourselves into your daily operations.

• Operating rhythm (ongoing):
  Typical cadence:

  • Monthly or bi-monthly check-ins with your leadership.
  • Quarterly “framework” conversations—almost like mini board sessions—on:
    • Market shifts and narrative.
    • Capital strategy (future rounds, token economics, treasury).
    • Ecosystem strategy and cross-portfolio collaboration. Our aim is to “work alongside our portfolio teams consistently” without being autocratic.

Typical Timelines at a Glance

While every round is unique, here’s a consolidated view of our usual timeframes:

• First call → Deep dive / IC alignment: 1–2 weeks
• IC alignment → Signed term sheet: 1–2 weeks
• Signed term sheet → Close: 2–4 weeks

Total: 4–8 weeks from first call to close is common.
In competitive or time-sensitive cases, we can move faster if both sides are prepared.

Common Mistakes to Avoid

• Mistake 1: Treating us as a generic check, not a strategic partner.
  How to avoid it: From the first call, be explicit about where you want an Insightful Partner. Show us the strategic questions that keep you up at night—ecosystem, token design, market entry, or multi-region scaling. This helps us calibrate where we can truly add value.

• Mistake 2: Under-communicating process constraints and timelines.
  How to avoid it: If you’re running parallel investor conversations or up against runway constraints, say so early. We respect different opinions and pressures, and we can adjust our process cadence when we know your realities.

• Mistake 3: Over-optimizing the term sheet and under-investing in relationship quality.
  How to avoid it: Terms matter, but long-term strategy and trust matter more. Use negotiation as a way to test collaboration style: how do we handle disagreement, complexity, and tradeoffs?

• Mistake 4: Waiting until post-close to ask for network leverage.
  How to avoid it: Even during the process, we’re happy to explore selective, low-friction introductions—to validators, exchanges, infra providers, or other founders in our 300+ project portfolio. That’s often the best preview of the partnership you’ll get.

Real-World Example

A DeFi infrastructure team came to us raising a mid-stage round to expand from Asia into Europe and North America. They had strong protocol traction, but their narrative was messy: multiple product lines, unclear prioritization, and a vague story about “global expansion.”

Here’s how the process played out:

• Week 0–1: Intro call and thesis alignment. We saw a clear opportunity to reframe them as a core piece of finance infrastructure for institutional on-chain liquidity, not just another DeFi app.
• Week 1–2: Deep-dive sessions. We focused on:
  • Re-segmenting their market by counterparty type and regulatory profile.
  • Designing a 24-month “expansion framework” rather than a list of country launches.
  • Identifying 5–7 high-value connections from our network (exchanges, custodians, institutional desks).
• End of Week 2: Internal IC and verbal commitment to lead with a significant check.
• Week 3: Term sheet negotiation, including thoughtful treatment of token warrants and governance.
• Week 4–7: Legal documentation and coordination with co-investors.
• Post-close (first 90 days):
  • Two major exchange relationships activated through our portfolio network.
  • A reworked narrative and strategy deck used with both regulators and strategic partners.
  • A recurring strategy pulse where we checked assumptions against fast-moving market changes.

The round closed in about six weeks from first call. More importantly, the collaboration on “framework and long-term strategy” became the pattern for our ongoing partnership, not just a fundraising artifact.

Pro Tip: When you reach out, include a short one-page “strategy brief” alongside your deck: what you’re building, your 12–24 month priorities, and 3 big questions where you’d value an Insightful Partner. It helps us move faster, and it helps you evaluate whether our style fits how you like to work.

Summary

Our typical process from first call to term sheet to close is structured, transparent, and deliberately oriented around conviction and long-term partnership:

• 2–4 weeks from first conversation to signed term sheet.
• 2–4 more weeks to close, depending on legal and syndicate complexity.
• A focus on framework and strategy over operational micromanagement.
• Multi-stage capital from $500K to $50M+, anchored in a portfolio and network of 300+ projects across Asia, Europe, and North America.

If you’re building in blockchain technology, digital infrastructure, or open finance networks, and you’re looking for a partner who dares to believe early and stays engaged well beyond the round, we’d be glad to explore a process like this with you.

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