Much of the commentary on hybrid fundraising describes it as going mainstream, with venture investors warming to token structures. Our reading is different: hybrid is becoming more selective.
The misconception
More founders discussing hybrid structures doesn’t mean more hybrid rounds closing. Closing one requires two things at once: investors comfortable with both instruments and a structure that holds up in diligence on both sides.
Where either is missing, a hybrid structure tends to cost the round more than it brings.
Where hybrid actually works
Three specific contexts:
- DeepTech with long cycles: equity for R&D, with a token only when it governs access to a resource tied to the technology, such as a data set or compute capacity.
- Web3 infrastructure: founders attracting both regulated VCs (equity) and crypto investors (tokens). Requires dual governance.
- Data-driven MedTech, in narrow cases: a token can coordinate access to data shared across research or clinical sites, while the company and its IP are financed through equity.
The common thread: several groups of participants and a token with a genuine operating purpose.
What’s actually changing
The changes worth watching are these:
- VCs demanding equity-level governance standards
- Token frameworks requiring the same due diligence as equity
- Cap tables and token tables read together in diligence
A token added because the market seems to expect one rarely survives that kind of diligence.
Our view
Hybrid suits specific business models. The useful question is whether the business has genuine network effects, investors on both sides and the capacity to run two instruments at once. With all three, hybrid can create value. Without any one of them, pure equity is almost always the better choice.
Frequently asked
Is hybrid fundraising becoming mainstream?
In our reading, no. Closing a hybrid round requires investors comfortable with both instruments and a structure that holds up in diligence on both sides, which keeps it selective.
In which contexts does hybrid fundraising actually work?
Where several groups of participants share a network and the token has a genuine operating purpose: Web3 infrastructure most often, and DeepTech or data-driven MedTech in narrower cases.
What regulatory frameworks apply to hybrid structures?
Both equity regulation and token frameworks. In the EU, MiCA applies in phases: stablecoin rules from 30 June 2024, full CASP regime from 30 December 2024, with national transitional windows ending 1 July 2026. In the US, the SEC and CFTC issued a joint crypto asset taxonomy on 17 March 2026.
Sources and references
- European Union: ESMA, Markets in Crypto-Assets Regulation (MiCA). Entry into force 29 June 2023; stablecoin rules from 30 June 2024; full CASP regime from 30 December 2024; national transitional windows ending 1 July 2026.
- United States: SEC and CFTC joint interpretive release, 17 March 2026 (published at 91 Fed. Reg. 13714, 23 March 2026), establishing a five-category token taxonomy.
- AYAKO Partners internal analysis.