Ecosystem Fund Management: Investment Design for Ecosystem Growth

Launch structured investment programs that drive ecosystem growth, reward contributors, and deliver measurable outcomes.

Farstar offers a product suite for ecosystem investment. We help teams spin up custom capital programs that deliver tangible ecosystem benefits, while maintaining a credible risk and return profile with trackable onchain contributions.

→ Our approach optimizes for strategic benefit, not just financial upside.

The result is a set of flexible tools that ecosystems can use to support aligned contributors and grow in a sustainable way. Designed to grow with you, these programs are adjustable, easy to deploy, and built for repeatability.

(Overview from the [Arbitrum Ventures Initiative](<https://farstar.notion.site/Arbitrum-Ventures-Initiative-7fc4c5012eb84b2da189c15f5628e444>))

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Flexible Fund Strategies

Our fund structures operate across a spectrum and are tailored to address each ecosystem’s unique priorities and goals.

To meet these goals, capital is most often deployed through three complementary models:

Deployment into the on-chain economy

Funds that deploy capital directly into the on-chain economy to strengthen value creation and generate tangible, ecosystem-aligned value capture. These models are designed to maintain high accountability with low bureaucracy, enabling ecosystems to activate capital efficiently and in line with shared priorities.

Strategic positioning and vertical integration

Funds that leverage the ecosystem’s strategic position to access deals which enable vertical integration or infrastructure alignment. These opportunities help capture value that the core protocol alone may not fully reach, but that is critical to long-term ecosystem success.

Patient capital

Funds structured to support long-term ecosystem outcomes. These programs prioritize durability over speed, enabling capital to flow into foundational or slower-developing initiatives that are essential to sustained ecosystem growth.

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What We Offer

Farstar is able to support both the design and operation of ecosystem investment programs.

Fund Setup & Management

We help ecosystems create investment programs that are aligned with strategic goals and minimize the overhead to launch:

• Fund-in-a-box** **templates: Set up of strategic investment vehicles rapidly, with minimal overhead
• Onchain fund management: Working natively with token treasuries, including stable conversions and smart liquidation protections
• Performance Warrants: Value flows to the ecosystem when key contributors get the job done.
• LP Positions + Side Letters: Strategic exposure to existing VCs, with built-in alignment for ecosystem needs.

Operations

We enable the ongoing coordination of your fund with tools that align contributors and track outcomes onchain:

• Onchain fund management: Work natively with token treasuries, including stable conversions and smart liquidation protections
• Trackable contributions: Use onchain attestations to recognize ecosystem contributors and reward them transparently (as seen in Arbitrum Growth Circles)
• Compensation mechanisms: Performance warrants and fund upside can flow back to top contributors, creating a direct link between value created and value received </aside>

Case Study

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Arbitrum Ventures Initiative

With AVI, we are helping Arbitrum move beyond grants to deploy up to 500m ARB through a diversified investment strategy focused on ecosystem development and founder support.

Learn more:

Arbitrum Ventures Initiative

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Ready to Learn More?

Explore what an Ecosystem Funds could look like in your context:

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