CoinDesk reported:
Investments in crypto projects typically follow a venture capital model. Projects tap venture firms for capital via funding rounds (i.e., pre-seed, seed, Series A, etc.) and, in turn, the investors receive a portion of the project’s equity. In most cases, particularly in early-stage investments where a project has not yet launched a token, investors will receive a Simple Agreement for Future Tokens (SAFT), a contract that outlines the tokens allocated to the investor if the project launches a token in the future.