TechFlow News — The Solana Foundation has announced it will introduce convertible grants and investments to support the Solana ecosystem. The mechanism of a convertible grant is that the grant only converts into an investment when a project reaches certain milestones—such as securing a priced funding round or achieving specific growth targets.
For example, strong candidates for convertible grants may include projects needing support to build a novel proof-of-concept before they are able to raise venture capital, or closed-source infrastructure companies. Investments, on the other hand, refer to direct equity investments by the Foundation into companies. This option is better suited for for-profit companies built on Solana that already have commercialized products and are actively fundraising.
The Foundation believes these projects could directly or indirectly advance its goals of promoting adoption, utility, decentralization, or security of the Solana network, even if they do not qualify as public goods.
