Brazilian startup Tools for the Commons has successfully closed a $2 million pre-seed funding round to advance its mission of building a global network of digital and physical economic zones. The company is developing a novel platform that functions as a marketplace for jurisdictions, enabling digital businesses and remote workers to select optimal legal and tax environments. This investment will accelerate the company's efforts to create blockchain-based infrastructure for a new generation of governance models.
A New Paradigm for Governance
Founded by Hugo Mathecowitsch, Tools for the Commons aims to innovate beyond software by reimagining the structure of jurisdictions themselves. The platform allows users to operate within specialized economic zones without being tied to a single physical location, offering reduced bureaucracy and optimized tax frameworks. This model is inspired by the “network state” concept, which envisions decentralized communities united by shared rules and digital infrastructure.
Mathecowitsch posits that the next major entrepreneurial frontier lies in creating new cities and jurisdictions modeled after the strategic planning of hubs like Singapore and Dubai. The company targets the global knowledge economy, providing a framework for professionals and businesses that operate in a distributed manner. The ultimate goal is to offer a competitive alternative to traditional national governance for the digital age.
Securing Strategic Investment
The funding round attracted a diverse group of institutional investors, providing a strong foundation of expertise in technology, finance, and urban development. Key backers include 468 Capital, deep-tech ecosystem Sthorm, appchain infrastructure protocol Tanssi Network, and digital wallet Coins.ph. Additional support comes from the smart city holding company Grupo OSPA and legal-tech guidance from Pinheiro Neto Advogados’ startup program.
The investment was further strengthened by angel investors with deep industry connections, including Stephane Lopes of Mata Group, a firm specializing in lifestyle and hospitality assets. Caetano Lacerda and Raphael Dyxklay, co-founders of the Brazilian payment platform Barte, also participated in the round. This combination of institutional and private backing signals strong market confidence in the company's ambitious vision for the future of governance.
Operational Strategy and Future Expansion
Tools for the Commons is already operational in two distinct jurisdictions to validate its model. In Zanzibar, the company is actively developing a new economic zone, complete with its own commercial code and digital systems. Concurrently, it serves as a distribution partner for Próspera, an established special economic zone in Honduras, helping to onboard new residents and businesses to that platform.
The capital injection will be primarily directed toward commercial development to expand its user base of residents and companies. A portion of the funds is also earmarked for enhancing the Zanzibar project and integrating new zones into its network. The company has set ambitious goals to operate between four and eight active zones and onboard up to 10,000 companies by the end of the year.
The startup's business model is multi-layered, beginning with setup services for establishing new jurisdictions. It then offers a digital residency subscription, which the founder likens to a “Spotify for taxes,” providing ongoing access to the zone's benefits. Finally, the company earns a transactional commission from the economic activity generated within each zone, aligning its growth with the prosperity of its network.
With its successful pre-seed round and a clear strategic roadmap, Tools for the Commons is pioneering a pragmatic application of the network state theory. By blending innovative technology with established legal frameworks, the company is well-positioned to challenge conventional ideas of sovereignty and citizenship. This initiative represents a significant step toward creating flexible and efficient governance solutions for the world's growing digital economy.