100 co-founders initiative for startup crowdfundresources.com

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100 CO-FOUNDERS INITIATIVE For the Startup CrowdfundResources.com By Manolis Sfinarolakis

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Page 1: 100 Co-Founders Initiative for Startup CrowdfundResources.com

100 CO-FOUNDERS INITIATIVE

For the Startup CrowdfundResources.comBy

Manolis Sfinarolakis

Page 2: 100 Co-Founders Initiative for Startup CrowdfundResources.com

TABLE OF CONTENTS Introduction to the startup CrowdfundResources.com Introduction to the 100 Co-Founders Concept Composition of the first 100 Co-Founders Pre-Launch Activities (0 to 6 months) Use of Proceeds Exit Strategy Financial Projections

Page 3: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO CROWDFUNDRESOURCES.COM

Page 4: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO CROWDFUNDRESOURCES.COM CrowdfundResources.com is:

a marketplace that uses the mechanism of crowdfunding for pre-vetted professional services offerings.

It’s Technology: is WordPress with e-commerce capabilities in the form of a crowdfunding platform

The Pre-Vetting Process: is a 12 step due diligence program including credit & criminal background checks audits of track record with prior & current clients with final approval through phone interviews

Page 5: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO CROWDFUNDRESOURCES.COM The Business Model Includes:

revenues from transactions as a % of funds raised an annual maintenance fee to maintain the Co-Founders ownership affiliate agreements with customers & partners other services on behalf of Co-Founders

The Target Customer: entrepreneurs, businesses, nonprofits, governments, consumers who need trusted professional services to achieve their individual or organizational goals

The Unique Value Proposition: leveraging the power of crowdfunding as backbone of a marketplace all services and service providers are pre-vetted to ensure quality all services providers listed are also owners of the organization attractive marketing benefits to service providers as part of their ownership

Page 6: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO CROWDFUNDRESOUCES.COM12 Step Pre-Vetting & Due Diligence Process:

1. User registers on the site and fills in their account information. Their profile photo will be pulled from gravatar.com.

2. User may need to enable creator permissions. This can be done automatically on registration or by checking a checkbox on their account page.

3. Once this is enabled, the user can then access a tab called ‘My Projects’ on their dashboard and will be able to create a new project from there. If money is going to be transferred directly from the backer to the project creator, there will also be a tab on their dashboard where they can set up their payment methods.

4. Once they’ve submitted the project, it will need to be approved by an admin.

5. User books a 30 minute interview with CrowdfundResources.com to initiate the pre-vetting process.

6. CrowdfundResources.com makes a go or no-go decision based on the interview to vet the vendor further.

7. User provides answers to the comments made on the submitted project & provides supporting documentation to verify claims made in the project solicitation.

8. User books a 2nd 30 minute interview with CrowdfundResources.com to close out any open questions.

9. A nationwide background check is performed on the principals of the company to check for any past criminal history indicative of a bad actor.

10. A universal credit check is performed on the principals of the company specifically looking for instances of lawsuits related to the services the vendor is providing.

11. A universal business background check is performed for credit, better business bureau, and general internet reviews from past customers.

12. Finally, references from prior customers are checked and confirmed via phone calls with the customer themselves.

Page 7: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO 100 CO-FOUNDERS CONCEPT

Page 8: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO 100 CO-FOUNDERS CONCEPT 100 Co-Founders, Invest $1,000 each, for 1% equity, at startup

and annually to maintain their ownership stake. No one may own more than 1% equity.

Co-Founders will be the only service providers on CrowdfundResources.com.

Platform will provide certain marketing services to all Co-Founders. All Co-Founders agree to utilize their own personal channels to

market platform. Additional services may be provided by platform for personalized

marketing to Co-Founders for a fee. 50% of profits from platform will be paid out annually with 50%

retained earnings. General manager of platform will be Manolis Sfinarolakis to

manage day to day.

Page 9: 100 Co-Founders Initiative for Startup CrowdfundResources.com

INTRO TO 100 CO-FOUNDERS CONCEPT Pros

Low investment, low risk, and an easy exit for individual equity owners annually

100 motivated Co-Founders working together to make the entity succeed

On top of investment returns, individual service business returns through platform

Free and/or low cost marketing services provided by CrowdfundResources.com

Cons At times, may be competing with a similar service of one+ of the 100

Co-Founders. Democratic voting structure may cause slow decision making. Selling the company to another entity will require a high percentage of

affirmative votes by all Co-Founders of the platform. Cannot own more than 1% equity at any one time.

Page 10: 100 Co-Founders Initiative for Startup CrowdfundResources.com

COMPOSITION OF 1ST 100 CO-FOUNDERS Composition of initial 100 Co-Founder Equity Owners:

10 from Legal / Accounting / Payroll 10 from Website Development / Design 10 from Marketing 10 from Social Media 10 from Crowdfunding / Fundraising 10 from Public Relations 10 from Business Consulting 10 from Branding / Graphic Design 10 from Video Production 10 from Copywriting / Blogging

Page 11: 100 Co-Founders Initiative for Startup CrowdfundResources.com

COMPOSITION OF 1ST 100 CO-FOUNDERS Additional Categories of Co-Founder Content:

Books Events Programs Tools & Resources Webinars & Courses

CrowdfundResources.com the entity may also enter into affiliate & referral agreements for the above 5 categories outside of the 100 Co-Founders as part of the business model for the combined entity.

Page 12: 100 Co-Founders Initiative for Startup CrowdfundResources.com

PRE-LAUNCH ACTIVITIES: GO TO MARKET

Page 13: 100 Co-Founders Initiative for Startup CrowdfundResources.com

PRE-LAUNCH ACTIVITIES: GO TO MARKET Plan to launch within 6 months of incorporation:

Legal agreement & selection of 100 Co-Founders Onboarding 100 Co-Founders via the 12 step due diligence process Website development to upgrade the platform Executing marketing, social media, public relations, and content

marketing plans Collaborative effort:

The 100 Co-Founders will be instrumental in executing portions of this plan

All Co-Founders will participate in the marketing as part of the platforms free services as well as certain Co-Founders who elect added marketing services

General Manager will orchestrate the effort and connect the moving parts

Official launch estimate: July 11th, 2016

Page 14: 100 Co-Founders Initiative for Startup CrowdfundResources.com

PRE-LAUNCH ACTIVITIES: GO TO MARKET Co-Founder Onboarding:

All Co-Founders are required to create a professional video detailing their service offerings.

All Co-Founders are required to go through the 12 step due diligence process within 1 month of investment as an equity partner.

All Co-Founders will be allowed only 1 page for their company, however, they are allowed to offer multiple services or “Reward Levels” in their pages.

Consumers will have an option to schedule an appointment before they purchase from a Co-Founder’s services. All Co-Founders agree to funnel such transactions through the platform instead of outside means if the transaction comes from the platform.

Co-Founders will provide General Manager of platform access to all required personal social media accounts to be used in the marketing efforts of the platform as a whole

Page 15: 100 Co-Founders Initiative for Startup CrowdfundResources.com

PRE-LAUNCH ACTIVITIES: GO TO MARKET Website Development, Design, and Content:

Upgrade e-commerce capabilities to more streamlined and secure platform Allow for recurring monthly payments for longer term engagements / payment plans Implement robust affiliate tracking mechanism Perform resilience testing against threats and load testing / disaster recovery Add built in appointment scheduling tool that integrates with Co-Founders calendars Incorporate trust verification system for background checks and due diligence of

current & future Co-Founders for annual verification purposes Build robust rating and recommendation engine for services Equip platform with email marketing, CRM, landing pages, and other marketing tools Create content library with video tutorials, FAQ, and biographies of each Co-Founder Branding and design of the platform, including marketing collateral and landing

pages Final review and incorporation of legal documentation and contracting mechanism

Page 16: 100 Co-Founders Initiative for Startup CrowdfundResources.com

PRE-LAUNCH ACTIVITIES: GO TO MARKET Marketing to be provided by the platform on behalf of Co-Founders: Social media scheduling across all platforms Twitter growth, engagement, and retweeting of CrowdfundResources.com

twitter account Twitter growth, engagement, and retweeting of Co-Founders personal twitter

accounts to promote the CrowdfundResources.com twitter account Creating marketing collateral to create website blog posts as well as LinkedIn

blog posts for Co-Founders to promote entity on their personal channels Webinar interviews for email marketing campaigns, content for blogs, & general

thought leadership Executing crowd speaking campaigns in mass Executing email marketing campaigns in mass Other services as required / paid for by individual Co-Founders

Page 17: 100 Co-Founders Initiative for Startup CrowdfundResources.com

USE OF PROCEEDS (SEED + ONGOING)

Page 18: 100 Co-Founders Initiative for Startup CrowdfundResources.com

USE OF PROCEEDS (SEED + ONGOING) Initial seed of 100 Co-Founders @ $1,000 each = $100,000

Legal Fees = $10,000 Technology Fees = $25,000 Outsourcing Fees = $5,000 Marketing Fees = $40,000 Operating Fees = $20,000 NOTE: General manager will receive a small stipend as agreed upon

by Co-Founders out of the Marketing & Operating fees to manage the organization

Ongoing annual renewal of 100 Co-Founders @ 1,000 each = $100,000 Budget approved by majority vote of the 100 Co-Founders at annual

meeting Budget prepared by General Manager

Page 19: 100 Co-Founders Initiative for Startup CrowdfundResources.com

EXIT STRATEGY: FOR INDIVIDUAL & GROUP Anticipate 5 year group buyout by large established services marketplace

Any offers to purchase the organization must be approved by 75% vote Potential buyers: Amazon, Angies List, E-Bay, Fiverr, Thumbtack, HubSpot

Individual exit would be to sell ownership stake during annual renewal period. 1% equity stake would be sold at FMV New equity holder would have to be approved by 51% majority vote Platform may buyback shares and search for replacement owner No individual Co-Founder may have greater than 1% equity stake New equity holder’s basis and annual renewal amount would be the value of the FMV

purchase of old equity holder’s 1% stake Future issuances to bring in additional Co-Founders with Unique / Attractive Services

Must be approved by 51% majority vote Would result in individual dilution of everyone's shares Dissenting 49% has the option to sell shares to new Co-Founder prior to issuances

Page 20: 100 Co-Founders Initiative for Startup CrowdfundResources.com

FINANCIAL PROJECTIONS – 2016 & 2017

Pre-Launch Mo 1 Mo 2 Mo 3 Mo 4 Mo 5 Mo 6 Post Sale-16

Sale-17 2016 2017

Seed 100000

n/a n/a 100,000

0

Yearly 100000

n/a n/a 0 100,000

10% of Raise 250,000

1,000,000

25,000

100,000

Other 5@2,000

15@2,000

10,000

30,000

Gross 135,000

230,000

Less:Expense 7500 7500 7500 7500 5000 5000 60,00

0100,000

100,000

Net 35,000

130,000

Less:Tax-Ins-Other @35% @35% 12,25

044,500

Profit 22,750

85,500

Distributions @50% @50% 6,375 42,750

Retained Earnings

@50% @50% 6,375 42,750