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100 CO-FOUNDERS INITIATIVE
For the Startup CrowdfundResources.com
By
Manolis Sfinarolakis
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
INTROTO CROWDFUNDRESOURCES.COM
INTROTO CROWDFUNDRESOURCES.COM
 CrowdfundResources.com is:
 a marketplace
 that uses the mechanism of crowdfunding
 for pre-vetted professional services offerings.
 It’sTechnology:
 isWordPress
 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
INTROTO 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
 TheTarget Customer:
 entrepreneurs, businesses, nonprofits, governments, consumers
 who need trusted professional services
 to achieve their individual or organizational goals
 The UniqueValue 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
INTROTO CROWDFUNDRESOUCES.COM
12 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.
INTROTO 100 CO-FOUNDERS CONCEPT
INTROTO 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.
INTROTO 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.
COMPOSITION OF 1ST 100 CO-FOUNDERS
 Composition of initial 100 Co-Founder Equity Owners:
 10 from Legal / Accounting / Payroll
 10 fromWebsite 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 fromVideo Production
 10 from Copywriting / Blogging
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.
PRE-LAUNCH ACTIVITIES: GOTO MARKET
PRE-LAUNCH ACTIVITIES: GOTO 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
PRE-LAUNCH ACTIVITIES: GOTO 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
PRE-LAUNCH ACTIVITIES: GOTO 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
PRE-LAUNCH ACTIVITIES: GOTO 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
USE OF PROCEEDS (SEED + ONGOING)
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
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 individualCo-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
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 60,000 100,000 100,000
Net 35,000 130,000
Less:
Tax-Ins-Other @35% @35% 12,250 44,500
Profit 22,750 85,500
Distributions @50% @50% 6,375 42,750
Retained Earnings @50% @50% 6,375 42,750

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100 Co-Founders Initiative for Startup CrowdfundResources.com

  • 1. 100 CO-FOUNDERS INITIATIVE For the Startup CrowdfundResources.com By Manolis Sfinarolakis
  • 2. 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
  • 4. INTROTO CROWDFUNDRESOURCES.COM  CrowdfundResources.com is:  a marketplace  that uses the mechanism of crowdfunding  for pre-vetted professional services offerings.  It’sTechnology:  isWordPress  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
  • 5. INTROTO 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  TheTarget Customer:  entrepreneurs, businesses, nonprofits, governments, consumers  who need trusted professional services  to achieve their individual or organizational goals  The UniqueValue 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
  • 6. INTROTO CROWDFUNDRESOUCES.COM 12 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.
  • 8. INTROTO 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.
  • 9. INTROTO 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.
  • 10. COMPOSITION OF 1ST 100 CO-FOUNDERS  Composition of initial 100 Co-Founder Equity Owners:  10 from Legal / Accounting / Payroll  10 fromWebsite 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 fromVideo Production  10 from Copywriting / Blogging
  • 11. 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.
  • 13. PRE-LAUNCH ACTIVITIES: GOTO 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
  • 14. PRE-LAUNCH ACTIVITIES: GOTO 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
  • 15. PRE-LAUNCH ACTIVITIES: GOTO 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
  • 16. PRE-LAUNCH ACTIVITIES: GOTO 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
  • 17. USE OF PROCEEDS (SEED + ONGOING)
  • 18. 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
  • 19. 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 individualCo-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
  • 20. 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 60,000 100,000 100,000 Net 35,000 130,000 Less: Tax-Ins-Other @35% @35% 12,250 44,500 Profit 22,750 85,500 Distributions @50% @50% 6,375 42,750 Retained Earnings @50% @50% 6,375 42,750