Pitch sequence:

1. 1. Executive Summary for knowledgeable buyer; Exec. Summary & Deck/Video for non-knowledgeable buyer.
   2. With expression of interest, Financial Model — forward looking valuation with calculated share price for discussion.
   3. Upon request, Business Plan.
   4. After negotiation, Term Sheet.
   5. Share Purchase Agreement that reflects the Term Sheet.
   6. Share Transfer Agreement that reflects the Share Purchase Agreement.
   7. Stock Certificates (or Security Token allocation), after Share Transfer Agmt is executed and investment is received.

What’s purposefully absent from this list is NDA, which is not needed and can be a road-block to investment: investors don’t seek to compete, they only seek to pick winners.

Pitch sequence:

Investors expect to see a Valuation Calculator that ties all numbers together in a single equation.  This is typically a spreadsheet with five sections:

1. 1. Summary: Outstanding Shares, Y5 Net, Valuation/PPS, Maturity, Return/EPS, ROI.
   2. Use of Funds: Budget for Investment.
   3. Forecast: Previous 5Y P&L and 5Y Projection – Revenue, COGs/Expense, Financing, EBIT/Cash Flows, IRR, Discount
      or NPV if ongoing business.
   4. Budget: Build and 5Y Management, Marketing, and Maintenance/Support estimates.

What’s purposefully absent from this list is NDA, which is not needed and can be a road-block to investment: investors don’t seek to compete, they only seek to pick winners.

A Valuation Calculator is the most important tool for a business because it instantly tells the entrepreneur/CEO/Board how their decisions affect company value. In other words, because all assumptions (pricing/volume estimates) and budgets (COGs/operation’s expenses) are plugged into a single equation that outputs to Y5 ROI/IRR, any change instantly tells management if share-price/value is improved or reduced. Hence, all management considerations should first be input into the company’s Valuation Calculator to determine if the idea should be implemented.

• • All institutional investors need to see/understand a company’s Valuation Calculator to understand how any given offer/bet impacts their Fund.
  • As a result, my new product/company exploration begins with producing (or honing) Valuation Calculators.

Investors expect a valuation that is commensurate with progress.  Typical return-on-investment (ROI) at the end of Y5…

• • Seed Round: 2,000% — funding to turn Concept into Business Plan, Pitch Materials, and align essential mgmt team, including Board Advisors.
  • Angel Round: 1,000% — funding to create first tested/debugged Product, aka minimal viable product (“MVP”), for regional market test.
  • Series A Round: 500% — funding to widely market first tested/debugged Product (if market testing demonstrated acceptance).
  • Series B Round: 250% — funding to either expand Product-line or launch Product Licensing campaign.

Pricing above these benchmarks encourages rapid investment or compensates for inherent weakness (i.e. untested mgmt, unproven market, no IP, etc.); similarly, pricing below these benchmarks demonstrates confidence in phenomenal assets (i.e. proven mgmt, produced IP, strategic alignments).

Reward Crowdfunding is a natural extension of the Seed (Friends & Family) round.

• • Reward CF’s greatest value is its ability to reveal the natural target demographic for a new company’s first product. On this note, investors look at it as a pre-order interest test.

  Equity Crowdfunding is a natural extension of the Series A investment round.

  • Equity CF’s greatest value is its ability to reward Early Adopters and Early Majority customers with equity to make them incentivized brand ambassadors to their own friends and family (the third ring) and, thus, provide a company with the opportunity to build its own liquid market on an alternative trading system (ATS) exchange.

If X = sought private equity investment, then ~2X can be used to purchase bonds that are then leveraged at ~50% for 1X investment.

Benefit: Bond Yield is replaced by Private Equity earning, while maintaining the security of Bond principal (assured break-even).

Example: $50M 10Y bond purchase self-liquidates a $25M investment…

1. 1. Bonds are purchased with an aggregate annual yield of Y%.
   2. Bonds are leveraged 50% ($25M) at Z%, and the funds are used for Private Equity investment.
   3. While the Private Equity investment matures, the Y% Bond yield pays off the $25M note at Z% (a self-liquidating debt).
   4. Upon Bond maturity, $50M principal is returned for break-even, plus the position purchased from the $25M investment is maintained for profit.

In short, any/all proceeds from the Private Equity investment become profit, assuming Bond performance. And, savvy investors can ask for an assignment back of the principal after the leverage so that they can double-spend (leverage again) the principal on a present value basis.

• Black Mass: black holes are reclassified as black masses to enable their growth to be calculable and, thus, not violate Conservation of Energy (every action creates an equal opposite reaction).
• Mass Cycle: objects grow via consumption to turn from dark to dim, to bright, to black. In other words, a dark nebula of material collapses on itself to become dim when fusion begins at its core; when such prepubescent star’s fusion-generated-light overwhelms the shade of its collapsing material it turns bright to become a standard star; when such star continues to grow by consuming its neighbors, it will eventually become so large that its light (photons) can no longer escape and, thus, turns black – it becomes a black mass (a large fused object). Note: under “Pull Theory”, black holes are reclassified as black masses (objects, not events).
• Universe Acceleration: large objects (black masses) outside of our visible universe must exist in every direction and at every distance; such black masses have all that we see caught in their gravity and, thus, are accelerating our visible universe apart, similar to how a ball accelerates to the ground.
• The Big Bang: such black masses that have not only consumed (fused) their own galaxy, but countless others (becoming “mega masses”), are traveling wayward across the heavens outside of our visible universe. Occasionally, when two of these black masses get caught in each other’s gravity, the dominant will consume the subordinate; and, if they are of similar size, they will collide to liberate their material in a giant explosion – if we are an observer of such liberation, we would call it a giant (or high-energy) gamma-ray-burst, but if we are a product of such liberation, we would call it “The Big Bang.”
• Cosmic Microwave Background (CMB): the background radiation that makes up the CMB is deposited over time by countless overlapping black mass polar-jet emissions as they transit the greater universe.

• Liberated Electrons: photons are reclassified as liberated electrons to explain why they are affected by black masses (aka black holes) and, thus, do not violate Conservation of Energy (every action creates an equal opposite reaction).
• Polar Jets: like an electron, a photon must have mass to explain a black mass whose gravity is so powerful that liberated electrons (aka photons) cannot escape, except to be squeezed out by polar jets.
• Speed & Emission of Light: the reclassification of photons as liberated electrons explains why electricity flows at the speed of light and emits light – stars emit light via nuclear fusion that liberates electrons (four Hydrogen that fuse into a single Helium liberates two electrons that are viewed/experienced as sun/starlight.
• Subatomic Particle Frequency: the statistical unpredictability of Heisenberg’s Uncertainty Principle in Quantum Mechanics can become predictable (a certainty) when recognizing that subatomic particles that share frequency intonation can combine, while those that don’t (because they are dissonant) cannot – note: subatomic particles don’t just spin; they also tumble, giving the appearance of fractional spin.