June 26, 2022
Equity crowdfunding explained by VP at Community Round Fundraising (Wefunder), Jonny Price
Jonny Price, VP of Fundraising at Community Round Fundraising (Wefunder) in this episode talks about equity crowdfunding, process that founders need to undergo to have a successful crowd-funded round and more. We've also talked about the major pitfalls in said process and how to prepare for those.
Jonny's LinkedIn: https://www.linkedin.com/in/jonnyprice/
Community Round Fundraising's site: https://wefunder.com/
SPVs (Special Purpose Vehicles) explained by the CEO of Assure: https://www.fundraisingradio.com/Jeremy-Neilson/
Extra resources that Jonny shared with me:
Blog on how to raise $1M on Wefunder: https://twitter.com/JonnyCPrice/status/1503515916285493255
Podcast episode on fundraising strategy: https://www.spreaker.com/user/wefunder/justin-renfro
Community Round website: communityround.com
Wefunder Raise page: wefunder.com/raise
Wefunder PBC charter: wefunder.com/charter
Twitter: @jonnycprice; @wefunder
Transcript
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They're releasing to fundraising
video a podcast about
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fundraising for early-stage
startups, the major rule that we
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follow here is no bullshit on
this podcast.
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No music to relax.
You know, advertisements of our
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sponsors.
We only talk about fundraising
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here and nothing else.
So let's jump into the episode
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and today's guest speaker have
joining price VP of fundraising
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and we funder and for those
people who don't know What we
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funder is, is one of the largest
Equity crowdfunding Platforms in
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the United States.
And this episode, we'll talk
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about Equity crowdfunding.
How does it work?
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What kind of legal changes
happened in the past couple of
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years that allowed pretty much
every single person in the u.s.
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invest in any startup?
And as little, as $100 per
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Investments and we'll also talk
about who should actually
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consider those Equity
crowdfunding platforms and why?
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So Johnny Let's kick it off by
you, giving us some background
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on yourself and on, WE funder,
yeah, great to be here.
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Thanks for the invitation Johnny
Price.
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I'm the VP of fundraising, we
funder from the UK.
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Originally, as you may be able
to tell from the accident there,
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I started my career in
management consulting.
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Then in 2009, met an American
girl who brought me over to San
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Francisco from London.
We got married and then started
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working for a non-profit.
I called kiva.org.
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We did is how crowdfunded
microloans for entrepreneurs
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around the world and I came in
to launch and run our us team,
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did that for seven years.
And then in early. 2018, for
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years ago, joined the team at we
fund under was one of the one of
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the first employees and have
been here for four years.
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Ever since we found this, a
platform that lets anyone invest
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in startups, they love not just
rich people.
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So so normally, as you know,
when startups are raising
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Capital there Ray From
accredited investors BC's Angel
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Investors.
And with we funder, you can
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raise from your customers and
Community from 100 percent of
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the population.
Not just the Apes and other
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population, he's a created.
You can also, Mark it Market
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their rounds on social media and
email on a podcast like this
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one.
So it's a really interesting
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kind of new way of raising money
that it's kind of much more
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community-oriented way of
raising money.
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So that's what we're up to over
here at we funder.
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Awesome.
There was a very brief and a
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lovely story.
I should win.
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Congrats on moving to.
All right, you know what?
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UK Jokes Aside.
Now going to go into that
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direction.
First question here is actually
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about you or official role so
you are the VP of fundraising
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would does that mean what do you
do as the video fundraising?
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Yeah, so I lead a team as about
15 of us, we funded that 70
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people is about 15 of us on the
fundraising team.
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Our role is to go and connect
with found this.
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Meet with Founders and work with
them on, just kind of, you know,
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understanding the pros and cons
of, we funder.
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Why they would use us to raise
money versus the other options
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that they have, you know, and
definitely not an either/or
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thing, right?
It's not, it's not either.
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You go the community around
route on, WE fund up, or you
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raise from VCS, and we're seeing
more and more startups who say,
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I want to raise most of this
round from PCS, but I want to
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allocate part of the round to my
customers and community.
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So our job is to find Founders
chat with them and hopefully,
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persuade them, that part of
every round, they should let
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their customers invest.
So it's kind of pretty pretty
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early in the process.
And then we have an account
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management team that usually my
team partners with to do the
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kind of legal, legal filings,
financials to put together a
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page for fundraising strategy.
So we're kind of pretty early in
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the founder Journey, developing
relationships with PCS angels I
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write this as well as lots of
conversations with Founders
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themselves.
You put together, you mentioned
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the strategy for the
fundraising.
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So you actually do help
Founders, who are one boarded on
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your platform to fundraise, to
actually add fundraise.
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Absolutely interesting.
Fight, a lot of support and, you
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know, Franco's and trying to
figure out.
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Okay, what's the what's the plan
here?
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What's the strategy we've got
some great resources?
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Well lots of case studies now
we've helped over a thousand
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startups rates.
Capital now, so many examples of
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what works and what doesn't
work.
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And yeah, just really try to
help help found this, you know,
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whether whether they're, you
know, Mercury bank or replicate,
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who recently raised five million
dollars in a day on WE funder
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for him, that's that's pretty
easy.
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Usually, the strategy is just,
you know, send an email to your
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customers and watch the millions
of dollars role in most
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startups.
Sadly, it's a little bit more
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challenging than that, a little
bit, more of a Grimes, little
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bit more hardwire and so with
them, you know, it's her Them
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think through OK, what's the
pitch pitch?
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That gonna look like?
What's the page look like?
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What are the tactics around, you
know, starting with pitching
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angels and people that are close
to you and then increasingly
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doing more kind of marketing
tactics, and Outreach one.
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It one of the cool things about
this way of raising money is
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that you can publicly promote
the offering, right?
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So you, you can now run a pi
campaign around the fundraise,
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right?
And you can, you can can try to
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get variety going by engaging,
your explore hundreds of
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investors as they're coming in
and getting them to share the
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rounds with their Network.
So the law this law or
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regulation crowdfunding is.
Yes.
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You see exemption that we use
and this basically helps it's
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just kind of in a few ways, like
helps make it a little easier
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for Founders to get the word out
about the round and actually
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raise money, a little bit more
easily, sure does.
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So, before we go in and talk a
More about this strategy that
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boundary should use in order to
fundraise through Equity
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crowdfunding platforms.
Like we funder, quick question
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on, WE fund your platform, how
many companies that start
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raising money?
They're actually close their
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round successfully.
Yeah, so it's a little bit of a
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complicated answer to that
question.
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So we kind of defined as the
start of a refund around is when
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you do the legal paperwork when
he's crazy.
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And basically you can you can
kind of what's called test the
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waters before you do that oh you
can start start fundraising like
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start to pitch people kind of in
a private mode and then if
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you're getting traction and pick
up then we go ahead and file the
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form.
See And so because of that,
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we're pretty close to a hundred
percent of the companies that
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end up filing, the legal
paperwork with the SEC.
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Interesting, it's pretty close
to 100% that then go on to, you
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know, successfully closed out
maybe.
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So one thing with we funded you
set a minimum goal and a maximum
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goal, right?
Yeah.
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Might set a maximum goal of 5
million and a minimum of, you
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know, two million.
And so when I say, 95% I'm
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talking about people that passed
the minimum goal, not, he
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reached the maximum great,
Maximum might be more like I
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don't know, 30 40 percent would
be Mike.
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That's that's still pretty good
actually.
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Speaking of testing the Warriors
those very very interesting
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subject and I get caught.
I entered that.
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That question is quite
frequently Asked here on
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fundraising radio.
How how do they test the water?
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How do they know that?
You know, the investors will
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actually put their money where
their mouth is, because an
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investor is saying that they're
interested in investing and
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investors who are actually
writing checks or Completely
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different people.
How do you know that this you
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know water testing is actually
valid.
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Yeah, so if you launch that
testing, the waters campaign on.
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WE fund our we actually hold
money.
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We take it out of investors bank
accounts.
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We charge the credit card and we
hold it in an escrow account and
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so it's a reservation, it's not
a binding commitment to invest,
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but we do take the money and say
in our experience.
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If you look at the conversion
percentages because because we
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take the money, those conversion
percentage is very, very high.
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Yep, that is a good strategy and
is definitely better than you
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know, just getting a verbal
commitment that?
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Yeah totally.
It is very it is very moving on,
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let's talk about the strategies
that you usually use.
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So you've mentioned that, you
know, there's kind of this flow
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of starting with pitching your
Friends and family than Angel
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Investors and then just moving
on.
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So can you tell us a little bit
more about how that flow looks
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like we're doing that or where
do founder start, and why?
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Exactly.
Should they start their friends
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and family?
Yeah, so I think there's a
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question there of kind of how
the and we using the Brand's
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Community round.
We recently had a launch of
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community round.com website and
with the website launch will say
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kind of rolled out this new
nomenclature of running a
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community rounds is Use the word
Equity crowdfunding at the start
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of the podcasts, which I kind of
bristled with, with pain, adds
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more UK jokes.
But, you know, we, it was always
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called Equity crowdfunding, iceo
wrote a blog post.
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If you Google, Nick, Tom Morello
Community, round blog.
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We funder.
You'll find it really awesome.
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He's one of the best writers I
I've ever read.
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Honestly, just in terms of
clarity and kind of it just
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inspiring, like, moving powerful
or words because brilliant.
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And so he starts it off by
saying, I've always hated the
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term equity crowdfunding, and so
we really love this
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repositioning towards running
Community rounds because
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crowdfunding think they think
Kickstarter right Equity,
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crowdfunding seems like
something you do because real
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ambassadors went invest in you
whereas a community around like,
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raising money from your
community seems like something
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that every startup founder would
want to do.
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It's a really powerful example.
I think we're changing a couple
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of words, just really elevates
that the And The credibility and
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just aspiration of what we're
trying to do.
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But anyway, the point is, once
your question that, you know,
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this kind of two levels of the
sequencing and the plan, right?
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So, the first question is, okay,
you're raising a series a,
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right?
How does the community around
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element of that fit into that?
So sometimes Founders will raise
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their whole rounds through, we
fund.
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Oh, right.
So, for example, it's a bridge
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round, right?
You did a seed, you know, the
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growth is a little bit slower.
You want to get More traction,
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you know, more growth before you
kind of come back to
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institutional, investors in
command evaluation, you're
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looking for.
So you looking for a bridge
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maybe do the whole bridge on WE
fund are right but if you're
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doing Chen to accompany
yesterday they're doing at 25
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million series a and they want
to raise 20 million from be
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seized and then five million
from from their customers and
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Community array.
And so there, I would say the
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standard approach is you get the
VC lead, you kind of get the VC
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kind of checks lined up but then
you allocate For in that case
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five million of the the of the
rounds to your community who
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come in kind of towards towards
the back end of the process.
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So Mercury bank, they did a 120
million Series be led by CO2 and
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Andreessen and then opened up a
five million dollar allocation,
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so that customers.
So that's that's how they did
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it.
You can do it the other way
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round.
So you can kind of, you know,
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start especially if you're kind
of trying to find that lead
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investor, right?
Maybe the round is is moving a
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little bit more slowly because
early centuries CE is a little
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colder in 2022 than it was in
2021.
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And you're trying to kind of
build up, you know, the momentum
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on the ground break that inertia
sometimes like starting with the
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community rounds, component of
the rounds can help to create
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leverage, right, can see
investors coming in like starts
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to create some feeling of
pressure and scarcity and fomo
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so you can do it either way.
But so this firstly the question
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of how the community Randall
month fits into the larger round
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and then, secondly, okay, within
the community round.
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So in that example, 25 million
series, a five million for the
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community.
Now, how am I going to launch?
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The refund around raised up five
million and so yeah, you start
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in private, right?
Intestinal, what is in private
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and I always talk about
concentric circles, right?
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So you want to start with the
people that are closest to you.
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So maybe maybe you go to, you
know, some angel investor.
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So you have relationships with,
we We have what's called a lead
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investor within the we fund
around the lead investor helps
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to set the terms of the refund
around they are voting for the
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shares of the individual
investors in the SPV and so
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lining up that lead investors a
great signal ideally they're
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putting in five percent of the
round so you know the amount
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they're investing is a signal
who they are as the signal you
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know and so on all the investors
on the page can see you the
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lead.
Investor is see why they're And
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so you know, it's lining up the
lead investor trying to trying
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to line up some Angel tracks
early on and then I always say
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you know I would make a
spreadsheet treat investor
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management as you know funnel
management for customers you
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know have a CRM and you know put
a couple of hundred names.
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It spreadsheet like track track
when your email and them track.
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If they invested follow-up, try
multiple channels and you kind
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of starting their with inner
concentric circles, right?
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People that you're close to
because then when you go to the
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more outer concentric circles,
so then maybe you send email to
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all your customers, right?
Or maybe you kind of put it on
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social media, linked in and then
kind of, once you, once you kind
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of going going outwards and once
you building up some momentum on
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the round and private, usually,
I say you want to try to Target
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raising a third of your goal in
private before pushing the
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button and doing the public
launch and then when you do the
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public launch, a couple of
things on, on the founders side,
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That's when you do the press
release, that's when you do the
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kind of social media push, you
know, and you kind of get all
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your ducks in a row to create
the biggest bang possible.
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But then you also another
benefit.
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We haven't talked to you so far
about we fund.
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There is you know, we have
300,000 users on the platform
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that have made an investment
that will put you in front of
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right and typically those those
we funder investors account for
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about a third of the round.
And so when you when you kind of
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push the button, go public then
you're going to find We funder
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and buses as well.
So that gives you another Beast.
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Say that, that framework of kind
of concentric circles starting
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with people that are close to
you, you're going to have a very
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very high batting average on the
personalized emails personalize.
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Our each and every time kind of
going going to people that maybe
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you don't have a stronger
relationship with Stephanie is
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the the way to approach a we
funder, we found around.
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I love that version of the
approach.
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Honestly, I think that's pretty
much the golden bullets and I
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know hope silver bowl down.
I know that if my team hears me,
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00:15:26,200 --> 00:15:29,200
say, silver bullets, at least,
once again, they're gonna murder
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me.
But I think that there are very
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few of them and this approach of
creating this, a ram and then
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just taking it pretty much as a
full-time job basically.
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00:15:38,800 --> 00:15:41,300
And just doing it very
meticulously, it's going to work
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00:15:41,300 --> 00:15:44,900
out there is like 90, alright,
not 90% chance but a very, very
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00:15:44,900 --> 00:15:47,200
high percent chance of it
working out.
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00:15:47,200 --> 00:15:56,300
That's definitely just as well.
Say that Hustle hard with my
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00:15:56,300 --> 00:15:58,700
colleague Justin.
So if you Google we fund their
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00:15:58,700 --> 00:16:01,500
Adventure Capital podcast,
hustle hard, you'll find out one
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00:16:01,800 --> 00:16:04,200
that's okay, the hour and a half
long conversation about
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00:16:04,200 --> 00:16:07,900
potential stories and tactics
that really goes deep and then I
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00:16:07,900 --> 00:16:10,200
wrote a blog post called how to
raise a million dollars on.
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00:16:10,200 --> 00:16:12,400
WE fund are.
So if you interesting with with
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00:16:12,400 --> 00:16:16,200
Johnny Price, you've is like a
15 Step plan.
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00:16:16,200 --> 00:16:18,600
I saw what I did to break it out
into more detail.
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00:16:18,600 --> 00:16:21,900
So both of those are pretty good
resources, people want to go
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deeper, interesting.
Interesting, interesting.
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00:16:24,300 --> 00:16:29,200
Of all right that's perfect.
I'll make sure that people don't
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00:16:29,200 --> 00:16:32,200
have to Google and actually
include all those are no a link
299
00:16:32,200 --> 00:16:37,200
to know exactly what you're
about to hear that repeated
300
00:16:37,200 --> 00:16:39,400
numerous times and I'm going to
repeat it at the end as well.
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00:16:39,400 --> 00:16:41,600
There's there's no escape from
this statement.
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00:16:41,600 --> 00:16:45,300
Johnny nowhere to run but you
know it's going to be old there.
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00:16:45,300 --> 00:16:48,600
So people who have very short
memory, just check it down
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00:16:48,600 --> 00:16:51,100
there.
It's going to be all included.
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00:16:51,500 --> 00:16:53,600
All right.
So now let's touch about
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00:16:54,200 --> 00:16:56,600
Something that I found super
interesting on our pre-interview
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00:16:56,600 --> 00:17:00,000
call, and it's the fact that we
funder is actually a b
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00:17:00,000 --> 00:17:01,900
Corporation.
For those people who don't know,
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00:17:01,900 --> 00:17:05,200
B Corporation is a benefit
corporation, which means that
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00:17:05,200 --> 00:17:08,400
there's basically a government
stamp saying that we found her
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00:17:08,400 --> 00:17:10,599
is good for people.
We funders good for community
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00:17:10,599 --> 00:17:13,000
and economy and pretty much
everything around them.
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00:17:13,000 --> 00:17:14,900
So Johnny.
Oh, let's talk about that.
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00:17:14,900 --> 00:17:18,300
First of all, how did you manage
to get that status and secondly,
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00:17:18,300 --> 00:17:22,000
did you actually like go for
that stuff specifically or it's
316
00:17:22,000 --> 00:17:27,200
just one day, your Or, you know,
the executive team of we funder
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00:17:27,300 --> 00:17:29,800
looked around and then they
realize that they should qualify
318
00:17:29,800 --> 00:17:31,800
for B Corp which is by an
accident.
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00:17:32,600 --> 00:17:35,000
Yes it's kind of two, two
elements of it as she.
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00:17:35,000 --> 00:17:39,500
So we fundraise Incorporated,
not as a c-corporation but as a
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public benefit Corporation in
Delaware PVC.
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00:17:43,200 --> 00:17:46,100
And so that is how we are
legally Incorporated.
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00:17:46,100 --> 00:17:49,500
So, C Corp is legally obligated
to maximize shareholder value,
324
00:17:49,500 --> 00:17:51,500
right?
A PVC is legally.
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00:17:51,500 --> 00:17:57,100
Obligated to uphold our Artur,
our PVC Charter and would love
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00:17:57,100 --> 00:17:59,100
to talk a little more about what
their charts are means.
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00:17:59,100 --> 00:18:02,700
But it's so we have the PVC
element has kind of legal teeth.
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00:18:02,700 --> 00:18:05,500
That is how we are legally
Incorporated the company in the
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00:18:05,508 --> 00:18:08,800
state of Delaware.
And then there's also the B Corp
330
00:18:09,100 --> 00:18:14,300
thing which is basically an
accreditation of badge that this
331
00:18:14,300 --> 00:18:17,700
this company called be lab does.
And so you go through a survey
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00:18:17,700 --> 00:18:20,400
and you fill out a bunch of
questions and then it's kind of
333
00:18:20,400 --> 00:18:23,700
like an exam and we pass the
exam and so they gave us just
334
00:18:23,700 --> 00:18:29,000
kind of Label.
Say we started, we incorporate
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00:18:29,000 --> 00:18:31,000
the PVC and then several years
into the journey.
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00:18:31,000 --> 00:18:34,100
We got this, be called label.
So we're both the PC and a b
337
00:18:34,100 --> 00:18:37,500
Corp.
And yeah, in terms of what our
338
00:18:37,500 --> 00:18:40,400
Charter is all about, it's a big
part of the reason I work for we
339
00:18:40,400 --> 00:18:44,900
funded previously, I was working
for this nonprofit kiva.org, you
340
00:18:44,900 --> 00:18:48,700
know, so kind of pretty, I would
say, mission mission oriented
341
00:18:48,700 --> 00:18:51,200
person.
I think most of us, we found,
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00:18:51,200 --> 00:18:52,600
her are probably most people
that work at startup.
343
00:18:52,600 --> 00:18:56,900
Sorry.
But for me, I mission is kind of
344
00:18:56,900 --> 00:18:58,900
on both sides of the
marketplace, right?
345
00:18:58,900 --> 00:19:03,300
So on the founder side of the
marketplace, we basically want
346
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to get more Capital flowing to
Founders.
347
00:19:06,000 --> 00:19:09,000
We think it's cool.
When people start companies,
348
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it's leads to more things in the
world, more progress.
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It's fun.
It's You Know, Rich at life of
350
00:19:17,300 --> 00:19:22,000
learnings and love and so we
like startups, we want to want
351
00:19:22,000 --> 00:19:24,000
to give more Founders the chance
to take their shot.
352
00:19:24,700 --> 00:19:27,300
But then not just in aggregate
but also if you dislike her
353
00:19:27,308 --> 00:19:31,100
gate, right, like less than 3%
of venture dollars last year.
354
00:19:31,100 --> 00:19:33,800
When it's a female only Founders
versus over.
355
00:19:33,800 --> 00:19:36,800
Eighty percent are male, only
found this one percent went to
356
00:19:36,808 --> 00:19:39,400
Black.
Founders. 77% of BC dollars were
357
00:19:39,400 --> 00:19:42,200
concentrated in California, New
York and Massachusetts.
358
00:19:42,300 --> 00:19:44,400
Hmm.
So we believe that a more
359
00:19:44,400 --> 00:19:46,700
democratic approach to
investing.
360
00:19:47,000 --> 00:19:50,000
Letting everyone be an angel
investor not just Millionaires
361
00:19:50,000 --> 00:19:53,700
and billionaires will lead to a
more Equitable allocation of
362
00:19:53,700 --> 00:19:56,500
capital where we go.
More Capital flow into women of
363
00:19:56,500 --> 00:19:58,900
color and States like Tennessee,
where I live.
364
00:19:59,700 --> 00:20:01,900
So that's kind of on the founder
side and and then on the
365
00:20:01,900 --> 00:20:04,100
investor side, it's pretty
simple, right?
366
00:20:04,100 --> 00:20:08,000
It's basically, like, why should
only rich people get to benefit
367
00:20:08,000 --> 00:20:11,700
from the wealth that startups
are creating when Uber IPOs?
368
00:20:11,700 --> 00:20:13,900
Why should it be?
That only Millionaires and
369
00:20:13,900 --> 00:20:16,400
accredited investors?
Get to make more money?
370
00:20:17,300 --> 00:20:19,300
Why shouldn't it be the case?
That the driver has?
371
00:20:19,300 --> 00:20:22,700
There were there on day one?
They come new millionaires,
372
00:20:23,100 --> 00:20:25,800
right?
And so, You could big problem in
373
00:20:25,800 --> 00:20:28,600
society over the last few
decades is that wealth has been
374
00:20:29,000 --> 00:20:30,800
yeah.
Concentrated in the hands of a
375
00:20:30,800 --> 00:20:33,200
smaller and smaller number of
people, and basically, our
376
00:20:33,200 --> 00:20:36,500
solution to that problem is okay
for the wealth that's been
377
00:20:36,500 --> 00:20:38,700
created by startups.
And startups are creating
378
00:20:38,900 --> 00:20:42,900
explosive wealth, let's try to
share some of that wealth around
379
00:20:42,900 --> 00:20:46,700
more broadly so that the
earliest supporters customers
380
00:20:46,700 --> 00:20:51,300
champions of those startups that
are making it big get get the
381
00:20:51,300 --> 00:20:53,100
benefit.
So that on both the founder side
382
00:20:53,100 --> 00:20:56,000
in the investor side.
It's kind of what our PVC
383
00:20:56,000 --> 00:21:02,300
Charter is all about nice and
yes, it does sound beneficial to
384
00:21:02,300 --> 00:21:03,600
the society.
So we'll learn.
385
00:21:03,600 --> 00:21:07,000
And by the way, I'm sorry people
I said that b Corp status is
386
00:21:07,000 --> 00:21:09,200
something that government gives
you I completely forgot.
387
00:21:09,200 --> 00:21:12,700
This is actually another
corporation that does that but
388
00:21:13,100 --> 00:21:16,300
it is quite reliable.
So pretty much like a government
389
00:21:16,300 --> 00:21:20,800
or maybe even better this note.
So let's let's move on and talk
390
00:21:20,800 --> 00:21:24,300
about the good thing right
before the call to action.
391
00:21:24,400 --> 00:21:27,600
Action AKA last question of
these episodes and the good
392
00:21:27,600 --> 00:21:32,100
thing being the exits that
happen after raising on WE
393
00:21:32,100 --> 00:21:36,100
fonder.
So when this gosh I keep
394
00:21:36,100 --> 00:21:42,400
forgetting the name for it.
Rex EF CF was passed a lot of
395
00:21:42,400 --> 00:21:45,300
investors were like yeah crowd
funnies for those who can raise
396
00:21:45,300 --> 00:21:48,700
from real investors and it's
obviously bullshit and they were
397
00:21:48,700 --> 00:21:51,700
proven wrong numerous times and
no one ever says that anymore.
398
00:21:52,000 --> 00:21:57,400
But Let's talk about real
numbers here, which is, you
399
00:21:57,408 --> 00:22:00,600
know, how many Aang's is?
Do you see happening after
400
00:22:00,900 --> 00:22:03,400
companies raise money on WE
funders who?
401
00:22:03,400 --> 00:22:05,900
How many of those people who
actually invest in those
402
00:22:05,900 --> 00:22:11,600
companies early on get to
experience that Uber IPO type of
403
00:22:11,600 --> 00:22:13,400
deal.
Yeah.
404
00:22:13,400 --> 00:22:16,900
So, right now, the number of
exits.
405
00:22:16,900 --> 00:22:21,100
We've had Acquisitions with,
certainly IPOs.
406
00:22:21,100 --> 00:22:24,500
Is relatively small said,
certainly, no, kind of Uber,
407
00:22:24,600 --> 00:22:27,900
Uber Louisville exits at this
point, a couple of reasons for
408
00:22:27,900 --> 00:22:29,400
that.
I think one, you know, the Lord
409
00:22:29,400 --> 00:22:33,100
just passed in 2016, right?
So it's only five or six years
410
00:22:33,100 --> 00:22:33,700
old.
Yeah.
411
00:22:33,800 --> 00:22:35,900
And the number of companies that
we had.
412
00:22:36,000 --> 00:22:39,200
The launching in May was a very,
very small number, right?
413
00:22:41,200 --> 00:22:43,300
The other thing.
I'd actually maybe push back a
414
00:22:43,300 --> 00:22:47,900
little on what you said like it
in May of 2016 both because the
415
00:22:47,900 --> 00:22:51,700
laws were initially very
unfriendly for found this like
416
00:22:51,700 --> 00:22:53,800
in 2016, we would put 1,000
people.
417
00:22:53,900 --> 00:22:57,600
Your cap table.
Now in 2022, we put one SPV on
418
00:22:57,600 --> 00:23:00,500
your cap table, so it's a lot
more friendly in 2016.
419
00:23:00,500 --> 00:23:03,700
You could only raise 1 million.
Now, you can raise five million,
420
00:23:03,700 --> 00:23:05,900
right?
So now it's a lot more
421
00:23:05,900 --> 00:23:09,400
interesting to the founders, but
in 2016, there was actually an
422
00:23:09,400 --> 00:23:13,000
adverse selection partly also,
because it was new and no one
423
00:23:13,000 --> 00:23:16,600
had ever done it before.
And now in 2022, you have
424
00:23:16,600 --> 00:23:19,700
companies like Mercury, like,
Rome research, like, replicate
425
00:23:19,700 --> 00:23:23,900
like love was, you know, very,
very fast growing success.
426
00:23:24,000 --> 00:23:26,400
Successful Venture backed
companies who are doing this.
427
00:23:26,700 --> 00:23:28,700
Not because they need the money
and don't have any other
428
00:23:28,700 --> 00:23:32,600
options, but rather because
they, you know, want to let
429
00:23:32,600 --> 00:23:35,000
their customers and Community
invest alongside VCS.
430
00:23:35,100 --> 00:23:36,700
Hmm.
So I think it's much less
431
00:23:36,700 --> 00:23:38,600
adverse selection now.
And obviously, we've had great
432
00:23:38,600 --> 00:23:40,400
companies.
Do we fund it down the years?
433
00:23:41,100 --> 00:23:44,400
But there's much less adverse
selection now and so the quality
434
00:23:44,400 --> 00:23:48,000
of the portfolio and equality of
companies launching, you know,
435
00:23:48,500 --> 00:23:52,300
now versus even, you know, a
couple of years ago is really,
436
00:23:52,300 --> 00:23:54,900
really exciting, which is
obviously, See that you know
437
00:23:54,900 --> 00:23:58,700
codes bodes well for future
future kind of investor returns.
438
00:23:58,700 --> 00:24:02,300
But I bet you if you look at the
cohort performance you know by
439
00:24:02,300 --> 00:24:05,000
year of We funders R XE F
portfolio.
440
00:24:05,400 --> 00:24:08,300
There's going to be a
significant increase in 2021
441
00:24:08,300 --> 00:24:12,200
going forward because of the SEC
Law changes that were rolled out
442
00:24:13,400 --> 00:24:16,100
around that before. 2016 is all
we fund.
443
00:24:16,100 --> 00:24:20,300
A I was was doing regulation D
crowdfunding well that kind of
444
00:24:20,300 --> 00:24:23,400
the AngelList model and we have
a pretty good like I think
445
00:24:23,900 --> 00:24:27,300
Looking at a, we have a page.
We funded.com / results where we
446
00:24:27,300 --> 00:24:31,400
try to be transparent with
investor returns and unrealised.
447
00:24:31,400 --> 00:24:35,200
Net irr from a wrecked.
E-portfolio is 23%.
448
00:24:35,400 --> 00:24:42,400
We got into checking code
bioworks, rappy zenefits.
449
00:24:42,400 --> 00:24:44,300
So, some some pretty nice
companies.
450
00:24:44,300 --> 00:24:48,100
We went through YC in 2013, so
that helped us get into some
451
00:24:48,100 --> 00:24:51,900
pretty nice companies.
So that's what ways he does.
452
00:24:52,000 --> 00:24:57,400
That is why C does On this
optimistic note, let's by the
453
00:24:57,400 --> 00:25:00,400
way, one more thing before we
jump into the very last
454
00:25:00,400 --> 00:25:05,100
question, is that the word SPD
was dropped here?
455
00:25:05,200 --> 00:25:08,800
Quite a few times for people who
don't know what special purpose
456
00:25:08,800 --> 00:25:11,200
vehicle is.
I'm going to include the link in
457
00:25:11,200 --> 00:25:14,200
the description of this episode
where I have interviewed the E
458
00:25:14,200 --> 00:25:18,800
CEO and founder of assure, which
is the largest syndication
459
00:25:19,400 --> 00:25:21,900
platform in the entire United
States.
460
00:25:21,900 --> 00:25:24,300
So if you want to learn about
spb's, how you can Actually use
461
00:25:24,300 --> 00:25:27,500
them for your own run around,
even if you are not doing the
462
00:25:27,500 --> 00:25:32,900
equity crowdfunding or Community
rounds, should I say thank you
463
00:25:32,900 --> 00:25:35,800
still can use that stuff.
And actually might be quite
464
00:25:35,800 --> 00:25:37,800
useful.
So yeah, check out the link in
465
00:25:37,800 --> 00:25:40,700
the description.
And on this note, let's go and
466
00:25:40,900 --> 00:25:42,200
touch on to the very last
question.
467
00:25:42,200 --> 00:25:44,600
If today's episode, which is the
call to action.
468
00:25:44,600 --> 00:25:47,000
So Johnny, what do you want to
listen to do?
469
00:25:47,000 --> 00:25:51,000
As soon as this episode is over,
So I'm going to break the
470
00:25:51,000 --> 00:25:54,800
cardinal rule of ctas and give
you two versus y, okay?
471
00:25:54,900 --> 00:26:00,600
All right, you know, if you're a
Founder, would obviously love to
472
00:26:00,800 --> 00:26:03,400
connect, if we can help you
raise money, right?
473
00:26:04,100 --> 00:26:07,100
Either again to Value puffs of.
We fund it one.
474
00:26:07,200 --> 00:26:10,100
If you know, you, you around
needs a boost.
475
00:26:10,100 --> 00:26:12,100
We can help you raise more money
more quickly.
476
00:26:13,400 --> 00:26:16,500
And then, secondly, if you
around doesn't need a boost, you
477
00:26:16,500 --> 00:26:19,300
can easily get funded but you
really like the idea of letting
478
00:26:19,300 --> 00:26:21,800
your customers and Community
invest, then we'd love to chat
479
00:26:21,800 --> 00:26:23,800
with you.
So we found the dot-coms /
480
00:26:23,800 --> 00:26:27,600
raised, you can just go in, you
know, and some information and
481
00:26:27,600 --> 00:26:32,300
connect with our team or I I'm
always giving him my email, it's
482
00:26:32,300 --> 00:26:36,700
Johnny at we fun.com jj0 and
then why are we found out a
483
00:26:36,700 --> 00:26:39,000
special Journey?
That if you've, if you've
484
00:26:39,000 --> 00:26:41,600
listened to the me droning on
for this long, then you must be
485
00:26:41,600 --> 00:26:44,600
really interested in what we're
doing and your reward is, my
486
00:26:44,600 --> 00:26:48,100
email address is not that much
of a reward but that's on the
487
00:26:48,100 --> 00:26:52,200
fan of side and Then on the
investor side like you know and
488
00:26:52,600 --> 00:26:55,800
anyone can be an investor now
for 100 bucks.
489
00:26:55,800 --> 00:26:57,900
Yeah.
That they love on.
490
00:26:57,900 --> 00:27:00,800
WE fund are so we found that our
construction Explorer you can
491
00:27:00,800 --> 00:27:02,700
browse through hundreds of
startups that are raising.
492
00:27:03,400 --> 00:27:06,500
See if one takes your fancy and
give it a whirl you know and try
493
00:27:06,500 --> 00:27:10,100
it out and become an investor
and startup for the first time
494
00:27:10,100 --> 00:27:13,100
for a hundred bucks in a couple
of minutes and then maybe you
495
00:27:13,108 --> 00:27:14,600
can help that help that found
out.
496
00:27:14,600 --> 00:27:16,300
Maybe you can follow along for
the journey.
497
00:27:17,100 --> 00:27:20,200
We never like to frame this as
Like do this to become a
498
00:27:20,200 --> 00:27:24,400
millionaire you know it's not up
to you love because it's true
499
00:27:24,400 --> 00:27:28,600
statements to me, interested mr.
Mica, well, fundraising, that's
500
00:27:29,100 --> 00:27:30,700
right.
Yeah, everyone can become an
501
00:27:30,700 --> 00:27:34,800
investor really easily and and
we wanted to take the number of
502
00:27:34,800 --> 00:27:37,500
Angel Investors in the US or
whatever it is today, you know,
503
00:27:37,500 --> 00:27:41,300
a few thousand to like a few
million actually over the coming
504
00:27:41,300 --> 00:27:42,600
out.
Now, I'm very interested.
505
00:27:42,600 --> 00:27:45,100
What's the number of Angel
Investors here?
506
00:27:45,300 --> 00:27:51,200
Put it in the show notes.
I was just do a quick Google
507
00:27:51,200 --> 00:27:53,800
search and it's actually about
300,000 people.
508
00:27:53,800 --> 00:27:57,500
You were a tiny bit off, right?
A Thousand Angels.
509
00:27:57,900 --> 00:27:59,300
Yeah.
Actually, that's honestly,
510
00:27:59,300 --> 00:28:02,000
that's a believable number.
You cannot imagine the amount of
511
00:28:02,000 --> 00:28:08,100
people who are just chilling.
Those Angel groups guy know they
512
00:28:08,100 --> 00:28:09,800
have is like a hideout wasn't
snow.
513
00:28:09,800 --> 00:28:12,400
I'm telling you, man, that they
have thousands of people there
514
00:28:12,400 --> 00:28:15,700
and that's it's insane.
Anyways, on this very
515
00:28:15,700 --> 00:28:19,300
optimistic, note now people I
know that there are 300,000
516
00:28:19,300 --> 00:28:21,800
Angel Investors out there so
we've got plenty of people to
517
00:28:21,800 --> 00:28:26,300
reach out to and raise money
from and adult a queen but
518
00:28:26,300 --> 00:28:29,400
that's going to take that number
from 300,000 to hit badly.
519
00:28:29,400 --> 00:28:30,900
Millions, exactly.
Right there.
520
00:28:31,000 --> 00:28:34,800
The point still hold the point.
Does still whole.
521
00:28:34,800 --> 00:28:37,900
Yes, absolutely does.
And for everyone listening to
522
00:28:37,900 --> 00:28:41,900
this obviously old and notes are
going to be there, so if you
523
00:28:41,900 --> 00:28:44,900
already forgot half of the
things that we said here, that's
524
00:28:44,900 --> 00:28:47,200
completely fine.
I redid as well.
525
00:28:47,300 --> 00:28:50,100
That's why I'm taking accurate
notes and you should check them
526
00:28:50,100 --> 00:28:53,400
out in the description of the
sepa do, and as usually have a
527
00:28:53,400 --> 00:28:56,300
good day, thanks guys.
00:00:05,200 --> 00:00:07,800
They're releasing to fundraising
video a podcast about
2
00:00:07,800 --> 00:00:11,400
fundraising for early-stage
startups, the major rule that we
3
00:00:11,400 --> 00:00:14,600
follow here is no bullshit on
this podcast.
4
00:00:14,600 --> 00:00:17,100
No music to relax.
You know, advertisements of our
5
00:00:17,100 --> 00:00:19,600
sponsors.
We only talk about fundraising
6
00:00:19,600 --> 00:00:23,000
here and nothing else.
So let's jump into the episode
7
00:00:23,400 --> 00:00:26,800
and today's guest speaker have
joining price VP of fundraising
8
00:00:26,800 --> 00:00:30,400
and we funder and for those
people who don't know What we
9
00:00:30,400 --> 00:00:35,600
funder is, is one of the largest
Equity crowdfunding Platforms in
10
00:00:35,600 --> 00:00:38,000
the United States.
And this episode, we'll talk
11
00:00:38,000 --> 00:00:40,400
about Equity crowdfunding.
How does it work?
12
00:00:40,600 --> 00:00:43,500
What kind of legal changes
happened in the past couple of
13
00:00:43,500 --> 00:00:47,500
years that allowed pretty much
every single person in the u.s.
14
00:00:47,500 --> 00:00:52,500
invest in any startup?
And as little, as $100 per
15
00:00:52,700 --> 00:00:56,000
Investments and we'll also talk
about who should actually
16
00:00:56,000 --> 00:00:59,100
consider those Equity
crowdfunding platforms and why?
17
00:00:59,200 --> 00:01:02,200
So Johnny Let's kick it off by
you, giving us some background
18
00:01:02,200 --> 00:01:06,400
on yourself and on, WE funder,
yeah, great to be here.
19
00:01:06,400 --> 00:01:10,000
Thanks for the invitation Johnny
Price.
20
00:01:10,000 --> 00:01:12,900
I'm the VP of fundraising, we
funder from the UK.
21
00:01:12,900 --> 00:01:15,500
Originally, as you may be able
to tell from the accident there,
22
00:01:17,100 --> 00:01:19,300
I started my career in
management consulting.
23
00:01:20,400 --> 00:01:25,300
Then in 2009, met an American
girl who brought me over to San
24
00:01:25,300 --> 00:01:28,800
Francisco from London.
We got married and then started
25
00:01:28,800 --> 00:01:30,900
working for a non-profit.
I called kiva.org.
26
00:01:30,900 --> 00:01:33,700
We did is how crowdfunded
microloans for entrepreneurs
27
00:01:33,700 --> 00:01:38,200
around the world and I came in
to launch and run our us team,
28
00:01:38,500 --> 00:01:42,000
did that for seven years.
And then in early. 2018, for
29
00:01:42,000 --> 00:01:46,000
years ago, joined the team at we
fund under was one of the one of
30
00:01:46,000 --> 00:01:50,500
the first employees and have
been here for four years.
31
00:01:50,500 --> 00:01:53,500
Ever since we found this, a
platform that lets anyone invest
32
00:01:53,500 --> 00:01:55,600
in startups, they love not just
rich people.
33
00:01:56,500 --> 00:01:59,100
So so normally, as you know,
when startups are raising
34
00:01:59,100 --> 00:02:02,100
Capital there Ray From
accredited investors BC's Angel
35
00:02:02,100 --> 00:02:04,700
Investors.
And with we funder, you can
36
00:02:04,800 --> 00:02:08,600
raise from your customers and
Community from 100 percent of
37
00:02:08,600 --> 00:02:10,400
the population.
Not just the Apes and other
38
00:02:10,400 --> 00:02:13,800
population, he's a created.
You can also, Mark it Market
39
00:02:13,800 --> 00:02:18,100
their rounds on social media and
email on a podcast like this
40
00:02:18,100 --> 00:02:20,600
one.
So it's a really interesting
41
00:02:20,700 --> 00:02:23,600
kind of new way of raising money
that it's kind of much more
42
00:02:24,200 --> 00:02:26,200
community-oriented way of
raising money.
43
00:02:26,500 --> 00:02:28,900
So that's what we're up to over
here at we funder.
44
00:02:30,200 --> 00:02:32,400
Awesome.
There was a very brief and a
45
00:02:32,400 --> 00:02:33,800
lovely story.
I should win.
46
00:02:33,800 --> 00:02:37,000
Congrats on moving to.
All right, you know what?
47
00:02:37,000 --> 00:02:39,000
UK Jokes Aside.
Now going to go into that
48
00:02:39,000 --> 00:02:42,000
direction.
First question here is actually
49
00:02:42,000 --> 00:02:46,200
about you or official role so
you are the VP of fundraising
50
00:02:46,200 --> 00:02:49,100
would does that mean what do you
do as the video fundraising?
51
00:02:49,700 --> 00:02:53,800
Yeah, so I lead a team as about
15 of us, we funded that 70
52
00:02:53,800 --> 00:02:56,500
people is about 15 of us on the
fundraising team.
53
00:02:56,800 --> 00:02:59,700
Our role is to go and connect
with found this.
54
00:03:00,100 --> 00:03:06,900
Meet with Founders and work with
them on, just kind of, you know,
55
00:03:06,900 --> 00:03:09,200
understanding the pros and cons
of, we funder.
56
00:03:09,200 --> 00:03:12,400
Why they would use us to raise
money versus the other options
57
00:03:12,400 --> 00:03:16,100
that they have, you know, and
definitely not an either/or
58
00:03:16,100 --> 00:03:18,900
thing, right?
It's not, it's not either.
59
00:03:19,000 --> 00:03:22,100
You go the community around
route on, WE fund up, or you
60
00:03:22,100 --> 00:03:25,600
raise from VCS, and we're seeing
more and more startups who say,
61
00:03:25,900 --> 00:03:29,000
I want to raise most of this
round from PCS, but I want to
62
00:03:29,000 --> 00:03:31,900
allocate part of the round to my
customers and community.
63
00:03:32,200 --> 00:03:36,100
So our job is to find Founders
chat with them and hopefully,
64
00:03:36,100 --> 00:03:39,000
persuade them, that part of
every round, they should let
65
00:03:39,000 --> 00:03:41,700
their customers invest.
So it's kind of pretty pretty
66
00:03:41,700 --> 00:03:43,500
early in the process.
And then we have an account
67
00:03:43,500 --> 00:03:48,300
management team that usually my
team partners with to do the
68
00:03:48,300 --> 00:03:52,300
kind of legal, legal filings,
financials to put together a
69
00:03:52,308 --> 00:03:56,000
page for fundraising strategy.
So we're kind of pretty early in
70
00:03:56,000 --> 00:04:00,000
the founder Journey, developing
relationships with PCS angels I
71
00:04:00,008 --> 00:04:03,200
write this as well as lots of
conversations with Founders
72
00:04:03,200 --> 00:04:06,800
themselves.
You put together, you mentioned
73
00:04:06,900 --> 00:04:08,100
the strategy for the
fundraising.
74
00:04:08,100 --> 00:04:11,800
So you actually do help
Founders, who are one boarded on
75
00:04:11,800 --> 00:04:14,600
your platform to fundraise, to
actually add fundraise.
76
00:04:15,300 --> 00:04:18,300
Absolutely interesting.
Fight, a lot of support and, you
77
00:04:18,300 --> 00:04:21,399
know, Franco's and trying to
figure out.
78
00:04:21,399 --> 00:04:23,200
Okay, what's the what's the plan
here?
79
00:04:23,200 --> 00:04:25,600
What's the strategy we've got
some great resources?
80
00:04:25,600 --> 00:04:28,700
Well lots of case studies now
we've helped over a thousand
81
00:04:29,100 --> 00:04:31,900
startups rates.
Capital now, so many examples of
82
00:04:31,900 --> 00:04:33,500
what works and what doesn't
work.
83
00:04:34,300 --> 00:04:37,400
And yeah, just really try to
help help found this, you know,
84
00:04:37,400 --> 00:04:40,900
whether whether they're, you
know, Mercury bank or replicate,
85
00:04:40,900 --> 00:04:44,000
who recently raised five million
dollars in a day on WE funder
86
00:04:44,800 --> 00:04:46,200
for him, that's that's pretty
easy.
87
00:04:46,200 --> 00:04:48,800
Usually, the strategy is just,
you know, send an email to your
88
00:04:48,800 --> 00:04:52,600
customers and watch the millions
of dollars role in most
89
00:04:52,700 --> 00:04:54,700
startups.
Sadly, it's a little bit more
90
00:04:54,700 --> 00:04:57,100
challenging than that, a little
bit, more of a Grimes, little
91
00:04:57,100 --> 00:05:00,100
bit more hardwire and so with
them, you know, it's her Them
92
00:05:00,100 --> 00:05:02,800
think through OK, what's the
pitch pitch?
93
00:05:02,800 --> 00:05:05,000
That gonna look like?
What's the page look like?
94
00:05:05,500 --> 00:05:07,800
What are the tactics around, you
know, starting with pitching
95
00:05:07,800 --> 00:05:11,000
angels and people that are close
to you and then increasingly
96
00:05:11,200 --> 00:05:14,200
doing more kind of marketing
tactics, and Outreach one.
97
00:05:14,200 --> 00:05:19,500
It one of the cool things about
this way of raising money is
98
00:05:19,500 --> 00:05:22,000
that you can publicly promote
the offering, right?
99
00:05:22,000 --> 00:05:27,300
So you, you can now run a pi
campaign around the fundraise,
100
00:05:27,900 --> 00:05:30,500
right?
And you can, you can can try to
101
00:05:30,500 --> 00:05:34,100
get variety going by engaging,
your explore hundreds of
102
00:05:34,100 --> 00:05:37,700
investors as they're coming in
and getting them to share the
103
00:05:37,700 --> 00:05:40,800
rounds with their Network.
So the law this law or
104
00:05:40,800 --> 00:05:42,300
regulation crowdfunding is.
Yes.
105
00:05:42,300 --> 00:05:48,200
You see exemption that we use
and this basically helps it's
106
00:05:48,200 --> 00:05:51,700
just kind of in a few ways, like
helps make it a little easier
107
00:05:51,700 --> 00:05:54,600
for Founders to get the word out
about the round and actually
108
00:05:54,600 --> 00:05:57,900
raise money, a little bit more
easily, sure does.
109
00:05:58,100 --> 00:06:01,300
So, before we go in and talk a
More about this strategy that
110
00:06:01,500 --> 00:06:05,000
boundary should use in order to
fundraise through Equity
111
00:06:05,000 --> 00:06:08,100
crowdfunding platforms.
Like we funder, quick question
112
00:06:08,200 --> 00:06:11,200
on, WE fund your platform, how
many companies that start
113
00:06:11,200 --> 00:06:13,400
raising money?
They're actually close their
114
00:06:13,400 --> 00:06:18,600
round successfully.
Yeah, so it's a little bit of a
115
00:06:18,600 --> 00:06:20,500
complicated answer to that
question.
116
00:06:20,500 --> 00:06:25,000
So we kind of defined as the
start of a refund around is when
117
00:06:25,000 --> 00:06:27,500
you do the legal paperwork when
he's crazy.
118
00:06:28,300 --> 00:06:31,300
And basically you can you can
kind of what's called test the
119
00:06:31,300 --> 00:06:36,100
waters before you do that oh you
can start start fundraising like
120
00:06:36,100 --> 00:06:40,100
start to pitch people kind of in
a private mode and then if
121
00:06:40,200 --> 00:06:43,900
you're getting traction and pick
up then we go ahead and file the
122
00:06:43,900 --> 00:06:46,700
form.
See And so because of that,
123
00:06:46,800 --> 00:06:49,500
we're pretty close to a hundred
percent of the companies that
124
00:06:49,500 --> 00:06:51,600
end up filing, the legal
paperwork with the SEC.
125
00:06:51,600 --> 00:06:55,500
Interesting, it's pretty close
to 100% that then go on to, you
126
00:06:55,500 --> 00:06:57,900
know, successfully closed out
maybe.
127
00:06:58,200 --> 00:07:01,600
So one thing with we funded you
set a minimum goal and a maximum
128
00:07:01,600 --> 00:07:02,800
goal, right?
Yeah.
129
00:07:02,800 --> 00:07:06,100
Might set a maximum goal of 5
million and a minimum of, you
130
00:07:06,100 --> 00:07:10,900
know, two million.
And so when I say, 95% I'm
131
00:07:10,900 --> 00:07:14,000
talking about people that passed
the minimum goal, not, he
132
00:07:14,000 --> 00:07:17,600
reached the maximum great,
Maximum might be more like I
133
00:07:17,600 --> 00:07:20,900
don't know, 30 40 percent would
be Mike.
134
00:07:20,900 --> 00:07:22,800
That's that's still pretty good
actually.
135
00:07:23,600 --> 00:07:26,700
Speaking of testing the Warriors
those very very interesting
136
00:07:26,700 --> 00:07:29,400
subject and I get caught.
I entered that.
137
00:07:29,400 --> 00:07:31,900
That question is quite
frequently Asked here on
138
00:07:31,900 --> 00:07:35,100
fundraising radio.
How how do they test the water?
139
00:07:35,100 --> 00:07:37,700
How do they know that?
You know, the investors will
140
00:07:37,700 --> 00:07:40,500
actually put their money where
their mouth is, because an
141
00:07:40,500 --> 00:07:42,800
investor is saying that they're
interested in investing and
142
00:07:42,800 --> 00:07:46,400
investors who are actually
writing checks or Completely
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different people.
How do you know that this you
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know water testing is actually
valid.
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Yeah, so if you launch that
testing, the waters campaign on.
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WE fund our we actually hold
money.
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We take it out of investors bank
accounts.
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We charge the credit card and we
hold it in an escrow account and
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so it's a reservation, it's not
a binding commitment to invest,
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but we do take the money and say
in our experience.
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If you look at the conversion
percentages because because we
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take the money, those conversion
percentage is very, very high.
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Yep, that is a good strategy and
is definitely better than you
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know, just getting a verbal
commitment that?
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Yeah totally.
It is very it is very moving on,
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let's talk about the strategies
that you usually use.
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So you've mentioned that, you
know, there's kind of this flow
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of starting with pitching your
Friends and family than Angel
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Investors and then just moving
on.
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So can you tell us a little bit
more about how that flow looks
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like we're doing that or where
do founder start, and why?
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Exactly.
Should they start their friends
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and family?
Yeah, so I think there's a
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question there of kind of how
the and we using the Brand's
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Community round.
We recently had a launch of
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community round.com website and
with the website launch will say
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kind of rolled out this new
nomenclature of running a
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community rounds is Use the word
Equity crowdfunding at the start
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of the podcasts, which I kind of
bristled with, with pain, adds
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more UK jokes.
But, you know, we, it was always
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called Equity crowdfunding, iceo
wrote a blog post.
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If you Google, Nick, Tom Morello
Community, round blog.
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We funder.
You'll find it really awesome.
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He's one of the best writers I
I've ever read.
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Honestly, just in terms of
clarity and kind of it just
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inspiring, like, moving powerful
or words because brilliant.
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And so he starts it off by
saying, I've always hated the
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term equity crowdfunding, and so
we really love this
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repositioning towards running
Community rounds because
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crowdfunding think they think
Kickstarter right Equity,
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crowdfunding seems like
something you do because real
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ambassadors went invest in you
whereas a community around like,
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raising money from your
community seems like something
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that every startup founder would
want to do.
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It's a really powerful example.
I think we're changing a couple
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of words, just really elevates
that the And The credibility and
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just aspiration of what we're
trying to do.
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But anyway, the point is, once
your question that, you know,
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this kind of two levels of the
sequencing and the plan, right?
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So, the first question is, okay,
you're raising a series a,
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right?
How does the community around
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element of that fit into that?
So sometimes Founders will raise
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their whole rounds through, we
fund.
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Oh, right.
So, for example, it's a bridge
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round, right?
You did a seed, you know, the
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growth is a little bit slower.
You want to get More traction,
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you know, more growth before you
kind of come back to
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institutional, investors in
command evaluation, you're
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looking for.
So you looking for a bridge
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maybe do the whole bridge on WE
fund are right but if you're
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doing Chen to accompany
yesterday they're doing at 25
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million series a and they want
to raise 20 million from be
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seized and then five million
from from their customers and
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Community array.
And so there, I would say the
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standard approach is you get the
VC lead, you kind of get the VC
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kind of checks lined up but then
you allocate For in that case
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five million of the the of the
rounds to your community who
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come in kind of towards towards
the back end of the process.
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So Mercury bank, they did a 120
million Series be led by CO2 and
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Andreessen and then opened up a
five million dollar allocation,
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so that customers.
So that's that's how they did
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it.
You can do it the other way
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round.
So you can kind of, you know,
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start especially if you're kind
of trying to find that lead
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investor, right?
Maybe the round is is moving a
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little bit more slowly because
early centuries CE is a little
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colder in 2022 than it was in
2021.
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And you're trying to kind of
build up, you know, the momentum
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on the ground break that inertia
sometimes like starting with the
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community rounds, component of
the rounds can help to create
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leverage, right, can see
investors coming in like starts
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to create some feeling of
pressure and scarcity and fomo
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so you can do it either way.
But so this firstly the question
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of how the community Randall
month fits into the larger round
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and then, secondly, okay, within
the community round.
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So in that example, 25 million
series, a five million for the
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community.
Now, how am I going to launch?
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The refund around raised up five
million and so yeah, you start
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in private, right?
Intestinal, what is in private
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and I always talk about
concentric circles, right?
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So you want to start with the
people that are closest to you.
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So maybe maybe you go to, you
know, some angel investor.
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So you have relationships with,
we We have what's called a lead
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investor within the we fund
around the lead investor helps
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to set the terms of the refund
around they are voting for the
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shares of the individual
investors in the SPV and so
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lining up that lead investors a
great signal ideally they're
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putting in five percent of the
round so you know the amount
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they're investing is a signal
who they are as the signal you
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know and so on all the investors
on the page can see you the
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lead.
Investor is see why they're And
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so you know, it's lining up the
lead investor trying to trying
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to line up some Angel tracks
early on and then I always say
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you know I would make a
spreadsheet treat investor
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management as you know funnel
management for customers you
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know have a CRM and you know put
a couple of hundred names.
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It spreadsheet like track track
when your email and them track.
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If they invested follow-up, try
multiple channels and you kind
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of starting their with inner
concentric circles, right?
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People that you're close to
because then when you go to the
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more outer concentric circles,
so then maybe you send email to
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all your customers, right?
Or maybe you kind of put it on
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social media, linked in and then
kind of, once you, once you kind
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of going going outwards and once
you building up some momentum on
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the round and private, usually,
I say you want to try to Target
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raising a third of your goal in
private before pushing the
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button and doing the public
launch and then when you do the
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public launch, a couple of
things on, on the founders side,
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That's when you do the press
release, that's when you do the
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kind of social media push, you
know, and you kind of get all
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your ducks in a row to create
the biggest bang possible.
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But then you also another
benefit.
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We haven't talked to you so far
about we fund.
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There is you know, we have
300,000 users on the platform
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that have made an investment
that will put you in front of
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right and typically those those
we funder investors account for
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about a third of the round.
And so when you when you kind of
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push the button, go public then
you're going to find We funder
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and buses as well.
So that gives you another Beast.
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Say that, that framework of kind
of concentric circles starting
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with people that are close to
you, you're going to have a very
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very high batting average on the
personalized emails personalize.
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Our each and every time kind of
going going to people that maybe
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you don't have a stronger
relationship with Stephanie is
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the the way to approach a we
funder, we found around.
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I love that version of the
approach.
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Honestly, I think that's pretty
much the golden bullets and I
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know hope silver bowl down.
I know that if my team hears me,
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say, silver bullets, at least,
once again, they're gonna murder
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me.
But I think that there are very
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few of them and this approach of
creating this, a ram and then
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just taking it pretty much as a
full-time job basically.
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And just doing it very
meticulously, it's going to work
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out there is like 90, alright,
not 90% chance but a very, very
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high percent chance of it
working out.
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That's definitely just as well.
Say that Hustle hard with my
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00:15:56,300 --> 00:15:58,700
colleague Justin.
So if you Google we fund their
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00:15:58,700 --> 00:16:01,500
Adventure Capital podcast,
hustle hard, you'll find out one
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that's okay, the hour and a half
long conversation about
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00:16:04,200 --> 00:16:07,900
potential stories and tactics
that really goes deep and then I
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wrote a blog post called how to
raise a million dollars on.
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WE fund are.
So if you interesting with with
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Johnny Price, you've is like a
15 Step plan.
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I saw what I did to break it out
into more detail.
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So both of those are pretty good
resources, people want to go
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deeper, interesting.
Interesting, interesting.
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Of all right that's perfect.
I'll make sure that people don't
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have to Google and actually
include all those are no a link
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00:16:32,200 --> 00:16:37,200
to know exactly what you're
about to hear that repeated
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00:16:37,200 --> 00:16:39,400
numerous times and I'm going to
repeat it at the end as well.
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There's there's no escape from
this statement.
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Johnny nowhere to run but you
know it's going to be old there.
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00:16:45,300 --> 00:16:48,600
So people who have very short
memory, just check it down
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00:16:48,600 --> 00:16:51,100
there.
It's going to be all included.
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All right.
So now let's touch about
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Something that I found super
interesting on our pre-interview
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call, and it's the fact that we
funder is actually a b
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Corporation.
For those people who don't know,
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B Corporation is a benefit
corporation, which means that
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there's basically a government
stamp saying that we found her
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is good for people.
We funders good for community
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and economy and pretty much
everything around them.
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So Johnny.
Oh, let's talk about that.
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First of all, how did you manage
to get that status and secondly,
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did you actually like go for
that stuff specifically or it's
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just one day, your Or, you know,
the executive team of we funder
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looked around and then they
realize that they should qualify
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for B Corp which is by an
accident.
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Yes it's kind of two, two
elements of it as she.
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So we fundraise Incorporated,
not as a c-corporation but as a
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public benefit Corporation in
Delaware PVC.
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And so that is how we are
legally Incorporated.
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So, C Corp is legally obligated
to maximize shareholder value,
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right?
A PVC is legally.
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Obligated to uphold our Artur,
our PVC Charter and would love
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00:17:57,100 --> 00:17:59,100
to talk a little more about what
their charts are means.
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00:17:59,100 --> 00:18:02,700
But it's so we have the PVC
element has kind of legal teeth.
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That is how we are legally
Incorporated the company in the
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state of Delaware.
And then there's also the B Corp
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thing which is basically an
accreditation of badge that this
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this company called be lab does.
And so you go through a survey
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and you fill out a bunch of
questions and then it's kind of
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like an exam and we pass the
exam and so they gave us just
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kind of Label.
Say we started, we incorporate
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the PVC and then several years
into the journey.
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00:18:31,000 --> 00:18:34,100
We got this, be called label.
So we're both the PC and a b
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Corp.
And yeah, in terms of what our
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00:18:37,500 --> 00:18:40,400
Charter is all about, it's a big
part of the reason I work for we
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00:18:40,400 --> 00:18:44,900
funded previously, I was working
for this nonprofit kiva.org, you
340
00:18:44,900 --> 00:18:48,700
know, so kind of pretty, I would
say, mission mission oriented
341
00:18:48,700 --> 00:18:51,200
person.
I think most of us, we found,
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00:18:51,200 --> 00:18:52,600
her are probably most people
that work at startup.
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00:18:52,600 --> 00:18:56,900
Sorry.
But for me, I mission is kind of
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on both sides of the
marketplace, right?
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So on the founder side of the
marketplace, we basically want
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to get more Capital flowing to
Founders.
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We think it's cool.
When people start companies,
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it's leads to more things in the
world, more progress.
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It's fun.
It's You Know, Rich at life of
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00:19:17,300 --> 00:19:22,000
learnings and love and so we
like startups, we want to want
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to give more Founders the chance
to take their shot.
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00:19:24,700 --> 00:19:27,300
But then not just in aggregate
but also if you dislike her
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gate, right, like less than 3%
of venture dollars last year.
354
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When it's a female only Founders
versus over.
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Eighty percent are male, only
found this one percent went to
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00:19:36,808 --> 00:19:39,400
Black.
Founders. 77% of BC dollars were
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concentrated in California, New
York and Massachusetts.
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Hmm.
So we believe that a more
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democratic approach to
investing.
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Letting everyone be an angel
investor not just Millionaires
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00:19:50,000 --> 00:19:53,700
and billionaires will lead to a
more Equitable allocation of
362
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capital where we go.
More Capital flow into women of
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color and States like Tennessee,
where I live.
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00:19:59,700 --> 00:20:01,900
So that's kind of on the founder
side and and then on the
365
00:20:01,900 --> 00:20:04,100
investor side, it's pretty
simple, right?
366
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It's basically, like, why should
only rich people get to benefit
367
00:20:08,000 --> 00:20:11,700
from the wealth that startups
are creating when Uber IPOs?
368
00:20:11,700 --> 00:20:13,900
Why should it be?
That only Millionaires and
369
00:20:13,900 --> 00:20:16,400
accredited investors?
Get to make more money?
370
00:20:17,300 --> 00:20:19,300
Why shouldn't it be the case?
That the driver has?
371
00:20:19,300 --> 00:20:22,700
There were there on day one?
They come new millionaires,
372
00:20:23,100 --> 00:20:25,800
right?
And so, You could big problem in
373
00:20:25,800 --> 00:20:28,600
society over the last few
decades is that wealth has been
374
00:20:29,000 --> 00:20:30,800
yeah.
Concentrated in the hands of a
375
00:20:30,800 --> 00:20:33,200
smaller and smaller number of
people, and basically, our
376
00:20:33,200 --> 00:20:36,500
solution to that problem is okay
for the wealth that's been
377
00:20:36,500 --> 00:20:38,700
created by startups.
And startups are creating
378
00:20:38,900 --> 00:20:42,900
explosive wealth, let's try to
share some of that wealth around
379
00:20:42,900 --> 00:20:46,700
more broadly so that the
earliest supporters customers
380
00:20:46,700 --> 00:20:51,300
champions of those startups that
are making it big get get the
381
00:20:51,300 --> 00:20:53,100
benefit.
So that on both the founder side
382
00:20:53,100 --> 00:20:56,000
in the investor side.
It's kind of what our PVC
383
00:20:56,000 --> 00:21:02,300
Charter is all about nice and
yes, it does sound beneficial to
384
00:21:02,300 --> 00:21:03,600
the society.
So we'll learn.
385
00:21:03,600 --> 00:21:07,000
And by the way, I'm sorry people
I said that b Corp status is
386
00:21:07,000 --> 00:21:09,200
something that government gives
you I completely forgot.
387
00:21:09,200 --> 00:21:12,700
This is actually another
corporation that does that but
388
00:21:13,100 --> 00:21:16,300
it is quite reliable.
So pretty much like a government
389
00:21:16,300 --> 00:21:20,800
or maybe even better this note.
So let's let's move on and talk
390
00:21:20,800 --> 00:21:24,300
about the good thing right
before the call to action.
391
00:21:24,400 --> 00:21:27,600
Action AKA last question of
these episodes and the good
392
00:21:27,600 --> 00:21:32,100
thing being the exits that
happen after raising on WE
393
00:21:32,100 --> 00:21:36,100
fonder.
So when this gosh I keep
394
00:21:36,100 --> 00:21:42,400
forgetting the name for it.
Rex EF CF was passed a lot of
395
00:21:42,400 --> 00:21:45,300
investors were like yeah crowd
funnies for those who can raise
396
00:21:45,300 --> 00:21:48,700
from real investors and it's
obviously bullshit and they were
397
00:21:48,700 --> 00:21:51,700
proven wrong numerous times and
no one ever says that anymore.
398
00:21:52,000 --> 00:21:57,400
But Let's talk about real
numbers here, which is, you
399
00:21:57,408 --> 00:22:00,600
know, how many Aang's is?
Do you see happening after
400
00:22:00,900 --> 00:22:03,400
companies raise money on WE
funders who?
401
00:22:03,400 --> 00:22:05,900
How many of those people who
actually invest in those
402
00:22:05,900 --> 00:22:11,600
companies early on get to
experience that Uber IPO type of
403
00:22:11,600 --> 00:22:13,400
deal.
Yeah.
404
00:22:13,400 --> 00:22:16,900
So, right now, the number of
exits.
405
00:22:16,900 --> 00:22:21,100
We've had Acquisitions with,
certainly IPOs.
406
00:22:21,100 --> 00:22:24,500
Is relatively small said,
certainly, no, kind of Uber,
407
00:22:24,600 --> 00:22:27,900
Uber Louisville exits at this
point, a couple of reasons for
408
00:22:27,900 --> 00:22:29,400
that.
I think one, you know, the Lord
409
00:22:29,400 --> 00:22:33,100
just passed in 2016, right?
So it's only five or six years
410
00:22:33,100 --> 00:22:33,700
old.
Yeah.
411
00:22:33,800 --> 00:22:35,900
And the number of companies that
we had.
412
00:22:36,000 --> 00:22:39,200
The launching in May was a very,
very small number, right?
413
00:22:41,200 --> 00:22:43,300
The other thing.
I'd actually maybe push back a
414
00:22:43,300 --> 00:22:47,900
little on what you said like it
in May of 2016 both because the
415
00:22:47,900 --> 00:22:51,700
laws were initially very
unfriendly for found this like
416
00:22:51,700 --> 00:22:53,800
in 2016, we would put 1,000
people.
417
00:22:53,900 --> 00:22:57,600
Your cap table.
Now in 2022, we put one SPV on
418
00:22:57,600 --> 00:23:00,500
your cap table, so it's a lot
more friendly in 2016.
419
00:23:00,500 --> 00:23:03,700
You could only raise 1 million.
Now, you can raise five million,
420
00:23:03,700 --> 00:23:05,900
right?
So now it's a lot more
421
00:23:05,900 --> 00:23:09,400
interesting to the founders, but
in 2016, there was actually an
422
00:23:09,400 --> 00:23:13,000
adverse selection partly also,
because it was new and no one
423
00:23:13,000 --> 00:23:16,600
had ever done it before.
And now in 2022, you have
424
00:23:16,600 --> 00:23:19,700
companies like Mercury, like,
Rome research, like, replicate
425
00:23:19,700 --> 00:23:23,900
like love was, you know, very,
very fast growing success.
426
00:23:24,000 --> 00:23:26,400
Successful Venture backed
companies who are doing this.
427
00:23:26,700 --> 00:23:28,700
Not because they need the money
and don't have any other
428
00:23:28,700 --> 00:23:32,600
options, but rather because
they, you know, want to let
429
00:23:32,600 --> 00:23:35,000
their customers and Community
invest alongside VCS.
430
00:23:35,100 --> 00:23:36,700
Hmm.
So I think it's much less
431
00:23:36,700 --> 00:23:38,600
adverse selection now.
And obviously, we've had great
432
00:23:38,600 --> 00:23:40,400
companies.
Do we fund it down the years?
433
00:23:41,100 --> 00:23:44,400
But there's much less adverse
selection now and so the quality
434
00:23:44,400 --> 00:23:48,000
of the portfolio and equality of
companies launching, you know,
435
00:23:48,500 --> 00:23:52,300
now versus even, you know, a
couple of years ago is really,
436
00:23:52,300 --> 00:23:54,900
really exciting, which is
obviously, See that you know
437
00:23:54,900 --> 00:23:58,700
codes bodes well for future
future kind of investor returns.
438
00:23:58,700 --> 00:24:02,300
But I bet you if you look at the
cohort performance you know by
439
00:24:02,300 --> 00:24:05,000
year of We funders R XE F
portfolio.
440
00:24:05,400 --> 00:24:08,300
There's going to be a
significant increase in 2021
441
00:24:08,300 --> 00:24:12,200
going forward because of the SEC
Law changes that were rolled out
442
00:24:13,400 --> 00:24:16,100
around that before. 2016 is all
we fund.
443
00:24:16,100 --> 00:24:20,300
A I was was doing regulation D
crowdfunding well that kind of
444
00:24:20,300 --> 00:24:23,400
the AngelList model and we have
a pretty good like I think
445
00:24:23,900 --> 00:24:27,300
Looking at a, we have a page.
We funded.com / results where we
446
00:24:27,300 --> 00:24:31,400
try to be transparent with
investor returns and unrealised.
447
00:24:31,400 --> 00:24:35,200
Net irr from a wrecked.
E-portfolio is 23%.
448
00:24:35,400 --> 00:24:42,400
We got into checking code
bioworks, rappy zenefits.
449
00:24:42,400 --> 00:24:44,300
So, some some pretty nice
companies.
450
00:24:44,300 --> 00:24:48,100
We went through YC in 2013, so
that helped us get into some
451
00:24:48,100 --> 00:24:51,900
pretty nice companies.
So that's what ways he does.
452
00:24:52,000 --> 00:24:57,400
That is why C does On this
optimistic note, let's by the
453
00:24:57,400 --> 00:25:00,400
way, one more thing before we
jump into the very last
454
00:25:00,400 --> 00:25:05,100
question, is that the word SPD
was dropped here?
455
00:25:05,200 --> 00:25:08,800
Quite a few times for people who
don't know what special purpose
456
00:25:08,800 --> 00:25:11,200
vehicle is.
I'm going to include the link in
457
00:25:11,200 --> 00:25:14,200
the description of this episode
where I have interviewed the E
458
00:25:14,200 --> 00:25:18,800
CEO and founder of assure, which
is the largest syndication
459
00:25:19,400 --> 00:25:21,900
platform in the entire United
States.
460
00:25:21,900 --> 00:25:24,300
So if you want to learn about
spb's, how you can Actually use
461
00:25:24,300 --> 00:25:27,500
them for your own run around,
even if you are not doing the
462
00:25:27,500 --> 00:25:32,900
equity crowdfunding or Community
rounds, should I say thank you
463
00:25:32,900 --> 00:25:35,800
still can use that stuff.
And actually might be quite
464
00:25:35,800 --> 00:25:37,800
useful.
So yeah, check out the link in
465
00:25:37,800 --> 00:25:40,700
the description.
And on this note, let's go and
466
00:25:40,900 --> 00:25:42,200
touch on to the very last
question.
467
00:25:42,200 --> 00:25:44,600
If today's episode, which is the
call to action.
468
00:25:44,600 --> 00:25:47,000
So Johnny, what do you want to
listen to do?
469
00:25:47,000 --> 00:25:51,000
As soon as this episode is over,
So I'm going to break the
470
00:25:51,000 --> 00:25:54,800
cardinal rule of ctas and give
you two versus y, okay?
471
00:25:54,900 --> 00:26:00,600
All right, you know, if you're a
Founder, would obviously love to
472
00:26:00,800 --> 00:26:03,400
connect, if we can help you
raise money, right?
473
00:26:04,100 --> 00:26:07,100
Either again to Value puffs of.
We fund it one.
474
00:26:07,200 --> 00:26:10,100
If you know, you, you around
needs a boost.
475
00:26:10,100 --> 00:26:12,100
We can help you raise more money
more quickly.
476
00:26:13,400 --> 00:26:16,500
And then, secondly, if you
around doesn't need a boost, you
477
00:26:16,500 --> 00:26:19,300
can easily get funded but you
really like the idea of letting
478
00:26:19,300 --> 00:26:21,800
your customers and Community
invest, then we'd love to chat
479
00:26:21,800 --> 00:26:23,800
with you.
So we found the dot-coms /
480
00:26:23,800 --> 00:26:27,600
raised, you can just go in, you
know, and some information and
481
00:26:27,600 --> 00:26:32,300
connect with our team or I I'm
always giving him my email, it's
482
00:26:32,300 --> 00:26:36,700
Johnny at we fun.com jj0 and
then why are we found out a
483
00:26:36,700 --> 00:26:39,000
special Journey?
That if you've, if you've
484
00:26:39,000 --> 00:26:41,600
listened to the me droning on
for this long, then you must be
485
00:26:41,600 --> 00:26:44,600
really interested in what we're
doing and your reward is, my
486
00:26:44,600 --> 00:26:48,100
email address is not that much
of a reward but that's on the
487
00:26:48,100 --> 00:26:52,200
fan of side and Then on the
investor side like you know and
488
00:26:52,600 --> 00:26:55,800
anyone can be an investor now
for 100 bucks.
489
00:26:55,800 --> 00:26:57,900
Yeah.
That they love on.
490
00:26:57,900 --> 00:27:00,800
WE fund are so we found that our
construction Explorer you can
491
00:27:00,800 --> 00:27:02,700
browse through hundreds of
startups that are raising.
492
00:27:03,400 --> 00:27:06,500
See if one takes your fancy and
give it a whirl you know and try
493
00:27:06,500 --> 00:27:10,100
it out and become an investor
and startup for the first time
494
00:27:10,100 --> 00:27:13,100
for a hundred bucks in a couple
of minutes and then maybe you
495
00:27:13,108 --> 00:27:14,600
can help that help that found
out.
496
00:27:14,600 --> 00:27:16,300
Maybe you can follow along for
the journey.
497
00:27:17,100 --> 00:27:20,200
We never like to frame this as
Like do this to become a
498
00:27:20,200 --> 00:27:24,400
millionaire you know it's not up
to you love because it's true
499
00:27:24,400 --> 00:27:28,600
statements to me, interested mr.
Mica, well, fundraising, that's
500
00:27:29,100 --> 00:27:30,700
right.
Yeah, everyone can become an
501
00:27:30,700 --> 00:27:34,800
investor really easily and and
we wanted to take the number of
502
00:27:34,800 --> 00:27:37,500
Angel Investors in the US or
whatever it is today, you know,
503
00:27:37,500 --> 00:27:41,300
a few thousand to like a few
million actually over the coming
504
00:27:41,300 --> 00:27:42,600
out.
Now, I'm very interested.
505
00:27:42,600 --> 00:27:45,100
What's the number of Angel
Investors here?
506
00:27:45,300 --> 00:27:51,200
Put it in the show notes.
I was just do a quick Google
507
00:27:51,200 --> 00:27:53,800
search and it's actually about
300,000 people.
508
00:27:53,800 --> 00:27:57,500
You were a tiny bit off, right?
A Thousand Angels.
509
00:27:57,900 --> 00:27:59,300
Yeah.
Actually, that's honestly,
510
00:27:59,300 --> 00:28:02,000
that's a believable number.
You cannot imagine the amount of
511
00:28:02,000 --> 00:28:08,100
people who are just chilling.
Those Angel groups guy know they
512
00:28:08,100 --> 00:28:09,800
have is like a hideout wasn't
snow.
513
00:28:09,800 --> 00:28:12,400
I'm telling you, man, that they
have thousands of people there
514
00:28:12,400 --> 00:28:15,700
and that's it's insane.
Anyways, on this very
515
00:28:15,700 --> 00:28:19,300
optimistic, note now people I
know that there are 300,000
516
00:28:19,300 --> 00:28:21,800
Angel Investors out there so
we've got plenty of people to
517
00:28:21,800 --> 00:28:26,300
reach out to and raise money
from and adult a queen but
518
00:28:26,300 --> 00:28:29,400
that's going to take that number
from 300,000 to hit badly.
519
00:28:29,400 --> 00:28:30,900
Millions, exactly.
Right there.
520
00:28:31,000 --> 00:28:34,800
The point still hold the point.
Does still whole.
521
00:28:34,800 --> 00:28:37,900
Yes, absolutely does.
And for everyone listening to
522
00:28:37,900 --> 00:28:41,900
this obviously old and notes are
going to be there, so if you
523
00:28:41,900 --> 00:28:44,900
already forgot half of the
things that we said here, that's
524
00:28:44,900 --> 00:28:47,200
completely fine.
I redid as well.
525
00:28:47,300 --> 00:28:50,100
That's why I'm taking accurate
notes and you should check them
526
00:28:50,100 --> 00:28:53,400
out in the description of the
sepa do, and as usually have a
527
00:28:53,400 --> 00:28:56,300
good day, thanks guys.
