Raising Money – Bridge Round

By: Robert Grosshandler | May 12, 2018

Growing companies quickly takes cash.  We’re no different.  Because our main way of doing  that is our Reg. A+ offerings, and we’re not going to have an offering qualified by the SEC for some time to come (see this blog post) we’re raising money through a convertible debt offering.  This should provide us enough cash to bridge us until our current offering gets qualified.

If you’re an accredited investor (or just curious) head on over to Crowdfunder, where we have our campaign.

Basic terms of this raise (our goal is $500,000):

  • 3 year loan
  • 12% interest
  • Interest accrued for the first year
  • Interest only years 2 and 3
  • Convertible at holder’s option into RWRDP at $.075 / share
  • Restricted shares (must hold shares for at least 1 year)
  • Minimum investment $1,000
  • Accredited investor only

Why we’re raising money.

We’ve cracked the member acquisition “code”.  In the first quarter of 2018, after we introduced Bitcoin, and our stock began to be quoted on the OTC, we finally had all the pieces in place.  New shoppers who joined during Q1 paid back the marketing costs of attracting them to iConsumer in less than 45 days.  Even more importantly, they didn’t stop shopping.  We’re estimating that our new shoppers are going to generate $50 or so in cash in their first year of membership.

That translates into needing around 23,000 more shoppers so that we’re bringing in more cash each month than we’re spending.  Positive cash flow.

We’re estimating that it’ll take about $1,000,000 to attract those shoppers, depending in part on how long it takes us to attract them to iConsumer.