You can only allocate $1, once. It stays in that investment for up to ten years where you will only get it back during a successful exit.
With our model, we invest those dollars into human capital that can work for 2-4 different startups in one year, guiding them to success.
We believe that with the correct deployment, our ecosystems can produce 3X the output when compared to how the current venture market is positioned.
Venture capital & angel funding are mostly based on a strong belief from investors that a company will increase value to over $500M and then exit.
However, 90% of the time, their beliefs are wrong. As our ecosystems grow (we anticipate working with 4,000 startups over ten years), we will gather data on the best ways to build startups.
This way we can distribute a startup playbook to all of the startups in our ecosystem, in turn giving them a much higher chance of success.
If founders would use a traditional capital raise to hire engineers, sales, and marketing specialists...what happens if we supply the core pieces in exchange for equity at the idea stage?
They are able to raise less capital and be more capital-efficient with the funding they have already received.
Our goals is to get startups within our ecosystem to $1-3M in revenue within 18 months. If we can get them off the ground faster, we can deploy our resources towards new ideas at an unmatched pace.
Our ecosystems will have the power to have a great effect on the communities we build them in.
From creating code schools to enhance the job possibilities of underrepresented ethnicities, to creating an internship program that will be a pipeline for talent, our ecosystems will be about more than startups and will change they people build companies as well as the communities they live in.
KnowCap is designed to not only train and mentor founders, but to also train unemployed and underemployed workforce so that startups within our ecosystem have access to a growing talent pool.
What makes us special is that we want to supply the designers, marketing, branding experts, product savants, engineers, legal support, and HR professionals to the companies within our ecosystem. These resources will allow them to develop, build, and iterate at a speed that rivals founders with more access to funding.
Designed to help startups within our ecosystem with getting off the ground quickly. We'll supply legal, marketing, hiring, branding, engineering, and product help (among others).
An online mentorship program where founders work with veteran operators throughout the startup ecosystem for 2-years to help them hone in their leadership and strategy skills.
Many startup teams are lacking the resources that it takes to get off the ground or take their business to the next level. With Exchange, they are able to engage with various services in exchange for equity in their company.
Talent is a revenue-share program where we partner with entrepreneurs who focus on cash-flow centered business models. Agreements will be centered around 1.5-3x the market value of the service provided.
Being in the same place as other aspiring founders can create an electrifying atmosphere. We'll offer traditional co-working. The unique piece is we'll also have a 24-month program where startups can exchange equity-for-space and access to all of our events/courses.
Having so much access to founder pain points will give us a unique perspective on what tools to develop and when. This combined with our Startup Agency services is a powder keg for our own startups ideas.
Having a successful ecosystem means that we will have to put our skin in the game as well. Our Ventures team will be responsible for making Seed - Series C investments into our most promising startups.
We believe that accessible education and training valuable skills to the community where our ecosystems are located not only helps us find talent for startups within our ecosystem, it helps us improve the lives of the community as well.
With an average deal-size of $10M (on the low-end) and a exit rate of 6.2% for our startups, investors will commit $5M in capital and receive $134M over ten years. We understand that a 25X return sounds ludicrous, so here is access to our growth model from 2020-2029.
This returns grows exponentially as our brand becomes more synonymous in startup circles and we scale our network of talented associates. Within 20 years, we aim to have had ten, billion dollar companies produced by our ecosystems.
By becoming an investor in KnowCap, you will also be invested in many of the startups in our ecosystem. If we succeed at working with 200-300 startups per year, in some capacity, your ownership in our ecosystem will also enjoy the benefits of this exposure.
This also means that you can invest once in our Atlanta ecosystem and then reap the rewards of our successful work with startups for decades. In some cases, investors will be able to take bigger risks outside of their position because we give them a protection on downside risk.
We hope to be the equivalent of owning the S&P 500 within your portfolio. Aiming for base hits, while allowing our investors to more aggressively focus on grand slams.
It is no secret that 1) Underrepresented founders receive less funding opportunities than their white, make counterparts 2) Atlanta is seen as a second-tier (sometimes third-tier) startup hub.
We want to change both paradigms. Being based in Atlanta, we are well aware of the talent within and around the city.
With our community poised to be the center of gravity for successful underrepresented founders, your investment in KnowCap will help us solidify our mission further.
An investment into our ecosystem means that you could stop there and still make a 12-15X return, however it also opens you up for incredible dealflow. Our ecosystems will operate in "smaller" startup markets Our investors will receive personalized introductions to any startups that fit into their investment philosophy and criteria.
Not only will you be able to diversity your investments throughout 1,200 startups, you will have first access to investments that match your industry and traction preferences.
We modeled our investment process after Rand Fishkin's capital raise for SparkToro.
Meaning that as part owners of KnowCap Atlanta, our investors are eligible for a annual distribution depending on our profitability in the preceding year. This allows our investors to invest in KnowCap and then get receive parcels of capital to deploy in other startups.
Currently, investing in a startup means remaining in that position until they either fail or exit. Even in a successful outcome, your funds are illiquid for 7-10 years on average. Using our alternative method of funding, you will be able to receive return on capital as early as the fourth year.
We have reserved 40% of our Atlanta ecosystem's equity to raise to investors. Furthermore, we only plan to raise capital once for our initial ecosystem.
With our ecosystem projected to become profitable in its fourth year, and expansions/reinvestment into the community being funded by exits, KnowCap Atlanta will be able to sustainably expand without another injection of capital.
Our investment process is a little unique. We will be following the model that Rand Fishkin ( Founder of Moz & SparkToro) used to raise funds for his new startup.
We want to run a sustainable, high-growth startup, not a grow-at-all-cost company. In addition, we want to align ourselves with the startups and communities we serve, while also making a healthy return for our investors.
That said...we do not plan to sell KnowCap or to conduct an IPO in the future. But, we do plan to be a billion dollar company by 2032.
At the end of the day we are looking more for sponsors and partners than investors. The people who give us their hard-earned dollars should be invested in watching our Atlanta ecosystem thrive, because our impact will not only be on the lives of the founders we work with, but even more so on the community around it.
You can find out more about the basis of Rand's fundraising model by clicking here.
We designed our investment process to be extremely simple and straight-forward. It should take approximately 48 hours to invest in the our innovative approach to supporting the startup community in Atlanta.
4. Sign KnowCap's Unit Purchase Agreement
5. Sign KnowCap's LLC Agreement
Offers and sales of these securities are made under an exemption from registration and have not been registered under the Securities Act of 1933.
For a period of six months from the date of the sale by the issuer of these securities, any resale of these securities (or the underlying securities in the case of convertible securities) shall be made only to persons resident within the state or territory of Georgia.
Initial sales to unaccredited investors will be made only to residents of the state or territory of Georgia.
Unaccredited investors in KnowCap Atlanta are only permitted to invest up to $10,000 and must be Georgia residents. Accredited investors must be able to verify their net-worth and income to qualify for the institutional discount.
Once you are ready to begin the process, please enter your full name and email.
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