• Average investment range $6K to $18K.
  • Average valuation of company at time of investment = $500,000
  • Instrument = convertible debt note.
  • $18K into $500K = 3.6% to 6% equity from cash investment only
  • Additional 9% in sweat equity for mentoring services and tag along in Social Impact investment meetings.  3% goes to lead mentor.  3% to pool of 9 mentors.  3% to Cal-Xelerator (50.1% Cal-X Stars) Investors.
  • 3% royalty on gross sales for 1st full 3 years of sales.  1st year is not triggered until $10K in revenues aggregate is reached.
  • 7% warrants, 15 year strike time, strike price equal to seed round price.
  • *BONUS OPTION* Liquidation preference.  Cal-Xelerator shareholders receive 3X return before other shareholders are paid.
  • Preferred stock with 5:1 voting rights.
  • Right to participate pro rata in future rounds.
  • Two board seats if desired.
  • Lead Cal-Xelerator Mentor gets stock option agreement in company equal to CFO level – 20% vesting a year for 5 years.