Invest in Chisos: Fast, flexible capital for great entrepreneurs. More reliable returns for investors. | Wefunder
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A Convertible Note is debt that converts to equity. If you invest, you're betting the company will be worth more than $15M in the future
Did you know that personal savings, credit cards, and family contributions make up 83% of all startup funding? Or that, according to a Morgan Stanley report, traditional VCs have a $4T blindspot when it comes to women- and minority-led businesses?Chisos provides a unique source of alternative financing for overlooked and under represented entrepreneurs
Your investment will help build the platform to connect great potential founders with capital
Fewer than 23% of founders who receive VC funding are minorities, and only 2% of all VC funding goes to women-led groups. Meanwhile, new ventures can’t qualify for bank loans
Chisos solved this problem by pioneering an innovative investment approach: the Convertible Income Share Agreement (CISA). The CISA purposefully combines the best features of two commonly known instruments, SAFEs and ISAs
How? We receive an ISA from the founder and a SAFE in the founder’s business
Founders get the capital they need to start and grow their business, and investors benefit from a de-risked approach with uncapped upside. Win-win
We’ve raised $550K pre-seed operating capital, $500k in Fund I investment capital, and we’re currently raising $10mm in Fund II. More than 350 founders have applied for capital through our online app, (over 60 alone in March 2021), with 10 investments complete
We developed a FinTech platform with our proprietary underwriting algorithm, as well as an automated application and diligence process to source, underwrite and service thousands of applications and hundreds of investments
More individuals are seeking to start their own businesses; this translates to demand for new business funding of $3 billion+ per year in the U.S. alone. Millennials and Gen Zers are 188% more likely than baby boomers to have the aim of creating a side business
New entrepreneurship will surge, and we’ll be there to meet the moment
Our CEO, Will Stringer, has been featured in TechCrunch’s “12 ‘flexible VCs’ who operate where equity meets revenue share,” as well as on Angels and Entrepreneurs, S²TV and the Opt Out Life podcast
We have ten (10) portfolio companies in our first fund, and two more in diligence
Over 2/3rds of the portfolio companies are led by underrepresented founders. Our Investments in each range from $15K to $50K
A third of the portfolio is already making regular ISA payments, and the first to achieve a Qualified Financing to reduce the ISA was Re-Nuble Inc. (in November 2020)
Our powerhouse team is backed by a world-class board of advisors with experience growing multi-billion dollar businesses. Including:
We’re making first money capital investing better for founders and investors
Here’s how we’re founder-friendly:
With Phase II underway, we are operating as an asset manager to get capital into the hands of entrepreneurs using our CISA funding instrument
Phase III takes the FinTech infrastructure built and utilized by Chisos, and offers it to other entities and investors (universities, corporate innovation, municipalities & individuals) for their own early stage / CISA investing efforts
Our end goal is to take the CISA global, enable undervalued entrepreneurs anywhere to leverage their own potential to raise that first investment check. This outcome creates a global fintech organization with significant shareholder value
There’s no better time than the present to invest with us! Income share agreements are gaining traction in the US, predominantly in the education sector. 2020 ended with over $500 million in ISA projections, which included the job training and philanthropy spaces, respectively. We fit perfectly within the current startup ecosystem, partnering symbiotically with upstream and downstream ecosystem players
Over the next five years, we project tremendous revenue growth, both in terms of asset management and licensing/SaaS fees
The latter category represents the bulk of those gains, with over 75% of a projected total of more than $45M coming from licensing fees in 2026
In that same timeframe, we expect asset management revenue to double every year from 2024 to 2026, reaching the $10M mark by the fifth year. (NOTE: these figures are forward-looking projections that cannot be guaranteed.)
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