Details
1 | Y Combinator 2017 alum. |
2 | A division of very successful 70 Million Jobs, the 1st national, for-profit employment platform for people w/records |
3 | 11 million + people (with records) in our community + 100's of community partners |
4 | Last large population without its own social network. |
5 | Social networks can return spectacular investment returns (FB, TWTR, SnapChat, Instagram) |
6 | $1M+ ARR |
7 | Investors including: Y Combinator, Founders Fund, mAc Capital, Quake Capital, Insight general partners |
8 | 70MJ valuation has risen 10x since launch. |
So that people can shed the shame and the stigma within themselves, and accept themselves, and in doing assert their right to be treated as human beings...and get on with their lives.
Background. In 2016, Richard Bronson launched 70 Million Jobs, the first national, for-profit employment platform for people with criminal records. Learning of the launch, LA Mayor Eric Garcetti’s office reached out and asked Bronson to partner with the city, to help reduce unemployment and recidivism among the formerly incarcerated. Y Combinator then recruited Bronson to go through its program. Upon completion, Bronson raised VC money from the likes of Founders Fund, mAc Capital, Quake Capital, Y Combinator and Insight general partners, and began building his business in SF, later moving the team to Los Angeles.
In less than three years, 70 Million Jobs succeeded in facilitating employment for thousands of deserving men and women at some of the country’s largest employers, more than any other organization has achieved, while at the same time driving $3.5 million in ARR. During the past 4 years at 70 Million Jobs, we:
Next. The coronavirus has virtually eliminated new hiring as 40 million Americans have lost their jobs. But this event provided us with the time and bandwidth to embark on the next step in our evolution: build the first social network for the 70 million Americans with a criminal record.
Introducing Commissary Club. The first social network for the 70 million Americans with criminal records. Commissary Club will offer:
1. A social network (with the connective tissue of a Facebook)
PICTURE OF CC NEWS FEED WITH ENGAGEMENT (JOEL / ANASTASIA)
2. Lots of content: news, music, videos, art, games
PICTURE OF "CONTENT" SITE (BRIANA)
3. An e-commerce marketplace: specially curated goods and services, including housing, classes, mentorships, employment, medical and legal services, clothing, marijuana and much more.
Our advantages from Day 1. We already have 11 million folks with records in our community. We already have 450+ partnerships with every important community organization, non-profit, governmental agency, parole and probation department, correctional facility. We know every key influencer in reentry. We know how to market to this population like few others. We enjoy an excellent reputation in the space.
Revenue: NEED NEW PROJECTED REVENUE
Market Opportunity: Commissary Club as a social media platform is operating in a $52.7 billion market, with projected 100 million users. It is estimated that close to 100 million Americans are either directly or indirectly involved in the criminal justice system. We plan to tap into that full market, serving not only users with a criminal record, but also their friends and family members who experience unique challenges.
Exit Strategy: [I'd like to discuss with you Richard -- do we want to include this ? (We don't have it on Republic). If so, what IS our exit strategy?
$1.4M in funding to date
70 Million Jobs has raised over $1.4M in funding today from prominent investors, including Founder's Fund, Insight partners, MaC Venture Capital, Quake Capital, and Y Combinator. By reaching our fundraising goal of $3M, we hope to build out our team so we can enhance our platform and provide more individuals a pathway to employment.
Commissary Club/70M Resources has financial statements ending December 30 2020. Our cash in hand is $250,000, as of January 2021. Over the three months prior, revenues averaged $10,437/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $72,384/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
One in three Americans live with criminal records. That's 70 million people. And most of these 70 million Americans experience pain when they try to reintegrate into the workforce. As an ex-convict myself, I wanted to serve my brothers and sisters in and out of the prison when I was released. That's how I got to building the first job board for the formerly incarcerated.
At first, my goal was to be responsible for one million men and women having an opportunity – maybe for the first time in their lives – to truly live the American dream. The human being in me would be happy if there were even just one but the businessman in me wants a bigger number.
Ultimately, 70MillionJobs' goal is to become a billion-dollar business that will pump in 70M people back into the US economy and introduce them to necessary services, like banking and healthcare.
Milestones
70Million Resources, Inc. was incorporated in the State of Delaware in August 2016.
Since then, we have:
Historical Results of Operations
Our company was organized in August 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $44,484 in debt, $255,000 in convertibles, and $650,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 7 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
70Million Resources, Inc. cash in hand is $100,000, as of March 2018. Over the last three months, revenues have averaged $25,000/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $42,000/month, for an average burn rate of $17,000 per month. Our intent is to be profitable in 3 months.
Prior to November, 2017, we were primarily engaged in building our network of active job seekers. Currently, we have access to more than one million potential applicants with criminal records.
In November, 2017, we began selling efforts, directed at large, national employers. The sales cycle is approximately 3-4 months, on average. We are now signing up large companies at an accelerated pace and believe we generate significant revenue on an on-going basis, as a result.
Per above, we are now seeing the fruits of our prior months' sales efforts, in the form of large, national employers engaging us for recruitment services. We believe that if our clients have a positive initial experience with our services and the applicants they hire, they will continue utilizing our services on an on-going basis. We are signing up several new, large customers on a weekly basis, so we expect to see significant revenue to result. This should build as new client business is added to existing business.
1 | A large recruitment platform (Indeed.com, Zip Recruiter) or staffing/recruiting company may enter this space and squeeze our margins. |
2 | The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions. |
3 | The involvement of the Company’s Chief Executive Officer, who has previously been charged and pled guilty to securities fraud and conspiracy charges, could heighten the risk that the activities of the Company would be subject to regulatory scrutiny and any such investigation could materially adversely affect the Company. |
4 | The business is yet to be profitable, and relies upon the availability of investment capital to maintain operations. If for any reason outside investors chose not to invest, then there'd be an existential danger to the business. |
5 | The regulatory environment surrounding the hiring of the formerly incarcerated is changing quickly from state to state and on the municipal level. Unforeseen regulations could negatively impact our ability to do business. |
6 | Negative press attention--such as one of our applicants acting violently on the job--could undermine our ability to convince employers that our applicants were desirable hires. |
7 | Since we target large, national employers as clients, we are dependent on their ability to honor their obligations to pay us. If a large client were unwilling or unable to pay us, this could have a negative impact on our business. |
8 | Our future success depends on the efforts of key personnel and consultants, especially our founder, Richard Bronson. The loss of services of Mr Bronson or any key personnel may have an adverse effect on us. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business. |
9 | We rely on our ability to attract adequate numbers of both job seekers and to provide job listings. If either of these are unsuccessful, then this could be detrimental to our success. |
Director | Occupation | Joined |
---|---|---|
Richard Bronson | CEO of 70MillionJobs @ 70MillionJobs | 2016 |
Officer | Title | Joined |
---|---|---|
Richard Bronson | CEO CEO | 2016 |
Holder | Securities Held | Voting Power |
---|---|---|
Richard Bronson | 4,404,000 Common Shares | 60.0% |
Date | Amount | Security |
---|---|---|
11/2018 | $94,536 | SAFE |
08/2016 | $50,000 | Convertible Note |
03/2019 | $255,000 | Convertible Note |
08/2016 | $44,484 | Loan |
10/2017 | $650,000 | SAFE |
Issued | Amount | Interest | Discount | Valuation Cap | Maturity |
---|---|---|---|---|---|
08/02/2016 | $50,000 | 0.0% | 0.0% | $1,000,000 | 01/01/2030 |
03/01/2019 | $255,000 | 0.0% | 0.0% | $6,000,000 |
Lender | Issued | Amount | Oustanding | Interest | Maturity | Current? |
---|---|---|---|---|---|---|
Richard Bronson | 08/10/2016 | $44,484 | $44,484 | 0.0% | Yes |
Name | Richard Bronson |
Amount Invested | $44,484 |
Transaction type | Loan |
Issued | 08/10/2016 |
Outstanding principal plus interest | $44,484 as of 04/2018 |
Interest | 0.0 per annum |
Outstanding | Yes |
Current with payments | Yes |
Relationship | CEO, Founder |
Richard Bronson, CEO and founder leant the company $44,484 when it was first created, and is due to be paid back at some point in the future when the funds are available. It is an interest free, term free loan. | |
Name | Richard Bronson |
Amount Invested | $20,000 |
Transaction type | Safe |
Issued | 06/06/2017 |
Discount rate | 0.0 |
Valuation cap | $6,000,000 |
Relationship | CEO and Founder |
This was money invested in the Y Combinator SAFE fundraising round for 70million Jobs. | |
$50,000 | 95% Build out sales and development team 5% Wefunder Intermediary fee |
$107,000 | 35% Build out sales and development team;
20% add marketing capacity;
20% increase national presence at job fairs;
20% hasten our national scaling. We would like to have a presence in all 50 states and quadruple the number of organizations we with with.
5% Wefunder Intermediary fee |
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Common Stock | 10,000,000 | 4,894,528 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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