|1||$1.5M+ donated w/ 67% MOM growth from 5K donors. Revenue avg 5%+|
|2||CEO has Harvard MBA. CTO is a serial Founder/CTO with 2 prior acquisitions & raised $20M+ from a16z|
|3||Investment from XX, Y-Combinator alumni, Human Interest Cofounder, Caviar Cofounder & many customers|
|4||Fastest-growing social movement in a $410B philanthropic space|
|5||Partnered with Philanthropy Together — the new giving circle initiative from the Gates Foundation|
|6||Circles have been featured in the NYT, Forbes, Vogue, and local outlets throughout the country|
|7||Grapevine is a paradigm-shift for online giving|
Grapevine has built a platform for a revolutionary new type of peer philanthropy: giving circles. With very limited resources, Grapevine has already managed to move over $1,000,000 in donation money and make a huge splash in philanthropy space. This company represents an enormous opportunity for investors: there's easily the potential to build a billion dollar company as well as significantly increase the amount of total charitable giving worldwide, and in doing so, address some of our most challenging social problems today. Finally, it's led by a remarkable founder who's spent years working in finance for social impact. Emily is a rare founder who truly wants to build a greatbusiness and give back.
We're the first open crowdgranting platform that enables donor groups to 1) pool their money in a charitable fund before deciding where to give, 2) do this on a recurring basis, 3) track their impact over time. This community-based experience is distinct from the transactional experience of crowdfunding, where donors support the goals and passions of others through a one-time campaign. Grapevine is a paradigm-shift in how we give.
Emily R. has 10 years of microfinance and nonprofit fundraising experience and spent her time at Harvard Business School consulting for Kickstarter and launching a new crowdfunding platform. Arrel is a serial startup founder & CTO who built the Andreessen-Horowitz-backed company, Wonderschool, and two other startups that were acquired.
Through these partnerships we are becoming THE trusted partner and go-to online infrastructure provider for giving circles across the country. Our growth has come from these partnerships, referrals, outreach, and organic growth from donors finding us online and starting their own circles on the platform.
We are a tip-based platform like many leading platforms, e.g. GoFundMe. We accept tips from donors when they make donations. We're already speaking with universities, wealth advisors, nonprofits and more that have reached out to us about a premium version.
Covid-19 has created greater need in our communities than ever. It has also made it impossible for Giving Circles to meet in person to do their grantmaking, which is driving increased adoption of Grapevine's online tools and virtual meeting support.
And Giving Circles have already been growing rapidly. This grassroots movement has tripled in the past 10 years... and is expected to more than double by 2024.
We'll do this by continuing to capture the existing Giving Circle industry through partnerships, referrals, and business development. We will also expand the market through strategic partnerships with networks and communities and digital marketing.
We’re starting by making giving circles easier to start, run, and grow through online tools. Giving Circle Leaders no longer need to spend weeks or months setting up infrastructure!
And we're expanding the adoption of Giving Circles by introducing them to a broader range of donors who are eagerly adopting and spreading this new model.
Ready to start your own? Head to Grapevine.org to start yours today!
The need in our communities and the importance of online solutions for us to meaningfully gather, collaborate, and donate is greater than ever. The opportunity for us to make a massive difference is NOW. Help us lean into this moment to support communities today and lay the groundwork for the future of giving!
Grapevine has financial statements ending December 31 2019. Our cash in hand is $78,820.30, as of June 2020. Over the three months prior, revenues averaged $17,065.46/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,337.38/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.
We are an all-in-one payments and community management solution for Giving Circles. With Grapevine, circles can launch in just a few minutes, collect donations, nominate and vote on nonprofits, invite new members, crowdfund, get expert advice, create reports, and more.
Giving Circles bring people together around a common cause, community, motivation, or goal. They have two key elements: 1) a group of donors pools their recurring donations, 2) the group decides together where to donate the money.
In 5 years we hope to have facilitated $1Bn in donations and will have helped grow the Giving Circle industry from 1.6K circles nationally to nearly 6K. We plan to do this by making it easier and cheaper for existing circles to manage and grow their operations, and by making it simple for new circles to launch in just a few minutes and grow and succeed with our all-in-one solution. We hope to take the giving circle model into whole new communities with our light touch solution.
GoodMatch Inc. was incorporated in the State of Delaware in August 2017.
Since then, we have:
Historical Results of Operations
Our company was organized in August 2017 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 $165,086 in debt and $400,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 9 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 6 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
GoodMatch Inc. cash in hand is $78,820.30, as of June 2020. Over the last three months, revenues have averaged $17,065.46/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,337.38/month, for an average burn rate of $3,271.92 per month. Our intent is to be profitable in 3 months.
In the first half of July, our financial picture became stronger. We raised $20K on a SAFE MFN from the XX Fellowship and brought in $5K more that had been previously committed as part of our last fundraising round.
Revenues: We expect (although cannot guarantee) to grow our active giving circles to 86 by the end of Q3 and 128 by the end of Q4, and our total donors from 5,831 to 9,072, respectively. Our corresponding revenue we expect is $50K over the next 3 months and $150K over the next 6 months. These numbers are based on our current team and capacity, and stand to be significantly accelerated if we raise near or over $1M and are able to invest more heavily in growth and engineering.
Expenses: If we raise near or over $1M, we will scale up our engineering team and sales/growth efforts so that our expenses will be approx. $200K over the next 3 months and $380K over the next 6 mos. If we raise $50K or another more moderate amount, our expenses will be leaner at approx. $75K over the next 3 months and $150,000 over the next 6 months. We will adjust our spend in between these ranges as needed, based on how much we are able to raise and where our resources can create maximum value.
We recently received $3,000 from the SBA as an Economic Injury Disaster Loan Grant.
The long-term success of Grapevine will depend on donors continuing to donate tens of billions of dollars every year. We believe this is inevitable, as this has been the status quo in the United States for decades. When economic times are strong, people have more resources to give and when they're not strong, there is more need to be met that drives people who have resources to give more.
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.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case the Company might need to reduce sales & marketing, engineering, or other expenses. Were recurring revenue to decrease, further cuts would be needed and hurt the Company’s ability to meet its goals. Even if the Company raises the entire round successfully, we may need to raise more capital in the future in order to continue. Even if we do make successful offering(s) in the future, the terms of that offering might result in your investment in the company being worth less because of the terms of future investment rounds.
If social distancing relaxes and giving circles do not continue to go virtual at the same rate, our rate of onboarding new giving circles may be reduced. We believe this is unlikely to happen until we have sufficiently captured and begun to significantly expand the market. In addition, as the economic strain of COVID lessens and in-person gatherings begin again, we expect more donors to participate in giving circles and to give more.
The Company relies on Amazon Web Services for hosting and other third party vendors such as Stripe and Bill.com for payments and financial services. Any interruption in the availability of these services could have material negative impact on our ability to deliver service to users, as well as the profitability of these operations. Interruptions could occur due to both Internet outages as well as policy changes or terms violations according to these third parties
We face potential competition to our collaborative giving platform including from major giving platforms and social/community platforms. Many of our potential competitors have greater resources than we do, but we believe our deep knowledge of the space, industry partnerships, and first-mover advantage in a market where switching costs are high (recurring, scheduled donations & community) position us well for success even if these companies moved into the space.
Temporary Rule 201(z)(2) provides temporary relief from certain financial information requirements by allowing issuers to omit the financial statements required by Rule 201(t) in the initial Form C filed with the Commission. This offering has commenced in reliance of Temporary Rule 201(z)(2) and, as a result, the following must be disclosed: (i) the financial information that has been omitted is not otherwise available and will be provided by an amendment to the offering materials; (ii) the investor should review the complete set of offering materials, including previously omitted financial information, prior to making an investment decision; and (iii) no investment commitments will be accepted until after such financial information has been provided.
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