The world inevitably needs a global communications network which respects the freedom and privacy of its users otherwise we are destined for a dangerous dystopia that benefits very few, not the people.
You are passionate about Internet freedom and empowering creators
3,000,000+ users and growing
Generating revenue (rare for social networks)
One of the most successful companies in JOBS Act history with 1,500+ investors
Raised 6M in Series-A funding from Medici Ventures, a blockchain focused VC
Expert Team and Advisory board
Rave reviews from top influencers and media outlets across the spectrum from Joe Rogan to NPR, Fox
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Why investors us
$7,383,395 since our founding
The vision for Minds sprang from the pure passion of a young entrepreneur seeking to build a mindful software platform for the free exchange of ideas. And then, Minds gained traction and evolved into a high growth social media platform based on freedom of speech, privacy, rewards, monetization and expanding social reach.Minds today is a market disruptor with over 1 million monthly active users. We are challenging the Internet social media establishment by empowering users to control their own social world. Minds has done a terrific job establishing growth momentum. As a veteran high tech entrepreneur, angel investor and operating executive with $500 million in successful past exits, Minds is my lead investment. I am also delighted to share an operational role as chairman and co-founder of Minds supporting our founder and CEO, Bill Ottman who is also my son.
James Hyde here... I have been following Wefunder for months. Your offering is by far the most exciting - I am in for a small amount and looking forward to "pressing my bet". Best of luck and I hope to be a part of this great story.
Super excited to see a platform dedicated to free speech, security, and rewarding content creation in novel ways. The big platforms are going the way of the big news networks--too big to take principled stands--and this is creating a hunger for alternative platforms. I think Minds is a powerful one.
Bill has led the company since its inception and is recognized globally as a leading voice in alternative social media. He has been interviewed on broadcasts across the spectrum from the Joe Rogan Experience to Tucker Carlson Tonight, NPR and Wired
Jack runs day-to-day operations at Minds across the various pillars of the business. Previously, he held senior roles at IBM, and holds a B.S. in Business Administration from Washington and Lee University.
Pete brings 40+ years of experience in finance roles at companies including CA, Interworld, and more. Peter holds an M.B.A. from The George Washington University - School of Business and a B.A. from Yale University.
Stanton is currently General Counsel at Medici Ventures. Previously he served at Overstock.com, ProPay Inc., Kennecott Utah Copper Corp.
Robert has 20 years’ experience representing clients at all stages of their life cycle, from incorporation to exit, with an emphasis on working with entrepreneurs and rapid-growth companies.
Minds (www.minds.com) is an open source, community-owned social network dedicated to digital rights.
You earn tokens powered by the blockchain for contributions to the network. The tokens can be exchanged for more views on content or sent to other channels as a tip or paid subscription.
We offer upgraded accounts for bonus features and enhanced monetization for creators.
Where will your company be in 5 years?
Our mission is to become the top social network on earth, powered by the people, as fast as possible. Traditional social media networks are overrun with surveillance, censorship, demonetization and restrictive algorithms. Minds solves these problems with free and open source software, free speech policy, privacy, tokenization and decentralization.
Why did you choose this idea?
The world inevitably needs a global communications network which respects the freedom and privacy of its users otherwise we are destined for a dangerous dystopia that benefits very few, not the people.
How do you acquire new users?
Minds growth strategy so far has been organic through word-of-mouth and propelled from the support of the global free speech, privacy, alternative media and open-source communities. We have spent very few resources on marketing, but we do have access to millions of followers on other social network pages we administrate, which we are constantly using to migrate users via viral news articles. As old social networks continue to censor, spy and limit the reach of their users, the demand grows for an ethical alternative.
What's new about what you're making?
We operate very differently than most traditional social networks. They spy, we encrypt. They limit your voice and reach, we expand it. They keep their code private, we share it all. They centralize power, we decentralize it. We also are on of the first companies to operate an entire business model on recurring membership and the blockchain rather than surveillance capitalism.
What's your biggest risk?
Minds operates in a highly competitive market and is subject to rapid technological change. The biggest risk is that Minds may not be able to effectively compete in some or all of these markets. To remain competitive and increase client demand, Minds must develop and manage successive platform releases and transitions with great execution.
Minds is subject to local laws and regulations worldwide. Changes in these administrative protocols could materially increase the cost of doing business, or even preclude it. The prospect of increased regulation and/or Internet censorship may create access challenges to our users and service offerings.
There is not a lot of clear guidance from regulators regarding the use of blockchain technology, specifically in the US. There is a chance the regulations could change in the future which may adversely impact the progress of the Minds network.
What do you understand about your business that others don't get?
We understand that free and open source software inevitably benefits end-users with greater transparency, reach, rewards, privacy, revenue and features. This is because pace of development and innovation occurs fastest when global developers have greatest access to code.
People are becoming increasingly aware of the nature of the apps they use, and the knowledge of free and open source code will be even more common in the future, as machines integrate more heavily into our daily lives. We need to know what those machines are up to; Minds is leading the charge toward a future where we control the robots and not the other way around.
What do you tell people who are skeptical of your chances of competing with Facebook?
Our strategy against companies like Facebook has always been to stick to our principles of privacy and Internet freedom. They continue to take steps towards more censorship, more surveillance, less privacy and less reach. For the first time ever, Facebook is starting to lose millions of users because of these issues to alternatives like us.Minds rewards users in every sense, and the system is working and growing. Facebook does the opposite by exploiting users, and people are upset. Once our functionality is fully competitive, people will, at the very least, supplement their experience with an ethical and reward-based alternative.
In addition to freedom, free and open source software also enables extreme software development productivity such that a small team may create an even better result than a large organization with far greater resources.We feel confident in our battle against the tech giants because despite their size and resources, we have a clear edge in our overall philosophy and ethical approach.
What has been your biggest obstacle so far? How did you overcome it?
Generally we have experienced heavy censorship from big tech apps. Facebook restricted links to Minds for over a year, causing great harm to traffic and reputation. Eventually we were able to reverse it, but damage was done. Google Play also restricted our app for nearly a year, having a similar impact, but we were also able to reverse that decision because they had no legitimate argument. Apple has restricted a variety of payment functionality on our app, which they are under heavy scrutiny for in antitrust hearings. Content policies on all of these platforms are wildly inconsistent and ultimately these events lead to media coverage which causes us to grow even more. People know when they are being manipulated.
Where did the idea for Minds come from?
The idea is that the network accurately represents the minds, the people, on it. Without digital rights like transparency, privacy and free expression, you cannot accurately represent the minds who contribute.
What is the Minds token?
The Minds token is a utility token built with the Ethereum ERC-20 standard. The token distribution process is uniquely designed to scale autonomously with the growth and activity on the Minds network which ensures that the ecosystem is fair and based entirely on user contribution. Minds tokens are not a currency or a security, but are a utility token used to fuel services on the Minds social network.
Minds has financial statements ending December 31 2018.
Our cash in hand is $4,122,395, as of April 2018. Over the three months prior, revenues averaged $10,000/month, cost of goods sold has averaged $11,000/month, and operational expenses have averaged $160,000/month.
At a Glance
to December 31
Short Term Debt
Raised in 2018
Cash on Hand
As of 04/15/18
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.
Minds is an open source social network for Internet freedom, where users earn crypto tokens for their contributions to the network. The tokens can be exchanged for more views on content or sent to other channels as a tip or paid subscription. We're built on a foundation of privacy, transparency, and free expression. As other networks continue to lose the public's faith, Minds has experienced significant growth, now with 1.75M+ registered users.
Traditional social media networks are overrun with surveillance, censorship, demonetization and restrictive algorithms. Minds solves these problems with free and open source software, free speech policy, privacy, tokenization and decentralization.
Our mission is to become the top social network on earth, powered by the people.
200K+ monthly active users
1 billion+ impressions served, 100+ million unique visitors, 1.75+ million registered users
Raised $6M in Series A round with Medici Ventures at a $30M post-money valuation
Successful launch of the Minds utility token on the Ethereum blockchain in August 2018 with deep due diligence on security, regulatory and accounting compliance
200K+ Vietnamese users migrated to Minds to protect their Internet freedom in July 2018
500K+ token transactions
Appeared on Joe Rogan Experience, Tucker Carlson and more major media outlets such as Wired, WSJ and TechCrunch as a major competitor to Facebook
Historical Results of Operations
Revenues & Gross Margin. For the period ended December 31, 2018, the Company had revenues of $118,172 compared to the year ended December 31, 2017, when the Company had revenues of $134,835. The decrease in revenue was due in large part to the fact that Minds transitioned to a new accounting model that treats token sales as deferred revenue and tokens redeemed as recognized revenue. We also reduced the price of advertising on the network to ensure wider distribution, utility and adoption. Token sales in 2018 totaled $154,064 compared to $0 in 2017. Our gross margin was -9.66% in fiscal year 2018, compared to -21.74% in 2017.
Assets. As of December 31, 2018, the Company had total assets of $4,894,730 including $4,866,436 in cash. As of December 31, 2017, the Company had $640,355, including $616,595 in cash.
Net Loss. The Company has had net losses of $1,155,392 and net losses of $604,297 for the fiscal years ended December 31, 2018 and December 31, 2017, respectively.
Liabilities. The Company's liabilities totaled $0 for the fiscal year ended December 31, 2018 and $732,517 for the fiscal year ended December 31, 2017.
Liquidity & Capital Resources
To-date, the company has been financed with $8,136,090.20 in equity. Our projected runway is 12-18 months before we plan to raise further capital.
Runway & Short/Mid Term Expenses
Minds, Inc. cash in hand is $4,866,436 as of December 2018. Over the last three months, revenues have averaged $10,000/month, cost of goods sold has averaged $11,000/month, and operational expenses have averaged $160,000/month. Our intent is to be profitable in 12 months. Minds plans to increase marketing expenses in the near term in order to drive growth, sales and revenue.
A note from Wefunder. Unlike companies on the NASDAQ, early-stage startups have little operating history. Financial analysis is not as useful when there is limited data. It's more important to predict the size of the future market. If the founder achieves their vision, will enough customers pay the company enough money?
It's also common for fast-growing startups to lose money even faster: they are investing in future growth. In these cases, it's often better to check if the Cost of User Acquisition (CAC) is lower than the Lifetime Value (LTV) of that customer. If one spends $1000 today to make $10,000 over the next five years, that may be a smart bet. Amazon is a famous example of re-investing potential profits to maximize growth over 20 years.
Global markets for the Company's offering are highly competitive and subject to rapid technological change. The Company may not be able to effectively compete in some or all of these markets. Some competitors may have greater financial, research and development, operational and marketing resources than Minds and be able to bring competing products to market. Greater financial, research and development, operational and marketing resources and experience may allow Minds' competitors to respond more quickly with new, alternative or emerging technologies. The Company's quarterly and annual operating results may fluctuate widely, and be negatively affected by efforts to build volume or react to competition.
The Company relies on Amazon Web Services for hosting. 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. The prospect of increased regulation and/or Internet censorship may create access challenges to our users and service offerings. Our long-term vision is to extract all third party hosting requirements in order to become independently sustainable.
Breaches of the Company's platform and systems may materially affect client adoption and subject the Company to significant negative reputational, legal or operational consequences. Minds user privacy has never been compromised to date due to a focus on encryption and security, but 100% security cannot be guaranteed. Cyber-crimes are becoming increasingly common and aggressive which brings parallel increase in risk.
Until now, Minds has obtained sufficient capital for operations. Future operations depend on Minds' ability to generate revenue and user growth. While Minds may consider funding its business in the future through a combination of debt and equity financing, there can be no assurance that such additional financing will be obtained. In the most recent fiscal year ending December 31, 2018, the Company has consumed a total of over $1.1M in cash. There is no guarantee that, even with significant subsequent cash infusions, the Company will break even or generate positive cash flows.
Minds is dependent upon the continued support and involvement of key management, engineering staff, and employees of all types. Minds' success and ability to compete is dependent on its continuing ability to identify, attract, hire, train, retain and motivate highly qualified employees with knowledge of the businesses in which Minds operates. If any of Minds' key personnel were to quit the company or die, the business may be adversely affected.
Although most of our officers are full time, please note that John Ottman and Peter Schwartz are not currently full time with the company. As such, it is likely that the company will not make the same progress as it would if that were not the case.
The Board of Directors
CEO @ Overstock.com
Chairman @ Solix
CEO @ Minds
Co-founder, Chairman, Vice President
Founder, CEO, President, Secretary, Treasurer
CFO, Principal Financial Officer, Comptroller, Principal Accounting Officer
670,841 Series A-1 Preferred
1,000,000 Common Stock
Past Equity Fundraises
Related Party Transactions
At December 31, 2017, drawings under the John Ottman Letter of Credit were $651,348. Interest under this facility accrues at a simple rate of 8% per annum. Also as of December 31, 2017, accrued interest payable under this line was $81,169. All drawings and accrued interest under the letter of credit are due and payable at December 31, 2018. The line of credit, including any accrued interest, will come due at the earlier of a financing event in excess of $5,000,000, sale of the Company, or the expiration date of the line of credit.
Use of Funds
Expand the development team with additional full-stack developers, to focus on mobile, frontend and backend projects such as:Boost ad networkUser experience and usabilityBug fixes and feature improvementsGrow Internet infrastructure with servers, storage and network. Workspace
AboveHire an additional full-stack developers to focus on mobile, frontend and backend projects such as:MonetizationVideo enhancementsGroup chat
AboveHire salesperson to sell advertising and boost reachInvest in marketing for talent acquisition and influencer onboardingHire an additional full-stack developers to focus on mobile, frontend and backend projects such as:Load testing and infrastructure performance Email and retention managementMessengerGrow Internet infrastructure with servers, storage and network.
AboveHire an additional full-stack developers to focus on mobile, frontend and backend projects such as:Mobile video chatMinds.org upgradesSoftware documentationFurther enhancements to categories, bitcoin and monetizationGrow Internet infrastructure with servers, storage and network.
AboveHire person to sell hostingHire adminHire an additional full-stack developers to focus on mobile, frontend and backend projects such as:Open data initiative and social API standardVoting and pollingReferral rewards programHostingTranslationsImproved office space
Class of Security
Securities (or Amount) Authorized
Securities (or Amount) Outstanding
Series A 3 Preferred
Series A 2 Preferred
Series A 1 Preferred
Form C Filing on EDGAR
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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