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.
Raised $1M+ from 1,541 investors on Wefunder in June 2017 in 19 days.
100K+ Vietnamese users migrated to Minds to protect their Internet freedom in July 2018.
150K+ token transactions in first 60 days.
Top competitor to Facebook according to dozens of major media outlets and experts.
1 billion+ impressions served, 75+ million unique visitors, 1.25+ million registered users.
60% Traffic from US, Canada, EU
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.
Hello, I am not happy with Facebook and it's conglomerate of corporate sponsors and lack of free speech. I wish you the best success for a new future for the World.
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I think it makes sense that your business becomes as freen as possible.
Thank you again and the best of luck in our success to change the way the World is!!!
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.
Current social networks restrict content creation and limit your organic reach.
Restrictive algorithms, censorship, and lack of privacy run rampant across popular social networks. And you, the user, can't do much about it, while these businesses make billions.
Meet Minds: A Free & Open Source Social Networking Platform
How We Do It
We’ve built a full-spectrum of features to empower communication and organic reach.
Our Network Is Growing Rapidly
Since our inception, we've gained viral traction with every new release. Early adopters are finding it far easier to gain views and a following on Minds than other major social networks.
How Minds Generates Revenue
Minds leverage a unique business model that operates entirely around its native token. Tokens are rewarded and sold to the community and later reclaimed by Minds in exchange for services on the network like Boost, Plus, and Nodes.
How Users Generate Revenue on Minds
Users can monetize their channels to activate an array of options to make a living online.
How the Token Economy Works
Minds users earn tokens for their contributions to the network each day.
Tokens can be exchanged for more views on content with Boost or sent to other users as a tip or for paid subscriptions with Wire. By leveraging the distributed blockchain for all peer-to-peer payments, Minds enables users to exchange tokens without the risk of demonetization or censorship.
Our Journey So Far
The Internet and press response to Minds.com has been wildly enthusiastic—proving people are hungry for an alternative social network.
A Conversation with the Founder of Minds
What's the problem Minds.com is solving?
The lightbulb moment
What drives customers to your site?
Let's Build a Real Social Network
Watch the founder Bill Ottman on Timcast below.
Over the last few years, Minds has emerged from the grassroots of alternative media and activism to become a top open source competitor to Facebook, Twitter and Google. How did this happen?
The first milestone was clearly understanding who we are. We are Minds. Our name resonates with the global community because it represents everyone. We are not the typical tech startup because we have an underlying philosophy of freedom.
The next step was delivering the core platform and software that could actually scale and be a viable competitor, functionally. This took years of effort and what I can only describe as pure madness in the laboratory. It was the most challenging time of my life and I imagine the same can be said for others on the team. Now, we have finally landed on a stack that can handle the masses, and we’ve proven it with repeated viral migration events and millions of people on the app. There’s still a long way to go, but we have something that people love now.
We do things differently from how status-quo networks operate. They want to dominate and data-mine you. We want to liberate. They keep their code secret, we share it with everyone. They spy on you, we engineer encryption everywhere. They restrict reach and speech with annoying algorithms, we amplify it with rewards. They offer limited tools to make money, our mission is to help everyone earn a living doing what they love.
Ultimately, we think the next major social network will actually be a decentralized network of networks, not “one ring to rule them all.” The free nature of our app means that anyone can build their own app based on Minds, and since we all share our code with each other, it creates a self-propelling movement. These apps can all optionally interconnect, thus creating an unstoppable, distributed force.
Minds.com and Minds.org are powerful destinations that people want to be a part of because they feel they are capable of reaching the top. The company is a literal manifestation of the people’s contributions to the network, and now we are taking this principle to the next level by opening up ownership to the world.
Social impact and revenue are both required for true success. So whether your interest as a potential investor and co-creator lies in the freedom realm or viral reach and revenue world, I hope you’ll join Minds. It’s already yours.
Let's do this,
Founder & CEO
What does your company do?
Minds is an open source and decentralized 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 more than doubled since last year, now with 200K+ monthly active users and 1.25M+ registered users.
Where will your company be in 5 years?
Our mission is to become the top social network on earth, powered by the people. 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.
What is Minds?
Minds is an open source and decentralized social networking app 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 a paid subscription. We are built on a foundation of privacy, transparency and free expression.
What problem not addressed by other social networks is Minds trying to solve?
Disgruntled social media consumers and professional content creators are in an uproar over unfair business practices that threaten Internet freedoms and limit their ability to earn a living online.
The outrage is loudest over censorship, fake news filters and algorithms that limit organic reach to as low as 3% of the intended audience. Creators who rely on Internet ads to make money may routinely face demonetization of their content when it is deemed controversial by unseen editors. Everyday users who fuel the networks with activity have surrendered their rights and privacy through surveillance and the lack of transparency inherent in proprietary software business models.
How is Minds different from other social media networks?
Minds differentiates itself from other social networks in three essential ways:
Internet freedom - Minds is engineered for freedom of speech, transparency and privacy. Users may choose to be anonymous, if they wish, and free speech is limited only by US law. The software is free, open source and encrypted end-to-end for maximum transparency and privacy, peer-reviewed at (https://www.minds.org).
Expanded reach - Minds channels organically reach 100% of their subscribers. The Minds Boost feature expands reach even further through a system which rewards users for site activity with Minds points, a digital currency that may be exchanged for views on the Minds network at a rate of one point per view.
Monetization - Minds believes that users should be rewarded for their efforts online and pays users points that may be redeemed for views on the network. Minds also pays bloggers for revenue earned by placing banner ads on their content, and any channel may create exclusive content viewable only via paid monthly subscription. Finally, Minds Wire enables peer to peer payments between channels in Minds points, USD or Bitcoin as a reward/tip for posting awesome content.
How does Minds make money?
Minds has built a unique business model that runs entirely off of its native ERC-20 token. Minds tokens are rewarded to the community or sold for Ether. Users can then spend the tokens in exchange for services on the network such as Boost, Plus and Nodes. Boost is the advertising network on Minds. Users can exchange tokens to receive promoted views from active users on the network. Currently, one token grants a user 1,000 extra views on their content or channel.Plus is a premium channel subscription on Minds. Users can exchange tokens for upgraded features such as the ability to remove ads, verify a channel, access exclusive Minds content and more.Nodes is a new product that is in its early development stage. It allows users to exchange tokens to build their own white-labeled social network with Minds' source code. The nodes can either be self-hosted or hosted by Minds.
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. We also are on of the first companies to operate an entire business model on an ERC-20 token. By leveraging the distributed blockchain to store all financial transactions, we have created an autonomous peer-to-peer system without the risk of demonetization from a subjective middleman. The Minds community is excited because they are now rewarded for their efforts online with tokens, privacy and monetization tools. The system is designed so that the users who contribute the most to the network are rewarded with tokens to grow their channel further, expand their reach and earn more.
How big is the market?
The market for social networking platforms is as big as it gets. Billions of people use social networks across the entire world, spending $40 billion+ on social media advertising.
What's your biggest risk?
Minds operates in a highly competitive market and are 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.
Lastly, 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.
How many users do you have?
Minds currently has over 1.25 million registered users and over 200 thousand monthly active users (logged-in).
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.
Who makes up your in-house team working on the project?
Minds is led by its Founder & CEO Bill Ottman. Bill is responsible for the vision and creation of Minds and is the leader of the Minds open source community. In addition to his significant online following, Bill is a recognized leader in the Internet freedom and open source software movements.
John Ottman is Chairman and Co-founder of Minds and also Bill’s father. John is a veteran software entrepreneur, angel investor and Minds lead investor. He provides leadership and guidance to the team and even helps out with site operations.
Mark Harding is Minds CTO, and he is responsible for all engineering and software development. Mark manages three in-house software engineers and also directs the development efforts of the Minds open source community of global developers.
Jack Ottman is Minds COO, and he is responsible for all day-to-day operations such as marketing, sales, site administration, community support, financing and more.
What has been your biggest obstacle so far? How did you overcome it?
When Facebook changed its algorithm, our organic reach was cut enormously. Revenues plummeted and the company faced a survival crisis. We learned then that Minds could not survive as a business by relying on Facebook and Twitter for traffic. We needed to build our own independently sustainable community. And, we did! Now, the majority of our traffic is organic, from logged-in users. This was an epic undertaking.
Today, our biggest obstacle is simply lacking the staffing and resources to fully support our growing community and improve our product so that it can compete functionally with the best in the market.
Where did the idea for Minds come from?
Frustrated by encroachments on Internet freedom and degraded business practices at top proprietary social networks, a team of software developers led by Minds Founder & CEO, Bill Ottman, joined with a gathering of minds around the world to create a new social media model engineered for Internet freedom and user control.
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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