|1||Spanning three markets: Social Media (5.7B+Users), Publishing ($8.6B) and Advertising ($393B)|
|2||Early traction: 8,600+members, 14,000+posts, and 1,000+ Niches (min $75USD each) sold in beta|
|3||Content is created and discovered via the platform's monetized Niche topics that are purchased annually by members. Like domains!|
|4||Solving the challenges of censorship and account take-downs with decentralized governance|
|5||Narrative Company sold $2.5M worth of Narrative (NRVE) tokens in March 2018|
|6||Members are incentivized to use and promote the network because they directly benefit in the revenue sharing|
|7||Scaling to other languages and models (branded publications and premium content) will increase revenues|
Our Narrative founding team has gotten an up-close and personal look at human engagement, content sharing, and interaction over the last 20 years. We've built a series of innovative community platforms that emphasize people and usability. Our co-Founder, Ted O'Neill is widely known for being the inventor of the modern discussion forum, along with BBCode and other tools that are now industry standard. Online community is our jam.
The idea for Narrative had been brewing in Ted's mind for several years---what if we could solve the challenges facing "big social" and publishing platforms by doing something radical? What if we put total control in the hands of the people using the platform, and gave them the lion's share of the rewards too?
So, in the Summer of 2017, Ted published a White Paper describing a new content publishing platform called Narrative. The biggest reaction we got was, "how soon can you make this?"
The timing was right to get started. It's been a crazy ride, but we're excited to be tackling issues that are front-and-center of the Internet's conversation right now.
Our other company was bootstrapped (funded from profits) for the last 20 years (yay us), but Narrative would need a structured rewards system to jump-start the "content economy." We decided to create a utility token to be used within Narrative for various functions (like buying Niches, tipping, and getting rewarded for creating great content).
We launched a private early Narrative alpha focused on one aspect of our platform - Niches - and concluded a successful token sale (which is like a Kickstarter for crypto, no equity is given) that provided us with approximately $2.5 million in funds to accelerate development. We vetted our token sale contributors with KYC/AML and got legal advice that our utility token was indeed a utility.
Even though we are a publishing platform, during our private Alpha period, we did not support the creation of content. We were focused solely on the build-out of our Niche (subject-area) system. Amazingly, even without any content, our community of members understood the promise of Narrative and saw the benefit of owning Niches, which could generate rewards as the content within them became popular over time.
We use an eBay style auction process for Niche purchases, and we sold more than 800 Niches before we even launched the Beta! While the minimum bid is $75 per year, we had many bidding wars, with some selling for over $1,000.
Niche owners get 10% of the monthly Rewards revenue, so if you own a Niche and it is full of quality content, you are rewarded accordingly. The real power of this system is that our Niche owners are great ambassadors for attracting quality content creators to the platform.
On April 2, 2019, we launched the Narrative beta (and content creation and discovery) to the world. We've seen great content on subjects ranging from Independent Music to Vegan Recipes to Space Exploration.
Members are rating content, voting and bidding on new Niches, and nominating themselves to be moderators. Reputation is at the core of the autonomous system, and the impact of all actions are weighted according to the member's reputation.
Narrative is creating a content economy that provides economic incentives for good behavior, with the concept of “good” determined by the collective wisdom of the entire community, not a single entity. Personal reputation will influence each member’s impact and that reputation will be based on actions within the network.
A little more than three months into our Beta, we have more than 8,600 members and over 14,000 pieces of published content.
In June 2019, we distributed the first rewards to our members. More than 2.5M reward points were distributed. Payouts are now done monthly. In July 2019, we rolled out the ability to redeem reward points as NRVE.
Publications are coming late Summer 2019. This is a brand new revenue source.
Publications are branded spaces that offer powerful editorial controls - choosing writers and editors. But they offer something even more important--the opportunity for amplified reach. In other online publishing platforms, you post content and cross your fingers that the algorithm will allow your followers/subscribers to see it. In Narrative, your Publication's followers will see it, and you have the opportunity to cross-post to up to three relevant Niches (and then the Niche followers will see it too). We amplify reach, rather than suppressing it with algorithms.
Next we will be adding elections, advanced notifications, tips, and more tools for combating trolls. In addition, we have advertising, premium content options, and in-app purchases for more revenue streams. We will also be building a mobile app, and offering non-English versions of the platform.
Our plan to support a premium content option is another example of our desire to give creators as many tools as possible for monetizing content. In our model, creators can choose to charge a premium for their content and set their own rates for premium memberships. By default, however, content is not premium.
Ultimately, our goal is to be the fairest way for content creators to earn, to be the most transparent member-run platform, and to be the best way to consume content of interest to you.
Stay tuned for more updates - we are working fast!
We are flipping the script on Big Social — building something revolutionary and cutting out the middle man so that members are rewarded for the quality of content they produce.
When we launch advertising, we won't be tracking users! Instead ads will be aimed at subjects and approved by the community. We are mitigating trolls and meaningless accounts by establishing a reputation system.
In short, we are restoring trust back to online content.
From an opportunity standpoint, we have huge ambitions. By using reputation and member-driven content moderation and quality scoring, we offer an attractive alternative to the big content platforms. We are starting with text, images, and embedded content, but the sky is the limit in terms of the different content types we can offer.
Also, we will be able to drive revenue from sales of Niches and Publications in other languages as we roll out non-English versions of the platform.
Funds raised will help us with marketing and scaling the platform.
It's time to try something new, and Narrative is ready to roll.
Narrative has financial statements ending December 31 2018. Our cash in hand is $175,936, as of August 2019. Over the three months prior, revenues averaged $80,274/month, cost of goods sold has averaged $1,430/month, and operational expenses have averaged $114,200/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 building a publishing platform with a built in revenue model. Content is created, easily discovered via our unique niche organization model, and rated by real people based on reputation. Member contributions are rewarded.
In five years, our goal is to have over 15 million registered members and 350,000 publications (paid channels). This would mean that the company would be earning approximately $100M and payouts to members would exceed $600M. We believe that the more that we empower and reward our members, the more loyalty will be created for the network.
Narrative Company was incorporated in the State of Delaware in August 2017.
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 $965,647 in debt.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 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
Narrative Company cash in hand is $175,936, as of August 2019. Over the last three months, revenues have averaged $80,274/month, cost of goods sold has averaged $1,430/month, and operational expenses have averaged $114,200/month, for an average burn rate of $35,356 per month. Our intent is to be profitable in 18 months.
Since our financials in 2018, we reduced some of our expenses by subleasing out some of our office space.
In the next 3 - 6 months, revenues are expected (although not guaranteed) to increase with more members added to the platform. We hope to launch a new revenue stream September with our delivery of Publications in September 2019. We hope that this, in addition to this raise will be enough to cover the cost of our operations. If needed we can draw on lines of credit. We expect to spend the funds from this raise over the course of the 12 months following. No new expenses are expected unless capital is raised.
The Company relies on Google for infrastructure hosting and other third party technology vendors such as Paypal for payments and financial services. Any interruption in the availability of these services, especially as we grow and scale to millions of users worldwide, could have material negative impact on our ability to deliver service to users, as well as the profitability of these operations.
The Company may be subject to future governmental regulations. Aspects of our business and our products may be regulated at the local, state, and federal levels. Specifically, our platform foundation is a virtual currency called NRVE, which was deemed by legal opinion (Howey Test) to be a virtual asset called a utility token. However, future legislation, regulations and programs related to the handling, management of cryptocurrency cannot be predicted in the United States or globally. While we strive and try to anticipate future compliance with all applicable governmental regulations, there still may be risks that such laws and regulations may change with respect to present or future operations. There may be occasions where we freeze NRVE redemptions for some countries. Such compliance may be time consuming and costly, and such expenses may materially affect our future ability to break even or generate profits.
The Company faces competition with respect to our internet based platform. Our competitors include Steemit, Reddit, and Medium. While our revenue model is much different, each competitor has their strengths and challenges and they have financing and membership behind them. As a content platform distruptor, other smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Those partnering with large companies may be able to finance the application development and enhancements faster than us.
As a startup organization, The Company is still very dependent on its co-founders. If anything catastrophic were to happen to the company's founding team, the future of the company may be compromised
Breaches of the Company's platform, assets, and systems may materially affect client adoption and subject the Company to significant negative reputational, legal or operational consequences.
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 marketing, engineering, or other expenses. Even if the Company raises the entire round successfully, we may need to raise more capital in the future in order to continue, especially as we scale to different languages. 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.
The Company is managed by seasoned and successful entrepreneurs, but this is an early stage company incorporated on August 31, 2017. Accordingly, the Company’s operations are subject to all the risks inherent in the establishment of a new business enterprise, including potential operating losses. Any investment in the Company must be considered in light of the risks, expenses and difficulties frequently encountered by companies in an early stage of development.
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.
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