{"data":{"type":"company_profile","id":122553,"entity_id":"wefunder:company:122553","attributes":{"canonical_url":"https://wefunder.com/reflect","generated_at":"2026-06-07T02:51:58Z","updated_at":"2026-06-06T05:01:42Z","entity_ids":{"company":"wefunder:company:122553","slug":"wefunder:company_slug:reflect"},"profile_visibility":{"owner_published":true,"public_search_results":true,"site_search_listed":true,"privacy_mode":"promote","invite_only":false},"provenance":{"source":"wefunder_public_company_profile","as_of":"2026-06-07T02:51:58Z","claims":{"total_amount_raised":{"source":"FrontCompanySummary#amount_raised","last_verified_at":"2026-06-06T05:01:42Z","as_of":"2026-06-07T02:51:58Z","confidence":"high"},"total_investors":{"source":"FrontCompanySummary#number_of_investors","last_verified_at":"2026-06-06T05:01:42Z","as_of":"2026-06-07T02:51:58Z","confidence":"high"},"active_raise_states":{"source":"Fundraise.visible(nil, nil)","last_verified_at":"2026-04-17T16:04:08Z","as_of":"2026-06-07T02:51:58Z","confidence":"high"},"latest_fundraise_state":{"source":"Fundraise.visible(nil, nil).order(funding_started_at)","last_verified_at":"2026-04-17T16:04:08Z","as_of":"2026-06-07T02:51:58Z","confidence":"medium"}}},"company":{"id":122553,"entity_id":"wefunder:company:122553","slug":"reflect","name":"Reflect","tagline":"We've created a note-taking app designed to mirror the way you think.","story":"Reflect is a note-taking tool designed to mirror the way you think.First, we're integrated into your existing tools. Quickly import calendar events to take meeting notes. Save snippets and links from around the web. Import in all of your Kindle highlights.Next, we let you link your notes to each other. We call this backlinking and it's a way of associating key ideas, people, and companies together. Having these connections helps you quickly retrieve information in the future.Lastly, we're gobsmackingly gorgeous. And fast. And we work offline. Your notes are secure because we’re end-to-end encrypted. And did we mention we're on mobile? Our goal is to be always available but in the background, so you can focus on writing, thinking, and being creative.Give us a whirl with a free trial.Our growthWe have been working on Reflect since 2020 but publicly launched 5 months ago. We were Product Hunt's top product of the week with thousands of signups.As of writing this we have 1,371 paying customers and $18,255 USD in monthly recurring revenue.We charge our customers $15 a month (or $156 a year) to use the product. We have a two week free trial.Our financingOur goal is to make a sustainable and profitable business. That's it. We don't want to raise traditional venture capital and additional A, B, C rounds.Venture capital promotes growth at all costs. While that’s great for some companies, in the note-taking space you tend to end up with bloated products, acquihires, and shuttered startups. We’re just as sick as you of having to regularly switch tools all because they grew too fast and flamed out.\u0026nbsp;That's why we’re building Reflect differently. We’re bootstrapped up to this point, and we’re not going to take on venture financing that forces us to abnormally grow.\u0026nbsp;Why are we crowdfunding? Two reasons:\u0026nbsp;First, we’ve built a strong community around Reflect. We want to get them more involved in the business so they can share in our success.\u0026nbsp;Second, we want to move faster. Proceeds from the fundraise will go to hiring more engineers so we can iterate faster on our roadmap.Once profitable, we plan to pay investors a dividend. We have been greatly inspired by ConvertKit’s example in this regard. See our FAQ for more details.Our productEvery day Reflect creates a new note for you. We call this your ‘daily note’, and it’s where the action happens. This is where you import meetings and write up your thoughts throughout the day.Tasks contained across your notes are aggregated into one place – you can easily see what you’re working on today, and what’s upcoming.Your notes are connected together using ‘backlinks’, forming a graph of all of your knowledge. This doesn’t just look pretty – it lets you recall information instantly.We are available online or offline, web or desktop, or through our iOS app.Reflect’s receptionSee Twitter for unadulterated reviews from our happy customers.\u0026nbsp;Our storyReflect was founded by three engineers: Alex MacCaw, Ocavue, and Vojtech Rinik.Alex previously founded a very different business in the corporate data space, Clearbit, which has now grown to 200 employees and ~$50m in revenue. A few years ago Alex found another CEO to run Clearbit and decided to get back to his roots: building software.All three of us are extremely passionate about note-taking and building tools for thought. Ocavue has been working on a rich-text-editor for a few years now, and Vojtech has been building todo and time-keeping tools.As you’ve probably noticed, we’re trying to build Reflect in a different way than most tech companies. Bootstrapping, crowdfunding, and paying dividends. We want to be a shining example of a different kind of capitalism.\u0026nbsp;What's nextCheck-out our product roadmap to see a full list of the things we're working on. Our focus is always guided by our values: speed, security, reliability, and minimalism.Next we are working on releasing our Tasks feature, on an iPad app, an API, and more integrations.We have a lively community on Discord and that is where a lot of the product development happens. We pride ourselves on responsible support and a quick feedback-development loop.What makes a note-taking app ‘good’ is highly subjective. In some ways it’s easier to describe what we don’t want to become. We don’t want to become bloated and slow. We don’t want to add team features that take away from the single-player mode. And we don’t want to add unnecessary features or growth hacks.\u0026nbsp;And, while our financing is more modest than our venture backed rivals, that doesn't mean our ambitions are small. We want to take networked note-taking mainstream, and build a sustainable business along the way! Remember what they said about the tortoise and the hare...FAQHow does this work?Join Wefunder by clicking ‘Sign Up’ in the top right corner. While we are prioritizing our customers for this crowdfund, those who are not Reflect customers are welcome to make reservations as well.Choose an amount you’re comfortable with. You can commit any amount you’d like up to your legal max, from $100 USD.Confirm reservationWhat happens if the $1.2m maximum allotment is exceeded?We can’t exceed $1.235m (for regulatory reasons), so if we become oversubscribed, we may need to refund you some or all of your reservation amount. We will be prioritizing our customers first (with active customers prioritized with this group), and will accept investments from non-customers after this.What is the minimum investment?The minimum investment is $100 USD.What's the maximum I am legally allowed to invest?Everyone can invest up to $2,200, but some people can invest more. How much you're able to invest above that depends on your net income and net worth (due to SEC regulations).You can see how much you're allowed to invest by adding those two numbers under \"Investor Limits\" here: https://wefunder.com/settingsWhile you may be legally able to invest more, your investment may be lowered depending on the interest we receive in this round.Do I need to be an accredited investor?No. Wefunder allows you to invest without being an accredited investor. All you have to do is sign up and invest.Do I have to do anything for Reflect as an investor?No. All you do is invest.I'm outside the US - can I\u0026nbsp;invest?Yes - we can accept investments from international investors (with a few exceptions). See here for more details.What are the terms of the investment?The investment is on a SAFE with a $15 million post-money cap.\u0026nbsp;What will you do with the funds?The majority of the funds will go towards software development. This should help us ship faster.When will you be profitable and/or issue a dividend?We can’t commit to a timeline or guarantee dividends. That said at our current burn rate we need to 3x our revenue to break even. So far this year we have grown 2.4x from $7,554 MRR to $18,225 MRR.\u0026nbsp;Here’s one scenario we could see playing out:\u0026nbsp;Let’s say we’ve grown revenue to $1M ARR. At the end of a year we declare a $300k profit.This $300k will be split pro-rata amongst the investors - excluding founders until we have returned the initial investment.Please bear in mind this is a totally hypothetical scenario and we cannot guarantee a return on this investment.Will you send investor updates?Yes, we’ll send them out quarterly.Can I sell my investment?\u0026nbsp;Maybe. The SEC allows Reg CF participants to sell their stake in the company after a one year lockup. Wefunder can potentially facilitate that transaction once you have an interested buyer.When will my investment leave my account?If you fund your Wefunder Cash account, your funds will move from your account immediately, similar to online shopping. You can also choose to wait to fund your reservation until after we've filed with the SEC, by selecting to pay via wire. Once we've filed with the SEC you'll be able to pay via bank account, wire transfer, credit card, or check.Wefunder will email you to confirm your commitment once we file our Form C with the SEC (Securities and Exchange Commission) and close the campaign. Once you confirm, and after the campaign is closed, your money is permanently deposited into Reflect via Wefunder. This is irreversible and confirmed investments that have been deposited into Reflect cannot be refunded.","location":"Miami, Florida","website":"https://reflect.app","total_amount_raised":758217,"total_investors":312,"is_funded":true,"is_active":true,"quality_score":5,"related_urls":["https://wefunder.com/reflect","https://reflect.app"]},"media":{"share_image_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/122553/xxl_cropped_community-round.jpg","logo_url":"https://uploads.wefunder.com/uploads/company/logo/122553/large_cropped_y2e9BXV8_400x400.jpg","header_media_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/122553/standard_cropped_community-round.jpg","cover_photo_url":"https://uploads.wefunder.com/uploads/company/header_media_photo/122553/standard_cropped_community-round.jpg"},"links":{"company_url":"https://reflect.app","twitter_url":"http://twitter.com/reflectnotes"},"highlights":[],"quick_facts":[{"index":1,"claim_id":"claim-fact-1","value":"The Superhuman of note-taking apps"},{"index":2,"claim_id":"claim-fact-2","value":"More than a thousand paying customers since the launch earlier this year"},{"index":3,"claim_id":"claim-fact-3","value":"Founded by a serial entrepreneur whose last company is at $50m in ARR"},{"index":4,"claim_id":"claim-fact-4","value":"Investors can receive dividends once the company is profitable"}],"team":[{"id":3012605,"entity_id":"wefunder:company_role:3012605","user_entity_id":"wefunder:user:2740098","role":"founder","name":"Alex MacCaw","title":"CEO","bio":"Alex MacCaw is a serial founder \u0026amp; investor. He founded Clearbit (~$50M in revenue). He has invested in hundreds of startups. He has published books on company building and management.","avatar_url":"https://uploads.wefunder.com/uploads/company_role/custom_photo/3012605/square_cropped_IMG_5950.jpg?1675441332","profile_url":"https://wefunder.com/alex.maccaw","twitter_url":"https://twitter.com/maccaw","related_urls":["https://wefunder.com/alex.maccaw"]},{"id":3056425,"entity_id":"wefunder:company_role:3056425","role":"founder","name":"Vojtech Rinik","title":"Co-founder","bio":"Vojtech Rinik has been a frontend software engineer for 15+ years. He was an early hire in FinTech startup Thinknum (raised $12.6M) where he lead frontend development for 5 years.","avatar_url":"https://uploads.wefunder.com/uploads/company_role/custom_photo/3056425/square_blob.jpg?1663336878","twitter_url":"https://twitter.com/_vojto","related_urls":[]},{"id":3056426,"entity_id":"wefunder:company_role:3056426","role":"founder","name":"Ocavue","title":"Co-founder","bio":"Ocavue is a core-contributor of the open source editor Remirror.","avatar_url":"https://uploads.wefunder.com/uploads/company_role/custom_photo/3056426/square_blob.jpg?1663336886","twitter_url":"https://twitter.com/ocavue","related_urls":[]}],"featured_investors":[{"id":6151,"entity_id":"wefunder:company_investor_profile:6151","investor_profile_id":1411663,"investor_profile_entity_id":"wefunder:investor_profile:1411663","subject_entity_id":"wefunder:user:1899396","name":"Leo Sternlicht","avatar_url":"https://uploads.wefunder.com/2021/user_default_icon_circle.png","profile_url":"https://wefunder.com/leosternlicht2","investment_total":50000,"investment_info":"Invested $50,000 this round","is_lead_investor":true,"related_urls":["https://wefunder.com/leosternlicht2"]}],"investor_memos":[],"tab_counts":{"posts":0,"ask_questions":13,"featured_investors":1,"faq_entries":5},"active_fundraises":[{"id":69723,"entity_id":"wefunder:fundraise:69723","state":"successful","offering_type":"4(a)(6)","funding_type":"note","structure":"safe","security_type":"equity","currency":"USD","testing_the_waters":false,"min_purchase":100,"max_purchase":9,"funding_target":50000.0,"funding_started_at":"2022-10-06T19:16:34Z","funding_closed_at":"2022-11-16T05:03:48Z","auto_close_at":"2022-11-16T04:59:59Z"},{"id":69727,"entity_id":"wefunder:fundraise:69727","state":"successful","offering_type":"4(a)(6)","funding_type":"note","structure":"ttw","security_type":"equity","currency":"USD","testing_the_waters":true,"min_purchase":100,"max_purchase":9,"funding_target":50000.0,"funding_started_at":"2022-09-27T21:44:07Z"}],"latest_fundraise":{"id":69723,"entity_id":"wefunder:fundraise:69723","state":"successful","offering_type":"4(a)(6)","structure":"safe","testing_the_waters":false,"can_invest_now":false,"funding_started_at":"2022-10-06T19:16:34Z","funding_closed_at":"2022-11-16T05:03:48Z","terms":{"eb":null,"nb":"$15M","txt":"valuation cap"}},"recent_posts":[],"q_and_a":[{"id":221795,"entity_id":"wefunder:comment:221795","question":"Hello I see you talking in your pitch about the team, product, road map, etc, but to my surprise I have not seen you talking anywhere about your competition and differentiators. One of my investor buddies mentioned for example obsidian.md, Bear, Drafts, etc and all of these indeed look like a very similar apps to me. Would you please share your personal plans and hopes regarding revenues and exit paths let's say 5 year from now, as well as you plan to differentiate, build a moat, and crush your competitors. Thank you, V.","author_name":"Vilem Fruhbauer","votes":4,"created_at":"2022-10-11T11:26:41Z","canonical_url":"https://wefunder.com/reflect#question-221795","answers":[{"id":222538,"entity_id":"wefunder:comment:222538","answer":"Vilem, that's correct - there's a lot of note-taking apps out there each serving different niches and use-cases. Part of the reason why this is the case is because there is massive demand in general for these tools (almost everyone needs one), and lots of people have quite specific use-cases. We have just over a thousand customers in under a year. We hear the reason why people choose Reflect over alternatives is because we are simple, beautiful, and integrated into their existing tools. Our plan is to take 'backlinks' mainstream. (If you don't know what these are, I would try the app). So we are going after mainstream users who want something simple, but also want the power of backlinks. I would think Apple Notes or Evernotes users who have a lot of meetings. We can't give forward looking statements regarding our revenue, but I can tell you our plan isn't to exit the company. Rather we want to get profitable and grow at a slower clip.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-17T14:36:07Z"}]},{"id":220915,"entity_id":"wefunder:comment:220915","question":"Hey Alex -- daily active user and big fan of Reflect. Question -- when/how would you decide to pay dividends to investors instead of investing profit into growth, hiring, or increasing salaries/profit distributions of team members? Have you thought about any heuristics?","author_name":"Evan Walden","votes":3,"created_at":"2022-10-04T03:34:33Z","canonical_url":"https://wefunder.com/reflect#question-220915","answers":[{"id":221037,"entity_id":"wefunder:comment:221037","answer":"That is a great question! Here's how I'm thinking about it: - We'll first prioritize investments in the product (features I think absolutely have to get done). This is the subjective part of course. But I'm a fan of small teams and efficient businesses. You need the right people, not many people. - Any profits left over at the end of the year will be issued as dividends. - Investors will be paid back before the founders get any dividends. After that dividends will be pro-rata. ConvertKit is a shining example here - I've taken a lot of inspiration from them. And of course a disclaimer, we cannot guarantee anything here - I'm just outlining my current thinking.","author_name":"Alex MacCaw","votes":1,"created_at":"2022-10-04T22:13:45Z"}]},{"id":220306,"entity_id":"wefunder:comment:220306","question":"Love it, Alex - big fan and DAU of Reflect. Not sure if you're comfortable sharing, but I'd love to have some gauge of churn. Totally get if you don't want to share current monthly churn %, but if you have any benchmarks of the note-taking/networked thought industry churn and a comparative % for Reflect, that'd be awesome. (i.e. loose numbers avg. monthly rev churn == 7-9%, Reflect is above/below that). Second question is about growth - what are the primary acquisition channels today and plans for moving forward?","author_name":"Samuel MacKenzie","votes":2,"created_at":"2022-09-28T14:07:09Z","canonical_url":"https://wefunder.com/reflect#question-220306","answers":[{"id":220335,"entity_id":"wefunder:comment:220335","answer":"Sure thing - happy to share. Here is our average cohort revenue churn: share.cleanshot.com/zEVNuk You can see month 1 churn is not good (we need to improve our onboarding flow). I also want to point out that some of the months have lower churn because they have annual deals in them which haven't renewed yet. I don't know churn benchmarks for note-taking, but I did find this report which puts average B2C churn at 6.7% monthly. recurly.com/research/churn-rate-benchmarks Primary acquisition channel today is word-of-mouth, and then Twitter. We do have plans around other channels but I can't share them publicly yet.","author_name":"Alex MacCaw","votes":3,"created_at":"2022-09-28T17:13:21Z"}]},{"id":220176,"entity_id":"wefunder:comment:220176","question":"From a valuation perspective, a $18k MRR =\u0026gt; $220k ARR. A post-equity valuation of $15M means a pre-equity valuation of $14M, if the fundraise cap is $1.2M, as stated. So that means the revenue valuation multiple is 63x ($14M/$220k). Can you comment on what justifies such a high multiple, when I believe the fastest growing companies only get a 10x revenue valuation (maybe, maybe 20x)? Note: I love Reflect and am a paying customer. I love what Alex is trying to do, by including the community. I do not ask the above out of ill-intent. Thank you.","author_name":"James Li","votes":2,"created_at":"2022-09-27T20:59:11Z","canonical_url":"https://wefunder.com/reflect#question-220176","answers":[{"id":220177,"entity_id":"wefunder:comment:220177","answer":"Hey no worries - good question. I have some experience here as I also run a investment fund (Earl Grey Capital). The truth is valuations are decided by what the market will bear. The market generally doesn't price seed valuations by revenue. For example, the last company I founded raised at a similar valuation with close to zero revenue. As for the number itself $15m is the going rate for excellent startups these days. In fact, I'd say it was quite cheap. :)","author_name":"Alex MacCaw","votes":3,"created_at":"2022-09-27T21:08:05Z"}]},{"id":222439,"entity_id":"wefunder:comment:222439","question":"If the goal is pay investors dividends and not raise further funds down the road, why use the \"Convertible Note\" instrument and not offer directly Preferred Stocks? Thanks","author_name":"G B","votes":1,"created_at":"2022-10-15T17:29:18Z","canonical_url":"https://wefunder.com/reflect#question-222439","answers":[{"id":222531,"entity_id":"wefunder:comment:222531","answer":"We are using the convertible note because it's about $50k cheaper than running a priced round. If we get to the stage that we issue a dividend, our intention is to convert the SAFE first. It is possible to convert a SAFE by getting the agreement of the investors, which is what we did at the last company I founded (Clearbit). The reason why we're using a LLC instead of a C-Corp is that it has favorable tax advantages in the US when it comes to dividends. We cannot guarantee a dividend or any return.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-17T13:31:22Z"}]},{"id":222435,"entity_id":"wefunder:comment:222435","question":"I am sorry I can't seem to find any graph showing how the number of paying customers has evolved over time from the beginning until today. Thanks.","author_name":"G B","votes":1,"created_at":"2022-10-15T17:17:16Z","canonical_url":"https://wefunder.com/reflect#question-222435","answers":[{"id":222532,"entity_id":"wefunder:comment:222532","answer":"In October 2021 we had 356 paid subscribers. This has grown incrementally to 1354 subscribers (at the time of writing).","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-17T13:33:39Z"}]},{"id":221407,"entity_id":"wefunder:comment:221407","question":"@Alex - Following up on James Li's question, I think the high multiples and valuations work in traditional startups because you're buying a call option on a business that has the potential for uncapped upside and multi-billion dollar potential. A $50,000 investment and no further dilution would mean owning 0.3% of the business. In the case the business pays out a $1M dividend annually, that would be $3,000, or a 6% dividend yield. This is similar to what you could get on the public markets (immediately) with a more liquid stock. Presumably the valuation could also grow more, but it sounds unlikely you'd sell Reflect or could go public. You're a sophisticated investor, so I'm curious what you see as the scale of the business, the timeline, and the actual dividends. EDIT: The paying back principal definitely changes the math and was something I missed and a cool idea. Thanks!","author_name":"Roy Raanani","votes":1,"created_at":"2022-10-07T18:40:13Z","canonical_url":"https://wefunder.com/reflect#question-221407","answers":[{"id":221413,"entity_id":"wefunder:comment:221413","answer":"@Roy, We can't make any forward looking claims (per SEC regulations), but our intention is on paying back the investors' principal before the founders receive a dividend. So that changes the math quite a bit. Regarding liquidity, SEC CF regulations allow investors to sell their investment after a year lockup period. It's possible that we could set up a secondary market in the future. Hopefully that answers your question - but feel free to follow up if it doesn't. And of course, caveat emptor - startup investing is a risky business.","author_name":"Alex MacCaw","votes":2,"created_at":"2022-10-07T19:07:01Z"}]},{"id":263763,"entity_id":"wefunder:comment:263763","question":"David Sacks talked about this app on the All-In podcast today!","author_name":"Senitiki Rokocakau","votes":0,"created_at":"2023-09-30T05:19:31Z","canonical_url":"https://wefunder.com/reflect#question-263763","answers":[]},{"id":224542,"entity_id":"wefunder:comment:224542","question":"Does investing give you discount on current subscription plans?","author_name":"Diogo Ferreira","votes":0,"created_at":"2022-11-02T17:43:45Z","canonical_url":"https://wefunder.com/reflect#question-224542","answers":[{"id":224545,"entity_id":"wefunder:comment:224545","answer":"Sorry, it doesn't.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-11-02T17:45:52Z"}]},{"id":223591,"entity_id":"wefunder:comment:223591","question":"I got mail that CN to SAFE and reconfirmation needed? May I know what are you losing staying with CN?","author_name":"Badal Haider","votes":0,"created_at":"2022-10-24T23:33:40Z","canonical_url":"https://wefunder.com/reflect#question-223591","answers":[{"id":223594,"entity_id":"wefunder:comment:223594","answer":"Badal, we recently sent out an email asking our investors to reconfirm their investment on a SAFE rather than a convertible note. We had always intended the investment would be on a SAFE (and all of our communication around the round spoke to that), but an unfortunate misunderstanding between us and Wefunder meant that the terms people signed were for a convertible note rather than a SAFE. We'd much rather raise on a SAFE because the terms are simpler, standardized, and well understood by investors. SAFEs are the standard these days. Convertible notes are instruments that were popular in the past but after Y Combinator developed the SAFE that has become the new standard.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-24T23:51:24Z"}]},{"id":222712,"entity_id":"wefunder:comment:222712","question":"Hi Alex! I've been reading through your offering, and your Q\u0026amp;A here, and I am impressed by what you are building. I'm a current user of Roam Research, but am interested in possibly switching to Reflect \u0026amp; making an investment. What is your competitive advantage to Roam? Additionally, given all of your endeavors, like running a fund, why are you building Reflect? Thank you! Eric","author_name":"Eric Weiner","votes":0,"created_at":"2022-10-18T19:30:01Z","canonical_url":"https://wefunder.com/reflect#question-222712","answers":[{"id":223571,"entity_id":"wefunder:comment:223571","answer":"Eric, I would think of us as taking the best piece of Roam (backlinks) and making that mainstream for Evernote and Apple Notes users. We are not trying to handle all the use-cases of Roam. We simply want to build something simple and really beautifully designed so that it has wider appeal. To your second question, I'm a silent partner in the fund (I just helped set it up). 90% of my energies are going towards Reflect. Why - because I absolutely love building. :)","author_name":"Alex MacCaw","votes":1,"created_at":"2022-10-24T19:41:19Z"}]},{"id":222505,"entity_id":"wefunder:comment:222505","question":"if i invest lets's say 5k. to achieve 5k dividend a year like Zim stock yield, 5k is 1/3000 of 15m mean the company need 15m net income as in similar example on wefunder answer. the revenue will be at 45m as example 1m and 300k income. in summary, the company need to 250x revenue to have the similar dividend yield as zim stock while valuation is 30x (as mature company like evernote multiple). 5k would return 5k dividend a yield and worth 150k after company did a 250x revenue while the alternative route would be just buy Zim stock for similar dividend level and 4x (instead of 30x) but at a much safer investment. One caveat the founder said investors will recoup the capital sooner since dividend won't get paid to founder before that happen. still, this would take 12-18 months for company to be profitable, and then 300k net income would take another 4 years to recoup capital. let's say revenue do increase, then it would 2-3 years plus 12-18 months it would take at least 3-3.5 years to merely recoup capital via dividend which is basically an extra x return. if company did 250x like i projected, it would merely do a 30+1x return. These number doesn't look bad at all but it assume everything went perfectly which is not practical in real world. Math can be adjusted if yield on cost is 5%, the revenue would need to go 5k5%3000 *3.3 = 2.5m which is 15x current revenue for a merely 5% dividend. Any thought on this?","author_name":"Minh Le","votes":0,"created_at":"2022-10-16T18:27:55Z","canonical_url":"https://wefunder.com/reflect#question-222505","answers":[{"id":222530,"entity_id":"wefunder:comment:222530","answer":"Sorry, we cannot give out any forward looking statements or financial advice. We have an example scenario in our FAQ that might help answer your question. Overall though, I will say that startup investing is a risky business. If you have doubts about investing in startups it's probably a sign you shouldn't be investing in startups.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-17T13:26:35Z"}]},{"id":222495,"entity_id":"wefunder:comment:222495","question":"What is the projected revenue and profit, dividend sharing % out of net profit in 1, 3 and 5 years from now? I saw some tweeter post saying it is not worth it to invest and get a couple of hundred dollars per 1k invested after many years and it is true too consider the risk is too high for start up investing. What is valuation of the company in 1,3 and 5 years from now? I would love to have the option to cash out even by secondary trading with high multiple x of my investment.","author_name":"Minh Le","votes":0,"created_at":"2022-10-16T15:20:01Z","canonical_url":"https://wefunder.com/reflect#question-222495","answers":[{"id":222529,"entity_id":"wefunder:comment:222529","answer":"Per SEC regulations we cannot give out any forward looking statements, or guarantee a profit or a dividend. We do have something in our FAQ governing secondary sales that might answer your second question.","author_name":"Alex MacCaw","votes":0,"created_at":"2022-10-17T13:22:30Z"}]}],"faq":[{"question":"From a valuation perspective, a $18k MRR =\u0026gt; $220k ARR. A post-equity valuation of $15M means a pre-equity valuation of $14M, if the fundraise cap is $1.2M, as stated. So that means the revenue valuation multiple is 63x ($14M/$220k). Can you comment on what justifies such a ...","answer":"Hey no worries - good question. I have some experience here as I also run a investment fund (Earl Grey Capital). The truth is valuations are decided by what the market will bear. The market generally doesn't price seed valuations by revenue. For example, the last company I founded raised at a similar valuation with close to zero revenue. As for the number itself $15m is the going rate for excellent startups these days. In fact, I'd say it was quite cheap. :)"},{"question":"Love it, Alex - big fan and DAU of Reflect. Not sure if you're comfortable sharing, but I'd love to have some gauge of churn. Totally get if you don't want to share current monthly churn %, but if you have any benchmarks of the note-taking/networked thought industry churn and ...","answer":"Sure thing - happy to share. Here is our average cohort revenue churn: share.cleanshot.com/zEVNuk You can see month 1 churn is not good (we need to improve our onboarding flow). I also want to point out that some of the months have lower churn because they have annual deals in them which haven't renewed yet. I don't know churn benchmarks for note-taking, but I did find this report which puts average B2C churn at 6.7% monthly. recurly.com/research/churn-rate-benchmarks Primary acquisition chan..."},{"question":"Hey Alex -- daily active user and big fan of Reflect. Question -- when/how would you decide to pay dividends to investors instead of investing profit into growth, hiring, or increasing salaries/profit distributions of team members? Have you thought about any heuristics?","answer":"That is a great question! Here's how I'm thinking about it: - We'll first prioritize investments in the product (features I think absolutely have to get done). This is the subjective part of course. But I'm a fan of small teams and efficient businesses. You need the right people, not many people. - Any profits left over at the end of the year will be issued as dividends. - Investors will be paid back before the founders get any dividends. After that dividends will be pro-rata. ConvertKit is a..."},{"question":"@Alex - Following up on James Li's question, I think the high multiples and valuations work in traditional startups because you're buying a call option on a business that has the potential for uncapped upside and multi-billion dollar potential. A $50,000 investment and no furt...","answer":"@Roy, We can't make any forward looking claims (per SEC regulations), but our intention is on paying back the investors' principal before the founders receive a dividend. So that changes the math quite a bit. Regarding liquidity, SEC CF regulations allow investors to sell their investment after a year lockup period. It's possible that we could set up a secondary market in the future. Hopefully that answers your question - but feel free to follow up if it doesn't. And of course, caveat emptor ..."},{"question":"Hello I see you talking in your pitch about the team, product, road map, etc, but to my surprise I have not seen you talking anywhere about your competition and differentiators. One of my investor buddies mentioned for example obsidian.md, Bear, Drafts, etc and all of these in...","answer":"Vilem, that's correct - there's a lot of note-taking apps out there each serving different niches and use-cases. Part of the reason why this is the case is because there is massive demand in general for these tools (almost everyone needs one), and lots of people have quite specific use-cases. We have just over a thousand customers in under a year. We hear the reason why people choose Reflect over alternatives is because we are simple, beautiful, and integrated into their existing tools. Our p..."}]}}}