Comments

An Update on Cryptogulch – 11-21-17 — 6 Comments

  1. Hicups in startups are expected and usually straight forward solutions are available.

    Two pieces of information would be helpful:

    1) How much was the loan commitment for?  And,

    2) How much has the first traunche of 20 customers committed?

    Thanks…Fred

    • Well there is no loan commitment to comment on because I ain’t in charge and it is just a suggestion.

      Personally if it were me it would be a minimum of 10K over 36 months at 5% simple interest payable in credit to buy gear. This is very weighted to the company vs the investor but the investor only wins if the company wins. I would also require a 10K minimum, and limit it max to ten people and would want to lower that number of 10 people if possible.

      I’d personally buy a share at that rate, because I want this to succeed and it creates a very good situation for the company. But again I am NOT in charge of anything. I based this on needing about 100K of operational capital which from conversations with Ben seems about right and creating a repayment schedule that would be easily be met with cash flow.

      As to how much, I am not totally aware of every customer but from my commission alone it is significant. If I did know I would not say because something like that should be for company owners and managers only to reveal.

      I am sure if Ben went ahead with something like my suggestion all terms, projections, etc would be spelled out.

      I’ve been trying to think of other perks to investors too, and being always at the front of the line for upgrades, add ons, etc, seems like a good one.

  2. Good points. If the $100k number is close, could be as simple as launching the company with 20 “founding customers” who have sufficient band width to also take a $5k note with reasonable terms.

    While 200+ people want to get onboard immediately, launching the company on a financially strong and supportive customer base would provide a high level of assurance that the business will succeed, and actually ramp customers onboard more quickly.

    Seems like a quick mid course correction that is easy to implement.

    For the existing first 20, they could go to customer #21 in if they don’t have the spare $5k today.

    • That is pretty much my idea, I just have the level of participation higher at 10K the LESS people you have in such a pool you own money to the better.

  3. Do to that fact that someone new can’t get on the waiting list for cryptogulch where would someone go for another mining opportunity? I looked at genisys and they limit the time your money buys you to mine.

  4. Ben, you may want to join the dynamite circle, it’s run by the guys that run the Tropical MBA podcast (worth a listen since you’re starting up a business).   I don’t doubt their network can 1) come up with a solution, 2) help with funding.   One of the guys that runs it lives in Austin and I do believe their next global event will be held in Austin.

    Alternatively, Austin is a turn full of wealthy investors.  I don’t doubt some of them are looking for a crypto play right now.  I’m happy to ask some of my investor friends if they’re interested, they’ve had no problems raising >1M for all of their past projects.  Let me know.

    Join the DC