Our goal - 18X return on your investment!
Are you wondering how this works and what could be your possible ROI?
Please read the below plain language hypothetical scenario to help you understand the end game and what you might gain by investing in Jar Goods, which is of course not guaranteed.
Essentially, your investment is equity in the company from the start but exactly how much equity is still to be determined.
- We are too early stage for valuation. The Crowd SAFE investment instrument allows us to raise capital while deferring concise valuation.
- Assumed Jar Goods is currently comprised of 1,000,000 shares (we are currently a 500 unit LLC, so this assumes we convert to a corporation at some point).
- Pretend you invest the minimum - $100
- Pretend the next round values the company at $22MM and an additional 227,272 shares are issued for a total of 1,227,272.
- Now it's time to convert your investment! Here’s how your equity would be calculated:
- Discounted share - Due to the valuation, the shares are now worth ($22MM / 1M shares =) $22.00. At the 20% discount, shares cost you ($22*.8 =) $17.60. If converted via the discount, your $100 investment converts to ($100 / $17.60 = ) 5.68 shares
- Cap - The cap on this round is $5.5MM resulting in a maximum per share value of ($5.5MM / 1M shares=) $5.50. If converted via the cap, your $100 investment converts to 18.18 shares.
- In the above example, your investment would be converted via the cap scenario because it gets you more shares.
And here's what happens to your investment upon a 'liquidity event,' which in our case is most likely to be acquisition:
- Pretend we sell Jar Goods to Big Corporation for $140MM and an additional 181,818 shares are issues for a grand total of 1,409,090 shares.
- Shares are now worth $99.35. Since you own 18.18 shares, your investment is now worth and would be realized at $1,806.45
The return is 18.06X - impressive! Naturally, the more you invest at this early stage, the more you stand to make! For example, if you invested $500, your return would be $9030. $1000 - > $18,060. And so on and so forth...
Wow, that's quite a return on investment!
The example above is only meant to illustrate one possible outcome. In no way is it meant to reflect the actual ROI of your investment. Like all investments, investing in Jar Goods comes with its own risks and could result in total loss.