Adjusted Moro Update - Operations and Offering
Dear Investors,
There are some important developments we wanted to share operationally, as well as with the upcoming offering.
As we continue to develop Applaudable and expand user acquisition model testing, we are increasingly optimistic about our prospects of achieving substantial user growth. As suggested in my previous update, we believe user growth may surpass that of market-leading social media firms during their corresponding development stages, following our full-scale launch. We are also seeing exciting early results from our new partnership with the leading business process outsourcing firm Assivo, which we expect will expand our onboarded marketplace-products by 20x over the next 4-5 months, significantly growing revenue.
As you know, we have partnered with Republic to make our Series A round available through their platform at a $36 million valuation, seeking $7.5 mm in incremental capital. (The round in total will be close to $10 mm when taking into account the conversion of existing convertible notes and SAFE agreements.) We have committed to ensuring that the A round will be made available to all current investors.
We expect to be in a position to submit our offering documents to the SEC for approval as early as the end of April. Nonetheless, we also believe it is prudent to raise a modest bridge round in advance of the Series A to ensure that we have substantial runway even in the event that there were an unexpected delay in going live.
Furthermore, given current momentum, we expect to achieve revenue and user growth milestones which could justify a substantial increase to the contemplated Series A valuation. Increasing our runway through the bridge round will give us flexibility should we determine that this expected growth is indeed being achieved. If so, it could be in the best interests of Moro and our investors to launch the Series A later in the year, and at a higher valuation.
Alternatively, after closing our bridge round, we could elect to go live with the Series A in the near term at the $36 million valuation, but closely assess whether we are “outgrowing” that valuation and suspend the offering before the full $7.5 million is raised, take a breath, and re-launch the offering at a higher valuation. In either event, we will allow early investment reservations before the Series A is live, which will be the only period during which we will ensure its availability to our existing investors at the opening valuation.
We will make the bridge offering available on a very limited basis this month and will keep you closely apprised as to the timing of the $7.5mm Series A go-live. We thank you for your support and interest and look forward to providing more information and updates shortly.
Thanks,
Andrew Christodoulides
Founder & CEO