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FreeWP
The Plan

Funding Request

Digital
Ventures
Trust
⁠

Funding Strategy Overview
Our funding strategy is divided into four distinct stages, each designed to secure capital while maintaining control and aligning with our mission-driven objectives. Below is a detailed breakdown of each stage, including objectives, instruments, capital structure, investor benefits, and actionable steps.
Stage 1: Private Funding via SAFE Agreements
Objective:
Raise initial capital by offering up to 20% equity through private investments.
Key Components:
Investment Instrument:
SAFE (Simple Agreement for Future Equity): A flexible, investor-friendly instrument that defers valuation concerns until a future financing round.
Investor Limitations:
Cap on Individual Stakes: Limit each investor’s equity stake to 3% to prevent undue influence.
Cohort-Based Approach:
Targeted Investor Cohorts:
Tech Innovators: Strategic partnerships within the technology sector.
Media and Publishing: Attract industry players who can leverage our products.
Social Impact Investors: Engage investors focused on community development and worker empowerment.
Capital Structure:
Investor Equity:
Class B Shares: Non-voting shares to ensure fair compensation while maintaining company governance.
Worker Primacy:
Class A Shares: Voting shares allocated to worker-owners to retain control within the operational team.
Action Steps:
Prepare Investment Documents: Establish a thoughtful valuation cap to prevent excessive dilution.
Identify Potential Investors: Target relevant investor cohorts.
Close Funding Agreements: Finalize agreements with customized terms for each investor cohort.
Stage 2: Regulation Crowdfunding (Reg CF) Round
Objective:
Raise up to **$5 million** from the public.
Key Components:
Equity Offering:
10% Company Stake: Offered to crowdfunding participants.
Reg CF Compliance:
SEC Regulation Crowdfunding: Ensure compliance with securities regulations to facilitate public investment.
Allocation of Funds:
FreeWP Trust Funding: Seed the trust to support governance and community investments.
Operational Capital: Fund product development, marketing, and operational expenses.
Investor Benefits:
Early Entry: Opportunity to invest in a promising, worker-owned company.
Community Alignment: Support a mission-driven organization focused on sustainable growth.
Action Steps:
Select a Crowdfunding Platform: Choose a platform that aligns with our funding goals.
Develop Campaign Materials: Create compelling materials to attract investors.
Launch and Promote the Campaign: Execute a strategic launch to maximize reach and investment.
Stage 3: Seed Rounds Leading to Regulation A+ Offering
Objective:
Secure additional funding through seed rounds in preparation for a Regulation A+ offering.
Key Components:
Investor Engagement:
Angel Investors: Connect with individual investors who provide capital for startups.
Mission-Aligned Venture Capital Firms: Partner with VCs that share our values and mission.
Preparation for Reg A+ Offering:
Establish Valuation Benchmarks: Determine appropriate valuation metrics.
Network with Potential Investors: Build relationships with future investors for the Reg A+ round.
Action Steps:
Continue Investor Networking: Strengthen relationships with current and potential investors.
Prepare for Regulation A+ Offering: Complete necessary preparations for the upcoming public offering.
Stage 4: Regulation A+ Offering (Mini-IPO)
Objective:
Raise up to **$50 million** through a public offering.
Key Components:
Investor Access:
Open to All Investors: Both accredited and non-accredited investors can participate.
Reg A+ Details:
Mini-IPO: Conduct a streamlined public offering to reach a broader investor base without the complexities of a full IPO.
Single IPO-Like Event: This will be our only IPO-like event to solidify the capital base and prevent excessive dilution of worker ownership.
Capital Utilization:
Operational Growth: Enhance product development, marketing, and staffing.
Investments: Expand FreeWP Ventures’ portfolio and Special Purpose Vehicles (SPVs).
Community Initiatives: Increase contributions to the FreeWP Trust.
Investor Benefits:
Growth Opportunity: Invest during a critical phase of expansion.
Impact Investment: Support an organization committed to social and community initiatives.
Action Steps:
Complete SEC Filings: Ensure all regulatory requirements are met.
Launch the Offering: Initiate the public offering process.
Allocate Funds: Distribute raised capital according to the established capital structure.
Summary
This structured approach allows us to strategically raise capital at various stages, ensuring alignment with our mission, maintaining governance control, and providing diverse investment opportunities. By following these stages, we aim to build a strong financial foundation that supports sustainable growth and community impact.

Funding Strategy Implementation by Entity

FreeWP Digital:
Drives content and media initiatives
Serves as the public face of the mission
FreeWP Ventures:
Fuels innovation by investing in startups and technologies that align with goals
FreeWP Trust:
Ensures contributors and community projects receive necessary support to thrive

Growth and Funding Strategy

Ambitious Growth Journey:
Expand ecosystem
Amplify community impact
Multi-Stage Funding Strategy:
Balances private investments with public offerings
Preserves core values of worker empowerment and democratic governance
Funding Plan Details:
Each stage outlined with capital structure, use of funds, investor benefits, and regulatory compliance

Fundraising Strategy Details

Entities Involved:
FreeWP Digital: Drives content and media initiatives, serves as the public face
FreeWP Ventures: Fuels innovation by investing in aligned startups and technologies
FreeWP Trust: Supports contributors and community projects
Strategy Highlights:
Multiple fundraising stages with varying target amounts and timelines
Fundraising amounts may vary based on:
Investor interest
Market conditions
Strategic priorities
Ownership Structure:
Majority worker ownership maintained
Investor equity capped to prevent undue influence
Overall Aim:
Balance securing necessary capital with adhering to core values of worker empowerment, community support, and democratic governance
Funding Strategy Implementation by Entity
Growth and Funding Strategy
Fundraising Strategy Details
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