Treasure Hunt International will provide numerous benefits to its investors. Everyone holding shares in the company will be considered an investor. Investments may be financial or as sweat equity. The amount of monetary benefits such as dividends and monetary packages that an investor gets will depend on the number of shares held by that particular investor.
The term ‘investor’ refers to the following;
- The startup team members with shares from the Option Pool.
- Members of Treasure Hunt International Club. The club will secure on behalf of its members, shares of Treasure Hunt International equivalent to 20% of the company.
- Depending on the successful formation of Treasure Hunt International Club, another club may be formed to purchase 22% of the company. This new club will be called Treasure Hunt International General Club.
- The Founder and the Co-founder.
- An Interim Coordinator who may be engaged to mobilize the resources needed to incorporate and launch the company. She/he will get sweat equity shares.
- An initial team (to be called ‘the Pillars) may be used in place of the Interim Coordinator. They would help select and bring the founding team together and support the founding team in crowd funding the initial capital of 25,000 US dollars. The Pillar team would have shares allocated to them.
- Financial investors. 22% of Treasure Hunt International will be used to raise funds from Venture Capital firms.
- Any investor who will work for the company will be entitled to a market-rate salary (unless agreed otherwise)
- 30% of Treasure Hunt International’s after-tax profits from its global operations will be used as dividends at the end of each financial year. This is a fixed policy and will be applied irrespective of whether the company makes a small profit or a large profit.
- Sweat equity investors will get an early financial boom from the transfer and subsequent sale of shares equivalent to 3% of the company. The sale will be made to the Treasure Hunt International General Club. These shares have already being deducted from other sweat equity shareholdings. The sale will earn sweat equity investors US$ 11,931818.19. Every single cent of this amount (after taxation) will be divided among sweat equity investors. This sale will be made during the first business year when the startup’s main focus will be on fundraising.
- There will be a compensation package for early investors. Early financial investors will get the larger percentage of this package. The other percentage will be divided among non-financial investors. Early financial investors take more risks and their funds mean life and death to a startup. These investors deserve special compensation for their trust and faith. If the company’ target is to raise 5 million dollars for every 5% of the 44 %,(the stake of the company set aside to raise the main capital) new financial equity investors may need to pay more if there is a marked increase in the market value of the company. An investor may pay 5.25 million dollars instead of 5 million dollars for the 5% stake owing to overall company growth. The marginal increase of 0.25 million (250 thousand) dollars can be attributed to the risks taken by earlier investors. The whole of this surplus will be used to compensate earlier investors. Earlier financial equity investors will get a much larger share. Even when there is only one earlier investor, (such as the 1% investor(s) of $25,000) he will get the whole compensation amount apportioned to financial equity investors. If 50% of the surplus is the percentage provided for investors who invest money, then the 1% investor(s) will get US $ 250,000 x 50% = 75,000 US dollars. The same arrangement would be repeated in all subsequent funding until the 44% of the company is fully taken and the company is fully funded.
- Treasure Hunt International’s IT& Startup division will launch startups that will grow into large businesses on their own right. The profits and financial benefits from these companies (including proceeds from any exits) will go to the investors of Treasure Hunt International. Profits and financial benefits from 20 such companies can form a continuous and immensely lucrative inflow of income for investors.
Indirect financial benefits and favorable monetary policies;
- The startup team will be motivated and spurred to drive the business to rapid growth by restructuring their share-vesting agreement. A milestone of growth will be set whose attainment will allow the founding team (and other investors) to offload/sale a portion or the whole of their shares to third parties. Attaining this stage will usher Treasure Hunt International into a new era of growth in value which will be brought about by the resultant demand for stakes in the company.
- The average wait of 7 to 10 years by investors for startups to grow into profitable businesses and exit is a depressingly long period. We feel investors should be allowed to transfer/sale their stakes when they feel their investments have appreciated enough. This flexibility will also allow investors to jump ship when they feel the ‘ship’ is slowly going under. A startup team that is worth its salt should be creative enough to reduce the time it takes for the company to exit; down to 31/2 to 51/2 This is enough time for startups that are aiming for exit to gain early maturity and establish their potential for all to see.
- As Treasure Hunt International grows and expands its operations throughout the world, and diversifies to all industries, it will create a lot of job opportunities. The best of these jobs will be given to members of Treasure Hunt International Club and Treasure Hunt International General Club.
- Treasure Hunt International will support members who need support in their businesses. The company will be a global entity and will be able to offer sales and marketing support.
- Numerous opportunities will arise for outsourcing and every kind of contract related opportunity. These opportunities will be awarded to members who are business inclined.
- There will also be a large welfare fund – managed by the Clubs – to support and uplift members who may be less fortunate.
- The company will need two partners in every country. These two partners will each get 15% of the entity formed in their country.
Members of the two clubs who are ambitious and enterprising will quickly accumulate a fortune for themselves by seizing the countless opportunities that will arise as Treasure Hunt International ‘ploughs’ up opportunities throughout the world.