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Security Type
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Crowd Note
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Categories
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Media
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Min Investment
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$100
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Offering Date
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July 20, 2020
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Expected Close Date
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September 21, 2020
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Target Raise
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$25.00K-$500.00K
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Deal Notes
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Discount: 20%
In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $2.5 million or $3 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Company Description
Procurement Foundry is an online collaboration community where Procurement and Supply Chain professionals can come to gather, share, learn, and grow. Procurement Foundry’s peer-to-peer platform facilitates discussion, learning, and networking from over 2,900 vetted industry professionals from over 90 different countries. It also creates original content, which includes online presentations, live Q&A sessions with industry professionals, and in-person events throughout 20 regional chapter-locations worldwide. An active community of Procurement and Supply Chain professionals collaborates within the Procurement Foundry Slack community, which serves as their digital meeting hub for open discussion, learning, and networking.
Perks
Investors that purchase the first 100,000 Crowd Notes, and thereby fund the first $100,000, will receive Crowd Notes with a conversion provision based on a $2.5 million valuation cap instead of a $3 million valuation cap. That means, in connection with equity financing of at least $1,000,000, the company has the option to convert the Crowd Note into non-voting preferred shares (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per unit paid for Preferred Shares by investors in the Qualified Equity Financing or (B) the price per share based on a $2.5 million valuation cap (instead of $3 million).
Key Deal Facts
Reached profitability in April 2020
Operates 20 regional chapters located throughout the United States, Canada, and U.K.
Has more than 2,900 individually vetted members on its platform, which include professionals representing 75% of Fortune 100, and 41% of Fortune 500 companies
Anticipates launching a Group Purchase Organization (GPO) in 2021
Use of Proceeds
- Media Development: $15,000
- Marketing: $8,750
- Intermediary Fees: $1,250
- Advertising Channel Development: $150,000
- Media Development: $150,000
- Operations/Staffing: $100,000
- Marketing: $75,000
- Intermediary Fees: $25,000
Management Team / Advisory Board Bios
Mike Cadieux - CEO and Founder
Mike founded Procurement Foundry in June of 2019 and serves as the company’s CEO. He has over 20 years of experience in indirect sourcing and specializes in spend analytics, global vendor relations, sourcing negotiations and sourcing strategies. Mike is also a Managing Partner at AMPlify Resources Group, which provides consultancy solutions to the procurement industry. Prior to AMPlify, he was Vice President, Chief Procurement Officer of Publicis Groupe, where he built, operated, and expanded the procurement and sourcing operations within the existing shared services organization of the company. Mike holds a Bachelor of Arts degree in Corporate Communications.
Yashar Kafi - COO and Managing Partner
Yashar is a recognized leader in consulting and focuses on digital acceleration initiatives to drive innovative solutions for Fortune 500 clients. He has worked with technologies including Blockchain, SAP, Oracle, WorkDay, NetSuite, Salesforce, UI Path, and Blue Prism. Yashar is also a Managing Partner at AMPlify, where he leads complicated technology-enabled business and supply chain transformation, develops long-term relationships, and delivers sustained value to clients. Prior to Procurement Foundry, he was a Senior Director at Virtusa, where he advanced the Professional Services portfolio of engagements. He holds an MBA in Entrepreneurship Studies from Babson College and a Bachelor of Arts degree in Economics from the University of California San Diego.
Deal Notes
Discount: 20%
In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $2.5 million or $3 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Reveal the Score by Voting
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Additional ratings from other users are needed to determine a viable CrowdScore for this deal.
The "CrowdScore" for this deal is determined by user ratings and other factors using our proprietary algorithm.
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The overall viability and scalability of the business concept as well as the ability to drive the concept to profitability over time.
Business Idea
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The progress made thus far in demonstrating that the business has viability, a customer base or other business traction.
Business Traction
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The experience of the management team in running, scaling and/or exiting a business that required similar skills to execute the business plan.
Management Team
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The value of the company compared to similar companies raising money from investors.
Valuation
Security Description
A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.
