[dtwest]

Is it really $200k in sales if the people that are buying are guaranteed a rate of return? When I looked at the site a month ago it looked like these PoPs were being marketed as an investment. Given the capped upside, it looked as if the buyers were not buying equity, instead providing more of a loan with an expectation of getting their money back and more.

Don't get me wrong, I think this is a very cool project. I just find the marketing confusing.

[mildlyclassic]

That's a great question. You're right, It's a commercial agreement, not equity. We think it counts as a sale, but I'm totally open to a more appropriate term.

[treis]

Ponzi Scheme? Half joking because this looks like an interesting concept. But reading your spreadsheet you have a "minimum guarantee" of 10% annualized return. Which is not possible.

[wtvanhest]

TBH, I had the same thought. Theoretically if the return was that good, they would not need to break up the capital investment and manage lots of individual relationships. They could simply raise the capital they need at a very low price and have 1 relationship which would be much more efficient.

It is either a scam or an incredible investment opportunity. We will know in 3 months. If it is a scam, they will keep selling them individually. If it is an incredible investment opportunity, they will stop selling them and be funded by someone who is reading the article today. In the US, their investment proposal likely violates the law by guaranteeing a return.

I hope its an incredible investment opportunity and I hope they deliver what they say they will.

[CodeWriter23]

There is no better bargaining chip when it comes to negotiating with investors than paying customers. I'm saying maybe this is a baby step into the continuum you describe.

[RhodoYolo]

its a YC company.

[Inhibit]

"Investment capital"

[mdorazio]

Same thought exactly. "We crowdsourced 200k in investment capital with 6k in a blog sponsorship" is the actual sequence here.