TinySeed is a one-year, remote accelerator that funds 15-20 companies at once. Those companies go through our accelerator program as a batch.
Our terms are based on those Rand Fishkin used to raise funding for his company SparkToro:
— TinySeed invests $120k for the first founder + $60k per additional founder. Our standard terms are for 10-12% equity.
— If you don't need this money for living expenses, it can be invested into marketing, design, contractors, etc. to help grow the business.
— We determine a salary cap with the founder based on a software engineer in the closest major city.
— As the business generates profit, the founder can choose to increase his/her salary up to the cap. Any additional funds they take out of the business are dividends.
— This allows the founder to reinvest profit in the company as long as they like. In this scenario, TinySeed does not take revenue or profit from your company, only dividends that you decide to pull out at timing that works for the business.
— Dividends are split pro-rata based on percentage ownership.
— If the company sells, investors receive the greater of their initial investment back (minus any dividends paid to date), or their pro-rata share of the proceeds based on ownership.
— If you decide to raise additional venture capital, our equity converts to the same class of stock as your new investors, and we retain a right to participate in your future financing round at whatever valuation that happens at.
In addition, we provide extensive mentorship and guidance through weekly mastermind calls with other startups in your cohort, and office hour calls with mentors.
Our roster of mentors is diverse and second-to-none. Look here for a full list.
Applications for our 2020 cohort are open from November 1st until November 29th. You can save your application as much as you like, but please make sure it is finalized and submitted before the application close gate.