FTToken Inc. offers stock and bonds to eligible community members. Please see the following information to invest in our community platform. Our initial funding round is private and only available to community members with connections to the founding team.
FTToken Inc. Founder Stock
Stock can be purchased by eligible community members based on security regulations at each funding round.
The first funding round is $100k for 250k shares at $0.40 per share on a $2m valuation (approximately 5% of the company)
Profits from Founder Stock may not be taxable (Carta QSBS Rules)
At each funding round, you can request to sell your stock for cash (Within QSBS rules to keep profits tax free for all eligible community members. Generally this is a 1 year lockup)
Each funding round is double the previous round
For example, the second round is $200k for 250k shares at $0.80 per share on a $4.3m valuation
Most VC backed startups raise millions on a $20-$50m valuation for 20%-30% of the company
This is the equivalent of 5 of our funding rounds. Initial founders may see massive returns as we grow
After 5 rounds, the market cap would be $44m, price per share would be $6.40, and we will have raised $3.15m in equity, have up to $4.7m in bonds, and paid builders $1.55m in equity
Founders would have 18.2% of equity, and builders would have 9.1%
First round founders could realize a 16x return in the 5th round
Second round founders could realize an 8x return in the 5th round
FTToken Inc. Bonds
Bonds are offered to eligible community members based on security regulations
Bonds pay a fixed rate of return, during the initial funding round we are offering 12% for a 10 year term
Bonds are a way to raise capital and reward community members for their support
For the first funding round, up to $150k in bonds may be issued. This amount will double each round
For example, the second funding round may issue an additional $300k in bonds, $450k total
The third funding round may issue an additional $600k in bonds, $1.05m total
Bonds are backed by equity. If FTToken Inc. fails to repay bonds, the bonds will convert to the equity covering that bond.
For example, if the third funding round is used to cover a bond, the bond would convert to equity raised in the third round. But the first and second round bonds/equity would not convert.
Earlier rounds are senior to later rounds. For example, the first round would be the last to convert.
The current offered $150k in bonds are backed by the first round of equity.