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Reg. CF (Title III)

CrowdChayne Inc

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32%
$8,000 Funded
119 days Time Left
$25,000 Target Raise
$1,070,000 Max. Raise
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CrowdChayne

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About


CrowdChayne Inc

CrowdChayne is a crowdfunding portal that bridges the gap between companies seeking capital and retail investors

Executive Summary

This report is prepared to provide an overview of a business opportunity about CrowdChayne. In this report, all details regarding service/service concept, market & competitive analysis, market segmentation, launch plan, operational plan, SWOT analysis related to CrowdChayne will be discussed. We have ventured into the crowd funding industry to offer superior and unique services of crowd funding and traditional investment banking to businesses large and small. Our experience and expertise as retail stockbrokers and investment bankers gives us the experience and contacts to provide solutions that are currently lacking in the crowdfunding arena. CrowdChayne is a crowdfunding portal that bridge the gap between companies seeking, and retail investors.  To date Mr. Cid has already invested $180,000 of his capital into CrowdChayne.

Crowd funding has become a popular financing option for startups and is considered as part of venture capital financing. This financial segment has shown great potential in America. Our duty is to provide that critical market-place or junction where a potential entrepreneur is able to showcase/pitch his/her business to investors with the most impressive business idea getting full funding from the crowd of investors.  Our platform www.crowdchayne.com is a front facing portal specifically geared to Reg CF, 506C, and Reg A Plus offerings. We also have a division focused on traditional investment banking deals as well as underwriting. We have already started the process of getting our broker dealer registered through FINRA. We have prepared this business plan to highlight some of the aspects of our business and systems. It details the market demands and growth and outlines the projected profit margins and cash flow over the next four years. We will ensure that we hold ourselves accountable to the highest standards by meeting our client's needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and our clients.

 

Objectives

 

The objectives of our company are provided below.

  • To generate a revenue of $ 900,000 in the first year.
  • To include the right depth of rules for borrowers and lenders.
  • To build relationship with Corporate Partners and service providers and its substantially better returns with increased security and easy access to funds.
  • Avoid common traps at each step of business development.
  • To keep ourselves financially stable for any miss hap or downfall in business.

To become the premier crowd funding Portal and capture 5% of the market.

 

Keys to Success

  • To build and tailor our service to our customers.
  • We will create a network of investors to see address questions people ask and what problems they're trying to solve regarding their investments.
  • Firms conducting securities transactions and business with the investing public must be registered with FINRA. Firms must meet certain membership standards to attain registration.
  • We will check out our potential competitors by visiting their sites and taking note of what they're doing to fill the demand. Then we can use what we have learned and create a product for a market that already exists and do it better than the competition.
  • To keep up with the changing industry, it has become essential for issuers and portals to speed up execution of funds using cutting edge technology
  • We will add testimonials from people who have used our services.
  • We will establish an expert reputation of our self, by giving away free, expert content, creating articles, videos or any other content that people will find useful. We will distribute that content through online article directories or social media sites.
  • Creating great word of mouth promotion of services - clients sell services to other customers.
  • Genuinely listening to clients' needs and providing the services according to requirements.

 

 

Our ultimate objective is to be a strong player in the crowdfunding arena, first establishing ourselves in North America and later expanding across the globe.

 

 

Service / Service Concept

CrowdChayne, a crowdfunding platform based in the USA, aims at empowering creative entrepreneurs to validate their idea’s, creations and innovations. We will work with both investors and issuers to create an easily engageable platform where they can come together to meet their financing and investing needs. We will offer both conventional investment banking as well as use marketing and cutting-edge technology for our crowdfunding platform.  We believe that with the advent of crowdfunding the traditional rules of capitalism have been changed.  No more does the regular retail investor have to wait for a great concept or “hot” startup to go public with traditional methods.  We plan on bringing these companies and investors together so both can capitalize at inception.

Meeting Platform:

Our products and services are mostly online based, as both interested investors and potential entrepreneurs are provided a meeting platform to transact business.

Payment Channels

Due to the nature of our business which is online-based, we will be using electronic means of payment for services. These include the use of cards (credit, debit, smart etc.), mobile banking, and electronic banking.

Fairer growth

To inspire and lead improvements to the financial system where a fair and rewarding experience is achieved for everyone, and their rewards remain in balance, as we all thrive and grow together.

Growing Economy

We provide the crowdfund platform. Investors provide the funding. Businesses get the support. Together, we’re growing our communities and our economies, helping to fund new initiatives, empowering new industry, and creating jobs.

                                                                         

Innovative Opportunity

We will provide our services especially for the small and medium scale businesses and investors. These startups and investors will be provided a critical platform where both will meet with confidence in our due diligence and transparency. Our concern is to facilitate this exchange and to ensure that both parties enjoy the services provided. We will not be focusing on any particular business niche.  We will be open to all business types and investors that are interested in a particular business or businesses within the scope of our countries securities regulators. We will carefully craft our position in market by devoting ourselves to offering premium services to our customers. We will maintain our leading position in this sector. We have a plan to improve the standard of our service through proper research and development. We can get the efficiency through the appropriate input of information required for this purpose. We are working on services which are more reliable and efficient in terms of results for the customers.

 

Opportunities for CrowdChayne

While start-up owners eagerly await the Securities and Exchange Commission’s regulations for crowd funding, a handful of broker/dealers are racing to be the first to capi­tal­ize on the phenomenon. An exemption in the Securities Act allows start-ups to conduct a version of crowd funding today, as long it’s through broker/dealers companies who buy or sell securities for themselves or customers.

 

Identification of Customers for CrowdChayne

Potential customers of CROWDCHAYNE will consist of companies looking to raise capital or go public, this will include:

  • New startup companies
  • Existing companies looking at secondary offerings of their shares
  • Existing companies looking to up-list from a lower exchange on to a larger exchange.
  • Companies looking to issue debt instruments.

We will find the customers through the following ways.

  • We will establish our websites, and our customers will reach us.
  • We will provide our corporate profile to different corporate companies.
  • We will offer different packages to customers for a bulk purchasing our strategies.
  • We will formulate different marketing activities for the promotion of our company and searching for customers.
  • We will provide our profile to all online platforms for customers.
  • Internal bankers will be prospecting daily for new issuers.

 

Market Size and Market Characteristics

The Financial Industry Regulatory Authority (FINRA) regulates a critical part of the securities industry—brokerage firms doing business with the public in the United States. In an effort to increase public awareness and understanding about the broad range of FINRA-registered firms and individuals, FINRA for the first time is sharing an annual snapshot of some of the data collected in the course of its work. The FINRA Industry Snapshot 2018 provides a high-level overview of the industry, ranging from the number of FINRA-registered individuals to the overall revenues of firms; from trading activity to how firms market their products and services. All of the data are reported in aggregate to respect the confidentiality of regulatory information.

Anyone actively involved in a FINRA-registered firm’s investment banking or securities business must be registered as a representative with FINRA (“FINRA-registered representative”). To become registered, securities professionals are required to pass qualification exams to demonstrate competence in their particular securities activities. A FINRA-registered representative’s duties may include supervision, solicitation or training of persons associated with the member firm.

 

 

In the table below, “Broker Dealer Representatives Only” refers to FINRA-registered representatives. “Dual Representatives” refers to FINRA-registered representatives who are also registered as investment adviser representatives. “Investment Adviser Representatives – Only” refers to individuals who are registered only as investment adviser representatives and are overseen by the SEC or state regulators. Individuals are counted only once regardless of how many firms they represent.

 

 

 

Crowd funding platforms are important facilitators of nano-cap investment, and hence, the majority of their deals are into early Seed-stage companies. However, crowdfunding has become a more well-known and trusted form of investment, whilst crowd funding also allows brands to engage with consumers directly, later-stage businesses are also turning to this collective mode of fundraising. While in 2013, only 17.6% of crowd funding deals were secured by Venture-stage companies, in the first half of 2019, 40.5% of companies were categorized as such. Crowd funding also allows companies to raise funds whilst juggling older stakeholders, reducing the risk of taking on demanding new investors, allowing directors to maintain greater control of the company’s direction. Crowd funding is a massive industry—and its scope is constantly expanding. As a result, there are lots of crowd funding statistics to consider, each of which tells us a valuable story about running a successful campaign. Here are 32 crowd funding statistics to consider while you decide how to run your crowd funding campaign or whether you even want to run one in the first place:1. $17.2 billion is generated yearly through crowd funding in North America.

According to Statista, crowd funding raises $17.2 billion on a yearly basis in North America alone. And this number is growing steadily; projections for the crowd funding market suggest that it will reach astronomical heights within the next few years. In fact, Statista projects a compound annual growth rate of 14.7% for the next four years. [2]

 

Entrepreneurs from across the USA are utilizing crowd funding platforms to fund their businesses. Crowd funding continues to be a critical provider of small cap to SME’s in the US, bridging the gap between funding rounds that draw upon investment from family and friends at the very start of a new company’s lifecycle, and larger institutional rounds later in the company’s trajectory. Transaction value in the Crowd funding segment amounts to US$8,537.3m in 2020.Transaction value is expected to show an annual growth rate (CAGR 2020-2023) of 12.0% resulting in the total amount of US$11,985.6m by 2023.The average funding per campaign in the Crowd funding segment amounts to US$780 in 2020.From a global comparison perspective it is shown that the highest transaction value is reached in China (US$7,049m in 2020).

In fact, the total revenues acquired through the crowd funding process is projected to reach $300 billion by 2030.And according to Business Wire, this growth is supposed to bring in an incremental $89.72 billion by 2022 in USA.

 

Crowdfunding

Crowdfunding Worldwide

  • Transaction value in the Crowdfunding segment amounts to US$8,537.3m in 2020.
  • Transaction value is expected to show an annual growth rate (CAGR 2020-2023) of 12.0% resulting in the total amount of US$11,985.6m by 2023.
  • The average funding per campaign in the Crowdfunding segment amounts to US$780 in 2020.
  • From a global comparison perspective, it is shown that the highest transaction value is reached in China (US$7,049m in 2020).

The global crowdfunding market size will grow by USD 89.72 billion during 2018-2022.

 

Market Segmentation or Target Market

We aim to target new SMEs in USA and over the globe looking for investments.  Our second target market is investors who are looking to invest in businesses with greater ROI.  We can be a premiere crowdfunding portal and look to capture 5% of the crowdfunding market.

 

Marketing Plan

The crowdfunding industry is a very competitive market with a handful of players already established.  We can compete in the market through the application of our customized marketing plan as well as our traditional investment banking relationships that will serve to feed us potential deal flow as we build out our technology platform. For providing high-quality services and raising the profile of the company, it is essential for CrowdChayne to understand its uniqueness. Our focus is to adopt the best and most effective marketing strategies which can promote our business by improving our website at the international level. We will use the following marketing strategies to promote our website and to increase our number of customers which will increase our sales and profits.

Below is a list of marketing strategy tools we will utilize:

Google My Business.

It is one of the most powerful marketing strategies for small business to promote business. Our business listing will get a promotion on Google My Business. For targeting local markets, this platform is a powerful marketing medium. The listing appears at the top half of the search page ahead of the search results.

Google AdWords.

AdWords is a marketing tool to get the results immediately. For maximum output, we will pair this channel with my other marketing strategies.

Content Marketing.

We will explore content marketing by creating relevant content showcasing our business values and the care we take to resolve people’s problems with our services. Then, we will distribute the content through a wide range of channels online. This way of content marketing is a proven tactic to drive the traffic towards business from varied sources.

Facebook Ads.

We will create Facebook ads by placing Facebook ads to target our specific set of consumers based on their location, online behavior, sex, age, etc. It will be among our top marketing strategies for our business. Facebook Ads Manager will guide us to create, run and test many ad tests so that we can find out which ad formula is catching the attention of our consumers.

Brand Partnerships.

We will make partnerships with other brands so that we can reach out to more people by collaborating with other ventures. This will be an effective way of marketing our services or services as we will be using the consumers of the other ventures for promoting our services.

Social Media.

We will use social media because most of our target audience is using social media for customer support. Our crowd funding business will be present on all the major social platforms like Twitter,  Facebook and Instagram.

Print Advertising.

We will advertise in print media such as newspapers and magazines because they have a broad readership. In this way, our advertisements for services or services will catch the attention of people who rely more on print media for detailed news and views.

Webinars.

A webinar is a seminar conducted online in varied forms such as demonstration, discussion, and presentation. Webinars are used to generate a more extensive email list. People who join a webinar have to give their details such as name, phone number, and email. So, our crowdfunding business will generate a more significant number of emails this way. We will then use these emails to promote our services. As compared to simple videos, webinars are far more engaging because of the live Q&A sessions for the subscribers. When they get answers to their specific queries, they will feel special and satisfied.

Free Consultations.

We will help others by offering a free consultation. People want help from experts. We will use their urge for help by offering our expert views on a problem-free to them. By offering our free consultation, we will help our potential customers in making the right purchasing decision. Also, we will use referral software such as Omnistar through which our customer would refer our company to others.

Creating Communities.

We will build up an online platform and forum for our customer. Where customers can build up direct contact with us and also communicate with each other. This will help us grow our company fast.

Email marketing.

It is a low-cost strategy that we will use to enhance our global reach of the business. We will automatically send emails without wasting our time. Emails are easy to set up and run, and we will establish communication with our consumers immediately.

 

Marketing Objectives

  • Increase sales: To provide quality funding quickly, with a focus on generating revenue.
  • Capturing global online market: We will spread our business around the USA and the globe.
  • Launch new services or services: We will keep updating our related services.
  • Build brand awareness: We will build a marketing strategy to grab and captivate retail investors from day one and continue to make them return often and be deeply engaged with our funding strategies.
  • Enhance customer relationships: To maintain customer relationship through emotional offerings deeply valued as essential lifestyle accessories, multi online marketing tactics, digital distribution partnerships and effective marketing strategies and cleverly crafted financial services models, and contingency plans.

 

Marketing Strategies

Our crucial marketing strategies will be through Click funnels/ Landing Pages/ For Sub Boxes:

Facebook, Pinterest, Instagram, Twitter, Google, YouTube.

  • Word of Mouth Marketing : Despite the existence and fast-growing social media platform, WOMM cannot be ignored. An offline strategy like WOMM is needed by the recommendation of our brand by people (our loyal customers) sharing their experiences about our services/services with friends over the phone or face-to-face. Qualified leads rely on word of mouth (55%), customer references (46%), and media articles (38%) to make purchase decisions Survival Flow will put this strategy to its full advantage. The advantages are limitless to mention a few; we will;
  • Proffer a referral campaign where our readers can send new subscribers our way
  • Provide an email campaign where we stimulate our customers to forward a message to their friends
  • Create shareable content on our website
  • Create a marketing event to have our top customers or clients bring their friends
  • Web-advertising using targeted e-mail and auto-responders: E-mail is one of the oldest forms of digital marketing and one of the most effective and cost-effective media marketing strategies. With e-mail, our targeted market can be reached straight to their inboxes. This is very vital as it is a tool that can help raise responsiveness about our services.
  • Related media publications: We will likewise make utilization of media distribution to tell individuals outside the objective area about our services, offers, and objectives to help increase additional customers.
  • Search Engine Optimization: Sending potential investors to the wrong website is a nightmare for a brand's reputation. The best solution is to get our website ranking higher in Google or Bing search results. If we find a spoofed website infringing on our brand, we can report those sites to Google.
  • Utilize social media: The use of social media cannot be undervalued. There are so many good uses and so much useful data to be found on the plethora of platforms, and all the tools can be used to promote our services, events, trade shows, stories, shares, likes, etc.
  • Promotion of Short Augmented reality (AR) or Virtual reality (VR) clips on YouTube and social media: This will project our image as an experienced financial services company as well as position us as a fintech company. With new technologies such as AR and VR we will make clients have a close-to-reality feel of our services.

 

Facebook

  • Build a Facebook page and group.
  • Opt for Facebook sponsored ads.
  • Maximize the audience targeting system of the platform to reach our exact
  • Target customers.
  • Generate likes for our Facebook page.
  • Use the FB button feature to enhance accessibility to the app.
  • Contact influencers to promote the page.

Twitter

  • Build a twitter profile with the relevant following.
  • Engage followers about the benefits of the website.
  • Daily advert using sponsored tweets.
  • Automatically generate re-tweets to encourage our followers to talk about the app.
  • Contact influencers to promote the page.

Instagram

  • Build an Instagram account with the relevant following.
  • Post attractive features of our services at regular intervals.
  • Post successful withdrawal processes and clients’ testimonials.
  • Use Instagram sponsored ads (Targeted).
  • Contact Influencers to promote the page.

LinkedIn

  • Join relevant networks (groups) that resonate with our target customers and service offering.
  • Use paid sponsored ads to direct the brand's posts to individual's LinkedIn feeds.
  • Contact influencers to promote the page.

Pinterest

  • Engage customer with compelling images and colorful infographics.
  • Pin pictures of employees to help customers identify our management staff.
  • Facilitate conversations about our brand.
  • Contact Influencers to promote the page.

Email Campaign

  • Build a target email list; we will purchase email lists of leads that can then be converted to actual customers.
  • Send emails to our email list.
  • Send short and compelling contents.
  • Timing – to get interests of recipients, we will send emails at night and
  • Weekends when most recipients are off work.

 

Revenue Strategy for CrowdChayne

Price is the amount of money charged for a product. Nowadays, even though non price factors have increasingly gained importance, price still remains to be one of the most important elements that determine a firm’s market profitability. Price is the only elements in the marketing mix that produces income, and other elements represent costs. Price is also a very flexible element. Unlike product features and channel elements, prices can be changed quickly. Although pricing has been concerned as the number-one problem or a big headache, smart managers could use pricing as a key strategic tool for creating and capturing customer value Moreover, in order to achieve pricing objectives, we have set our company pricing strategy as follows.

 

We will keep between 4%-10% of capital raised from each crowdfunding campaign, in line with industry standards.  We will also generate revenue from upfront fees and consulting services we will provide the issuers as they launch their crowdfunding campaigns as well as share equity ownership for each campaign on our platform.  As we help these companies go public we will be able to sell shares in the open market and create revenue for the company thereby increasing shareholder value.

Sales Strategy for CrowdChayne

Initially we will use our traditional banking channels to ensure steady deal flow, once established as a leading crowdfunding platform we believe we will have steady deal flow through word of mouth and customer referrals.  Relationships in this regard mean the establishment of links with the various related Small and medium-sized enterprises who often require our services for equity and debt financing. The experience a customer has with our services will go a long way toward influencing the intermediary to continue to order our services, and whether they should refer their friends to utilize our services.  The service strategy will also be based on quality, combined with making the service readily available to our customers. A crucial competitive edge will be our existing relationships in the banking industry, our teams many years of banking, marketing experience, our successful track record in raising capital and our vision for the future of crowdfunding technology.

 

Competitive Analysis

It is nearly impossible for a business to not have any competition unless the product is extremely unique that the competitor is unable to replicate. We often face what is called the monopolistic competition, whereby a large number of companies exist and compete within the same market size. There is tough competition in the crowdfunding space. As more and more businesses, investors and issuers move toward digital solutions, this competition is about to intensify further, But the market expansion shows ample opportunities for new entrants. To understand the nature of this competition, we will provide a brief sketch of some of our major competitors. Many competitors are providing platform for both investors and issuers. 

Crowd Funding Companies USA

 

Our platform CrowdChayne will face competition from the above-mentioned companies and many others providing crowdfunding services. Our company will compete with them and enter into the list of the top crowdfunding solutions companies. We are focused on developing in the minds of customers to use our services before availing services of other competitors. This will be our achievement if the desired goals are attained. Although there are many competitors, there is not yet a clear dominant platform for equity crowdfunding. 

 

SWOT Analysis

SWOT Analysis of CrowdChayne is given below.

Strengths:

  • Relationship selling: We intend to get to know our customers through our network. Our direct outreach efforts will seek to maintain a relationship with our customers.
  • Diversified customer base: We intend to obtain orders for our services from all type of new startups. This will ensure a lack of dependency on one customer.
  • Trust and goodwill of customers: CrowdChayne will create a safe environment for both investors and issuers alike. CrowdChayne has the potential to win the trust and goodwill of their customers.
  • Focus on a need: CrowdChayne looks at the specific funds needs of new SMEs. This focus on a very specific need will make it popular amongst businesses which face major problems in financing while starting up.
  • Strong backing: CrowdChayne has a strong backing support from the previous experience of company owners and staff.
  • Targeting: Targeting the correct customer for CrowdChayne is one of our major strength.
  • Good understanding of the target market.
  • An enthusiastic company with a robust and infectious leader.
  • High profit margin
  • No shipping cost
  • No shipping restrictions
  • No storage space and cost
  • No inventory shortage
  • A lot of field experience.

Weaknesses:

  • New position in the market.
  • The difficulty of establishing brand equity as a start-up company.
  • It’s resource intensive.

Opportunities:

  • There is a growing demand for equity financing services in the start-up world.
  • An easily scalable business model.
  • Technology makes CrowdChayne business more efficient and effective.
  • Service. As our intended target markets are easily accessible, we intend to be able to meet their requirements in the shortest possible time.

Threats:

  • The large reputation of other competitors.
  • Hackers.
  • The entrance of new competitors.
  • A price war with competitors.
  • Established network of competitors.
  • Existing competition, both local and foreign.

 

Launch Plan

For the successful launch of CROWDCHAYNE the following things will be done by management:

  • Prepare a technical and feasibility study.
  • Will have agreements and contracts with issuers.
  • Develop, Float and manage complete Request for proposal (RFP) Process.
  • Should develop Standard Operating Procedures (SOPs), operation support system (OSS).
  • Office set up with PCs and servers (already set up)
  • Marketing strategy with 4/5 years’ annual expenditure

 

Operations

Essential things in an operational plan of CROWDCHAYNE includes

  • Investment
  • License
  • Contract & Networking
  • Effective & Efficient people with strong capital markets background.
  • Target Market
  • Viewer Behavior

 

The various operations of CrowdChayne revolve around providing of high-quality crowdfunding business. At CrowdChayne different departments of the company work both independently and cooperatively to meet long term objectives of the company. The major operation of the company is to raise funds for start-ups from the crowd. There is a big challenge to win customers trust. Our in-house marketing and advertising department works to promote the services of the company.  The ownership must support the staff to work aggressively to penetrate the market. We will focus on the development of an online community with forums, a blog and a strong online presence. During the first year of operation, a set of standard operating procedures (SOPs) will be developed to support the opening of CrowdChayne.

 

Requirements

Equipment required for smooth operations of CrowdChayne is given below.

  • Website Development, SEO, Social Media Marketing, online forums and an online presence.
  • A dedicated team of professionals
  • Appropriate accounting information system for maintaining accounting records.

 

Human Resource

Human resource is the backbone of any organization. Day to day operations will be run by the management. The staff will be rewarded for efficient work.  These measures will ensure smooth operations and will contribute to generating more revenue and profits for our shareholders.

Our Business Structure

We have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Creative Director
  • Experienced Funds raisers
  • Sales and Marketing Executive
  • Accountant
  • Web developers
  • Content Creators

 

Sales Forecast

 

The sales forecast has been developed to predict future sales conservatively. It is expected that sales will gradually increase as more subscribers comes and the company receives more testimonials.

Projections are in the table below:

 

  Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 900,000 2,500,000 4,500,002 9,000,000 13,500,000
Gross Profit 900,000 2,500,000 4,500,002 9,000,000 13,500,000
% of Revenue 100% 100% 100% 100% 100%

 

Operating Expenses

  Year 1 Year 2 Year 3 Year 4 Year 5 Total
Salaries $250,000 $270,000 $292,000 $316,200 $342,820 $1,471,020
Marketing $157,000 $250,000 $450,000 $900,000 $1,350,000 $3,125,000
Utilities/Bills/Internet $15,000 $16,500 $18,150 $19,965 $21,962 $91,577
Website Hosting $450 $495 $545 $599 $659 $2,747
Rent $10,000 $11,000 $12,100 $13,310 $14,641 $61,051
Capitalizing Broker Dealer $250,000 $330,000 $363,000 $399,300 $439,230 $1,781,230
Total $700,450 $877,995 $1,135,795 $1,649,374 $2,169,312 $6,532,625

Profit & Loss Statement

Business’s revenue is projected to grow significantly for the first two years time frame. The yearly projections are in the table below:

  Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 900,000 2,500,000 4,500,002 9,000,000 13,500,000
Gross Profit 900,000 2,500,000 4,500,002 9,000,000 13,500,000
% of revenue 100% 100% 100% 100% 100%
Operating expenses          
Salaries 250,000 270,000 292,000 316,200 342,820
Marketing 175,000 250,000 400,000 900,000 1,350,000
Utilities/Bills/Internet 15,000 16,500 18,150 19,965 21,962
Website hosting 450 495 545 599 659
Rent 10,000 11,000 12,100 13,310 14,641
Capitalizing broker dealer 250,000 330,000 363,000 399,300 439,230
Operating expenses 700,450 877,995 1,135,795 1,649,374 2,169,312
Operating Income (EBITDA) 199,550 1,622,005 3,364,207 7,350,626 11,330,688
% of revenue 39% 76% 85% 92% 94%
Depreciation and Amortization          
Earnings Before Interest & Taxes (EBIT) 199,550 1,622,005 3,364,207 7,350,626 11,330,688
Interest Expense 199,550 1,622,005 3,364,207 7,350,626 11,330,688
Earnings Before Taxes (EBT) 91,365 475,001 960,002 2,068,502 3,175,352
Provision for taxation 91,365 475,001 960,002 2,068,502 3,175,352
Net Income 213,185 1,425,004 2,880,005 6,205,505 9,526,055
% of revenue 30% 57% 64% 69% 71%

 

Cash Flow

The cash flow projections show that business will have sufficient cash to support the activity. The following table presents a view of projected cash flow of the business:

 

  Year 1 Year 2 Year 3 Year 4 Year 5
Cash Flow from Operating Activities          
Revenue 900,000 2,375,000 4,275,002 8,550,000 12,825,000
Salaries (200,000) (220,000) (242,000) (266,200) (292,820)
Marketing (20,000) (22,000) (24,200) (26,620) (29,282)
Utilities/Bills/Internet (15,000) (16,500) (18,150) (19,965) (21,962)
Website hosting (450) (495) (545) (599) (659)
Rent (10,000) (11,000) (12,100) (13,310) (14,641)
Capitalizing broker dealer (300,000) (330,000) (363,000) (399,300) (439,230)
Net Cash Flow for Operating Activities (Cash Burn) 354,550 1,775,005 3,615,007 7,824,006 12,026,407
Cash Flow from Investing Activities - - - - -
Prefunding investment - - - - -
Startup Cost 1,060,000 - - - -
Net Cash Flow from Investing Activities (1,060,000) - - - -
Cash Flow from Financing Activities - - - - -
Owner's Investment 180,000 - - - -
External Investment 890,000 - - - -
Net Cash flow from Financial Activities 1,070,000 - - - -
Total Net Cash Flow during the Year 364,550 1,775,005 3,615,007 7,824,006 12,026,407
Cash at the Start of the Period - 364,550 2,139,556 5,754,563 13,578,569
Cash At the End of the Period 364,550 2,139,556 5,754,563 13,578,569 25,604,975
           

 

 

Balance Sheet

The balance sheet shows healthy growth of net worth and strong financial position.

  Year 1 Year 2 Year 3 Year 4 Year 5
Assets          
Current Assets          
Cash 364,550 2,139,556 5,754,563 13,578,569 25,604,975
Receivables - 125,000 350,000 800,000 1,475,000
Total Current Assets 364,550 2,264,556 6,104,563 14,378,569 27,079,976
Startup Cost 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000
Accumulated Depreciation - - - - -
Total Assets 1,424,550 3,324,556 7,164,563 15,438,569 28,139,976
           
Liabilities          
Current Liabilities          
Accounts Payable - - - - -
Provision for taxation 88,638 563,639 1,523,641 3,592,142 6,767,494
Total Current Liabilities 88,638 563,639 1,523,641 3,592,142 6,767,494
Long Term Loan - - - - -
Total Liabilities 88,638 563,639 1,523,641 3,592,142 6,767,494
Equity          
Owner's Equity 180,000 180,000 180,000 180,000 180,000
Equity  (External Investment) 890,000 890,000 890,000 890,000 890,000
Retained Earnings 265,913 1,690,917 4,570,922 10,776,427 20,302,482
Current Period Retained Earnings 265,913 1,690,917 4,570,922 10,776,427 20,302,482
Total Equity 1,335,913 2,760,917 5,640,922 11,846,427 21,372,482
Total Liabilities and Equity 1,424,550 3,324,556 7,164,563 15,438,569

28,139,976

 

Business Ratio

 

CrowdChayne

         

Business Ratios

         

Ratio Analysis

Year 2

Year 3

Year 4

Year 5

Avg. (2-5 years)

Return on Equity

51.61%

51.06%

52.38%

44.57%

49.91%

Return on Assets

60.01%

54.91%

54.91%

43.72%

53.39%

Financial Leverage

0.17

0.21

0.23

0.24

0.21

Return on Assets

         

Return on Sales

76.00%

85.33%

91.93%

94.08%

86.84%

Asset turnover

0.60

0.55

0.55

0.44

0.53

Profitability

         

Gross margin

100.00%

100.00%

100.00%

100.00%

100.00%

SG&A as % of Sales

24.00%

14.67%

8.07%

5.92%

13.16%

Operating Margin

76.00%

85.33%

91.93%

94.08%

86.84%

Interest Expense as % of Sales

0.00%

0.00%

0.00%

0.00%

0.00%

Effective Tax Rate

25.00%

25.00%

25.00%

25.00%

25.00%

Asset Turnover Ratios

         

Accounts Receivable Turnover

40.0

18.9

15.7

11.9

21.6

Days Turnover Ratios

         

Days Receivables

18.25

28.39

32.44

39.88

29.74

Liquidity Analysis

         

DuPont Analyses

         

Net Profit Margin

57.00%

64.00%

68.95%

70.56%

65.13%

Asset Turnover

1.05

0.86

0.80

0.62

0.83

Equity Multiplier

1.20

1.27

1.30

1.32

1.27

DuPont Return on Equity

72.26%

69.75%

71.56%

57.56%

67.78%

 

Conclusion

We believe that we are in a position to establish CrowdChayne as one of the premier crowdfunding portals first in the US and ultimately in the global markets.  We believe our investors will achieve an exceptional return on their initial investment into CrowdChayne Inc.  We welcome any and all questions directed to us in regard to this raise.

 

Use of Proceeds

Use Of Proceeds % of Minimum Proceeds Raised Amount if Minimum Raised % of Maximum Proceeds Raised Amount if Maximum Raised
Intermediary Fees 10.00% $2500 10.00% $107,000
Campaign marketing expenses or related reimbursemen 16.00% $4,000 1.87% $20,000
Estimated Attorney Fees 16.00% $4,000 1.40% $15,000
Estimated Accountant/Audi tor Fees 38.00% $9,500 0.93% $10,000
General Marketing 20.00% $5,000 9.3% $100,000
Research and Development 0.00% $0 4.67% $50,000
Equipment Purchases 0.00% $0 4.67% $50,000
Future Wages 0.00% $0 23.36% $250,000
General Working Capital 0.00% $0 43.73% $468,000
Total 100.00% $25,000 100.00% $1,070,000

 

Ownership Structure & Rights of Securities

CAPITALIZATION AND OWNERSHIP

Capitalization The Company has issued the following outstanding Securities:

 

The Company has issued the following outstanding Securities
Type of security Common Stock
Amount outstanding 55,000,000
Voting Rights Yes
Anti-Dilution Rights No
How this security may limit, dilute or qualify the Securities issued pursuant to Regulation CF The Securities will be subject to dilution if/when the Company participates in an equity financing round where investors are offered Common Stock for cash or cash equivalents or if compensatory shares are offered to new or existing shareholders.
Percentage ownership of the Company by the holders of such Securities (assuming conversion prior to the Offering if convertible securities). 100%

The Company does not have any debt outstanding

 

 

Ownership

A majority of the Company is owned by a Mr. Frank Cid.  

Below the beneficial owners of 20% percent or moresecurities, calculated on the basis of voting power, are listed along with the amount they own.

 

Name Percentage Owned Prior to Offering
Frank Cid 55%

Following the Offering, the Purchasers will own 0.0018% of the Company if the Minimum Amount is raised and 7.22% if the Maximum Amount is raised.

Risks & Disclosures

THERE ARE SIGNIFICANT RISKS AND UNCERTAINTIES ASSOCIATED WITH AN INVESTMENT IN THE COMPANY AND THE SECURITIES. THE SECURITIES OFFERED HEREBY ARE NOT PUBLICLY-TRADED AND ARE SUBJECT TO TRANSFER RESTRICTIONS. THERE IS NO PUBLIC MARKET FOR THE SECURITIES AND ONE MAY NEVER DEVELOP. AN INVESTMENT IN THE COMPANY IS HIGHLY SPECULATIVE. THE SECURITIES SHOULD NOT BE PURCHASED BY ANYONE WHO CANNOT BEAR THE FINANCIAL RISK OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME AND WHO CANNOT AFFORD THE LOSS OF THEIR ENTIRE INVESTMENT. SEE THE SECTION OF THIS FORM C ENTITLED "RISK FACTORS." THESE SECURITIES INVOLVE A HIGH DEGREE OF RISK THAT MAY NOT BE APPROPRIATE FOR ALL INVESTORS. THIS FORM C DOES NOT CONSTITUTE AN OFFER IN ANY JURISDICTION IN WHICH AN OFFER IS NOT PERMITTED. PRIOR TO CONSUMMATION OF THE PURCHASE AND SALE OF ANY SECURITY THE COMPANY WILL AFFORD PROSPECTIVE INVESTORS AN OPPORTUNITY TO ASK QUESTIONS OF AND RECEIVE ANSWERS FROM THE COMPANY AND ITS MANAGEMENT CONCERNING THE TERMS AND CONDITIONS OF THIS OFFERING AND THE COMPANY. NO SOURCE OTHER THAN THE INTERMEDIARY HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS FORM C, AND IF GIVEN OR MADE BY ANY OTHER SUCH PERSON OR ENTITY, SUCH INFORMATION MUST NOT BE RELIED ON AS HAVING BEEN AUTHORIZED BY THE COMPANY.  PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS FORM C AS LEGAL, ACCOUNTING OR TAX ADVICE OR AS INFORMATION NECESSARILY APPL,&$%/( 72 ($&+ 35263(&7,9( ,19(6725¶6 3$57,&8/$5 FINANCIAL SITUATION. EACH INVESTOR SHOULD CONSULT HIS OR HER OWN FINANCIAL ADVISER, COUNSEL AND ACCOUNTANT AS TO LEGAL, TAX AND RELATED MATTERS CONCERNING HIS OR HER INVESTMENT. THE SECURITIES OFFERED HEREBY WILL HAVE TRANSFER RESTRICTIONS. NO SECURITIES MAY BE PLEDGED, TRANSFERRED, RESOLD OR OTHERWISE DISPOSED OF BY ANY INVESTOR EXCEPT PURSUANT TO RULE 501 OF REGULATION CF. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

View our
Offering Documents


Meet the CrowdChayne Inc team

CEO
Francis Cid

Frank Cid is the founder of CrowdChayne. He has worked in investment banking for over 25 years completing a wide variety of middle market capital formation and advisory transactions in numerous industries. These involve both privately held and publicly traded companies. Mr. Cid is sector agnostic when it comes to raising capital. He works with pre-revenue startups as well as nano-cap, and micro-cap publicly listed companies.

Managing Director
Jesse Bravo

Mr. Bravo has spent more than 23 years in brokerage, investment banking and private equity servicing emerging growth, middle market and large cap companies in a variety of industries, including technology, healthcare, information technology and media. Prior to joining CrowdChayne, Mr. Bravo founded an international public Broker Dealer that funded early start corporations.

Managing Director
Woody Dorilus

Prior to joining CrowdChayne Mr. Dorilus was a Financial Advisor. With a focus on high net worth individuals, Woody helped his clients achieve their financial life goals. Obtaining financial freedom after retirement is a common goal for many, and Woody realized he wanted to do more to help people secure their futures. Now, his focus is bringing these individual's wealth to the next level to provide the financial security they are looking for.

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