TinySeed Spring 2021 Application Live Question + Answer Session

yes oh it's gonna i hope people show up yes oh it's gonna i hope people show up quick quick quick otherwise i'm gonna keep going why do otherwise i'm gonna keep going why do otherwise i'm gonna keep going why do front end developers always eat lunch front end developers always eat lunch front end developers always eat lunch alone alone alone because they don't know how to join because they don't know how to join because they don't know how to join tables tables tables because i know yeah no it gets really because i know yeah no it gets really because i know yeah no it gets really bad dude bad dude bad dude as a friend developer as a friend developer as a friend developer [Laughter] [Laughter] [Laughter] you know how to join tables yeah did you you know how to join tables yeah did you you know how to join tables yeah did you write much sql back in the day tracy write much sql back in the day tracy write much sql back in the day tracy actually no i just know i know the actually no i just know i know the actually no i just know i know the theory behind it but i theory behind it but i theory behind it but i use the frameworks that just abstracted use the frameworks that just abstracted use the frameworks that just abstracted all that away yeah all that away yeah all that away yeah actually it does it does make sense for actually it does it does make sense for actually it does it does make sense for me i take it back me i take it back me i take it back yeah um let's see what else we have uh yeah um let's see what else we have uh yeah um let's see what else we have uh oh yeah yeah this is a good one this is oh yeah yeah this is a good one this is oh yeah yeah this is a good one this is one i always i don't think i tell from one i always i don't think i tell from one i always i don't think i tell from the microcup stage because it's just a the microcup stage because it's just a the microcup stage because it's just a little too complicated for me to little too complicated for me to little too complicated for me to memorize the whole thing but a memorize the whole thing but a memorize the whole thing but a programmer walks into a bar programmer walks into a bar programmer walks into a bar and orders 1.000019 root beers and orders 1.000019 root beers and orders 1.000019 root beers the bartender says i'm going to have to the bartender says i'm going to have to the bartender says i'm going to have to charge you extra that's a root beer charge you extra that's a root beer charge you extra that's a root beer float float float and the programmer says well in that and the programmer says well in that and the programmer says well in that case make it a double case make it a double case make it a double i mean come on there's two punch lines i mean come on there's two punch lines i mean come on there's two punch lines in there yes in there yes in there yes hello everyone welcome in case you hello everyone welcome in case you hello everyone welcome in case you missed it missed it missed it there it's bad joke time right now as we there it's bad joke time right now as we there it's bad joke time right now as we let people uh people show up ooh xander's old boss is here xander our ooh xander's old boss is here xander our producer producer producer so producer xander's in the background so producer xander's in the background so producer xander's in the background folks see him folks see him folks see him in the chat thanks everybody for showing in the chat thanks everybody for showing in the chat thanks everybody for showing up up up we're going to talk about everything you we're going to talk about everything you we're going to talk about everything you always want to know about always want to know about always want to know about tinyseed and weren't afraid to ask today

i don't know we could uh i can tell this i don't know we could uh i can tell this chat is going to be very distracting chat is going to be very distracting chat is going to be very distracting this is great i know this is great i know this is great i know i know this is my first time on a i know this is my first time on a i know this is my first time on a webinar webinar webinar that's it's just discreet that's it's just discreet that's it's just discreet xander has more pressure now his old xander has more pressure now his old xander has more pressure now his old boss is here that's not that's not good oh that's not that's not good oh oh someone's telling joke dan lane says oh someone's telling joke dan lane says oh someone's telling joke dan lane says how about what the agnostic dyslexic how about what the agnostic dyslexic how about what the agnostic dyslexic insomniac did you have to follow up with insomniac did you have to follow up with insomniac did you have to follow up with that that that dan all right dan all right dan all right why did i run away from freezing why did i run away from freezing why did i run away from freezing minnesota matt kramer uh i just you know minnesota matt kramer uh i just you know minnesota matt kramer uh i just you know well this is the first time we could do well this is the first time we could do well this is the first time we could do it because kids are always in school and it because kids are always in school and it because kids are always in school and it's coveted and the kids are remote so it's coveted and the kids are remote so it's coveted and the kids are remote so we uh decided to head to california we uh decided to head to california we uh decided to head to california dan lane's follow-up to the dyslexic dan lane's follow-up to the dyslexic dan lane's follow-up to the dyslexic what was it insomniac he stayed up all what was it insomniac he stayed up all what was it insomniac he stayed up all night pondering the existence of night pondering the existence of night pondering the existence of dog so the insomnia was staying up all dog so the insomnia was staying up all dog so the insomnia was staying up all night that night that night that okay all right oh my god let's stop this okay all right oh my god let's stop this okay all right oh my god let's stop this i get it i get it i get it i think i think we'll stop it then hey i think i think we'll stop it then hey i think i think we'll stop it then hey let's let's kick it off with this let's let's kick it off with this let's let's kick it off with this someone asked uh someone asked uh someone asked uh a question why is it called tiny seed oh a question why is it called tiny seed oh a question why is it called tiny seed oh i like that one i like that one i like that one actually i am actually curious about actually i am actually curious about actually i am actually curious about that myself because i joined probably that myself because i joined probably that myself because i joined probably about six months after you guys about six months after you guys about six months after you guys started chinese i never thought to ask started chinese i never thought to ask started chinese i never thought to ask yeah and remember a r we threw around i yeah and remember a r we threw around i yeah and remember a r we threw around i think i still have a doc somewhere of think i still have a doc somewhere of think i still have a doc somewhere of all these ideas we're coming up with and all these ideas we're coming up with and all these ideas we're coming up with and you i think the one you liked most was you i think the one you liked most was you i think the one you liked most was super critical do you remember this you super critical do you remember this you super critical do you remember this you said super critical is assignment said super critical is assignment said super critical is assignment you did you did we were trying to come you did you did we were trying to come you did you did we were trying to come up right here up right here up right here i told i told sherry i was like he wants i told i told sherry i was like he wants i told i told sherry i was like he wants to call it super critical and she's like

to call it super critical and she's like to call it super critical and she's like i'm not a fan yeah and i was like well i'm not a fan yeah and i was like well i'm not a fan yeah and i was like well it's like a mathematical construct or it's like a mathematical construct or it's like a mathematical construct or something like that right isn't it a something like that right isn't it a something like that right isn't it a computer science construct computer science construct computer science construct uh yeah i can see myself making a joke uh yeah i can see myself making a joke uh yeah i can see myself making a joke about it but i doubt i really appreciate about it but i doubt i really appreciate about it but i doubt i really appreciate it it it i think i don't remember when we ended i think i don't remember when we ended i think i don't remember when we ended up with tiny there was a bunch of seed up with tiny there was a bunch of seed up with tiny there was a bunch of seed stuff uh stuff uh stuff uh small we want it small like you know small we want it small like you know small we want it small like you know start small stay small micro start small stay small micro start small stay small micro conf i mean it just micro seed i think conf i mean it just micro seed i think conf i mean it just micro seed i think was in there was in there was in there yeah i think tiny seed is in part like yeah i think tiny seed is in part like yeah i think tiny seed is in part like if we could get the domain for if we could get the domain for if we could get the domain for not too much money is what i think yeah not too much money is what i think yeah not too much money is what i think yeah that was another like that was part of that was another like that was part of that was another like that was part of it that seems to be the part of every it that seems to be the part of every it that seems to be the part of every naming decision now is like what's the naming decision now is like what's the naming decision now is like what's the dot com dot com dot com huh yeah right just like startups huh yeah right just like startups huh yeah right just like startups yeah can you get the.com yeah i didn't yeah can you get the.com yeah i didn't yeah can you get the.com yeah i didn't want to be like no no it's dot co want to be like no no it's dot co want to be like no no it's dot co or dot io or dot u s or whatever yep or dot io or dot u s or whatever yep or dot io or dot u s or whatever yep or tinyseedfund.com which is what we had or tinyseedfund.com which is what we had or tinyseedfund.com which is what we had for a couple weeks remember that for a couple weeks remember that for a couple weeks remember that cool well we have uh we got 125 people cool well we have uh we got 125 people cool well we have uh we got 125 people in attendance it looks like it's in attendance it looks like it's in attendance it looks like it's starting to level out we're four minutes starting to level out we're four minutes starting to level out we're four minutes in so i think we're gonna in so i think we're gonna in so i think we're gonna um dive in thanks thanks to everyone for um dive in thanks thanks to everyone for um dive in thanks thanks to everyone for joining us today we are going to talk joining us today we are going to talk joining us today we are going to talk about about about um tinyc to answer your questions give um tinyc to answer your questions give um tinyc to answer your questions give you a you know a refresher you a you know a refresher you a you know a refresher on who we all are if you haven't seen us on who we all are if you haven't seen us on who we all are if you haven't seen us at microcomps or at microcomps or at microcomps or maybe heard us on startups to the rest maybe heard us on startups to the rest maybe heard us on startups to the rest of us in the past because all three of of us in the past because all three of of us in the past because all three of us have been on us have been on us have been on several times um so i'd love to pass it several times um so i'd love to pass it several times um so i'd love to pass it to a nr to a nr to a nr you want to give yourself a little you want to give yourself a little you want to give yourself a little introduction and are the co-founder of introduction and are the co-founder of introduction and are the co-founder of tinyseed tinyseed tinyseed general partner and uh what else do you

general partner and uh what else do you general partner and uh what else do you do man do man do man that that was pretty much it like that that that was pretty much it like that that that was pretty much it like that was my intro that's the deal that was my intro that's the deal that was my intro that's the deal that all right you know i'll leave it at that all right you know i'll leave it at that all right you know i'll leave it at that i think i think i think compute former computer science compute former computer science compute former computer science professor at cornell university professor at cornell university professor at cornell university and probably a better job than he is and probably a better job than he is and probably a better job than he is yeah you lasted a year there right yeah you lasted a year there right yeah you lasted a year there right wasn't that wasn't that wasn't that you know i was more like three but yeah you know i was more like three but yeah you know i was more like three but yeah great okay great okay great okay so you know my wife also was a professor so you know my wife also was a professor so you know my wife also was a professor and it just got old for her and it just got old for her and it just got old for her the the meetings and the politics and is the the meetings and the politics and is the the meetings and the politics and is that why you that why you that why you i i i quit because i wasn't happy there i i i quit because i wasn't happy there i i i quit because i wasn't happy there and then i looked at all the tenure and then i looked at all the tenure and then i looked at all the tenure professors and i'm like half of you guys professors and i'm like half of you guys professors and i'm like half of you guys aren't happy either even though yeah aren't happy either even though yeah aren't happy either even though yeah yeah yep yep yeah yep yep yeah yep yep cool and then tracy osborne the program cool and then tracy osborne the program cool and then tracy osborne the program manager of tiny siege keeps that we like manager of tiny siege keeps that we like manager of tiny siege keeps that we like to say she keeps the train to say she keeps the train to say she keeps the train running on time i want to say anything running on time i want to say anything running on time i want to say anything to the folks tracy before divan to the folks tracy before divan to the folks tracy before divan yeah i i basically run the the yeah i i basically run the the yeah i i basically run the the day-to-day operations of tennessee day-to-day operations of tennessee day-to-day operations of tennessee accelerated program i help coordinate accelerated program i help coordinate accelerated program i help coordinate the the the interactions to the mentors the calls interactions to the mentors the calls interactions to the mentors the calls that we do that we do that we do weekly all the miscellaneous questions weekly all the miscellaneous questions weekly all the miscellaneous questions people have essentially my people have essentially my people have essentially my my job comes down to just making sure my job comes down to just making sure my job comes down to just making sure that the founders get what they need as that the founders get what they need as that the founders get what they need as fast as possible fast as possible fast as possible and in my previous life i was a startup and in my previous life i was a startup and in my previous life i was a startup founder founder founder um i shut down before i joined tinyseed um i shut down before i joined tinyseed um i shut down before i joined tinyseed before that before that before that was in well my background is in design was in well my background is in design was in well my background is in design in front of development but i kind of in front of development but i kind of in front of development but i kind of moved into doing a little bit of moved into doing a little bit of moved into doing a little bit of everything everything everything like programming and marketing and sales like programming and marketing and sales like programming and marketing and sales and whatnot during my startup job and whatnot during my startup job and whatnot during my startup job so it's kind of it's fun being here at so it's kind of it's fun being here at so it's kind of it's fun being here at tennessee it's really great that you tennessee it's really great that you tennessee it's really great that you know know know the job is literally just to help the job is literally just to help the job is literally just to help founders do more faster founders do more faster founders do more faster better and without you know a lot of

better and without you know a lot of better and without you know a lot of like anxiety or like anxiety or like anxiety or anything like that just making their anything like that just making their anything like that just making their life better yep life better yep life better yep awesome that's what i should have said awesome that's what i should have said awesome that's what i should have said that's what i meant to say actually that's what i meant to say actually that's what i meant to say actually that's what yeah that's what yeah that's what yeah ditto we'll come back helping founders ditto we'll come back helping founders ditto we'll come back helping founders since 2018. yeah um cool so since 2018. yeah um cool so since 2018. yeah um cool so uh quick overview of tinyseed um uh quick overview of tinyseed um uh quick overview of tinyseed um and you know i mean i'm gonna assume and you know i mean i'm gonna assume and you know i mean i'm gonna assume everyone has like read the website so i everyone has like read the website so i everyone has like read the website so i don't think we need to don't think we need to don't think we need to to really uh go back through that but to really uh go back through that but to really uh go back through that but tracy you want to just talk tracy you want to just talk tracy you want to just talk briefly it's like we're one year remote briefly it's like we're one year remote briefly it's like we're one year remote accelerator focused on sas accelerator focused on sas accelerator focused on sas you know what what else what else can you know what what else what else can you know what what else what else can you offer folks you offer folks you offer folks well yeah yeah one year remote well yeah yeah one year remote well yeah yeah one year remote accelerator um which is really awesome accelerator um which is really awesome accelerator um which is really awesome we were we were we were remote before covet hit so as a lot of remote before covet hit so as a lot of remote before covet hit so as a lot of sellers are moving remote because you sellers are moving remote because you sellers are moving remote because you have to have to have to our program was designed so that people our program was designed so that people our program was designed so that people can do the program wherever they want in can do the program wherever they want in can do the program wherever they want in the world and so we have was it the world and so we have was it the world and so we have was it one fourth of our founders are non-us one fourth of our founders are non-us one fourth of our founders are non-us which is really awesome as well which is really awesome as well which is really awesome as well um and we'll get to some that's one of um and we'll get to some that's one of um and we'll get to some that's one of our most asked questions is whether our most asked questions is whether our most asked questions is whether we're back we're back we're back on us founders we'll get to that in a on us founders we'll get to that in a on us founders we'll get to that in a second um but essentially the program second um but essentially the program second um but essentially the program is designed so people can join the is designed so people can join the is designed so people can join the program from wherever they want they can program from wherever they want they can program from wherever they want they can travel they can be remote travel they can be remote travel they can be remote um it's always been like that normally um it's always been like that normally um it's always been like that normally we have we have we have in-person retreats and that's like the in-person retreats and that's like the in-person retreats and that's like the one thing that we had to change with one thing that we had to change with one thing that we had to change with covid uh so we had to move those online covid uh so we had to move those online covid uh so we had to move those online because of because of because of for safety reasons and you know for safety reasons and you know for safety reasons and you know hopefully for the third batch hopefully for the third batch hopefully for the third batch we'll have some opportunities to do we'll have some opportunities to do we'll have some opportunities to do things in person again cross our fingers things in person again cross our fingers things in person again cross our fingers we'll see how things go we'll see how things go we'll see how things go um we run weekly calls uh um we run weekly calls uh um we run weekly calls uh everything is optional one thing i try everything is optional one thing i try everything is optional one thing i try to emphasize for the program is that

to emphasize for the program is that to emphasize for the program is that we want it's not like a school there's we want it's not like a school there's we want it's not like a school there's nothing required there's no homework nothing required there's no homework nothing required there's no homework there's nothing like that because we there's nothing like that because we there's nothing like that because we know that founders are really busy know that founders are really busy know that founders are really busy heads down working under things and we heads down working under things and we heads down working under things and we don't want to get in the way of that don't want to get in the way of that don't want to get in the way of that when founders are you know in a flow when founders are you know in a flow when founders are you know in a flow state state state but we're there when founders need help but we're there when founders need help but we're there when founders need help and we help them get those answers and we help them get those answers and we help them get those answers faster faster faster so you know say you're working on your so you know say you're working on your so you know say you're working on your marketing you're moving out to sales we marketing you're moving out to sales we marketing you're moving out to sales we have a have a have a bunch of resources to help you get bunch of resources to help you get bunch of resources to help you get started sales faster than say if you're started sales faster than say if you're started sales faster than say if you're starting from scratch starting from scratch starting from scratch so a lot of it we a lot of the program so a lot of it we a lot of the program so a lot of it we a lot of the program is just designed to help founders is just designed to help founders is just designed to help founders you know get those answers they need you know get those answers they need you know get those answers they need like i said in my introduction as fast like i said in my introduction as fast like i said in my introduction as fast as possible so they can go back as possible so they can go back as possible so they can go back and do awesome work on their startup as and do awesome work on their startup as and do awesome work on their startup as fast as possible fast as possible fast as possible very good we have questions pouring in very good we have questions pouring in very good we have questions pouring in if you want to ask a question we'll if you want to ask a question we'll if you want to ask a question we'll obviously be getting to those in just a obviously be getting to those in just a obviously be getting to those in just a minute minute minute there's a q a button at the bottom there's a q a button at the bottom there's a q a button at the bottom that's the best place to ask them you that's the best place to ask them you that's the best place to ask them you can ask them in the chat but we may we can ask them in the chat but we may we can ask them in the chat but we may we may not get those we're really looking may not get those we're really looking may not get those we're really looking in the in the q in the in the q in the in the q a section so thanks everyone for a section so thanks everyone for a section so thanks everyone for weighing in uh from italy we got india weighing in uh from italy we got india weighing in uh from italy we got india we have uh we have uh we have uh all number of places um on this call all number of places um on this call all number of places um on this call today today today yeah there you go yep um yeah there you go yep um yeah there you go yep um so in our vulset you want to talk uh so in our vulset you want to talk uh so in our vulset you want to talk uh briefly about briefly about briefly about tiny seeds basic investment terms and tiny seeds basic investment terms and tiny seeds basic investment terms and then we'll do then we'll do then we'll do yeah so our investment terms are for the yeah so our investment terms are for the yeah so our investment terms are for the fundamental level what we do is we fundamental level what we do is we fundamental level what we do is we invest about 120 000 invest about 120 000 invest about 120 000 uh for the first founder and about 60 uh for the first founder and about 60 uh for the first founder and about 60 000 per additional founder 000 per additional founder 000 per additional founder um and for that we take standard um and for that we take standard um and for that we take standard somewhere between somewhere between somewhere between around about 10 equity usually we're around about 10 equity usually we're around about 10 equity usually we're we're a price round we're a price round we're a price round so we're not a note or a save or

so we're not a note or a save or so we're not a note or a save or anything like that um anything like that um anything like that um basically the one thing that's a little basically the one thing that's a little basically the one thing that's a little different from us is that we different from us is that we different from us is that we um because the kind of companies that we um because the kind of companies that we um because the kind of companies that we back so b2b sas companies they back so b2b sas companies they back so b2b sas companies they once they get past like a million or two once they get past like a million or two once they get past like a million or two or three and in a r or three and in a r or three and in a r they can inflict being very cashflow they can inflict being very cashflow they can inflict being very cashflow positive um and so positive um and so positive um and so what we basically ask the founders to do what we basically ask the founders to do what we basically ask the founders to do is to is to is to to um to sort of align investors and to um to sort of align investors and to um to sort of align investors and and and founders is to say you sign sign and and founders is to say you sign sign and and founders is to say you sign sign a site letter that says a site letter that says a site letter that says you know once you hit a specific salary you know once you hit a specific salary you know once you hit a specific salary cap then cap then cap then any any other sort of renovation that any any other sort of renovation that any any other sort of renovation that you're taking out of the company you're taking out of the company you're taking out of the company uh goes out as dividend and then we uh goes out as dividend and then we uh goes out as dividend and then we participate or our investors participate participate or our investors participate participate or our investors participate in in in in those uh in those dividends pro rata in those uh in those dividends pro rata in those uh in those dividends pro rata and and and um we're not particularly stingy about um we're not particularly stingy about um we're not particularly stingy about the salary camp like we don't feel like the salary camp like we don't feel like the salary camp like we don't feel like there's there's there's any point in trying to squeeze founders any point in trying to squeeze founders any point in trying to squeeze founders for you know the for you know the for you know the every dollar that comes through um so i every dollar that comes through um so i every dollar that comes through um so i think you know think you know think you know usually our or actually just decided our usually our or actually just decided our usually our or actually just decided our uh our salary cap going forward will be uh our salary cap going forward will be uh our salary cap going forward will be um 250 000 us dollars per um 250 000 us dollars per um 250 000 us dollars per per year um and it it sort of per year um and it it sort of per year um and it it sort of and and some people say that's super and and some people say that's super and and some people say that's super high or whatever but really what we're high or whatever but really what we're high or whatever but really what we're trying to trying to trying to we're trying to say is to say these are we're trying to say is to say these are we're trying to say is to say these are the kind of companies that can get to 5 the kind of companies that can get to 5 the kind of companies that can get to 5 or 10 million or 10 million or 10 million a year and in that case they can be a year and in that case they can be a year and in that case they can be taking out you know taking out you know taking out you know two three four five million dollars in two three four five million dollars in two three four five million dollars in profit every year profit every year profit every year and in that case it's important that uh and in that case it's important that uh and in that case it's important that uh investors also get to participate a investors also get to participate a investors also get to participate a little bit in little bit in little bit in you know to compensate for the risk that you know to compensate for the risk that you know to compensate for the risk that they took earlier um

they took earlier um they took earlier um so that's really the main things um so that's really the main things um so that's really the main things um there's some stuff around like we have there's some stuff around like we have there's some stuff around like we have probably rights we basically try to probably rights we basically try to probably rights we basically try to there's two things we're trying to do there's two things we're trying to do there's two things we're trying to do one is to one is to one is to sort of align founders and investors and sort of align founders and investors and sort of align founders and investors and also also also sort of preserve optionality for the sort of preserve optionality for the sort of preserve optionality for the founders so founders so founders so we think a lot of the successful we think a lot of the successful we think a lot of the successful companies will end up never companies will end up never companies will end up never never raising money again and and that's never raising money again and and that's never raising money again and and that's totally fine that's totally fine that's totally fine that's sort of what we expect but we also think sort of what we expect but we also think sort of what we expect but we also think that you know one or two that you know one or two that you know one or two uh sort of 10 to 20 of the companies uh sort of 10 to 20 of the companies uh sort of 10 to 20 of the companies will decide that actually will decide that actually will decide that actually you know they want to step on the you know they want to step on the you know they want to step on the venture train and and maybe try to raise venture train and and maybe try to raise venture train and and maybe try to raise a lot more money and then sort of shoot a lot more money and then sort of shoot a lot more money and then sort of shoot for the moon in that case for the moon in that case for the moon in that case like we we sort of preserve that like we we sort of preserve that like we we sort of preserve that optionality for founders and we will optionality for founders and we will optionality for founders and we will um you know we will defend our pro-rata um you know we will defend our pro-rata um you know we will defend our pro-rata rights in those companies and and rights in those companies and and rights in those companies and and help you guys fundraise on the other end help you guys fundraise on the other end help you guys fundraise on the other end of that too if that's what you want to of that too if that's what you want to of that too if that's what you want to do do do verratta rights means that if we own 12 verratta rights means that if we own 12 verratta rights means that if we own 12 of your company now and you raise of your company now and you raise of your company now and you raise another round another round another round that we have the option to put in more that we have the option to put in more that we have the option to put in more money in essence and money in essence and money in essence and and defend our stake rather than to be and defend our stake rather than to be and defend our stake rather than to be diluted in case folks haven't heard of diluted in case folks haven't heard of diluted in case folks haven't heard of that that that that's true so i just picked up one that's true so i just picked up one that's true so i just picked up one question in the comments there's a question in the comments there's a question in the comments there's a specific formula or structure you'd like specific formula or structure you'd like specific formula or structure you'd like to see to see to see with dividends to keep investors with dividends to keep investors with dividends to keep investors founders underlined and it's pretty just founders underlined and it's pretty just founders underlined and it's pretty just straightforward it's like okay for the straightforward it's like okay for the straightforward it's like okay for the first 250 000 first 250 000 first 250 000 you take it out of salary and then but you take it out of salary and then but you take it out of salary and then but if you have five million dollars in if you have five million dollars in if you have five million dollars in profit then profit then profit then everything above that 250 we get the you everything above that 250 we get the you everything above that 250 we get the you know it gets kicked out as dividends and know it gets kicked out as dividends and know it gets kicked out as dividends and you know we own 10 if we own 10 you know we own 10 if we own 10 you know we own 10 if we own 10 of your company then we get 10 of the of your company then we get 10 of the of your company then we get 10 of the dividends that's just that's how it goes dividends that's just that's how it goes dividends that's just that's how it goes pretty simple that's where equity is so pretty simple that's where equity is so pretty simple that's where equity is so simple i mean we looked at six or eight

simple i mean we looked at six or eight simple i mean we looked at six or eight different models different models different models when when i were first trying to come up when when i were first trying to come up when when i were first trying to come up with how are we going to with how are we going to with how are we going to invest in companies that are not on the invest in companies that are not on the invest in companies that are not on the vet may not be on the venture track vet may not be on the venture track vet may not be on the venture track may never sell and but but dude in a way may never sell and but but dude in a way may never sell and but but dude in a way that that that that helps the founder it's pro founder that helps the founder it's pro founder that helps the founder it's pro founder but it provides enough of a return that but it provides enough of a return that but it provides enough of a return that we can raise money because we have to we can raise money because we have to we can raise money because we have to raise money and provide a return to raise money and provide a return to raise money and provide a return to investors otherwise there is no tiny investors otherwise there is no tiny investors otherwise there is no tiny seed right so it's this careful balance seed right so it's this careful balance seed right so it's this careful balance much like when you're launching your sas much like when you're launching your sas much like when you're launching your sas you want to charge ten thousand dollars you want to charge ten thousand dollars you want to charge ten thousand dollars a month but no one will buy it so you a month but no one will buy it so you a month but no one will buy it so you have to lower your price you know have to lower your price you know have to lower your price you know it's this real balancing act um and it's this real balancing act um and it's this real balancing act um and that's why we that's why we that's why we landed on equity is because we didn't landed on equity is because we didn't landed on equity is because we didn't want the terms to be super complicated want the terms to be super complicated want the terms to be super complicated and the further we got into and the further we got into and the further we got into oh it's it's you know maybe a payback or oh it's it's you know maybe a payback or oh it's it's you know maybe a payback or a profit sharing or this and that if a profit sharing or this and that if a profit sharing or this and that if there were just there were just there were just tons of if thens in the in the bullets tons of if thens in the in the bullets tons of if thens in the in the bullets as anna and i were getting confused as anna and i were getting confused as anna and i were getting confused about our own terms that we were writing about our own terms that we were writing about our own terms that we were writing and finally we said equity has been and finally we said equity has been and finally we said equity has been around around around for hundreds and hundreds of years right for hundreds and hundreds of years right for hundreds and hundreds of years right since what is it the dutch india company since what is it the dutch india company since what is it the dutch india company i think that was like the first i think that was like the first i think that was like the first company that sold equity to other people company that sold equity to other people company that sold equity to other people and it's a proven thing and it's a proven thing and it's a proven thing it's not something that kind of we made it's not something that kind of we made it's not something that kind of we made up and had a lawyer draft it's like it up and had a lawyer draft it's like it up and had a lawyer draft it's like it it just all makes sense and people know it just all makes sense and people know it just all makes sense and people know how to think about it how to think about it how to think about it like some of the moral sort of revenue like some of the moral sort of revenue like some of the moral sort of revenue based financing debt products you end up based financing debt products you end up based financing debt products you end up in a situation where as investors you in a situation where as investors you in a situation where as investors you have to go and audit have to go and audit have to go and audit your portfolio companies which that your portfolio companies which that your portfolio companies which that sounds terrible to me sounds terrible to me sounds terrible to me yeah so we like to keep it simple and uh yeah so we like to keep it simple and uh yeah so we like to keep it simple and uh pretty pretty pretty pretty chill so we are gonna get into pretty chill so we are gonna get into pretty chill so we are gonna get into some other questions if you have some other questions if you have some other questions if you have questions obviously it looks like questions obviously it looks like questions obviously it looks like there's a lot coming through there's a lot coming through there's a lot coming through um post them down in the q a section um post them down in the q a section um post them down in the q a section we're going to zip through we're going to zip through we're going to zip through a few frequently asked questions that i a few frequently asked questions that i a few frequently asked questions that i think we've already received as well

think we've already received as well think we've already received as well today today today um we'll start with tracy do we invest um we'll start with tracy do we invest um we'll start with tracy do we invest in non-us companies in non-us companies in non-us companies yeah so non-u.s companies founders can yeah so non-u.s companies founders can yeah so non-u.s companies founders can live everywhere like i mentioned live everywhere like i mentioned live everywhere like i mentioned before but in terms of where your before but in terms of where your before but in terms of where your company is incorporated company is incorporated company is incorporated first off if you are a us if your first off if you are a us if your first off if you are a us if your company is incorporating the us either company is incorporating the us either company is incorporating the us either as a as a as a corporation i think c corp not s corp corporation i think c corp not s corp corporation i think c corp not s corp that's correct right rob that's correct right rob that's correct right rob llc yeah llc that is the easiest way for llc yeah llc that is the easiest way for llc yeah llc that is the easiest way for us to invest in you us to invest in you us to invest in you if you are incorporated elsewhere we are if you are incorporated elsewhere we are if you are incorporated elsewhere we are working on it so we made our first working on it so we made our first working on it so we made our first non-us non-us non-us investment last year in scraping b which investment last year in scraping b which investment last year in scraping b which is a french corporation is a french corporation is a french corporation we want to uh invest in more areas it we want to uh invest in more areas it we want to uh invest in more areas it kind of comes down to kind of comes down to kind of comes down to lawyer effort and legal fees and all lawyer effort and legal fees and all lawyer effort and legal fees and all that kind of stuff and so if you're a that kind of stuff and so if you're a that kind of stuff and so if you're a non-if you're a non-us founder and your non-if you're a non-us founder and your non-if you're a non-us founder and your company is incorporated other than us company is incorporated other than us company is incorporated other than us and what we recommend is to apply and what we recommend is to apply and what we recommend is to apply anyways because anyways because anyways because then we can have a discussion with you then we can have a discussion with you then we can have a discussion with you if you get onto the next round and if you get onto the next round and if you get onto the next round and whether it makes sense whether it makes sense whether it makes sense for us to look into investing in your for us to look into investing in your for us to look into investing in your company company company uh and excuse me in your company's uh uh and excuse me in your company's uh uh and excuse me in your company's uh country country country there we go or if we want to help you there we go or if we want to help you there we go or if we want to help you reincorporate the us which is what a lot reincorporate the us which is what a lot reincorporate the us which is what a lot of the founders do because sometimes of the founders do because sometimes of the founders do because sometimes that has advantages as well if you're that has advantages as well if you're that has advantages as well if you're wanting to raise money again after tiny wanting to raise money again after tiny wanting to raise money again after tiny seed seed seed it might make sense for you to it might make sense for you to it might make sense for you to reincorporate the u.s anyways and so we reincorporate the u.s anyways and so we reincorporate the u.s anyways and so we have a stripe atlas deal have a stripe atlas deal have a stripe atlas deal that will help you go through that that will help you go through that that will help you go through that process um but long story short process um but long story short process um but long story short essentially essentially essentially uh we recommend you apply anyways so if uh we recommend you apply anyways so if uh we recommend you apply anyways so if you're a good fit you're a good fit you're a good fit we can have a discussion with you um in

we can have a discussion with you um in we can have a discussion with you um in our interviews any our interviews any our interviews any the interview part of the process the interview part of the process the interview part of the process yeah and it all comes down to cost i yeah and it all comes down to cost i yeah and it all comes down to cost i think i saw anarch commenting someone think i saw anarch commenting someone think i saw anarch commenting someone asked maybe on twitter asked maybe on twitter asked maybe on twitter you know it was almost like well it'd be you know it was almost like well it'd be you know it was almost like well it'd be great if you could just invest in any great if you could just invest in any great if you could just invest in any company company company anywhere no matter where they're anywhere no matter where they're anywhere no matter where they're incorporated and you're like yeah but incorporated and you're like yeah but incorporated and you're like yeah but it's like if it's like 50 grand in legal it's like if it's like 50 grand in legal it's like if it's like 50 grand in legal to close in you know i mean some of to close in you know i mean some of to close in you know i mean some of these especially like in europe there these especially like in europe there these especially like in europe there are some pretty are some pretty are some pretty complex tax implications right of of us complex tax implications right of of us complex tax implications right of of us owning owning owning um a german company or whatever i don't um a german company or whatever i don't um a german company or whatever i don't know i don't know which countries are know i don't know which countries are know i don't know which countries are complex but complex but complex but it can get complicated so we're just it can get complicated so we're just it can get complicated so we're just trying to balance that all right do you and or do you invest do all right do you and or do you invest do we invest in non-b2b we invest in non-b2b we invest in non-b2b sas companies mostly not sas companies mostly not sas companies mostly not um basically like there's if there's um basically like there's if there's um basically like there's if there's some some some services piece to it you know that's services piece to it you know that's services piece to it you know that's fine like we often see fine like we often see fine like we often see quite mature you know b2b sas companies quite mature you know b2b sas companies quite mature you know b2b sas companies that have some services component and that have some services component and that have some services component and that's okay that's okay that's okay if you're pure services probably not um if you're pure services probably not um if you're pure services probably not um if you're pure b2c if you're pure b2c if you're pure b2c also probably not like um mostly because also probably not like um mostly because also probably not like um mostly because those kind of b2c markets tend to be those kind of b2c markets tend to be those kind of b2c markets tend to be winner take all and winner take all and winner take all and quite often requires a lot of capital in quite often requires a lot of capital in quite often requires a lot of capital in order to in order to succeed or do a order to in order to succeed or do a order to in order to succeed or do a land grab land grab land grab the the sort of where it gets sort of a the the sort of where it gets sort of a the the sort of where it gets sort of a gray area and where we quite often are gray area and where we quite often are gray area and where we quite often are interested is sort of the more interested is sort of the more interested is sort of the more be to sort of prosumer rather than be to sort of prosumer rather than be to sort of prosumer rather than consumer so in that case we probably consumer so in that case we probably consumer so in that case we probably would would would yep and my pat answer yep and my pat answer yep and my pat answer with these questions tends to be if with these questions tends to be if with these questions tends to be if you're in doubt apply

you're in doubt apply you're in doubt apply because it take it's not going to take because it take it's not going to take because it take it's not going to take you more than i don't know 10 20 minutes you more than i don't know 10 20 minutes you more than i don't know 10 20 minutes to fill out the application to fill out the application to fill out the application and and we'll look at it and it depends and and we'll look at it and it depends and and we'll look at it and it depends on a lot of things it's like we don't on a lot of things it's like we don't on a lot of things it's like we don't say say say oh b2c in my head i don't say my oh b2c in my head i don't say my oh b2c in my head i don't say my criteria or not oh if it's b2c then i criteria or not oh if it's b2c then i criteria or not oh if it's b2c then i don't look at it but i do don't look at it but i do don't look at it but i do i do get concerned when i look at a at a i do get concerned when i look at a at a i do get concerned when i look at a at a company with a nine dollar average company with a nine dollar average company with a nine dollar average revenue per customer per month it's like revenue per customer per month it's like revenue per customer per month it's like oof that's going to be tough to grow so oof that's going to be tough to grow so oof that's going to be tough to grow so instantly i have a question of instantly i have a question of instantly i have a question of how are you going to increase that do how are you going to increase that do how are you going to increase that do you have plans you know and or you have plans you know and or you have plans you know and or if churns 12 then suddenly it's like if churns 12 then suddenly it's like if churns 12 then suddenly it's like okay so we have a little bit of an issue okay so we have a little bit of an issue okay so we have a little bit of an issue there what are you doing for that so there what are you doing for that so there what are you doing for that so it's it's not so much for me that it's it's it's not so much for me that it's it's it's not so much for me that it's b2c it's b2c businesses tend to have b2c it's b2c businesses tend to have b2c it's b2c businesses tend to have you know numbers and unit economics that you know numbers and unit economics that you know numbers and unit economics that make it uh make it uh make it uh a challenge to grow to a seven figure a challenge to grow to a seven figure a challenge to grow to a seven figure business which really is business which really is business which really is the goal right it's a million and up and the goal right it's a million and up and the goal right it's a million and up and that's if if your aspirations are to that's if if your aspirations are to that's if if your aspirations are to grow a half million dollar lifestyle grow a half million dollar lifestyle grow a half million dollar lifestyle business that's awesome but business that's awesome but business that's awesome but tiny seeds pri it's probably not a fit tiny seeds pri it's probably not a fit tiny seeds pri it's probably not a fit for us but if you say hey i want to get for us but if you say hey i want to get for us but if you say hey i want to get to a million bucks in to a million bucks in to a million bucks in annual revenue or more then that's annual revenue or more then that's annual revenue or more then that's that's really uh that's really uh that's really uh where that's our sweet spot all right where that's our sweet spot all right where that's our sweet spot all right tracy tracy tracy um do we invest in idea um do we invest in idea um do we invest in idea or pre-revenue companies and or do we or pre-revenue companies and or do we or pre-revenue companies and or do we have a minimum have a minimum have a minimum excuse me a minimum arr and someone excuse me a minimum arr and someone excuse me a minimum arr and someone asked i bel or mrr i'm sorry minimum mrr asked i bel or mrr i'm sorry minimum mrr asked i bel or mrr i'm sorry minimum mrr i had a question on indie hackers i had a question on indie hackers i had a question on indie hackers yesterday where it's like is there a yesterday where it's like is there a yesterday where it's like is there a requirement in order for me to apply requirement in order for me to apply requirement in order for me to apply you know is there a minimum i was mrna you know is there a minimum i was mrna you know is there a minimum i was mrna no there's no require there's no no there's no require there's no no there's no require there's no requirement anyone can apply like that's requirement anyone can apply like that's requirement anyone can apply like that's the thing again it doesn't take you a the thing again it doesn't take you a the thing again it doesn't take you a ton of time ton of time ton of time and we're okay to look through it but and we're okay to look through it but and we're okay to look through it but what we've found what we've found what we've found is that you know the patterns we're is that you know the patterns we're is that you know the patterns we're seeing uh you know kind of

seeing uh you know kind of seeing uh you know kind of you know lean us in a direction you want you know lean us in a direction you want you know lean us in a direction you want to talk a little bit about that tracy to talk a little bit about that tracy to talk a little bit about that tracy yeah i mean it's kind of like a lot of yeah i mean it's kind of like a lot of yeah i mean it's kind of like a lot of people know y combinator as well and people know y combinator as well and people know y combinator as well and even even even you know the process of playing or you know the process of playing or you know the process of playing or applying to y combo or tiny seed when applying to y combo or tiny seed when applying to y combo or tiny seed when you're going through the application you're going through the application you're going through the application process it's actually going to teach you process it's actually going to teach you process it's actually going to teach you a little bit about your company a little bit about your company a little bit about your company in terms of the ways that you can talk in terms of the ways that you can talk in terms of the ways that you can talk about what your company does and kind of about what your company does and kind of about what your company does and kind of share those thoughts and share those thoughts and share those thoughts and save those answers for future save those answers for future save those answers for future applications or future resources applications or future resources applications or future resources down the road and we keep the down the road and we keep the down the road and we keep the application fairly short so application fairly short so application fairly short so we do say that the chances of you we do say that the chances of you we do say that the chances of you getting into tiny seed getting into tiny seed getting into tiny seed um if are the highest or sweet spot is um if are the highest or sweet spot is um if are the highest or sweet spot is between 500 between 500 between 500 to 20 000 in mrr mrr to 20 000 in mrr mrr to 20 000 in mrr mrr monthly um so that means that if you are monthly um so that means that if you are monthly um so that means that if you are below 500 below 500 below 500 it calls into question whether you it calls into question whether you it calls into question whether you have hit have you proven your product have hit have you proven your product have hit have you proven your product your market need essentially so and that your market need essentially so and that your market need essentially so and that also applies for pre-revenue startups also applies for pre-revenue startups also applies for pre-revenue startups because what we want to see and what our because what we want to see and what our because what we want to see and what our program is kind of designed for is for program is kind of designed for is for program is kind of designed for is for people who have kind of proven their people who have kind of proven their people who have kind of proven their market need and they're trying to scale market need and they're trying to scale market need and they're trying to scale to the next to the next to the next next level i think rob calls it escape next level i think rob calls it escape next level i think rob calls it escape of velocity of velocity of velocity so if you're below 500 you might be so if you're below 500 you might be so if you're below 500 you might be still working on that like figuring out still working on that like figuring out still working on that like figuring out your market figuring out where you need your market figuring out where you need your market figuring out where you need to go to go to go and the program of tennessee won't and the program of tennessee won't and the program of tennessee won't really fit for that really fit for that really fit for that category that you're in same thing it category that you're in same thing it category that you're in same thing it goes if you're super successful and goes if you're super successful and goes if you're super successful and we've been really honored but there's we've been really honored but there's we've been really honored but there's been some people who have been over 20 been some people who have been over 20 been some people who have been over 20 000 they're like hey can we join chinese 000 they're like hey can we join chinese 000 they're like hey can we join chinese because the mentorship and some other because the mentorship and some other because the mentorship and some other things we have things we have things we have and that also is actually not the best and that also is actually not the best and that also is actually not the best best fit for a program because that also best fit for a program because that also best fit for a program because that also means that means that you're in a means that means that you're in a means that means that you're in a different stage different stage different stage so we kind of recommend between 520 000 so we kind of recommend between 520 000 so we kind of recommend between 520 000 because that means you'll get the most

because that means you'll get the most because that means you'll get the most out of the program the most out of the out of the program the most out of the out of the program the most out of the education and the 101s and everything education and the 101s and everything education and the 101s and everything you do you do you do people you'll be closer to what other people you'll be closer to what other people you'll be closer to what other people in the batch are going through people in the batch are going through people in the batch are going through and and and kind of you know for the full year kind of you know for the full year kind of you know for the full year you'll be working with you'll be working with you'll be working with the other people other founders and the the other people other founders and the the other people other founders and the cohort kind of going to the same cohort kind of going to the same cohort kind of going to the same problems together problems together problems together so like rob says definitely feel free to so like rob says definitely feel free to so like rob says definitely feel free to send in an application send in an application send in an application we'll review it yet gets you on our we'll review it yet gets you on our we'll review it yet gets you on our radar if you're radar if you're radar if you're um say pre-revenue or just starting out um say pre-revenue or just starting out um say pre-revenue or just starting out but your chances of getting a tennis but your chances of getting a tennis but your chances of getting a tennis seat are greatly increased seat are greatly increased seat are greatly increased if you're over 500 in mrr does that make if you're over 500 in mrr does that make if you're over 500 in mrr does that make sense rob sense rob sense rob yep yep and i'll add a i think an yep yep and i'll add a i think an yep yep and i'll add a i think an adjustment or maybe perhaps a a adjustment or maybe perhaps a a adjustment or maybe perhaps a a difference in mental model for me i difference in mental model for me i difference in mental model for me i think of it as 500 think of it as 500 think of it as 500 and up so i don't think there's a cap at and up so i don't think there's a cap at and up so i don't think there's a cap at 20. i think in both of our batches that 20. i think in both of our batches that 20. i think in both of our batches that we've done so far we've had folks get in we've done so far we've had folks get in we've done so far we've had folks get in who are who are who are higher than 20k mrr so while that is i higher than 20k mrr so while that is i higher than 20k mrr so while that is i think where a lot of people think where a lot of people think where a lot of people say yeah sweet spot actually i think say yeah sweet spot actually i think say yeah sweet spot actually i think yeah yeah yeah sweet spot but yeah yeah yeah sweet spot but yeah yeah yeah sweet spot but they're we are absolutely open to folks they're we are absolutely open to folks they're we are absolutely open to folks doing doing doing 30 40 50k mrr because and we do get 30 40 50k mrr because and we do get 30 40 50k mrr because and we do get people applying with that who say people applying with that who say people applying with that who say that you know i don't need the cash that you know i don't need the cash that you know i don't need the cash right now that's not going to make a right now that's not going to make a right now that's not going to make a huge difference but it's it's the huge difference but it's it's the huge difference but it's it's the mentorship it's the network it's the mentorship it's the network it's the mentorship it's the network it's the being in the batch it's it's all that being in the batch it's it's all that being in the batch it's it's all that stuff so yeah i i like to think of it as stuff so yeah i i like to think of it as stuff so yeah i i like to think of it as no max no max no max um on the on the mrr yeah um on the on the mrr yeah um on the on the mrr yeah i was just going to say yeah it's it's i was just going to say yeah it's it's i was just going to say yeah it's it's awesome to see these applications roll awesome to see these applications roll awesome to see these applications roll in no matter where you are because again in no matter where you are because again in no matter where you are because again the application is short the application is short the application is short and it gets you on our radar and allows and it gets you on our radar and allows and it gets you on our radar and allows us to gives us a way that we can start us to gives us a way that we can start us to gives us a way that we can start chatting with you about what you're chatting with you about what you're chatting with you about what you're doing the company and what we can do to doing the company and what we can do to doing the company and what we can do to help you out

help you out help you out right and we've had multiple people right and we've had multiple people right and we've had multiple people apply to two of the batches or sometimes apply to two of the batches or sometimes apply to two of the batches or sometimes three and it we just continue to have three and it we just continue to have three and it we just continue to have conversations with them you know and conversations with them you know and conversations with them you know and get updates over time and figure out if get updates over time and figure out if get updates over time and figure out if they're fit for it longer term they're fit for it longer term they're fit for it longer term all right uh next question what is your all right uh next question what is your all right uh next question what is your policy regarding repeat investments in policy regarding repeat investments in policy regarding repeat investments in the same space the same space the same space so basically a product with a high level so basically a product with a high level so basically a product with a high level of overlap with an existing portfolio of overlap with an existing portfolio of overlap with an existing portfolio company company company so a nr if a company applied that is so a nr if a company applied that is so a nr if a company applied that is essentially essentially essentially competes you know i don't know head to competes you know i don't know head to competes you know i don't know head to head or even has overlap head or even has overlap head or even has overlap in a market what do you think we're in a market what do you think we're in a market what do you think we're we're doing with tiny seat here we're doing with tiny seat here we're doing with tiny seat here i mean i think if they came in and they i mean i think if they came in and they i mean i think if they came in and they were exactly the same position and were exactly the same position and were exactly the same position and exactly the same revenue and exactly exactly the same revenue and exactly exactly the same revenue and exactly like competitive then we might like competitive then we might like competitive then we might have second thoughts but the way that i have second thoughts but the way that i have second thoughts but the way that i think about it is like our goal is to think about it is like our goal is to think about it is like our goal is to invest in hundreds invest in hundreds invest in hundreds and hundreds of companies over the next and hundreds of companies over the next and hundreds of companies over the next few years and so few years and so few years and so even if we had a very strict policy even if we had a very strict policy even if we had a very strict policy where it was you know we're going to do where it was you know we're going to do where it was you know we're going to do nothing competitive then nothing competitive then nothing competitive then people are going to pivot after we people are going to pivot after we people are going to pivot after we invest and eventually something will be invest and eventually something will be invest and eventually something will be competitive so competitive so competitive so so yeah we don't have a policy against so yeah we don't have a policy against so yeah we don't have a policy against uh against uh against uh against competitive products um i do think it competitive products um i do think it competitive products um i do think it makes it slightly harder makes it slightly harder makes it slightly harder uh just because you know we already have uh just because you know we already have uh just because you know we already have some existing some existing some existing you know relationships with the you know relationships with the you know relationships with the portfolio companies but i don't think portfolio companies but i don't think portfolio companies but i don't think it's a disqualifier now it's a disqualifier now it's a disqualifier now all right we have a question from all right we have a question from all right we have a question from twitter how many months would you twitter how many months would you twitter how many months would you average the churn rate over average the churn rate over average the churn rate over for a small business that for a small for a small business that for a small for a small business that for a small business that could impact the result business that could impact the result business that could impact the result or ltv quite a bit i may have had 33

or ltv quite a bit i may have had 33 or ltv quite a bit i may have had 33 percent churn last april percent churn last april percent churn last april but i guess that's too far back to draw but i guess that's too far back to draw but i guess that's too far back to draw meaningful conclusions about the current meaningful conclusions about the current meaningful conclusions about the current state of the business i'm going to take state of the business i'm going to take state of the business i'm going to take this one this one this one and either you can chime in if you feel and either you can chime in if you feel and either you can chime in if you feel like you want to add more i mean yes it like you want to add more i mean yes it like you want to add more i mean yes it is volatile is volatile is volatile but when your pre-product market fit but when your pre-product market fit but when your pre-product market fit it's all over the place if you have 33 it's all over the place if you have 33 it's all over the place if you have 33 churn churn churn and that is a consistent thing then you and that is a consistent thing then you and that is a consistent thing then you basically lose all your customers every basically lose all your customers every basically lose all your customers every three months three months three months that's not a that's just not a viable that's not a that's just not a viable that's not a that's just not a viable business at all so uh business at all so uh business at all so uh personally i would look back at the last personally i would look back at the last personally i would look back at the last couple months i you could just give couple months i you could just give couple months i you could just give if the most recent if it's six seven and if the most recent if it's six seven and if the most recent if it's six seven and eight percent churn or your last three eight percent churn or your last three eight percent churn or your last three months months months just say the most recent month you know just say the most recent month you know just say the most recent month you know and if it's if you want to average those and if it's if you want to average those and if it's if you want to average those three that's fine three that's fine three that's fine but i wouldn't even look back over six but i wouldn't even look back over six but i wouldn't even look back over six months um in my book months um in my book months um in my book typically churn if you start to hit that typically churn if you start to hit that typically churn if you start to hit that product market fit spot product market fit spot product market fit spot um churn does become a consistent um churn does become a consistent um churn does become a consistent number relatively right it might bounce number relatively right it might bounce number relatively right it might bounce before between three and four percent or before between three and four percent or before between three and four percent or three and five percent but three and five percent but three and five percent but none of those have such a dramatic none of those have such a dramatic none of those have such a dramatic impact on this on this question impact on this on this question impact on this on this question so do the best you can and you know you so do the best you can and you know you so do the best you can and you know you can always say can always say can always say i believe it's a text field right i i believe it's a text field right i i believe it's a text field right i think you can say it's six percent this think you can say it's six percent this think you can say it's six percent this month but the past few months have been month but the past few months have been month but the past few months have been this right or i mean this right or i mean this right or i mean we read through these it's not like we read through these it's not like we read through these it's not like we're computers interpreting these we're computers interpreting these we're computers interpreting these things so things so things so if you just want to say hey churn really if you just want to say hey churn really if you just want to say hey churn really is bouncing around but this is my best is bouncing around but this is my best is bouncing around but this is my best guess then that that's cool too guess then that that's cool too guess then that that's cool too you know and and we'll start the you know and and we'll start the you know and and we'll start the conversation conversation conversation uh next question we've grown really well uh next question we've grown really well uh next question we've grown really well in the past year in the past year in the past year doubling revenue now our arr doubling revenue now our arr doubling revenue now our arr is around six hundred thousand dollars is around six hundred thousand dollars is around six hundred thousand dollars so they had applied so they had applied so they had applied previously and the question is i feel previously and the question is i feel previously and the question is i feel our valuation now our valuation now our valuation now may be a bit above the standard

may be a bit above the standard may be a bit above the standard investment terms for tiny seed since investment terms for tiny seed since investment terms for tiny seed since you're doing so much revenue is there you're doing so much revenue is there you're doing so much revenue is there any flexibility any flexibility any flexibility whether it be higher funding or lower whether it be higher funding or lower whether it be higher funding or lower equity for later stage companies equity for later stage companies equity for later stage companies who may want a tiny seed investment in who may want a tiny seed investment in who may want a tiny seed investment in our goal set what do you think about our goal set what do you think about our goal set what do you think about this this this yeah i think so i mean um yeah i think so i mean um yeah i think so i mean um certainly i mean we're reasonably certainly i mean we're reasonably certainly i mean we're reasonably flexible i think i mean most of our flexible i think i mean most of our flexible i think i mean most of our investments will be in that sort of investments will be in that sort of investments will be in that sort of sweet spot where we're doing sweet spot where we're doing sweet spot where we're doing you know 120 yeah 10 12 you know 120 yeah 10 12 you know 120 yeah 10 12 but yeah we've in the past we've given but yeah we've in the past we've given but yeah we've in the past we've given higher valuation slightly lower higher valuation slightly lower higher valuation slightly lower equity but we're never going to be in a equity but we're never going to be in a equity but we're never going to be in a position where we just take an advisory position where we just take an advisory position where we just take an advisory type share like two or three percent type share like two or three percent type share like two or three percent that's just not interesting for us that's just not interesting for us that's just not interesting for us all right question about what industries all right question about what industries all right question about what industries and companies did you see thriving due and companies did you see thriving due and companies did you see thriving due to covid this year to covid this year to covid this year that may hit a plateau in a post-covered that may hit a plateau in a post-covered that may hit a plateau in a post-covered world i think all chime in certainly world i think all chime in certainly world i think all chime in certainly podcasting took off like a shot and but podcasting took off like a shot and but podcasting took off like a shot and but i don't necessarily see it plateauing i don't necessarily see it plateauing i don't necessarily see it plateauing and i feel like the zooms and the remote and i feel like the zooms and the remote and i feel like the zooms and the remote meeting tech meeting tech meeting tech certainly took off and but again i just certainly took off and but again i just certainly took off and but again i just i don't see that necessarily going i don't see that necessarily going i don't see that necessarily going going back i still think people are um going back i still think people are um going back i still think people are um are going to be using them are going to be using them are going to be using them moving forward i think some of the stuff moving forward i think some of the stuff moving forward i think some of the stuff was just like it was an accelerant and was just like it was an accelerant and was just like it was an accelerant and people are like oh this works out people are like oh this works out people are like oh this works out like i think like remote healthcare is a like i think like remote healthcare is a like i think like remote healthcare is a good example of that like certainly that good example of that like certainly that good example of that like certainly that exploded since exploded since exploded since covert started but now people are like covert started but now people are like covert started but now people are like actually i much prefer to take getting actually i much prefer to take getting actually i much prefer to take getting my doctor to answer on a video call my doctor to answer on a video call my doctor to answer on a video call instead of instead of instead of being in a waiting room full of uh you being in a waiting room full of uh you being in a waiting room full of uh you know smiley kids yep know smiley kids yep know smiley kids yep yep all right question from garrett yep all right question from garrett yep all right question from garrett lancaster lancaster lancaster we just started providing annual we just started providing annual we just started providing annual payments or annual

payments or annual payments or annual yeah annual payments where people can yeah annual payments where people can yeah annual payments where people can pay in advance for a year should we pay in advance for a year should we pay in advance for a year should we amortize those when calculating amortize those when calculating amortize those when calculating mrr in the application a r yes mrr in the application a r yes mrr in the application a r yes that's the right answer that's how you that's the right answer that's how you that's the right answer that's how you got to do it that's if got to do it that's if got to do it that's if you go to raise funding if you go to you go to raise funding if you go to you go to raise funding if you go to sell like you know sell your company or sell like you know sell your company or sell like you know sell your company or anything anything anything that's how sas metrics are done so yes that's how sas metrics are done so yes that's how sas metrics are done so yes if you accept a payment for if you accept a payment for if you accept a payment for if you have if you're charging 100 a if you have if you're charging 100 a if you have if you're charging 100 a month you accept a payment usually you month you accept a payment usually you month you accept a payment usually you give what give what give what fifteen percent or two months free so fifteen percent or two months free so fifteen percent or two months free so you accept the payment for a thousand you accept the payment for a thousand you accept the payment for a thousand dollars for the next 12 months of dollars for the next 12 months of dollars for the next 12 months of uh of service to a customer then you uh of service to a customer then you uh of service to a customer then you have to take that thousand you divide it have to take that thousand you divide it have to take that thousand you divide it by 12 by 12 by 12 and you spread it over the next 12 and you spread it over the next 12 and you spread it over the next 12 months months months all right tony chan oh all right tony chan oh all right tony chan oh uh where is oh i i think you retweet uh where is oh i i think you retweet uh where is oh i i think you retweet yeah sorry there's a that was not a yeah sorry there's a that was not a yeah sorry there's a that was not a question question question um marcel foley my sas isn't launched um marcel foley my sas isn't launched um marcel foley my sas isn't launched yet yet yet but it's already making a thousand but it's already making a thousand but it's already making a thousand dollars or more in dollars or more in dollars or more in mrr or more than a thousand in mrr mrr or more than a thousand in mrr mrr or more than a thousand in mrr because the first customer couldn't wait because the first customer couldn't wait because the first customer couldn't wait and was happy already with the mvp am i and was happy already with the mvp am i and was happy already with the mvp am i right for the program right for the program right for the program say yes please call us these are the say yes please call us these are the say yes please call us these are the ones again ones again ones again if you're in doubt apply like we're not if you're in doubt apply like we're not if you're in doubt apply like we're not you're not going to get in trouble you're not going to get in trouble you're not going to get in trouble it doesn't we're not going to be mad at it doesn't we're not going to be mad at it doesn't we're not going to be mad at you um you um you um it's uh you know what i mean it's like it's uh you know what i mean it's like it's uh you know what i mean it's like if you're in doubt at least we can then if you're in doubt at least we can then if you're in doubt at least we can then because because because oftentimes for me it's like well it oftentimes for me it's like well it oftentimes for me it's like well it depends i'd love to see your numbers i'd depends i'd love to see your numbers i'd depends i'd love to see your numbers i'd love to hear more about your business it love to hear more about your business it love to hear more about your business it depends on what space you're in you know depends on what space you're in you know depends on what space you're in you know it just depends and if you fill out the it just depends and if you fill out the it just depends and if you fill out the application then we have that and it's application then we have that and it's application then we have that and it's you know 15 or 20 questions you can fill you know 15 or 20 questions you can fill you know 15 or 20 questions you can fill it out and it out and it out and and we can take take a peek at it okay and we can take take a peek at it okay and we can take take a peek at it okay we do have a question from tony chain i

we do have a question from tony chain i we do have a question from tony chain i believe we had to miss believe we had to miss believe we had to miss some a miss mispaste misfire some a miss mispaste misfire some a miss mispaste misfire xander had pasted in a tweet he was xander had pasted in a tweet he was xander had pasted in a tweet he was about to tweet into tony's question so about to tweet into tony's question so about to tweet into tony's question so tony says i believe you're looking to tony says i believe you're looking to tony says i believe you're looking to fund 20 to 25 fund 20 to 25 fund 20 to 25 companies which is two times more companies which is two times more companies which is two times more than previous batches how we maintain than previous batches how we maintain than previous batches how we maintain all the intimacy camaraderie all the intimacy camaraderie all the intimacy camaraderie with a bigger batch so batch one was 10 with a bigger batch so batch one was 10 with a bigger batch so batch one was 10 and batch two and batch two and batch two was 13 and he's correct i believe we'll was 13 and he's correct i believe we'll was 13 and he's correct i believe we'll be or in the neighborhood of 20 this be or in the neighborhood of 20 this be or in the neighborhood of 20 this time time time it won't be 25. i think it'll be about it won't be 25. i think it'll be about it won't be 25. i think it'll be about 20. i do too yeah 20. i do too yeah 20. i do too yeah tracy how do you uh intimidating for tracy how do you uh intimidating for tracy how do you uh intimidating for this this this yeah it's funny we went from 10 to 13 yeah it's funny we went from 10 to 13 yeah it's funny we went from 10 to 13 but the second batch has actually more but the second batch has actually more but the second batch has actually more double double double like two founder companies and so the like two founder companies and so the like two founder companies and so the number of founders number of founders number of founders doubled around that that is a lot more doubled around that that is a lot more doubled around that that is a lot more this time around yeah so we already had this time around yeah so we already had this time around yeah so we already had like like like some some thought process put into the some some thought process put into the some some thought process put into the second year to kind of keep this like second year to kind of keep this like second year to kind of keep this like intimacy that we were able to capture in intimacy that we were able to capture in intimacy that we were able to capture in the first year the first year the first year uh so we try to mix events uh so we try to mix events uh so we try to mix events like have us like good online like have us like good online like have us like good online it sucks we have to do everything online it sucks we have to do everything online it sucks we have to do everything online again because of cova because the easy again because of cova because the easy again because of cova because the easy answer is hey we'll be doing like live answer is hey we'll be doing like live answer is hey we'll be doing like live excuse me um in person retreats and excuse me um in person retreats and excuse me um in person retreats and that's really awesome for us with uh that's really awesome for us with uh that's really awesome for us with uh camaraderie but we can't do that now camaraderie but we can't do that now camaraderie but we can't do that now with kovid with kovid with kovid so we've been doing online retreats so we've been doing online retreats so we've been doing online retreats which is unfortunate it's over zoo but which is unfortunate it's over zoo but which is unfortunate it's over zoo but it's more safe it's more safe it's more safe we have we have to do online retreats we have we have to do online retreats we have we have to do online retreats throughout the year with all the the throughout the year with all the the throughout the year with all the the founders together we kind of founders together we kind of founders together we kind of combine it a business plus fun combine it a business plus fun combine it a business plus fun so like presentations and showing what so like presentations and showing what so like presentations and showing what people are up to and then playing games people are up to and then playing games people are up to and then playing games together we played among us together we played among us together we played among us we've done trivia we've done these other

we've done trivia we've done these other we've done trivia we've done these other things to kind of you know keep up the things to kind of you know keep up the things to kind of you know keep up the fun even though everyone is you know all fun even though everyone is you know all fun even though everyone is you know all over the world over the world over the world and in terms of the day to day program and in terms of the day to day program and in terms of the day to day program we have a mix between we have a mix between we have a mix between calls that involve everybody in the calls that involve everybody in the calls that involve everybody in the batch batch batch but also we split people into smaller but also we split people into smaller but also we split people into smaller masterminds because masterminds because masterminds because when it's everyone in the batch when you when it's everyone in the batch when you when it's everyone in the batch when you have 20 plus people in a call it's have 20 plus people in a call it's have 20 plus people in a call it's really hard to like keep up the really hard to like keep up the really hard to like keep up the camaraderie it gets very overwhelming camaraderie it gets very overwhelming camaraderie it gets very overwhelming you don't want to listen to that many you don't want to listen to that many you don't want to listen to that many updates updates updates so we do split people into smaller so we do split people into smaller so we do split people into smaller masterminds so they can have like a masterminds so they can have like a masterminds so they can have like a small group that kind of is small group that kind of is small group that kind of is you know in their their company like you know in their their company like you know in their their company like their companies kind of fit together their companies kind of fit together their companies kind of fit together so that people can share their updates so that people can share their updates so that people can share their updates in a smaller group and in a smaller group and in a smaller group and the tennessee team joins these the tennessee team joins these the tennessee team joins these masterminds as well um masterminds as well um masterminds as well um and so they get kind of that like more and so they get kind of that like more and so they get kind of that like more intimate one-on-one intimate one-on-one intimate one-on-one uh aspect with the other companies in uh aspect with the other companies in uh aspect with the other companies in the batch that way so basically i want the batch that way so basically i want the batch that way so basically i want to say is we kind of split the to say is we kind of split the to say is we kind of split the difference we have like some difference we have like some difference we have like some large events that involves everybody large events that involves everybody large events that involves everybody together and we have some small events together and we have some small events together and we have some small events to kind of keep it less over make it so to kind of keep it less over make it so to kind of keep it less over make it so it's less overwhelming it's less overwhelming it's less overwhelming yeah and the bottom line is even with yeah and the bottom line is even with yeah and the bottom line is even with batch one batch one batch one when we had ten companies and i believe when we had ten companies and i believe when we had ten companies and i believe we had maybe had 12 founders we had maybe had 12 founders we had maybe had 12 founders it was already that all batch calls were it was already that all batch calls were it was already that all batch calls were kind of big and we knew that kind of big and we knew that kind of big and we knew that unless we were going to fund eight unless we were going to fund eight unless we were going to fund eight companies a batch we had to get from companies a batch we had to get from companies a batch we had to get from that that that you know that it's the issue of hey we you know that it's the issue of hey we you know that it's the issue of hey we have one web server have one web server have one web server going to two is hard but going to three going to two is hard but going to three going to two is hard but going to three four five four five four five is easy because you figured it out and is easy because you figured it out and is easy because you figured it out and at the moment we did batch two we were at the moment we did batch two we were at the moment we did batch two we were like like like we need to have smaller groups we need we need to have smaller groups we need we need to have smaller groups we need to do masterminds just what tracy has to do masterminds just what tracy has to do masterminds just what tracy has described described described and that worked really well and we found and that worked really well and we found and that worked really well and we found it work perhaps bet you know better than

it work perhaps bet you know better than it work perhaps bet you know better than the the the the all group uh approach so us now the all group uh approach so us now the all group uh approach so us now scaling scaling scaling from 13 to 20 i think is going to be from 13 to 20 i think is going to be from 13 to 20 i think is going to be easier than even when we went from 10 to easier than even when we went from 10 to easier than even when we went from 10 to 13 you know and had to do that split 13 you know and had to do that split 13 you know and had to do that split so it's good next question we have good so it's good next question we have good so it's good next question we have good numbers on market size for the united numbers on market size for the united numbers on market size for the united states and there is most definitely a states and there is most definitely a states and there is most definitely a large global market but we haven't been large global market but we haven't been large global market but we haven't been able to find great able to find great able to find great data should we take a stab for the data should we take a stab for the data should we take a stab for the application or just use the solid application or just use the solid application or just use the solid numbers numbers numbers we do have in our we do have in our we do have in our sorry i was looking at all the other sorry i was looking at all the other sorry i was looking at all the other questions oh man all right so questions oh man all right so questions oh man all right so i would say i keep looking at the i would say i keep looking at the i would say i keep looking at the questions i would say just use the questions i would say just use the questions i would say just use the market size that you have just say hey market size that you have just say hey market size that you have just say hey in the us that we think the market is in the us that we think the market is in the us that we think the market is this big and i mean we're not this big and i mean we're not this big and i mean we're not you know again we don't you know the you know again we don't you know the you know again we don't you know the market doesn't need to be a billion market doesn't need to be a billion market doesn't need to be a billion dollars to be a tiny seed company you dollars to be a tiny seed company you dollars to be a tiny seed company you know if you can grow to 5 10 20 million know if you can grow to 5 10 20 million know if you can grow to 5 10 20 million like that's a win for everyone like that's a win for everyone like that's a win for everyone so use what you have and and again you so use what you have and and again you so use what you have and and again you can you can clarify can you can clarify can you can clarify and you can say we've looked and the and you can say we've looked and the and you can say we've looked and the data on the world is is unclear data on the world is is unclear data on the world is is unclear maybe it's estimated at this from these maybe it's estimated at this from these maybe it's estimated at this from these sources but the u.s data is this and and sources but the u.s data is this and and sources but the u.s data is this and and computers we're looking for is like have computers we're looking for is like have computers we're looking for is like have you thought about it you know like you thought about it you know like you thought about it you know like you really thought about is there this you really thought about is there this you really thought about is there this is a big enough market for it to be a is a big enough market for it to be a is a big enough market for it to be a reasonably meaningful business yeah all reasonably meaningful business yeah all reasonably meaningful business yeah all right jason knox asks i'm filling out right jason knox asks i'm filling out right jason knox asks i'm filling out the application i have a question about the application i have a question about the application i have a question about customers inputs customers in quotes i customers inputs customers in quotes i customers inputs customers in quotes i have because i think we say how many have because i think we say how many have because i think we say how many customers do you have customers do you have customers do you have i have a b2b sas system where we have 15 i have a b2b sas system where we have 15 i have a b2b sas system where we have 15 000 active free users 000 active free users 000 active free users but only 25 paying advertiser customers but only 25 paying advertiser customers but only 25 paying advertiser customers obviously 15 000 looks better than 25 obviously 15 000 looks better than 25 obviously 15 000 looks better than 25 which should i use for customers which should i use for customers which should i use for customers so a user is someone who isn't paying so a user is someone who isn't paying so a user is someone who isn't paying you and using your app a customer you and using your app a customer you and using your app a customer someone who is paying you money

someone who is paying you money someone who is paying you money so that's my interpretation and we've so that's my interpretation and we've so that's my interpretation and we've never had this question internally but never had this question internally but never had this question internally but i would not want to see 15 000 because i would not want to see 15 000 because i would not want to see 15 000 because then if you're if your then if you're if your then if you're if your mrr is a thousand dollars then you're mrr is a thousand dollars then you're mrr is a thousand dollars then you're going to divide that by 15 000 and your going to divide that by 15 000 and your going to divide that by 15 000 and your average revenue average revenue average revenue per per customer is going to look crazy per per customer is going to look crazy per per customer is going to look crazy small so small so small so i would say if people are paying you i would say if people are paying you i would say if people are paying you they are a customer otherwise they are they are a customer otherwise they are they are a customer otherwise they are just a user just a user just a user any thoughts from the other tiny seed any thoughts from the other tiny seed any thoughts from the other tiny seed panelists on that panelists on that panelists on that no i think that makes sense all right a no i think that makes sense all right a no i think that makes sense all right a question from cyprian amarillo he says question from cyprian amarillo he says question from cyprian amarillo he says is edu slash research tech is edu slash research tech is edu slash research tech under your domains of interest yes under your domains of interest yes under your domains of interest yes i don't do we have a domain a b2b domain i don't do we have a domain a b2b domain i don't do we have a domain a b2b domain that isn't in our interest like we don't that isn't in our interest like we don't that isn't in our interest like we don't i haven't seen one that i've i don't i haven't seen one that i've i don't i haven't seen one that i've i don't think we've had an applicant where i'm think we've had an applicant where i'm think we've had an applicant where i'm like oh like oh like oh we don't invest in podcasts or you know we don't invest in podcasts or you know we don't invest in podcasts or you know i mean i mean i mean that's not how we think about it we that's not how we think about it we that's not how we think about it we think about sas that serves a need think about sas that serves a need think about sas that serves a need usually for a business or at least usually for a business or at least usually for a business or at least someone who's not super super price someone who's not super super price someone who's not super super price sensitive sensitive sensitive and it's paid on a subscription you know and it's paid on a subscription you know and it's paid on a subscription you know it has the mechanics and kind of the it has the mechanics and kind of the it has the mechanics and kind of the metrics of a metrics of a metrics of a of a subscription uh software company of a subscription uh software company of a subscription uh software company do you have a preferred formula for ltv do you have a preferred formula for ltv do you have a preferred formula for ltv my preferred formula i use use what my preferred formula i use use what my preferred formula i use use what you're comfortable with my preferred you're comfortable with my preferred you're comfortable with my preferred formula is to take your formula is to take your formula is to take your um your average revenue per um your average revenue per um your average revenue per user and you divide it by your churn so user and you divide it by your churn so user and you divide it by your churn so if your average revenue per customer if your average revenue per customer if your average revenue per customer is 100 a month and your churn is 5 is 100 a month and your churn is 5 is 100 a month and your churn is 5 you divide it by .05 that gives you two you divide it by .05 that gives you two you divide it by .05 that gives you two thousand dollars that's a lifetime thousand dollars that's a lifetime thousand dollars that's a lifetime that's the simplest one there are that's the simplest one there are that's the simplest one there are use use what you want if you're pulling use use what you want if you're pulling use use what you want if you're pulling out of bare meta don't use anything you

out of bare meta don't use anything you out of bare meta don't use anything you want use one that's reasonable but want use one that's reasonable but want use one that's reasonable but if you're pulling out of barometrics if you're pulling out of barometrics if you're pulling out of barometrics profit well chart mogul stripe profit well chart mogul stripe profit well chart mogul stripe and it's giving you mrr that's fine you and it's giving you mrr that's fine you and it's giving you mrr that's fine you know and or if you're in summit know and or if you're in summit know and or if you're in summit and you know those they they do they and you know those they they do they and you know those they they do they don't all calculate them exactly the don't all calculate them exactly the don't all calculate them exactly the same same same but they are close enough for our but they are close enough for our but they are close enough for our purposes and if it shows at purposes and if it shows at purposes and if it shows at 1850 versus nineteen hundred and fifty 1850 versus nineteen hundred and fifty 1850 versus nineteen hundred and fifty dollars for a lifetime value dollars for a lifetime value dollars for a lifetime value those are approximately the same in you those are approximately the same in you those are approximately the same in you know for all intents know for all intents know for all intents uh for our purposes george horn asked uh for our purposes george horn asked uh for our purposes george horn asked knowing what you look for knowing what you look for knowing what you look for in startup knowing that you look for in startup knowing that you look for in startup knowing that you look for startups that are already generating startups that are already generating startups that are already generating revenue here's our situation revenue here's our situation revenue here's our situation we are uh we're off the gates we are we are uh we're off the gates we are we are uh we're off the gates we are yeah i'm trying to think we we've gotten yeah i'm trying to think we we've gotten yeah i'm trying to think we we've gotten off the starting line generated around off the starting line generated around off the starting line generated around 50 50 50 000 euros in 2020. last year however 000 euros in 2020. last year however 000 euros in 2020. last year however also included a pivot and we did not also included a pivot and we did not also included a pivot and we did not launch our new product yet so the 50 launch our new product yet so the 50 launch our new product yet so the 50 50k comes from an api solution which we 50k comes from an api solution which we 50k comes from an api solution which we no longer focus on no longer focus on no longer focus on while the new sas is essentially while the new sas is essentially while the new sas is essentially pre-launched how does that make pre-launched how does that make pre-launched how does that make how does that make us as a candidate or how does that make us as a candidate or how does that make us as a candidate or not for your third batch not for your third batch not for your third batch i think this is another one of those i think this is another one of those i think this is another one of those like apply and then we'll see like apply and then we'll see like apply and then we'll see um you know because we need to know a um you know because we need to know a um you know because we need to know a little bit more than that like it's it's little bit more than that like it's it's little bit more than that like it's it's like why did you pivot and like why did you pivot and like why did you pivot and what are you people getting into and what are you people getting into and what are you people getting into and like you know you know all that stuff so like you know you know all that stuff so like you know you know all that stuff so do you already have traffic right do you do you already have traffic right do you do you already have traffic right do you have traffic channels that were using have traffic channels that were using have traffic channels that were using the api that now would use the new app the api that now would use the new app the api that now would use the new app or is it cold start you know it's all or is it cold start you know it's all or is it cold start you know it's all that stuff right we would need to that stuff right we would need to that stuff right we would need to so i would say the same i would say so i would say the same i would say so i would say the same i would say apply we'll have a look and apply we'll have a look and apply we'll have a look and you know have a conversation if uh i

you know have a conversation if uh i you know have a conversation if uh i think it could be a fit think it could be a fit think it could be a fit can salary caps be adjusted over time can salary caps be adjusted over time can salary caps be adjusted over time with inflation or with inflation or with inflation or market changes a r so prior to today market changes a r so prior to today market changes a r so prior to today just so folks know if you missed it just so folks know if you missed it just so folks know if you missed it our salary caps were based on a software our salary caps were based on a software our salary caps were based on a software engineer's salary and the closest major engineer's salary and the closest major engineer's salary and the closest major city city city and when we did that it was adjusted and when we did that it was adjusted and when we did that it was adjusted over time over time over time as of today we've just announced and as of today we've just announced and as of today we've just announced and we'll we need to announce this a little we'll we need to announce this a little we'll we need to announce this a little more more more a little more broadly later in the week a little more broadly later in the week a little more broadly later in the week but we have made a flat salary cap for but we have made a flat salary cap for but we have made a flat salary cap for everyone everyone everyone in tiny seed that is a quarter million in tiny seed that is a quarter million in tiny seed that is a quarter million dollars u.s dollars u.s dollars u.s so it's 250 000 that you can pull out of so it's 250 000 that you can pull out of so it's 250 000 that you can pull out of your company before you have to um you your company before you have to um you your company before you have to um you know before you know before you know before you can before you need to take dividends can before you need to take dividends can before you need to take dividends right so the question then in our can right so the question then in our can right so the question then in our can salary caps be adjusted now that we've salary caps be adjusted now that we've salary caps be adjusted now that we've raised it to 250k i think it'll be a raised it to 250k i think it'll be a raised it to 250k i think it'll be a while for now while for now while for now yeah it feels like this i mean like 10 yeah it feels like this i mean like 10 yeah it feels like this i mean like 10 years from now if 250 if inflation goes years from now if 250 if inflation goes years from now if 250 if inflation goes completely out of control and completely out of control and completely out of control and 250 is the dollar is worthless yeah we 250 is the dollar is worthless yeah we 250 is the dollar is worthless yeah we can we'll definitely talk about it like can we'll definitely talk about it like can we'll definitely talk about it like our goal with the salary cap really is our goal with the salary cap really is our goal with the salary cap really is not to like not to like not to like like the return from investors doesn't like the return from investors doesn't like the return from investors doesn't come from like squeezing the most amount come from like squeezing the most amount come from like squeezing the most amount you know you know you know whether the salary cap is xyz the return whether the salary cap is xyz the return whether the salary cap is xyz the return really comes from really comes from really comes from companies doing really really well and companies doing really really well and companies doing really really well and like all we're trying to say is if like all we're trying to say is if like all we're trying to say is if you're taking out you're taking out you're taking out 10 million dollars in cash every year 10 million dollars in cash every year 10 million dollars in cash every year it's fair that our investors get to it's fair that our investors get to it's fair that our investors get to participate participate participate right is the investor dividend based on right is the investor dividend based on right is the investor dividend based on the equity the equity the equity yes it is so if we own 12 of your yes it is so if we own 12 of your yes it is so if we own 12 of your company company company and you you pull out dividends then tiny and you you pull out dividends then tiny and you you pull out dividends then tiny that's how tennessee gets paid that's how tennessee gets paid that's how tennessee gets paid like tiny seed gets 12 of the dividends like tiny seed gets 12 of the dividends like tiny seed gets 12 of the dividends if there are multiple founders do you if there are multiple founders do you if there are multiple founders do you require all founders to be full-time

require all founders to be full-time require all founders to be full-time so one clarification i'll throw out is so one clarification i'll throw out is so one clarification i'll throw out is to be to qualify as a founder for our to be to qualify as a founder for our to be to qualify as a founder for our funding funding funding you um you know because we pay 120 or we you um you know because we pay 120 or we you um you know because we pay 120 or we we fund 120k for the first and we fund 120k for the first and we fund 120k for the first and 60k for each additional to qualify as a 60k for each additional to qualify as a 60k for each additional to qualify as a founder the individual needs to own founder the individual needs to own founder the individual needs to own 15 or more of the company 15 or more of the company 15 or more of the company and to qualify for the funding that and to qualify for the funding that and to qualify for the funding that extra 60k extra 60k extra 60k that person would need to go full time that person would need to go full time that person would need to go full time on the company if they decide not to on the company if they decide not to on the company if they decide not to that's that's that's fine we will you know if we want to fund fine we will you know if we want to fund fine we will you know if we want to fund you we'll still fund you but you would you we'll still fund you but you would you we'll still fund you but you would get the funding for one founder get the funding for one founder get the funding for one founder correct that make sense all right correct that make sense all right correct that make sense all right okay neil cocker okay so he says just to okay neil cocker okay so he says just to okay neil cocker okay so he says just to be clear be clear be clear it's not a non-dilute clause you just it's not a non-dilute clause you just it's not a non-dilute clause you just get a preferential shared deal in order get a preferential shared deal in order get a preferential shared deal in order to maintain your stake on the cap table to maintain your stake on the cap table to maintain your stake on the cap table this is the question about the side this is the question about the side this is the question about the side letter i um so letter i um so letter i um so so really what the side letter is is so really what the side letter is is so really what the side letter is is mostly around mostly around mostly around uh the salary cap and sort of says okay uh the salary cap and sort of says okay uh the salary cap and sort of says okay you're i'm the founder if i'm taking you're i'm the founder if i'm taking you're i'm the founder if i'm taking once i get to 250 once i get to 250 once i get to 250 000 in salary above that i will kick it 000 in salary above that i will kick it 000 in salary above that i will kick it out of dividends out of dividends out of dividends everything else is in the sort of everything else is in the sort of everything else is in the sort of standard equity terms like standard equity terms like standard equity terms like if we own 10 percent we have a prior to if we own 10 percent we have a prior to if we own 10 percent we have a prior to right in the subsequent rounds right in the subsequent rounds right in the subsequent rounds to defend our 10 stake that's the to defend our 10 stake that's the to defend our 10 stake that's the non-diluted part of it the side letters non-diluted part of it the side letters non-diluted part of it the side letters is simply to do with the dividends in is simply to do with the dividends in is simply to do with the dividends in the salary cap the salary cap the salary cap very good uh very good uh very good uh unanswered okay uh what are some of the unanswered okay uh what are some of the unanswered okay uh what are some of the factors you look at before onboarding a factors you look at before onboarding a factors you look at before onboarding a company i understand that tinyseed

company i understand that tinyseed company i understand that tinyseed prefers b2b sas and a company prefers b2b sas and a company prefers b2b sas and a company in the revenue stage what factors other in the revenue stage what factors other in the revenue stage what factors other than than than those we have a big list huh those we have a big list huh those we have a big list huh there's a lot of times as fast as there's a lot of times as fast as there's a lot of times as fast as possible so i've answered a lot of possible so i've answered a lot of possible so i've answered a lot of questions okay um so we're getting we're questions okay um so we're getting we're questions okay um so we're getting we're doing pretty good but yeah that we doing pretty good but yeah that we doing pretty good but yeah that we should answer this one live should answer this one live should answer this one live okay yeah i mean i the the bottom line okay yeah i mean i the the bottom line okay yeah i mean i the the bottom line is we have a we have a dock that's like is we have a we have a dock that's like is we have a we have a dock that's like 42 different points and it's like 42 different points and it's like 42 different points and it's like traction and the you know the the team traction and the you know the the team traction and the you know the the team do they have this do they have this do they have this experience what's the product like you experience what's the product like you experience what's the product like you know all the things you would think know all the things you would think know all the things you would think about if you were trying to evaluate a about if you were trying to evaluate a about if you were trying to evaluate a company company company when i mess this on a podcast or in a when i mess this on a podcast or in a when i mess this on a podcast or in a situation like this i say situation like this i say situation like this i say there's three p's that i look at it's there's three p's that i look at it's there's three p's that i look at it's the people the people the people it's product market fit do you have it it's product market fit do you have it it's product market fit do you have it or not and it's price sensitivity or not and it's price sensitivity or not and it's price sensitivity so the people is obvious it's like are so the people is obvious it's like are so the people is obvious it's like are the founders uh either experienced in the founders uh either experienced in the founders uh either experienced in this space so they have a unique this space so they have a unique this space so they have a unique advantage or are they just advantage or are they just advantage or are they just folks who are shipping and getting folks who are shipping and getting folks who are shipping and getting things done and have they made progress things done and have they made progress things done and have they made progress you know probably probably doing it on you know probably probably doing it on you know probably probably doing it on the side have they shown us that they the side have they shown us that they the side have they shown us that they can ship and get traction can ship and get traction can ship and get traction product market fit do you have it or not product market fit do you have it or not product market fit do you have it or not that that's where we look at the revenue that that's where we look at the revenue that that's where we look at the revenue stuff if you have zero revenue stuff if you have zero revenue stuff if you have zero revenue you don't have product market fit no you don't have product market fit no you don't have product market fit no one's paying you uh there's you know a one's paying you uh there's you know a one's paying you uh there's you know a point point point product market fit is obviously not a product market fit is obviously not a product market fit is obviously not a binary thing it's a continuum so binary thing it's a continuum so binary thing it's a continuum so how what what's your turn like the lower how what what's your turn like the lower how what what's your turn like the lower your churn in general your churn in general your churn in general um the lower you know the more product um the lower you know the more product um the lower you know the more product market fit you have market fit you have market fit you have um and there's a bunch of stuff we could um and there's a bunch of stuff we could um and there's a bunch of stuff we could talk about there about do you have talk about there about do you have talk about there about do you have channels of customers coming in and channels of customers coming in and channels of customers coming in and signing up and onboarding and not signing up and onboarding and not signing up and onboarding and not churning well then churning well then churning well then you know you have have a little more you know you have have a little more you know you have have a little more product market fit there and the third product market fit there and the third product market fit there and the third one is price sensitivity if the most you

one is price sensitivity if the most you one is price sensitivity if the most you can charge your customers is nine can charge your customers is nine can charge your customers is nine dollars a month or fourteen dollars a dollars a month or fourteen dollars a dollars a month or fourteen dollars a month month month it's not impossible to build a it's not impossible to build a it's not impossible to build a multi-million dollar business on that multi-million dollar business on that multi-million dollar business on that it's really really really hard you have it's really really really hard you have it's really really really hard you have to be in a massive space with massive to be in a massive space with massive to be in a massive space with massive uh lead flow so those are like three uh lead flow so those are like three uh lead flow so those are like three high-level high-level high-level things that that we look at um your things that that we look at um your things that that we look at um your existing traction certainly is one existing traction certainly is one existing traction certainly is one um traction can be a lot of a lot of um traction can be a lot of a lot of um traction can be a lot of a lot of users it can be a lot of customers it users it can be a lot of customers it users it can be a lot of customers it can be a lot of revenue can be a lot of revenue can be a lot of revenue uh anything else to add either the other uh anything else to add either the other uh anything else to add either the other panelists panelists panelists no i think that makes sense i mean like no i think that makes sense i mean like no i think that makes sense i mean like we often look at like yeah industry we often look at like yeah industry we often look at like yeah industry experience is a big thing experience is a big thing experience is a big thing like if you're if you're doing a b2b sas like if you're if you're doing a b2b sas like if you're if you're doing a b2b sas in the construction industry and like in the construction industry and like in the construction industry and like you've you've you've been selling sas software or dealt with been selling sas software or dealt with been selling sas software or dealt with it in the construction industry that's it in the construction industry that's it in the construction industry that's obviously a huge plus but i think you obviously a huge plus but i think you obviously a huge plus but i think you sum it up pretty well sum it up pretty well sum it up pretty well excellent um question i'll pass to anar excellent um question i'll pass to anar excellent um question i'll pass to anar is there an is there an is there an option to buy your equity out in the option to buy your equity out in the option to buy your equity out in the future so to buy future so to buy future so to buy tiny seed out uh tiny seed out uh tiny seed out uh the short answer is no um and really the the short answer is no um and really the the short answer is no um and really the the answer for that the answer for that the answer for that just boils down to um the kinds of just boils down to um the kinds of just boils down to um the kinds of outcomes that we think will happen outcomes that we think will happen outcomes that we think will happen in certain cases like we think there'll in certain cases like we think there'll in certain cases like we think there'll be some companies that be some companies that be some companies that you know uh will get to the we'll just you know uh will get to the we'll just you know uh will get to the we'll just take off like a rocket and sell for 500 take off like a rocket and sell for 500 take off like a rocket and sell for 500 million dollars million dollars million dollars um in which case uh you know we um in which case uh you know we um in which case uh you know we it doesn't make any sense from an it doesn't make any sense from an it doesn't make any sense from an investor perspective for investor perspective for investor perspective for for us to just have some sort of an for us to just have some sort of an for us to just have some sort of an agreed upon uh agreed-upon price that agreed upon uh agreed-upon price that agreed upon uh agreed-upon price that where you can where you can where you can reba repay the um the equity that in reba repay the um the equity that in reba repay the um the equity that in that case it becomes much more of a debt that case it becomes much more of a debt that case it becomes much more of a debt type product um and when you have more type product um and when you have more type product um and when you have more of a type product of a type product of a type product then you need to be a lot more

then you need to be a lot more then you need to be a lot more aggressive as an investor aggressive as an investor aggressive as an investor to to get capital back quicker so we to to get capital back quicker so we to to get capital back quicker so we don't really want to do that we think of don't really want to do that we think of don't really want to do that we think of ourselves as like long-term investors ourselves as like long-term investors ourselves as like long-term investors aligned with the founders we don't aligned with the founders we don't aligned with the founders we don't really want any money coming our way really want any money coming our way really want any money coming our way unless you're also putting money in your unless you're also putting money in your unless you're also putting money in your pocket basically pocket basically pocket basically yeah from the start we decided we don't yeah from the start we decided we don't yeah from the start we decided we don't want to be want to be want to be alone we don't want to be alone that you alone we don't want to be alone that you alone we don't want to be alone that you pay back pay back pay back and we want to be in your corner for the and we want to be in your corner for the and we want to be in your corner for the long term long term long term that's exactly how i think about it and that's exactly how i think about it and that's exactly how i think about it and if you can pay us back if you can pay us back if you can pay us back a multiple and oh you know now we don't a multiple and oh you know now we don't a multiple and oh you know now we don't know anything that's like why i'm know anything that's like why i'm know anything that's like why i'm what's our incentive to like help you in what's our incentive to like help you in what's our incentive to like help you in the long term and help you get there the long term and help you get there the long term and help you get there right so right so right so i have always liked if i was going to i have always liked if i was going to i have always liked if i was going to raise money for for any of my companies raise money for for any of my companies raise money for for any of my companies for drip especially it was going to be for drip especially it was going to be for drip especially it was going to be equity because i wanted people who were equity because i wanted people who were equity because i wanted people who were in it in it in it and it's just the most there's a reason and it's just the most there's a reason and it's just the most there's a reason our terms are the way they are our terms are the way they are our terms are the way they are you know we we take equity it's simple you know we we take equity it's simple you know we we take equity it's simple we um we um we um uh you know we have the salary cap and uh you know we have the salary cap and uh you know we have the salary cap and it's pretty much it's pretty much it's pretty much and then we go and then we're and then and then we go and then we're and then and then we go and then we're and then essentially we're business partners and essentially we're business partners and essentially we're business partners and we're a super minority partner right we we're a super minority partner right we we're a super minority partner right we don't have all this control that that don't have all this control that that don't have all this control that that some other investors may some other investors may some other investors may uh look at but that's that's it and that uh look at but that's that's it and that uh look at but that's that's it and that we don't take we don't take we don't take net profit we don't take top line net profit we don't take top line net profit we don't take top line revenue which many revenue which many revenue which many um you know independent kind of um you know independent kind of um you know independent kind of financing or these alt funding financing or these alt funding financing or these alt funding aspects do and then the reason they need aspects do and then the reason they need aspects do and then the reason they need to do that is like inner said they need to do that is like inner said they need to do that is like inner said they need to get that revenue back so fast because to get that revenue back so fast because to get that revenue back so fast because they do they do they do allow you to buy you know to buy some allow you to buy you know to buy some allow you to buy you know to buy some equity back although equity back although equity back although i would say that the the terms uh you i would say that the the terms uh you i would say that the the terms uh you see online for some of them are maybe see online for some of them are maybe see online for some of them are maybe not not not not the ones that are being submitted to not the ones that are being submitted to not the ones that are being submitted to uh everyone so so be

uh everyone so so be uh everyone so so be be careful with that um these these be careful with that um these these be careful with that um these these if-then-else clauses can be uh pretty if-then-else clauses can be uh pretty if-then-else clauses can be uh pretty complicated complicated complicated all right do you invest in s corpse we all right do you invest in s corpse we all right do you invest in s corpse we cannot legally invest in s-corps yeah an cannot legally invest in s-corps yeah an cannot legally invest in s-corps yeah an s-corp cannot take it's purely a law s-corp cannot take it's purely a law s-corp cannot take it's purely a law thing but they cannot take investment thing but they cannot take investment thing but they cannot take investment from a from a from a fund so we can invest in c-corps and fund so we can invest in c-corps and fund so we can invest in c-corps and llcs llcs llcs you can you can you can reasonably you can you can you can reasonably you can you can you can reasonably easily give up your easily give up your easily give up your s corp designation and become there are s corp designation and become there are s corp designation and become there are some some some pretty enormous benefits to that pretty enormous benefits to that pretty enormous benefits to that actually particularly if you're looking actually particularly if you're looking actually particularly if you're looking to sell so to sell so to sell so if particularly in the us if you're a if particularly in the us if you're a if particularly in the us if you're a c-corp c-corp c-corp and there's some qualifier stuff but and there's some qualifier stuff but and there's some qualifier stuff but pretty much broadly pretty much broadly pretty much broadly if you're a c corp and you have hold if you're a c corp and you have hold if you're a c corp and you have hold that equity or owned that company for that equity or owned that company for that equity or owned that company for five or more years five or more years five or more years and then you sell then there's something and then you sell then there's something and then you sell then there's something called qsps which is called qsps which is called qsps which is qualified small business stock which is qualified small business stock which is qualified small business stock which is an exemption that means that an exemption that means that an exemption that means that when you sell for the first 10 million when you sell for the first 10 million when you sell for the first 10 million that comes your way or your investors that comes your way or your investors that comes your way or your investors way way way uh you don't pay any tax at all uh you don't pay any tax at all uh you don't pay any tax at all including at least in the federal level including at least in the federal level including at least in the federal level so there's no so there's no so there's no not even any long-term capital gains so not even any long-term capital gains so not even any long-term capital gains so there is actually a pretty big benefit there is actually a pretty big benefit there is actually a pretty big benefit to switching to a c to switching to a c to switching to a c corp um that's that's probably worth corp um that's that's probably worth corp um that's that's probably worth exploring but yeah no we can't we're not exploring but yeah no we can't we're not exploring but yeah no we can't we're not legally allowed to invest in an escort legally allowed to invest in an escort legally allowed to invest in an escort and we have had a few yeah if you want and we have had a few yeah if you want and we have had a few yeah if you want to have a path through entity that's to have a path through entity that's to have a path through entity that's really important to you then an llc is really important to you then an llc is really important to you then an llc is the way to go the way to go the way to go and we have had a few companies apply and we have had a few companies apply and we have had a few companies apply with scorpion convert i believe with scorpion convert i believe with scorpion convert i believe yeah we've had a couple of portfolio yeah we've had a couple of portfolio yeah we've had a couple of portfolio companies who've been llcs who've companies who've been llcs who've companies who've been llcs who've decided that you know what a c corp is decided that you know what a c corp is decided that you know what a c corp is better for me better for me better for me and then convert what is the process and and then convert what is the process and and then convert what is the process and timeline once the application is timeline once the application is timeline once the application is submitted submitted submitted tracy osborne i can see you looking at

tracy osborne i can see you looking at tracy osborne i can see you looking at other questions did you hear me other questions did you hear me other questions did you hear me i'm typing really fast for all these i'm typing really fast for all these i'm typing really fast for all these things i heard you got a question yeah things i heard you got a question yeah things i heard you got a question yeah um so this is actually repeated after if um so this is actually repeated after if um so this is actually repeated after if you submit an application you submit an application you submit an application an email that gets sent from me to you an email that gets sent from me to you an email that gets sent from me to you to the applicant to the applicant to the applicant that kind of runs through the process that kind of runs through the process that kind of runs through the process and essentially we're spending the next and essentially we're spending the next and essentially we're spending the next so the applications are for two weeks so the applications are for two weeks so the applications are for two weeks and and and uh we'll start reviewing applications uh we'll start reviewing applications uh we'll start reviewing applications probably starting next week but it takes probably starting next week but it takes probably starting next week but it takes us a while depending on the number of us a while depending on the number of us a while depending on the number of applications we get applications we get applications we get um our first round of updates um our first round of updates um our first round of updates uh maybe we're trying to tell people if uh maybe we're trying to tell people if uh maybe we're trying to tell people if they're not a good fit for tennessee they're not a good fit for tennessee they're not a good fit for tennessee we're trying to tell people as fast as we're trying to tell people as fast as we're trying to tell people as fast as possible possible possible hopefully that'll be coming at the end hopefully that'll be coming at the end hopefully that'll be coming at the end of the month um but if you don't hear of the month um but if you don't hear of the month um but if you don't hear from us that means that we're still from us that means that we're still from us that means that we're still reviewing your application reviewing your application reviewing your application so reviews are probably going through so reviews are probably going through so reviews are probably going through february uh hopefully in february we'll february uh hopefully in february we'll february uh hopefully in february we'll start start start sending out acceptances but that's where sending out acceptances but that's where sending out acceptances but that's where we have our calls and our interviews we have our calls and our interviews we have our calls and our interviews starting with me moving on to robin starting with me moving on to robin starting with me moving on to robin aynar aynar aynar um and then after that process is due um and then after that process is due um and then after that process is due diligence for people who have gotten a diligence for people who have gotten a diligence for people who have gotten a initial acceptance into tennessee which initial acceptance into tennessee which initial acceptance into tennessee which is also a part of the process that i is also a part of the process that i is also a part of the process that i didn't really have a good appreciation didn't really have a good appreciation didn't really have a good appreciation for until i was in this position for until i was in this position for until i was in this position i never really realized that it doesn't i never really realized that it doesn't i never really realized that it doesn't end even after um end even after um end even after um you know a investment firm says that you know a investment firm says that you know a investment firm says that they want to fund you then there's a they want to fund you then there's a they want to fund you then there's a whole whole whole like month plus process of talking to like month plus process of talking to like month plus process of talking to lawyers and reviewing docs lawyers and reviewing docs lawyers and reviewing docs that's essentially the process for a um that's essentially the process for a um that's essentially the process for a um accepted company accepted company accepted company for people who are not good fit like i for people who are not good fit like i for people who are not good fit like i said we'll get back to everyone said we'll get back to everyone said we'll get back to everyone eventually um and we try to be very eventually um and we try to be very eventually um and we try to be very upfront and clear about that upfront and clear about that upfront and clear about that yeah one one thing to point out there is yeah one one thing to point out there is yeah one one thing to point out there is that although like if we present a term that although like if we present a term that although like if we present a term sheet sheet sheet and even though after the term sheet and even though after the term sheet and even though after the term sheet there is a bunch of diligence that looks there is a bunch of diligence that looks there is a bunch of diligence that looks at your corporate structure and the at your corporate structure and the at your corporate structure and the legal stuff

legal stuff legal stuff like we won't change our terms um after like we won't change our terms um after like we won't change our terms um after issuing a term sheet unless we find issuing a term sheet unless we find issuing a term sheet unless we find something really really bad something really really bad something really really bad so like it'll take a while but if we say so like it'll take a while but if we say so like it'll take a while but if we say okay we've decided to invest in you then okay we've decided to invest in you then okay we've decided to invest in you then that's that's that's you know sort of our words are bond in you know sort of our words are bond in you know sort of our words are bond in that regard yeah and that's part of the that regard yeah and that's part of the that regard yeah and that's part of the reason why it's the applications are now reason why it's the applications are now reason why it's the applications are now but the next cohort is starting in may but the next cohort is starting in may but the next cohort is starting in may it just gives us time to go through that it just gives us time to go through that it just gives us time to go through that whole process whole process whole process yep and we fund in what march or april yep and we fund in what march or april yep and we fund in what march or april depending depending depending and depending on how long due diligence and depending on how long due diligence and depending on how long due diligence takes and then may 1 is essentially the takes and then may 1 is essentially the takes and then may 1 is essentially the start of batch three and it runs for a start of batch three and it runs for a start of batch three and it runs for a year year year from there jason weibert asks how do you from there jason weibert asks how do you from there jason weibert asks how do you approach approach approach applications where the person has applications where the person has applications where the person has previously acquired a sas previously acquired a sas previously acquired a sas anything in particular you would look anything in particular you would look anything in particular you would look for in that situation for in that situation for in that situation so if you've previou is he so if you've previou is he so if you've previou is he anyone is he asking he bought yeah if anyone is he asking he bought yeah if anyone is he asking he bought yeah if you previously acquired one and you're you previously acquired one and you're you previously acquired one and you're working on a new one working on a new one working on a new one then all our criteria would would apply then all our criteria would would apply then all our criteria would would apply it's just a new sas but it's just a new sas but it's just a new sas but if you have bought a sas and you're if you have bought a sas and you're if you have bought a sas and you're trying to grow it trying to grow it trying to grow it i would say apply with it and just point i would say apply with it and just point i would say apply with it and just point out hey i bought this sas out hey i bought this sas out hey i bought this sas x months ago and you know again it's a x months ago and you know again it's a x months ago and you know again it's a conversation but we are not opposed conversation but we are not opposed conversation but we are not opposed um it we're probably not going to fund um it we're probably not going to fund um it we're probably not going to fund you know you know you know 50 of our batch of acquired sas but it's 50 of our batch of acquired sas but it's 50 of our batch of acquired sas but it's certainly not certainly not certainly not a deal breaker or anything that would a deal breaker or anything that would a deal breaker or anything that would disqualify you we would just love to disqualify you we would just love to disqualify you we would just love to know that and have a conversation about know that and have a conversation about know that and have a conversation about that to know you know your history with that to know you know your history with that to know you know your history with with the app that work yeah with the app that work yeah with the app that work yeah what hap tracy what happens after the what hap tracy what happens after the what hap tracy what happens after the one-year accelerator one-year accelerator one-year accelerator yeah that's a great question um tennyson yeah that's a great question um tennyson yeah that's a great question um tennyson is not officially in like once you're is not officially in like once you're is not officially in like once you're part of tennessee you're actually a part part of tennessee you're actually a part part of tennessee you're actually a part of tiny seed forever so you still have

of tiny seed forever so you still have of tiny seed forever so you still have access to access to access to um mentors and one-on-one time with the um mentors and one-on-one time with the um mentors and one-on-one time with the time you see time you see time you see team the only thing that really stops is team the only thing that really stops is team the only thing that really stops is the call schedule and the mentor calls the call schedule and the mentor calls the call schedule and the mentor calls we have we have we have um it's just like essentially your day um it's just like essentially your day um it's just like essentially your day to day or week to week to day or week to week to day or week to week activities end people usually can you activities end people usually can you activities end people usually can you continue the masterminds that they had continue the masterminds that they had continue the masterminds that they had set up set up set up during the tiny seed year and then they during the tiny seed year and then they during the tiny seed year and then they can continue paying me for help and can continue paying me for help and can continue paying me for help and ask for mentor help and be a part of our ask for mentor help and be a part of our ask for mentor help and be a part of our slack community or receive uh they get slack community or receive uh they get slack community or receive uh they get notifications of whenever we get a new notifications of whenever we get a new notifications of whenever we get a new perk from a partner perk from a partner perk from a partner so essentially it's like you you pretty so essentially it's like you you pretty so essentially it's like you you pretty much stay into tiny seed but you don't much stay into tiny seed but you don't much stay into tiny seed but you don't have any other obligations for calls have any other obligations for calls have any other obligations for calls yeah and i mean to give people an idea yeah and i mean to give people an idea yeah and i mean to give people an idea there's only you know we have ten alums there's only you know we have ten alums there's only you know we have ten alums right from batch one because batch two right from batch one because batch two right from batch one because batch two is still going on is still going on is still going on and i still talk to you know a good and i still talk to you know a good and i still talk to you know a good chunk of those alums i mean i believe i chunk of those alums i mean i believe i chunk of those alums i mean i believe i had had had two calls last week probably in the past two calls last week probably in the past two calls last week probably in the past when the holidays messed up when the holidays messed up when the holidays messed up but in a given month i probably have but in a given month i probably have but in a given month i probably have like four calls with alums because like four calls with alums because like four calls with alums because either i reach out and just like hey either i reach out and just like hey either i reach out and just like hey miss talking i'm curious to hear miss talking i'm curious to hear miss talking i'm curious to hear or you know they reach out to one of us or you know they reach out to one of us or you know they reach out to one of us and and and they either need an intro they want uh they either need an intro they want uh they either need an intro they want uh you know talk to a mentor they want to you know talk to a mentor they want to you know talk to a mentor they want to talk to me and get an opinion i reviewed talk to me and get an opinion i reviewed talk to me and get an opinion i reviewed someone's deck last week you know someone's deck last week you know someone's deck last week you know there's there's there's like tracy said it doesn't end it's just like tracy said it doesn't end it's just like tracy said it doesn't end it's just the curriculum and kind of the hardcore the curriculum and kind of the hardcore the curriculum and kind of the hardcore program uh program uh program uh you know uh uh transitions but you know uh uh transitions but you know uh uh transitions but you're always always a tiny seat founder you're always always a tiny seat founder you're always always a tiny seat founder and again when we have in-person events and again when we have in-person events and again when we have in-person events because time is a microcon fund because time is a microcon fund because time is a microcon fund there will be things around microcom so there will be things around microcom so there will be things around microcom so whenever we have like in-person events whenever we have like in-person events whenever we have like in-person events as well as well as well yep if you were evaluating two similar

yep if you were evaluating two similar yep if you were evaluating two similar companies i'll send this one to a r if companies i'll send this one to a r if companies i'll send this one to a r if you're evaluating two similar companies you're evaluating two similar companies you're evaluating two similar companies and could only invest in one what would and could only invest in one what would and could only invest in one what would be the most important criteria for you be the most important criteria for you be the most important criteria for you in your in your in your decision making and i would i would just decision making and i would i would just decision making and i would i would just say there is no one say there is no one say there is no one criteria it really depends and it sort criteria it really depends and it sort criteria it really depends and it sort of ties into the question coming down of ties into the question coming down of ties into the question coming down down at the bottom there too like is down at the bottom there too like is down at the bottom there too like is there any month-to-month growth there any month-to-month growth there any month-to-month growth percentage that we consider favorable percentage that we consider favorable percentage that we consider favorable i feel like it really depends on where i feel like it really depends on where i feel like it really depends on where the company is like the company is like the company is like you know like you know if you're very you know like you know if you're very you know like you know if you're very early and we're probably a little bit early and we're probably a little bit early and we're probably a little bit more understanding on like variable more understanding on like variable more understanding on like variable churn and things because you're kind of churn and things because you're kind of churn and things because you're kind of early early early uh you know but but we'd probably like uh you know but but we'd probably like uh you know but but we'd probably like to see a bit more growth then to see a bit more growth then to see a bit more growth then to be honest with you and if you're to be honest with you and if you're to be honest with you and if you're later and more established then later and more established then later and more established then you know if you then also have quite you know if you then also have quite you know if you then also have quite high churn that would probably be a high churn that would probably be a high churn that would probably be a concern for us concern for us concern for us so if i pick something like churn is so if i pick something like churn is so if i pick something like churn is probably the main thing like probably the main thing like probably the main thing like if i have two very very similar if i have two very very similar if i have two very very similar companies and i have one company that companies and i have one company that companies and i have one company that has has has a two three percent churn a month a two three percent churn a month a two three percent churn a month something like that and another one that something like that and another one that something like that and another one that has has has 20 then i'm gonna go with the low churn 20 then i'm gonna go with the low churn 20 then i'm gonna go with the low churn pretty much all the time because it sort pretty much all the time because it sort pretty much all the time because it sort of suggests that of suggests that of suggests that people are happy they're sticking around people are happy they're sticking around people are happy they're sticking around they keep paying they're just doing they keep paying they're just doing they keep paying they're just doing their thing versus their thing versus their thing versus if you're churning it those kind of if you're churning it those kind of if you're churning it those kind of numbers suggest you haven't really found numbers suggest you haven't really found numbers suggest you haven't really found product market fit product market fit product market fit even though maybe you're very good at even though maybe you're very good at even though maybe you're very good at selling for convincing people to buy but selling for convincing people to buy but selling for convincing people to buy but then when they get in and use it it then when they get in and use it it then when they get in and use it it doesn't fit their need or they don't doesn't fit their need or they don't doesn't fit their need or they don't want to use it anymore want to use it anymore want to use it anymore next question is you said you have two next question is you said you have two next question is you said you have two batches a year batches a year batches a year which yes it's a that's a new thing which yes it's a that's a new thing which yes it's a that's a new thing starting in 2021 because we were able to starting in 2021 because we were able to starting in 2021 because we were able to raise raise raise our second fund so this next batch which

our second fund so this next batch which our second fund so this next batch which is three it starts in may on may first is three it starts in may on may first is three it starts in may on may first when is the next next application when is the next next application when is the next next application process and when does the next batch process and when does the next batch process and when does the next batch start start start so i'm going to throw out i mean we've so i'm going to throw out i mean we've so i'm going to throw out i mean we've like loosely thrown this around but i like loosely thrown this around but i like loosely thrown this around but i believe believe believe next applications will open in july next applications will open in july next applications will open in july that's six months from now that's six months from now that's six months from now and then the next batch would start and then the next batch would start and then the next batch would start november one november one november one and if we you know we'd have a meet up and if we you know we'd have a meet up and if we you know we'd have a meet up in october or something if we could do in october or something if we could do in october or something if we could do that is that that is that that is that because we have micrograph that's why i because we have micrograph that's why i because we have micrograph that's why i was anticipating yeah yeah so that's our was anticipating yeah yeah so that's our was anticipating yeah yeah so that's our it's not set in stone this year is it's it's not set in stone this year is it's it's not set in stone this year is it's you know you know you know going to be just another interesting going to be just another interesting going to be just another interesting year we think so we have to play by ear year we think so we have to play by ear year we think so we have to play by ear but that that'd be the loose timeline but that that'd be the loose timeline but that that'd be the loose timeline for that and we got to get through these for that and we got to get through these for that and we got to get through these applications first applications first applications first every time we go through an application every time we go through an application every time we go through an application process it kind of informs how the process it kind of informs how the process it kind of informs how the application process ago application process ago application process ago should go next time so i hesitate to put should go next time so i hesitate to put should go next time so i hesitate to put out any dates or out any dates or out any dates or deter like good and solid information deter like good and solid information deter like good and solid information until we've gone through until we've gone through until we've gone through this month yep well there's a good this month yep well there's a good this month yep well there's a good question about that yes question about that yes question about that yes will there be a second application later will there be a second application later will there be a second application later in the year yes if so and applying in in the year yes if so and applying in in the year yes if so and applying in january feels a little premature for my january feels a little premature for my january feels a little premature for my company company company but later in the year will be better but later in the year will be better but later in the year will be better would you advise waiting to apply later would you advise waiting to apply later would you advise waiting to apply later or applying now to get or applying now to get or applying now to get on the radar interesting question i don't know i interesting question i don't know i would think apply now would think apply now would think apply now it doesn't hurt it's just that's the it doesn't hurt it's just that's the it doesn't hurt it's just that's the thing i keep thinking is it doesn't hurt thing i keep thinking is it doesn't hurt thing i keep thinking is it doesn't hurt it doesn't we're not offended or we're it doesn't we're not offended or we're it doesn't we're not offended or we're not not not it doesn't give us a bunch of extra work it doesn't give us a bunch of extra work it doesn't give us a bunch of extra work it doesn't bother me to read through an it doesn't bother me to read through an it doesn't bother me to read through an application application application and it it again if it takes you 15 20 30 and it it again if it takes you 15 20 30 and it it again if it takes you 15 20 30 minutes minutes minutes yeah if you replied and you were at like yeah if you replied and you were at like yeah if you replied and you were at like 80 mrr 80 mrr 80 mrr and you know all right and then just and you know all right and then just and you know all right and then just like starts just a little too early and

like starts just a little too early and like starts just a little too early and then six months later you came in and then six months later you came in and then six months later you came in and says hey i was says hey i was says hey i was i was at 80 now i'm at xyz right then i was at 80 now i'm at xyz right then i was at 80 now i'm at xyz right then you have solid data points that you're you have solid data points that you're you have solid data points that you're not just making that stuff up so not just making that stuff up so not just making that stuff up so yeah that's cool yeah and i do i don't yeah that's cool yeah and i do i don't yeah that's cool yeah and i do i don't have a have a have a uh it's not like an automated system but uh it's not like an automated system but uh it's not like an automated system but i do manually we'll track some people i do manually we'll track some people i do manually we'll track some people and and and note in their application the future note in their application the future note in their application the future applications that they reapplied and applications that they reapplied and applications that they reapplied and those numbers in those numbers in those numbers in so it's nice to have that data available so it's nice to have that data available so it's nice to have that data available too um it's definitely not too um it's definitely not too um it's definitely not like a huge factor i think in reviewing like a huge factor i think in reviewing like a huge factor i think in reviewing it just it can help and if you don't it just it can help and if you don't it just it can help and if you don't think it's like gonna take you like our think it's like gonna take you like our think it's like gonna take you like our application is pretty short application is pretty short application is pretty short so if you don't think it's going to take so if you don't think it's going to take so if you don't think it's going to take you like a huge amount of time then you you like a huge amount of time then you you like a huge amount of time then you could do it and there could be an could do it and there could be an could do it and there could be an additional benefit additional benefit additional benefit um later on the road but if you're if um later on the road but if you're if um later on the road but if you're if you are you are you are swamped you're working on some big swamped you're working on some big swamped you're working on some big things you're pretty sure that that things you're pretty sure that that things you're pretty sure that that you'd wrap you'd wrap you'd wrap you think you'd be better fit this you think you'd be better fit this you think you'd be better fit this summer and you don't have the time to do summer and you don't have the time to do summer and you don't have the time to do an application an application an application it's not going to hurt your your summer it's not going to hurt your your summer it's not going to hurt your your summer application if you don't do one now all right if there's some i'm going all right if there's some i'm going through some questions that are through some questions that are through some questions that are duplicates and cutting them out because duplicates and cutting them out because duplicates and cutting them out because we only we have about seven minutes left we only we have about seven minutes left we only we have about seven minutes left and questions continue to pour in and questions continue to pour in and questions continue to pour in thanks so much everybody for for uh thanks so much everybody for for uh thanks so much everybody for for uh hanging around man we're still at 115 hanging around man we're still at 115 hanging around man we're still at 115 people that's great people that's great people that's great um okay in the application form you ask um okay in the application form you ask um okay in the application form you ask what is the total what is your total what is the total what is your total what is the total what is your total team size full time plus part time team size full time plus part time team size full time plus part time is this the number of founders as as is this the number of founders as as is this the number of founders as as defined by rob earlier or does does defined by rob earlier or does does defined by rob earlier or does does include contractors include contractors include contractors so this is this is total team test so this is this is total team test so this is this is total team test because earlier on we ask you because earlier on we ask you because earlier on we ask you who are your founders and you list them who are your founders and you list them who are your founders and you list them out so we can just look there and say oh out so we can just look there and say oh out so we can just look there and say oh you have two founders but this includes you have two founders but this includes you have two founders but this includes yeah your team size if you have two yeah your team size if you have two yeah your team size if you have two full-time employees and three or four full-time employees and three or four full-time employees and three or four contractors that are working a contractors that are working a contractors that are working a reasonable amount you know reasonable amount you know reasonable amount you know then include all that in the number if

then include all that in the number if then include all that in the number if you have a contractor who you hired this you have a contractor who you hired this you have a contractor who you hired this month to do a one-off report and they month to do a one-off report and they month to do a one-off report and they did 20 hours of work like did 20 hours of work like did 20 hours of work like i wouldn't include them on your team but i wouldn't include them on your team but i wouldn't include them on your team but it's people you're doing recurring work it's people you're doing recurring work it's people you're doing recurring work with with with again take your best guess if you need again take your best guess if you need again take your best guess if you need to qualify it that's fine to qualify it that's fine to qualify it that's fine it doesn't you know there's no writer it doesn't you know there's no writer it doesn't you know there's no writer there's no right or wrong answer to there's no right or wrong answer to there's no right or wrong answer to these it's just for us to get our head these it's just for us to get our head these it's just for us to get our head around what what your business looks around what what your business looks around what what your business looks like like like okay there may be other expenses apart okay there may be other expenses apart okay there may be other expenses apart from salary would all of that be from salary would all of that be from salary would all of that be deducted deducted deducted before calculating the dividend before calculating the dividend before calculating the dividend absolutely nr you want to you want to absolutely nr you want to you want to absolutely nr you want to you want to talk about that talk about that talk about that yeah i mean dividend dividends is yeah i mean dividend dividends is yeah i mean dividend dividends is literally like what is the leftover literally like what is the leftover literally like what is the leftover profit profit profit that you know once you once you've done that you know once you once you've done that you know once you once you've done everything you want to do with the everything you want to do with the everything you want to do with the company company company if you if you have you know a bunch of if you if you have you know a bunch of if you if you have you know a bunch of money coming in a bunch of revenue money coming in a bunch of revenue money coming in a bunch of revenue coming in and you decide to coming in and you decide to coming in and you decide to reinvest all that into your company reinvest all that into your company reinvest all that into your company there is no money left over for there is no money left over for there is no money left over for dividends so dividends so dividends so you know by definition uh expenses are you know by definition uh expenses are you know by definition uh expenses are are taken away first are taken away first are taken away first yeah and that's the thing we are not we yeah and that's the thing we are not we yeah and that's the thing we are not we don't take net profit we don't take top don't take net profit we don't take top don't take net profit we don't take top line revenue so none of that matters line revenue so none of that matters line revenue so none of that matters it's it's it's if you as the founder we want the if you as the founder we want the if you as the founder we want the founder to be in control so if you want founder to be in control so if you want founder to be in control so if you want to leave to leave to leave uh you know half a million or a million uh you know half a million or a million uh you know half a million or a million dollars in your business bank account dollars in your business bank account dollars in your business bank account and not pull it out as a dividend and not pull it out as a dividend and not pull it out as a dividend it's not like that passes through to us it's not like that passes through to us it's not like that passes through to us or that we automatically get that it's or that we automatically get that it's or that we automatically get that it's the moment that you take out the moment that you take out the moment that you take out a distribution to the founders that's a distribution to the founders that's a distribution to the founders that's above your salaries above your salaries above your salaries then you take cash out and we get our then you take cash out and we get our then you take cash out and we get our pro rata share of that that's that's all pro rata share of that that's that's all pro rata share of that that's that's all it is so there's no fail it is so there's no fail it is so there's no fail there's one asterisk to that if you are there's one asterisk to that if you are there's one asterisk to that if you are an llc corporation an llc corporation an llc corporation and you decide you have a million and you decide you have a million and you decide you have a million dollars in profit that's true dollars in profit that's true dollars in profit that's true then because you're an llc and we own then because you're an llc and we own then because you're an llc and we own part of the llc

part of the llc part of the llc that gets passed through and so you have that gets passed through and so you have that gets passed through and so you have to distribute enough to cover to distribute enough to cover to distribute enough to cover our taxes at least and probably it makes our taxes at least and probably it makes our taxes at least and probably it makes sense for you to do so to cover your own sense for you to do so to cover your own sense for you to do so to cover your own taxes taxes taxes yes thanks for thanks for pointing that yes thanks for thanks for pointing that yes thanks for thanks for pointing that out that's that one exception basically out that's that one exception basically out that's that one exception basically no one leaves a million dollars in cash no one leaves a million dollars in cash no one leaves a million dollars in cash in a sas business so in a sas business so in a sas business so it was it was an outrageous example but it was it was an outrageous example but it was it was an outrageous example but um um um all right how do you compute monthly all right how do you compute monthly all right how do you compute monthly churn if only yearly packages churn if only yearly packages churn if only yearly packages are being sold i haven't even thought about that i i haven't even thought about that i would to be honest just google it would to be honest just google it would to be honest just google it and see what people are doing i mean if and see what people are doing i mean if and see what people are doing i mean if i were to think off the cuff i were to think off the cuff i were to think off the cuff um then you should well assuming you've um then you should well assuming you've um then you should well assuming you've been around for a year you should see been around for a year you should see been around for a year you should see how much people are churning each month how much people are churning each month how much people are churning each month yeah i don't know i might need to take yeah i don't know i might need to take yeah i don't know i might need to take that one offline and kind of think about that one offline and kind of think about that one offline and kind of think about how i would handle that how i would handle that how i would handle that i don't know if ain't r yeah you're in i don't know if ain't r yeah you're in i don't know if ain't r yeah you're in the same boat as me we just haven't seen the same boat as me we just haven't seen the same boat as me we just haven't seen we haven't seen that game we haven't seen that game we haven't seen that game there's like a monthly equivalent that there's like a monthly equivalent that there's like a monthly equivalent that adds up to an annual but it starts to adds up to an annual but it starts to adds up to an annual but it starts to get really complicated and i would just get really complicated and i would just get really complicated and i would just put there's it again is a text field i put there's it again is a text field i put there's it again is a text field i think think think so just i put like this is the annual so just i put like this is the annual so just i put like this is the annual whatever whatever makes sense for you whatever whatever makes sense for you whatever whatever makes sense for you for your business for your business for your business right right all right how much does burn right right all right how much does burn right right all right how much does burn play a role in your decision play a role in your decision play a role in your decision i mean and burn for those who aren't i mean and burn for those who aren't i mean and burn for those who aren't familiar is that if you're losing money familiar is that if you're losing money familiar is that if you're losing money each month right if you each month right if you each month right if you are paying out more than you're bringing are paying out more than you're bringing are paying out more than you're bringing in do in do in do does tiny c prefer early stage does tiny c prefer early stage does tiny c prefer early stage profitable businesses or is growth profitable businesses or is growth profitable businesses or is growth more important than profitability in more important than profitability in more important than profitability in these early days these early days these early days let me make another i'm not super let me make another i'm not super let me make another i'm not super bothered bothered bothered i think there's a yeah sorry i i asked i think there's a yeah sorry i i asked i think there's a yeah sorry i i asked you and then i started talking over you you and then i started talking over you you and then i started talking over you but but but what do you think that's okay uh no no i

what do you think that's okay uh no no i what do you think that's okay uh no no i i think like i think like i think like being profitable like if you're if being profitable like if you're if being profitable like if you're if you're at you're at you're at five million or ten million are sure five million or ten million are sure five million or ten million are sure being profitable is interesting being profitable is interesting being profitable is interesting if you're doing eight thousand mrr do if you're doing eight thousand mrr do if you're doing eight thousand mrr do you get bonus points for you get bonus points for you get bonus points for having a 500 a month a profit no i would having a 500 a month a profit no i would having a 500 a month a profit no i would probably say probably say probably say you can't too early to optimize for that you can't too early to optimize for that you can't too early to optimize for that so you know you know it so you know you know it so you know you know it it almost be a little bit of a red flag it almost be a little bit of a red flag it almost be a little bit of a red flag like don't you have some money to spend like don't you have some money to spend like don't you have some money to spend 500 something to spend 500 bucks on 500 something to spend 500 bucks on 500 something to spend 500 bucks on so yeah i think earlier on probably so yeah i think earlier on probably so yeah i think earlier on probably probably growth probably growth probably growth that being said like burn like if you're that being said like burn like if you're that being said like burn like if you're like like like so there's like there's a difference so there's like there's a difference so there's like there's a difference between break even and and and you know between break even and and and you know between break even and and and you know profitable profitable profitable if you're burning a lot of money if it's if you're burning a lot of money if it's if you're burning a lot of money if it's like you've already taken some cash or like you've already taken some cash or like you've already taken some cash or you're taking your own savings and you're taking your own savings and you're taking your own savings and you have a team of 15 and like you're you have a team of 15 and like you're you have a team of 15 and like you're you need to you need to you need to be shoveling cash into the business that be shoveling cash into the business that be shoveling cash into the business that probably is probably is probably is is a bit of a concern for us and we is a bit of a concern for us and we is a bit of a concern for us and we would question what's so special about would question what's so special about would question what's so special about this b2b sas business or whatever that this b2b sas business or whatever that this b2b sas business or whatever that needs to burn that much money needs to burn that much money needs to burn that much money right yeah that's great that's what i right yeah that's great that's what i right yeah that's great that's what i was going to say uh we're running short was going to say uh we're running short was going to say uh we're running short on time but i want to get to on time but i want to get to on time but i want to get to these next one um apart from the 125 these next one um apart from the 125 these next one um apart from the 125 apart from the investment apart from the investment apart from the investment what else do we get from tinyseed um what else do we get from tinyseed um what else do we get from tinyseed um you were mentioning marketing blah blah you were mentioning marketing blah blah you were mentioning marketing blah blah so we don't actually like tinyce doesn't so we don't actually like tinyce doesn't so we don't actually like tinyce doesn't actually do marketing for you that's up actually do marketing for you that's up actually do marketing for you that's up to the founders and to the founders and to the founders and and you know the folks you hire we offer and you know the folks you hire we offer and you know the folks you hire we offer funding we offer the community of the funding we offer the community of the funding we offer the community of the batch which is super if you see all the batch which is super if you see all the batch which is super if you see all the the kind of quotes and the testimonials the kind of quotes and the testimonials the kind of quotes and the testimonials and when when our batch founders talk and when when our batch founders talk and when when our batch founders talk about stuff they will often say hey

about stuff they will often say hey about stuff they will often say hey you know the money was great and i you know the money was great and i you know the money was great and i thought the mentorship would be you know thought the mentorship would be you know thought the mentorship would be you know like the number one thing but the like the number one thing but the like the number one thing but the community and actually being in it with community and actually being in it with community and actually being in it with other founders has tends to be other founders has tends to be other founders has tends to be the big draw um the mentorship both from the big draw um the mentorship both from the big draw um the mentorship both from tracy aynar and myself all startup tracy aynar and myself all startup tracy aynar and myself all startup founders who've been there founders who've been there founders who've been there as well as the mentor list tinyc.com as well as the mentor list tinyc.com as well as the mentor list tinyc.com people including you know the it's like people including you know the it's like people including you know the it's like a who's who of mpp of sas a who's who of mpp of sas a who's who of mpp of sas founders and subject matter experts and founders and subject matter experts and founders and subject matter experts and then there's our network then there's our network then there's our network very very extensive um in terms of oh very very extensive um in terms of oh very very extensive um in terms of oh i'm gonna i'm gonna i'm gonna anybody know how to do this in stripe or anybody know how to do this in stripe or anybody know how to do this in stripe or how to do a how to do a how to do a appsumo deal and it's like yeah i know appsumo deal and it's like yeah i know appsumo deal and it's like yeah i know three people who did one last year let three people who did one last year let three people who did one last year let me hook you up me hook you up me hook you up right it's just intros and intros it's right it's just intros and intros it's right it's just intros and intros it's just knowing people so just knowing people so just knowing people so um how should you represent monthly um how should you represent monthly um how should you represent monthly revenue when it consists of mrr revenue when it consists of mrr revenue when it consists of mrr plus one-time payments plus one-time payments plus one-time payments i would say if the one-time pay you just i would say if the one-time pay you just i would say if the one-time pay you just specify it in the application so we can specify it in the application so we can specify it in the application so we can read it you know say hey it was 5k mrr read it you know say hey it was 5k mrr read it you know say hey it was 5k mrr plus 1k and one time payments but the plus 1k and one time payments but the plus 1k and one time payments but the but pretty much every month there's but pretty much every month there's but pretty much every month there's about 1k in one time payment so that's about 1k in one time payment so that's about 1k in one time payment so that's really what we're looking for if it was really what we're looking for if it was really what we're looking for if it was a one-off thing where oh a one-off thing where oh a one-off thing where oh just this month we got 1k and we don't just this month we got 1k and we don't just this month we got 1k and we don't get that every month i would just leave get that every month i would just leave get that every month i would just leave it out altogether it out altogether it out altogether but if it's a fairly consistent you know but if it's a fairly consistent you know but if it's a fairly consistent you know overage fees that content overage fees that content overage fees that content to get paid or fairly consistent setup to get paid or fairly consistent setup to get paid or fairly consistent setup fees and it's usually around 1k fees and it's usually around 1k fees and it's usually around 1k i would include it and just just specify i would include it and just just specify i would include it and just just specify regarding salary draw regarding salary draw regarding salary draw what if you have an existing company say what if you have an existing company say what if you have an existing company say a consulting business a consulting business a consulting business and you're using it to fund the sas and you're using it to fund the sas and you're using it to fund the sas under the same legal entity does that under the same legal entity does that under the same legal entity does that salary draw restriction apply to the salary draw restriction apply to the salary draw restriction apply to the corporate entity as a whole or could it corporate entity as a whole or could it corporate entity as a whole or could it be only based on what you pull from the be only based on what you pull from the be only based on what you pull from the sas

sas sas you would before we invested you would you would before we invested you would you would before we invested you would probably need to spin up a separate probably need to spin up a separate probably need to spin up a separate entity for the sas entity for the sas entity for the sas and we would invest in that yep and we would invest in that yep and we would invest in that yep all right it's 10 it was 10 a.m pacific all right it's 10 it was 10 a.m pacific all right it's 10 it was 10 a.m pacific here here here um we got through 91 questions um we got through 91 questions um we got through 91 questions oh my goodness gosh yeah i think i'm oh my goodness gosh yeah i think i'm oh my goodness gosh yeah i think i'm just going to stop there's the orb voice just going to stop there's the orb voice just going to stop there's the orb voice feel free to email us if you have feel free to email us if you have feel free to email us if you have questions or reach out on twitter or questions or reach out on twitter or questions or reach out on twitter or anything yeah you'll reach me yeah anything yeah you'll reach me yeah anything yeah you'll reach me yeah dms are open on twitter you can send an dms are open on twitter you can send an dms are open on twitter you can send an email to hello timeysa.com come straight email to hello timeysa.com come straight email to hello timeysa.com come straight to me i can refer to me i can refer to me i can refer i could bring it up to robin andr if i could bring it up to robin andr if i could bring it up to robin andr if needed so definitely reach out if we needed so definitely reach out if we needed so definitely reach out if we didn't answer your question and you need didn't answer your question and you need didn't answer your question and you need more help more help more help awesome thanks everyone who showed up awesome thanks everyone who showed up awesome thanks everyone who showed up it's been a great hour it's been a great hour it's been a great hour and uh we will see you on the twitters and uh we will see you on the twitters and uh we will see you on the twitters and and and certainly reach out if you need to bye