Who are ViaHome's customers? Why would they use ViaHome?
ViaHome's principal customer base are for-profit and not-for-profit housing developers, including public housing authorities. The "developer" is the person or company that has principal responsibility for coming up with the idea for a housing development, obtaining site control, completing construction and/or renovation plans, securing financing, and leasing the proposed development to tenants. Many other parties involved in a development project (e.g., architects, contractors etc.) will use ViaHome to coordinate with the developer during the development process.
ViaHome adds both mission-based and economic value to the developer. All affordable housing developers are committed to increasing the supply of affordable housing, and ViaHome's platform will make it easier and more efficient to fulfill that commitment. Beyond that, affordable housing developers obtain most of their compensation for organizing a development first, when the financing for the development closes and then when the development has been leased to tenants. Using ViaHome well help these developers close more deals faster, increasing the revenue they need to further their development activities.
how will your customers use viahome?
A developer starts by creating a new project in ViaHome Assistant. ViaHome Assistant first generates a full set of financials, and recommends the best subsidy package, if any subsidy is needed. From there, the developer uses the Assistant to work with the development team to complete development plans, finalize construction budgets and prepare the deal for financing. As development plans are changed and refined, the Assistant works to update budgets, financing proposals, and necessary documents automatically, saving developers up to 25% in development time.
When the development plans are finalized, the housing developer has two options for approaching financing partners. With ViaHome Closer, the developer invites investors that it has already identified onto the platform to review the financing proposals, conduct diligence, and close. If a developer does not already have an investor - or cannot find one that is a good fit - the deal can be offered on the ViaHome Exchange to ViaHome's investor network.
how will viahome earn money?
To use ViaHome Assistant, developers will pay a subscription fee equal to $25 per month per development project. Developments that close using ViaHome Closer are charged a fee of 0.5% of the total deal size, while ViaHome Exchange deals are charged 1-3%.
how much are you raising? how will my investment work?
ViaHome is targeting a $100,000 capital raise, with closings on a rolling basis.
In exchange for your investment, ViaHome will enter into a Simple Agreement for Future Equity, or SAFE with you. Your SAFE will entitle you to receive equity in ViaHome, either at the time ViaHome closes a later round of financing or if ViaHome merges or is acquired, whichever is earlier. The price per share that you will receive will be either a) the price per share paid by investors in the company's next financing, less a 20% discount (the "Discount"), or b) the price per share that values ViaHome at $5,000,000 (the "Valuation Cap").
The Discount ensures that you will receive equity shares at a better price than later investors to the company. The Valuation Cap ensures that, in the event we obtain a very favorable valuation at our next fundraising round, you will get the benefit of a lower valuation.
why are you using a safe? why can't i buy common stock or debt?
SAFEs are a common and increasingly dominant structure for very early stage company financings. They require nothing beyond a short legal agreement, and are simpler and easier to understand than the numerous documents that are involved in a stock deal. Convertible notes similarly involve certain complications, such as the need to evaluate whether you need to have a lending license, and may involve adverse tax consequences for some investors.
You can learn more about SAFEs here and here.
how will I get my money back? What's your exit strategy?
My focus is on building the best product we can so that ViaHome will achieve its mission of transforming affordable housing production. I may not be successful, and if I am not, you will lose some - perhaps all - of your investment.
If we are successful in creating a great product, the most likely exit for ViaHome would likely be a strategic investment by, or sale to, a large financial institution. Frequently, companies that successfully disrupt financial services markets are absorbed by financial institutions that are interested in adopting innovative technology or business methods.