Our flagship product, Pangea Prime, has adapted to the growing needs of our clients. We’ve molded our product over time to address some key issues in the Foreign Exchange market.
We've come a long way since January! Our product updates and marketing efforts are paying off
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We want to offer this opportunity to as many interested innovators as we can, so we’re offering an equity incentive to any investors who refer a friend. When your friend invests and names you as their referral, you’ll receive a 10% equity bonus for up to $100,000 invested, and a 5% equity bonus for any funds above that $100,000.
Here’s how this would work: as a current investor, you have some friends who might be either a. Drawn to innovation and early adopters of new ideas, or b. Interested in a redemptive company that’s working to create an equitable economic environment that allows both for-profit and non-profit companies to realize savings or advance their work in a way that otherwise wouldn’t be able to. You introduce them to Pangea and send them these materials. They get excited and make a decision to invest. They name you as the person who referred them. After the round completes, you’ll receive an equity bonus in your current investment. If your friend invested $75,000, you would receive $7500 worth of equity within your current Carta account. Questions? Contact danny@pangea.io
Qualified Eligible Persons, or Accredited Investors: Investopedia offers a great explanation of “accredited investors” that can [be found here.]. How do I prove I am an accredited investor? You don’t. Accredited investor status is self-declared, and there is no verification or validation process. Typically, people qualify by income, assets, or by possessing “measures of professional knowledge, experience or certifications” in finance or investments. The SEC does not explicitly specify what experience this is. Why Accredited Investors? The Security Exchange Commission posits those with significant assets, incomes, or “professional knowledge” should likely understand the risks inherent in early-stage private investments.
$5,000
There is no maximum; however, if you intend to invest over $250,000, we would want to explore your direct investment outside the SPV. At $500,000, we require you to invest outside the SPV directly. If you or a friend are investing $250,000 or more, please contact Danny directly. (danny@pangea.io)
Special Purpose Vehicles (SPVs) are legal entities created for one specific purpose. In venture contexts, SPVs are used to pool money from a group of investors to make a single investment in a startup. That is what we're doing here. The minimum investment size into Pangea is normally $500K. This is strategic as it keeps the number of shareholders smaller, cleaner, and easier to manage. The downside is most can't afford to participate. However, since an SPV looks like one person (corporation), we can achieve both goals: keeping a clean shareholder list and letting friends and family participate. Don't worry; you are as much a shareholder as anyone else. The only difference is you will make decisions (vote) as a group. Under the council of the fund's General Partner, you will vote internally and then submit a unified decision to the company during shareholder votes. This means the majority vote of the group of people who make up the SPV will be the decision of the entire SPV. However, it is worth mentioning that everyone in the SPV is an investor, so your financial interests should typically be aligned.
More or less, yes. We are using a convertible note instrument, which is typical for this stage. It converts into equity in the future when we raise at least $10M from the next set of investors, which should happen in the next 6-12 months. To protect you, we included:
Watch this 10-minute video for basics around early-stage startup deals.
Yes, it does take a small sum of capital to pay for the SPV investment vehicle expenses. However, these fees were initially covered by Pangea and early investors. Looks like sometimes good things do come to those who wait.
Colin Sullivan, a licensed Attorney, General Council and VP of Legal at Patreon, a $4B Startup, will serve as the General Partner to the Friends & Family Fund. Colin will manage ongoing legal, tax, and administrative tasks related to the fund, requiring very little of all participants in the fund. When shareholder votes or reinvestment opportunities arise, Colin will facilitate voting amongst the shareholders to submit the vote as a body to the larger shareholder community. In exchange for this work, Colin will receive a 5% carry, or in other words, a 5% performance fee, should the investment work out in everyone's favor. Should the investment not work out, we will thank Colin for his steadfast commitment throughout the company's life cycle.Typically, professional Venture Capital firms require a 2% annual management fee and 20% performance fee.
We use a company called Carta to distribute and keep track of shares.When you receive your registration email from Carta, it will take about 15 minutes to set up your account and 15 minutes to go through the investment questionnaire. We recommend setting aside at least 30 minutes to finish the entire process. If you have questions about the application, please email Danny at Danny@pangea.io
It is hard to say. It will close under any of the following 3 scenarios, whichever comes first.
This is probably the only round that we can provide friends and family equity before an IPO. However, those who do invest will be given opportunities to reinvest to maintain their ownership % over time. However, later rounds will likely be at prices that won’t be economical for most institutional investors.
While it’s important to check with your spouse or significant other any time you make an investment decision, please note that if you sign up via Carta as joint investor with your spouse, they will also need to sign up for their own Carta account. During our last investment round, we found was simpler for our investors if they signed up as a single investor rather than joint investors. This helped mitigate the hassle of having to create two accounts. If you do decide to sign up as a joint investor with your spouse, please leave ample time to create a separate Carta account and have your partner countersign.
Simply put, this approach is both good for us as a company and good for our early investors. Our most likely scenario at this stage of progress would be to raise what’s called a “bridge round,” a smaller investment that would move us toward a larger Series A. If we did that now, our valuation would be lower, which would mean every early investors piece of the company would be diluted. If we continue to make the progress we are seeing, we would expect a much higher valuation, which means a better deal both for the company and for you. One caveat: our plan is great success either way, so there’s not really a “bad deal” in this stage. However, there is good strategic reasoning behind this approach if we continue with progress the way we’ve seen in Q3.