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  • Writer's pictureH. Industries

Phase 0. Funding Plan

Finding Funding For Phase 1.

  • Past Funding Attempts

  • Requested Funding Types

  • Angel Cryptocurrency Donations

  • Founding Notes NFT Series

  • Governmental Grant Submissions

  • Startup Incubator Submissions

  • Venture Capital Engagement

  • Bitcoin Share Sale

  • Share Sale Structure

  • ASIC Requirements

  • Contract Legal Advisory

  • Investment Prospectus

  • Capital Treasury Policy

The following post is a truncated section of the H. Industries Business Case and details a number of concurrent strategies. There are a few extra personal inclusions in the text for Medium readers! M.

Past Funding Attempts The founder tried to launch in 2019 with a pitch video featuring himself talking through the concept and despite the work effort invested, it was not a good result. High effort was wasted on polishing bad recordings that cost too much time and created a block that stopped other activities progressing. The video was completed to satisfy a GoFundMe listing requirement and was intended to be used for other activities however the quality was not there. The founder submitted a GoFundMe request seeking angel investors however the post did not generate any following, potentially due to the nature of the platform, lack of pitch professionalism and the conceptual nature of the project. Indiegogo & Equitise applications were then submitted for review and determined to be too early for the platforms. Indiegogo is more consumer product focused while Equitise required a prior successful funding round for entry. The founder promoted the business launch of hosted papers and pitch video on Reddit however the subreddit rules often prevented Medium posts, business promotion or funding requests. High quality feedback was submitted in r/aerospaceengineering and nothing noted presented an unsolvable project blocker. This time around, lessons learned and far greater business readiness allows the founder to execute a wide ranging media campaign to generate leads and find funding successfully.

Requested Funding Types Funding will be sought using a variety of unconventional strategies due to the early concept nature of the business preventing it from using a wide variety of established methods or platforms as detailed above. Funding will be nonrefundable in the event of business failure however the founder will do his best to avoid this outcome and return donations at a later stage. As the major shareholder, the founder is the most invested party in business success and combined with his professional history, this should provide confidence to angels as he continues to invest effort in this business instead of pursuing lucrative project contracting roles. The first ask for funding is from angel investors for a donation towards business development and research. The request of cryptocurrency donations on the business launch website will continue to remain in the hope of further support from the community and interested partners. The second source of funding will be an NFT image series published from the founders private design notes for purchase at multiple price levels as detail below. The third source of funding the founder hopes to attract is from multiple submissions to startup incubators. The final funding method will be share purchases offered on the website for part ownership in the ASIC registered private business of H. Industries as detailed below. In addition to these strategies, the founder will be seeking government grants, incubator admission and directly contacting venture capital firms. The preference is generate the capital required before engaging with these options in order to preserve ownership for later staff and partnerships.

Angel Cryptocurrency Donations The founder listed wallet addresses on the website in order to find funds to continue business development and research activities. The listed wallets are for BTC & ETH, chosen to engage with particular angel investors and technology interested people who have profited from the early 2021 cryptocurrency market peak. BTC: 1MkkavrLCwvqDbohXeGGtTzfab5FVbEiF4 ETH: 0xab6a9cfd83856e2e1ab61b5c09e87f53c1492819

Founding Notes NFT Series The founder sketches most notes in mindmap style using Clairefontaine notebooks and ultrafine Sharpie. A selection of these private notes for technical and business development will be listed as NFT’s to raise capital in Ethereum. A link will be included here at a later date.

Governmental Grant Submissions Due to the founder seeking funding at the conceptual stage to prove business viability, federal grants are inaccessible. The federal Business and Entrepreneur grants primarily address businesses that have already secured investment and offer rebate on capital expenditure. Local and state government grants are being investigated to potentially provide concept stage funding under the current push for innovation.

Startup Incubator Submissions The founder will submit the proposals to a number of startup incubators in Melbourne in the hope of accessing their capital facilitation services. The submissions to incubators require a variety of documentation and the agreements vary from business to business however the founder has prepared all requisite material years in advance to enable rapid submission to multiple businesses.

Venture Capital Engagement The founder will be directly contacting venture capital firms for the opportunity to pitch and potentially secure funding. Due to the rapid increase of spending in the space industry the founder will be contacting a variety of firms even if the pitch is outside their direct focus areas. Over the past 5 years the founder has compiled a list of over 600 businesses and individuals in the venture capital industry who have endorsed space projects and provided guiddance to realise their vision.

VC-A Equity Offering — 15% Share Sale There are no restrictions on how shares in a private business may be sold. This presents an opportunity as much as an obstacle due to the lack of clear information as it allows H. Industries to sell shares directly on the website as part of an ecommerce workflow. The purchaser must be provided with a series of documents and the change of ownership documents are to be filed with ASIC within 28 days. The changes of ownership due to ongoing share sales will be reviewed and submitted on a fortnightly cycle to ensure compliance.

The founder puzzled out the lowest cost way to offer the options and that is simply with a dedicated bitcoin wallet and email address to send payment verification screenshots to. A specific wallet was created on the founders hardware wallet for security and can be easily verified on the blockchain. The following address is only in the private Investor Prospectus on Medium:

Offering: 150,000 Shares at $20 USD each. BTC: bc1qtmg69jxpd7s5leaqd6rj65vxe6jw22a45ymfz9 Required Detail: First & Last Name, Business or Residential Address.

Contact: Option: An Australian bank account is available on request.

This ensures that only validated investors are accepted and with this address being removed from all other documents, it removes the risk of accidental transference.

Equity funding article hosted on Medium here.

Share Sale Structure H. Industries founder will make shares in the private business available online as described above, initially by enquiry then later through a webstore and automated workflow. The required capital will be raised through organic share sales or direct venture capital engagement from the media campaign.

This is highly unconventional however potentially represents the best chance to fund the business while at such an early concept stage. The intent is to release the first two rounds of funding sequentially and reserve the later rounds for informed release to allow a variety of investors the chance to fairly acquire shares. This is projected to yield smaller sales to individuals initially before large VC firms show interest. These rounds will proceed as follows: Self funded: ($50k) — 1x Staff/Month n-0.

  • Design Funding: ($3.0m) — 7+ Staff/Month 0–12. • Equity Option Value: 15% / 150,000 Shares @ $20 / Share.

  • Trial Funding: ($15m) — 12+ Staff/Year 1–2. • Equity Option Value: 5% / 50,000 Shares @ $300 / Share.

  • Scaling Funding: ($150m) — 17+ Staff/Year 2–3. • Equity Option Value: 5% / 50,000 Shares @ $3,000 / Share.

  • Delivery Funding: ($1.7b) — 42+ Staff/Year 3–5. • Equity Option Value: 10% / 100,000 Shares @ $17,000 / Share.

  • Operational Funding: Self funded via revenue.

This structure allows the business to rapidly ramp operations while reducing project contingency as risk and feasibility become more defined. The final result of this approach will give an ownership breakdown of 50.5% Founder held, 35% Venture Capital held, 10% Business held and 4.5% staff held. The founder will further reduce his share to secure business deliver as necessary.

ASIC Requirements The legal requirements of a private business share purchase are to provide the customer with an investment prospectus detailing the project and its chances of success, an investment contract then share ownership certificate stating the identity of the purchaser, number, class and value of shares acquired. To ensure regulatory compliance and reduce the work effort involved in share sales, a digital workflow will be set up using Google App Script to generate, store then provide the appropriate documents. This allows customer certificates to be managed through google drive and all related documents contained within the same customer record. By automating generation of all the documentation, the work effort will be reduced over time despite taking longer to create initially.

Contract Legal Advisory The founder will use the services of a Melbourne based lawyer who taught a contract law guest class at RMIT. This firm will review all contracts and advise as necessary, the business possesses over 20 years of law & accounting experience.

Investment Prospectus The investment prospectus is available as a separate Medium post on enquiry at: The share offering is equally open to all participants regardless of location and innovatively low (virutally no) cost. By simply creating a bitcoin wallet and email address, share purchase can be done by transferring $20 USD denominations of bitcoin and emailing a transfer verification screenshot with a few details. Share ownership certificates and receipt are returned by email to the customer, the ownership transfer is reported to ASIC and the process is complete.

Capital Treasury Policy All raised capital will be stored according to the Project Delivery Plan in Australian Dollars and Bitcoin in business accounts at a major Australian bank and cryptocurrency exchange. Utilising leading brands within each space will provide confidence of the financial storage capabilities and platform security, minimising H. Industries treasury risks. By keeping the stage cost in cash, burndown can be accurately monitored while allowing the Bitcoin value to fluctuate until it is required. Year on year this averages a 408% increase in contingency capital (as the market matures this will slow), with unspent contingency partly used for share repurchase, debt reduction or staff bonuses.

Angel donated capital will be held in its original form and utilised by the founder to continue business activities until the Venture Capital Series A goal is met and recruiting can commence.

Thanks for reading, Morgan.

Angel donations help to continue startup activities and research! BTC: 1MkkavrLCwvqDbohXeGGtTzfab5FVbEiF4 ETH: 0x9B150531fc1E856F43d66D4916ECfd0233d05E7a CELR: 0xab6a9cfd83856e2e1ab61b5c09e87f53c1492819 (via BSC/ETH)

For any enquiries, please reach out to:

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