Why Startups Will Happily Give You Equity In Exchange For Your Money

Limited Time Opportunity ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ Hello investor You are going to learn why money is like oxygen in the startup game. This is the primary reason why venture capital has exploded in the last two decades, and why startups would happily give up equity in exchange for money. Now, let’s pretend that you are a SaaS startup that serves enterprises. That means building a huge sales team. An enterprise will require approvals in multiple departments, and they may have their own requirements that a startup will need to modify to adapt. Hence the reason why account executives (essentially a salesperson) are vital to the sales process. Now, your startup will face one major challenge. When you hire a salesperson, it will take about six months to see a positive return on investment. First, you will need to train a salesperson in the sales process. Meaning? The newly hired salesperson will not produce revenue for you during the training phase. Second, it takes time for the salesperson to build a book of business. You don’t generate business from enterprises on the first day. It takes weeks (or even months) to complete a sales cycle. Once again, you don’t generate revenue from that salesperson yet. Eventually, the salesperson will be able to produce revenue consistently… after a few months of the hire. This process is generally predictive, but it just takes time for a salesperson to start returning on your investment by paying them salaries. The SaaS world calls this “The Rep Ramp.” See the chart below as an example of the ramp cycle of a sales rep: Now, here’s the problem: Startups that rely exclusively on revenue to fund hiring will grow much slower. Why? They will have to wait for about six months to start receiving cash from these sales reps to hire more salespeople. That’s where venture capital comes into the picture. As soon as a startup has engineered its ramp cycle in a predictive way, it makes sense to take outside money (like venture capital) to fund its future hires without having to wait for the 6-month ramp cycle to complete. This is how startups beat other competitors. Those startups that refuse to take outside money will likely lose to well-funded startups because they simply grow too slowly. Well-funded startups can expand their sales team quickly. That means more revenue. And more money leads to a strong engineering team creating better products. Eventually, it beats the non-funded startup. This is true in many industries: What if a startup is in the B2C industry? It is the same thing. For example, Uber was willing to lose money on fares when competing against Lyft for the ride-sharing market. If Lyft offers a lower price, Uber would happily lose money by cutting fares to make it the cheapest app. Lyft couldn’t cut rates any further because they didn’t have as much cash as Uber had. Sure enough, Uber enjoys a 71% share of sales in the U.S. rideshare market in 2022. Where did Uber get its money from? Venture capital, of course. In the graph below, you can see how Uber had four times higher than Lyft in cumulative equity and debt funding since 2013: In the startup game, the battle is simply unfair if well-funded startups compete against those that are “bootstrapped” and don’t take outside money. That’s why it is valuable to be a venture capitalist. As a VC, you will play a big role in shaping the future of the world. Your money will help pick the winner in the market – while enjoying the potential upside in the investment. It is a beautiful tool in capitalism. This is the big reason why America remains the leader of innovation in the world. Other countries often prefer to invest in “post-revenue” companies. Show me the profits, then I’ll invest. However, America thinks differently. They are willing to bet big on ideas. Those ideas that could change the world forever. That means betting on “pre-revenue” startups. This unique partnership and trust between VCs and entrepreneurs has driven the creation of a lot of the biggest companies in the world – Apple, Meta, Airbnb, Amazon, Alphabet, and so on. Sure enough, legendary investor Jeremy Grantham called America’s early-stage venture capital “the pride and joy of the venture capital world.” - “We consider it the best part of capitalism and very much the best part of American capitalism. American venture capital industry is the pride and joy of the venture capital world — bigger and better — attracts people from all over the world.” And would you like to play a role in the future of trading for retail investors? TradeAlgo is inviting you to become a venture capitalist by investing in private shares of our company just before we launch the next-gen AI platform. We recognize that wealthy individuals have access to hedge funds that can generate alpha returns for them. Citadel is one. It employs top artificial intelligence and machine learning technologies to develop an automated system of exploiting price discrepancies as long as they remain available. What about retail investors? They have to do the trading themselves. Most of them don’t have time to do it. (It’s a full-time job.) And they simply don’t have background knowledge in math, engineering, and programming to compete against Citadel and other hedge funds. Our mission is to build an automated AI trading platform that retail investors can simply use. Our team of engineers is building AI models that follow trading processes – with the goal of uncovering patterns and finding top trade opportunities. We are opening our fundraising round to bring this technology to market and acquire customers at lightning speed. You have an opportunity to be part of this. But you must act quickly because we believe the round could be oversubscribed anytime soon. (Especially after we launch the platform.) Go ahead and click the button below to reserve a time with our team to learn more about this opportunity: Jon Stone CEO [TAKE ADVANTAGE OF THIS EXCLUSIVE OFFER]( No longer want to receive these emails? [Unsubscribe](. Trade Algo 401 Park Ave S New York, NY 10016, NY 10016