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Anyone been founded by Kima15?

Wondering how their (kima15.com) whole premise of funding selected startups $150k for 15% equity in 15 days has worked out for founders.  2 weeks turnaround time is nice but taking 15% seems a ripoff.  Plus, no word on any value add – would like to know if/how the partners have helped new portfolio companies in concrete ways.

  • I have a friend that applied and got declined, they wanted to see a working product. They advertise their investment as a seed round, but wanted to see numbers. It made no sense.

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  • Can someone with a bit of financial expertise explain this section in Kima’s terms?

    The financing will be up to an aggregate of US$150,000 at a fully diluted pre­money valuation of US$850,000, including an unallocated employee share option plan (“ESOP”) of 5%. The Investor will invest up to US$150,000 and would hold no less than 15% of the Company on a fully diluted basis.

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    • Not a financial expert, but have been through three rounds of funding, so I’ll give it a crack:

      “The financing will be up to an aggregate of US$150,000 at a fully diluted pre­money valuation of US$850,000” – Post-money valuation is pre-money ($850k) + investment ($150k). In this case, your post-money valuation is $1M. 15% of $1M is $150k, their investment.

      “including an unallocated employee share option plan (“ESOP”) of 5%” – Appears they are requiring that you set aside 5% to be used as options for future employees. They say “including”, which would imply that it’s part of the 15% they’re purchasing. I’m not sure if that is accurate or not.

      “The Investor will invest up to US$150,000 and would hold no less than 15% of the Company” – Looks like they may invest less, but still require no less than 15% of the company. That would mean that the company valuation would have to be lower. A bit suspect IMO.

      “on a fully diluted basis.” – Means that after any dilution occurs, they will still have 15%.

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      • <<“on a fully diluted basis.” – Means that after any dilution occurs, they will still have 15%.>>

        Does this mean even after additional funding by VC, their stake on 15%?

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        • This is generally specific to the round at hand. There may be an anti-dilution clause elsewhere that would apply to future rounds.

          Anti-dilution clauses are only as good as the investors you have in your round. If you go on to raise a series A and beyond, those institutional VC’s may want to eliminate the previous anti-dilution, in which case, the seed round investor would have to comply. Reputable investors would never get in the way of preventing a portfolio company from raising the additional capital.

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  • What I like about Kima15 is that they give you an answer in 5 days (they let us know in 4 business days). The deal might not be the best in the world (especially if they ask for traction) but I like that you know where you stand and don’t waste your time waiting. My question: What other funds are out there that promise to make such a quick decision on whether or not they will invest.

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