AmplifyUp-Fixed

2Q22

Get your first capital boost.

AmplifyUp funds high-growth potential startups with the right capital and investor support.

Welcome Cohort 2Q22!

We look forward to watching your startup’s transformation over the next few months. Our goal is to make your first capital raise the most professional and frictionless experience possible.

AmplifyUp provides the first meaningful capital boost to high-growth potential startups through proper funding preparedness, diligence, and direct investor support.

  • Pre-seed investment preparation for startups around the world
  • Term Sheet, Valuation, Use of Funds preparation
  • Investor ask and diligence preparation
  • Funding vehicle through Assure SPV
  • Investment opportunity open to outside investors (USA and Internationally based)
  • SPV Organization managed by BoomStartup

The first AmplifyUp Demo Day was a hybrid event, hosted at BoomStartup’s HQ in Salt Lake City, but broadcasted to investors from around the globe. AmplifyUp has raised capital for 3 graduated companies through BoomStartup managed SPVs. 

Why Join AmplifyUp?

The difficulties around raising capital is primarily driven by lack of founder preparation and lack of understanding the fundraising process. Without direction and expectation setting, most founders waste time and ruin relationships while floundering during their fundraising timeframe, in addition to being distracted to focusing on sales.

AmplifyUp grooms and validates a founder’s capital raising plans to improve closing opportunity. There is a ton of homework, but all is necessary to convince outside investors to agree to deals.

AmplifyUp also tests the plan that the founder wants to pitch before any offer is publicly available to test if it will attract capital in the current environment. We will provide safe and helpful insight before your funding campaign begins.

What to Expect?

Every week provides you with investor insights and a better understanding of investor expectations so you can create the best pre-seed investment opportunity. Additionally, we get you used to presenting both in planned and ad-lib formats, with and without slides, because the ability to clearly communicate your plans is a requirement to lead a company and to build strong investor relations.

Expect to spend between 3 -6 hours in virtual meetings with the BoomStartup team, mentors, and the other founders in discussions and presentations that are around a specific topic that is covered in that week. Outside homework can take between 1 – 6 additional hours per week.

The second meeting will have you present your “story” relevant to the topic. These are called 1:1s. This approach helps you work on your communication and also get some ad-hoc feedback from our participating experts.

By the end of the 12-week session, you will be much more confident in your investment efforts, both from presenting the business you’ve built and its trajectory, the investment ask, use of funds, and valuation, and also the investment raise process.

 

How Does it Work?

BoomStartup will NOT be taking equity for your participation in this program. We take a carry (percent of the profits from the investment made after the shares are liquidated) so we are FULLY aligned with the investors that are coming on-board. This is enabled by investments funneled through the BoomStartup administered SPVs.

BoomStartup does not charge you a fee to participate but we do expect that you will invest between $5,000-$15,000 in services and support to ensure your company is indeed investable. BoomStartup has a trusted network of service providers to enhance or create missing assets, and will advise you on these next steps. 

The curriculum and meetings are established in the beginning. Need to miss some? That’s OK – we record the sessions. But if missing is more the norm, we will remove you from the cohort. Additionally, we’ve removed founders who don’t follow the plans either or don’t share their information with us, so honesty, openness, transparency are required going forward.

When your company graduates on Demo Day, that begins the fundraising process. We will work with you on all investor engagements and support you by managing the SPV investments.

After closing the SPV, we will continue to work with you on a quarterly basis to touch base and keep the initial investor round engaged.

2Q22 Timelines

To gain the most value from this program you should plan to attend every workshop. Each take an average of 75 minutes in length. Typically sessions are held in the morning, Mountain Standard Time. 

AmplifyUp Program Overview, timelines, Q&A

Diligence Packet Submissions walk through/ help session

Diligence Packet cutoff

AmplifyUp Cohort Selection made

Investor Pitch (10 mins)
Every founder will go through their investor pitch deck. Get questions and feedback

Deal room and Incorporation (training)

Follow up are private 1:1s  scheduled throughout week

Investor Deal Room and Incorporation Homework Due

Investor Outreach Training

Investor Outreach 1:1s (20 minute meetings)

Investment Instrument, Vehicle, Tranches training

Historical Financials Training

Historical Financials 1:1s

KPI & Funnel Training

KPI + Funnel 1:1s

Pro-forma + sales projection training

Pro-forma + Projection 1:1s

Financial Pitch 1:1s

Investment Ask and Valuation Training

Investment Ask and Valuation 1:1s

AmplifyUp Checkpoint (have deal room, investor outreach, financials, valuation done)

One-pager workshop

Pitch Deck and Demo Video workshop

Investor deal room review, investor pitch practice sessions

Pitch Practice with investors

Graduation decision

Amplify Demo Day (for 2 graduates only)

AmplifyUp Demo Day (for 2 graduates only)

AmplifyUp Demo Day (for 2 graduates only)

A Letter from the Managing Director

Welcome to AmplifyUp!

TARA SPALDING
MANAGING DIRECTOR
BOOMSTARTUP ACCELERATOR
[email protected]

Hello and congratulations for being selected as a founding member of the AmplifyUp cohort. By the end of second quarter 2022, you will be an entirely different founder – significantly ahead of where you are now with your understanding and control over the fundraising experience. Your cohort, dubbed “2Q22”, is designed to improve your investor readiness, expand your network, give you better control over your business plan, and invite you to participate in the very active pre-seed investment economy.

We are here to support you, but it is up to you to close the investments. As with everything else in life, nothing is guaranteed, but every experience can be a lesson. We see potential in your business that you are creating and we believe the angel investment community will respond positively to it. However the person who ultimately controls your startup investments is YOU.

Our job is to educate you on equity-based funding. We will have you prepare everything that an investor will want to know so they can decide to invest in your company or not. We will ask you to pitch every aspect of your business to our trusted mentors, experts, and peers so you can handle difficult conversations with prospective investors. We will set up the SPV and deal room to make sure the investment experience lacks friction. We will do everything we can to help you succeed.

In return, we ask that you direct investors to participate in the SPV that BoomStartup sets up for you. It is the only way BoomStartup receives a long-term payout for when your business succeeds and exits in the future. As you know, we do not ask for equity and the nominal program fees you pay for covers the services that directly benefit your startup. 

We believe in the honor system and we hope you direct investors into the SPV to repay all of the work and contributions we do.

If at any time there is a mis-match with the program expectations or outcomes, your 2Q22 cohort participation can be dissolved. This program truly asks you to commit with grit, to hold yourself accountable, and to keep us updated with your startup’s progress. We invited you into this group because we believe that you can benefit from our services, but we understand that unexpected situations arise that may alter your prerogatives. That’s fine too. But, we hope that every moment you spend in our workshops or with our community – it is a wonderful experience for you.

Thank you for your commitment to BoomStartup’s AmplifyUp cohort. We look forward to working with you over the next few months and see what your startup becomes.

– TARA SPALDING

AmplifyUp Resources

To adhere to BoomStartup’s quality standards, please use these resources to communicate your business affairs, in an appealing way for investors. When complete, please upload the documents into the form below, which also confirms your participation in the 2Q22 cohort.

All content created to the best of your ability should be submitted by 6pm MT on May 26.

Commit to 2Q22 Cohort

AmplifyUp-Fixed

FAQs

BoomStartup’s parent company, Assure, will invest capital and services into your company based upon completion of the AmplifyUp program and the commitments from other investors who participate in the SPV.

Attend as many live programs as possible and do the homework expected by each checkpoint. Every workshop is designed to help you prepare for attracting and closing investors. There are 1:1s where you will be given the floor to present your pitch about the certain topic. Sometimes, you will be critiqued by mentors and investors so you can consider their viewpoints on designing your final investment program.

AmplifyUp 2Q22 starts in June and concludes in August – omitting the week of July 4. Those who graduate will be invited to the demo days. Companies may be asked to leave if the founders are not keeping up with the deliverable expectations. Each demo day clusters 2-3 companies per each day. The SPV fundraising on average takes 6 weeks but can run longer or shorter pending your ability to close investors.

AmplifyUp can help you raise up to $100,000 in capital from BoomStartup’s investor pool. However, the SPV is open to any investor to participate and does not have a financial cap.

A main emphasis to the program is to teach you how to find appropriate investors and cultivate a relationship before you ask for funding. 

We will show you how to find and culminate your own investor community who can participate in the SPV.

There is no forced closed date nor funding amount for the SPV.

Once your company is featured on a Demo Day, you’re a backable company. You may open up the SPV to outside investors who did not participate in the Demo Day. This is an excellent opportunity for you to increase your funding round. BoomStartup will organize the SPV, track the investments and payouts, and also handle all of the documentation such as K-1s.

There is a service fee when the SPV closes and the money is transferred to your company’s bank account. 

The fees varies based upon the amount raised and the number of investors. For example, if you raise $450K and have 18 investors the fee is $9,000. Your company is responsible to pay for it prior to the funds transferring to the account.

BoomStartup charges a 10% carry when your company experiences a profitable exit for the profit being attributed to the investors who participated in the SPV round.

For example, if BoomStartup’s investors contribute $100K and 8 years later, your company exits for a value where those stocks are now worth $1M, the investors will be paid the $100K first leaving $900K in profit. 

BoomStartup will be paid $90K and then the remaining $810K in profit will be distributed to the investors within that SPV round.

Carry’s are very common with angel groups and fund managers. It ensures the originator’s interest aligns with the profitable development and payout of your company.

BoomStartup is going to work very hard with you over the next few months and primarily for free because we are not taking equity in your company. Some investors may want to go direct to you and bypass the SPV. 

Please tell them that they are not paying a service fee on the SPV (you are once the round is closed) and that you would prefer that they participate in BoomStartup’s SPV..

If they have problems, please connect them to BoomStartup for remediating the situation.

  1. Homework completed by the checkpoints. All homework must be shared with the BoomStartup team
  2. Always pitch to others during the 1:1 sessions. This is great presentation practice and the opportunity to get feedback on how your plans are perceived by angel investors
  3. Responsibility for the creation and management of your investor facing material. This includes
    1. Term sheet (prefer SAFE and Convertible Notes)
    2. Valuation report (comparables)
    3. Historical P&L statement
    4. Pro-forma (3-years out)
    5. KPI dashboard (revenue model)
    6. The investment one-pager
    7. Cap table
    8. Incorporation documents
    9. Targeted investor list 
    10. Introduction Demo video
    11. Pitch deck

We have success with international companies that create a U.S. c-corporation and have transferred their international assets to the USA. This signals to U.S.-based investors that there are possible legal ramifications if the investment experiences problems. We can help international companies set up U.S. entities, which should be completed before the Demo Day.

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