EssayJack's founder loans will only be repaid at an exit
Dr. Lindy Ledohowski · EssayJack Raising $2m on $8m Valuation, $250k in ARR · Dec 21, 2020 · at 16:42
Dr. Lindy Ledohowski explains capital allocation plans regarding outstanding shareholder loans during EssayJack's seed round.
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“The expectation in terms of payback of that shareholder loan is like at an exit. So the intention is to fuel growth”
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More from Dr. Lindy Ledohowski
EssayJack founders injected a $1M USD shareholder loan to start the company
“Right now we're looking at it's about a million USD has gone in to get us up and off the ground. So the total share, the total equity in the company to get us from sort of Hey, this is an idea. Let's get going. It's about 1.5 million USD.”
EssayJack expects its seed round to price at an $8M pre-money valuation
“Yeah, so it'll, to be honest, it'll probably be in the ballpark of around an eight million USD, you know, give or take.”
EssayJack's revenue shifted from 90% institutional to 50-50 B2B/B2C in 2020
“So this year, it's a little bit more of a fifty-fifty split between our B to C or the direct to consumer and B to B, which is the institution. But in previous years, it's been more of like a ninety-tenth Between institutions being the 90% and 10% being individ…”
EssayJack raised $500k CAD from friends and family
“Then we raised 500,000 Canadian from friends and family, so that was about 350,000 USD at the time”