FirstMoney.In (1st$n) is a program for startup founders to apply to experienced startup angel investors on a standard deal of $5,000 in return for 0.2% of your company. It is designed to facilitate access to capital for never-before-funded companies, especially those led by founders who identify as Women, BIPOC, and/or LGBTQ+. All startups are welcome and encouraged to apply.
While most venture capital requires founders to sell a large stake to investors, the 1st$n deal is purposely modest and as simple as possible. The program uses a standard deal: a $5,000 investment with a $2.5 million cap on a SAFE: Valuation Cap, no Discount. The investment purchases 0.2% equity in your company. In the application, you may optionally request to sell more of your company for a $10,000 or $25,000 investment. 1st$n is not affiliated with Y Combinator in any way, but the program uses their verbatim SAFE document for the financing agreement.
How the program works:
Participation is free for both founders and investors. If you have questions, visit the 1st$n Help forum at Openland.
While we want every startup to apply, the program requires its angels to be experienced and awesome. To participate as an angel investor on the 1st$n platform, you must:
Besides these requirements, 1st$n is committed to fostering an open and welcoming environment. Participants should review the community's Code of Conduct.
Inclusion to the 1st$n angel network is by invitation only. Membership is free, but the bar is high. Currently, there are eight member angels, and they have invested in an average of 23 startups each, with a median of 14. Members who choose to make themselves known are followed by @firstmoneyin on Twitter.
October 2020: Active and Accepting Startup Applications
As founders, be aware that "first money" is not easy to get. Alan Glennon tends to invest in 1 of 500 pitches he evaluates. The other angels likely fall within the same order of magnitide. Fortunately, with multiple angels independently considering your application, we anticipate the likelihood of investment will be similar to a top-tier accelerator. Angels invest when they believe your team, your abilities, your product, and the market can lead to a massive return. We are excited you have chosen to become an entrepreneur. Best wishes on your path!