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Updated Jun 25, 2026 · Affirmology_RaiseTiers_UseOfFunds_v1.md
Tiered plans for Round 1 so the ask scales cleanly with whatever comes together. Built to be easy for Colin to share once we finalize the numbers. Working draft: several event and venue figures are placeholders Jeff still needs to firm up (marked TO PRICE). Companion to Affirmology_FundingStrategy_Memo_v1.md.
Owner: Jeff. Maintained by: Claude. Last updated: 2026-06-25. Not legal or tax advice.
Valuation reference: $1.5M post-money. So the equity given for each tier is: $50K = 3.3%, $75K = 5.0%, $100K = 6.7%, $150K = 10.0%. Founders stay firmly in majority control at every tier.
The earlier $200K use-of-funds leaned heavily on a $40K ad-test line. Jeff's current read: we do NOT need $40K for ads. The money is better aimed at staying alive through launch, funding the two signature events well (Sept 11 launch and the 11/11 gathering), and not scraping or begging the team into the Ultimate Wellness activation. Ads get a modest test, not the headline.
Updated core monthly costs driving the runway math: - Founder living (Jeff + Sol combined): $8K to $10K per month. Target 3 months of runway (Aug, Sep, Oct); some in July would be ideal, making it closer to 4 months. - Tech subscriptions: at least $500 per month, and rising. Plus burning Anthropic API, Higgsfield, and other API/credits, which grows as we scale and onboard customers. The ElevenLabs grant, if awarded, offsets the voice-render slice of this for 12 months.
The floor. Keeps both founders alive through the launch window, puts a real demo experience in the room, and gets one signature event off the ground. Equity given: ~3.3%.
| Line | Amount | Note |
|---|---|---|
| Founder runway (Jeff + Sol), 3 months | ~$27K to $30K | $9K to $10K/mo, Aug-Oct |
| Tech subs + API/credits buffer | ~$3K to $4K | $500+/mo subs plus API/Higgsfield headroom |
| Demo experience kit (lean) | ~$5K | Headphones, a table, branded AV basics |
| Handout cards (~600) + giveaways | ~$1.5K | Half-letter branded cards, print run |
| Core gear | ~$2.5K to $3K | Mac mini, Sol's laptop, monitor |
| Sept 11 launch event (essentials) | ~$3K to $5K | TO PRICE |
| Small contingency | ~$1K to $2K | |
| Total | ~$45K to $50K |
What $50K does NOT cover: the 11/11 venue, a real ad test, an assistant, or any app-ops help. It is survival plus a credible launch.
Everything in Tier 1, plus the cushion to run both events without scraping and to bring on an assistant. Equity given: ~5.0%.
| Added on top of Tier 1 | Amount | Note |
|---|---|---|
| 4th month of runway (through Oct, w/ July buffer) | ~$9K | Reduces the "make rent" pressure during launch |
| Fuller demo kit + AV experience | ~$5K | More headphones, iPads, chairs, branded build |
| 11/11 gathering venue deposit (Palapa or similar) | ~$5K to $8K | TO PRICE, deposit to hold the date |
| Ultimate Wellness team activation pay | ~$3K to $5K | So we are not begging the team into the Faena event |
| Assistant (part-time, starts) | ~$3K to $6K | $1K to $2K/mo; high-leverage, frees Jeff |
| Light ad test | ~$3K to $5K | A real test, not the $40K headline |
| New tier total | ~$75K |
This is the "do it right, not desperate" tier.
Everything in Tier 2, plus fully funding both events, starting app monitoring, a bigger ad test, and paying event activators. Equity given: ~6.7%.
| Added on top of Tier 2 | Amount | Note |
|---|---|---|
| Events fully funded (Sept 11 + 11/11 venue paid, not just deposit) | ~$8K to $12K | TO PRICE |
| App ops / maintenance + monitoring retainer (starts) | ~$3K to $6K | $500 to $2K/mo to begin; see memo research |
| Bigger ad / affiliate / creator test | ~$5K to $10K | Feeds the growth thesis behind the loan repayment |
| Event activator pay (Lauren, Glo, Randy, others) | ~$3K to $5K | The team that spreads us at festivals and events |
| More capture gear (lights, camera, mics) | ~$3K to $4K | Content studio + event capture |
| New tier total | ~$100K |
This is the tier where Affirmology has a real launch motion, not just a launch moment.
Everything in Tier 3, plus the fixed-scope contract to harden the app for scale and a fuller runway and ad budget. Equity given: ~10.0%. This matches the upper end of the originally documented round.
| Added on top of Tier 3 | Amount | Note |
|---|---|---|
| Fixed-scope "take v1 to production" contract | ~$25K to $40K | Payments, auth, birth-data security, uptime (BuildVsHire doc) |
| Extended runway / deeper ad + affiliate spend | remainder | Pushes growth harder pre-Round 2 |
| New tier total | ~$150K |