We invest $100,000 in Union Kitchen Accelerator Brands over the course of Phase Two and Phase Three. This is in addition to our Phase One Investment. The investment is delivered as you achieve the milestones outlined in the chart below:
This investment is applied as a credit against your Kitchen membership fees up to 50% per month. You let us know the amount of credit you'd like applied each month. The amount may be changed with 30-day notice.
What are the terms of the investment?
- $1mm valuation (pre-money)
- $100,000 commitment based on milestone achievements listed above
- Sales are based on the previous 12-months. Every time you hit a milestone, reach out to firstname.lastname@example.org with a P&L and Balance Sheet for that period. Processing takes up to 30 days to administer. You may apply credit up to 50% of your monthly membership fee.
- Investment matches our current UPA, units, and rights. This means, if we have preferred units, these will be preferred.
How do I become eligible for investment?
- You are in Phase Two: Product Market Fit
- You filled out your Annual Business Budget. The Annual Business Budget tool is designed to plan and track your business income and expenses for the entire year.
- Meet with the Accelerator Team to review the completed Annual Business Budget. In this meeting, you will share your sales target list.
- Once the Accelerator team approves your Annual Business Budget tool and you have shared whom you will target for sales, we will set up an in-person PMP pitch, where you will pitch to the Accelerator team.
- Come in-person to pitch PMP.
- Get approved for 2.1 Tranch of $5,000.00
How this investment works
The investment is provided in terms as credit against Union Kitchen membership fees. You may apply up to 50% of your monthly membership fee amount. For example, if your monthly membership is $5,000, you may apply up to $2,500 each month. Once we have agreed to the monthly credit amount, it may only change with written request and requires a 30-day notice period.
Union Kitchen is the lead investor in the round. This means you are able to tell other investors that Union Kitchen has valued your company at $1mm and has committed $100,000 as lead. It acts as social proof that this is a trustworthy investment and sets the terms.
Why Lead Investors Matter
A lead investor is a company’s principal capital provider. Lead investors play a much more critical role than that of any other investor. Regardless of what round, whether that be the angel round, venture round or hedge fund, finding a lead investor can be invaluable to a company. Read more here.
What happens in Phase Four?
In Phase Four, Accelerator Brands are eligible to be considered for the Union Kitchen Investment Fund. Our fund invests in brands that are raising their Series A and Series B rounds. It is exclusively dedicated to Union Kitchen Accelerator Brands. We are not making any investments in outside companies.
Our fund invests cash. The round must have an outside lead investor.
What happens if I leave before the credit is all used?
If you choose to leave the Kitchen before the total credit is used, it remains available to you. At the discretion of Union Kitchen, we may decide to invest in cash for facility build outs or equipment. We may also invest in equipment to use at our Kitchen.