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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

5
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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

7
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Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

10
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Speaker 1: are here illegally, your next you will be fined nearly

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Speaker 1: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,

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Speaker 1: border and families will be protected.

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Speaker 2: Sponsored by the United States Department of Homeland Security.

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Speaker 3: All right, so you recently just closed around. I believe

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Speaker 3: you raised ten million dollars as a reg CE equity

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Speaker 3: crowdfunding correct.

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Speaker 4: Yeah reg CF Yeah, ten million in three rounds, So

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Speaker 4: all right, and you're the first black person, black man

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Speaker 4: to do that. Yes, history has been made. Kudos to that, congratulated, gratulations.

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Speaker 3: So can you explain to the audience what exactly does

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Speaker 3: reg CF equity crowdfunding. There's a lot of different words here,

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Speaker 3: What exactly does that mean? And why is it significant

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Speaker 3: what you have been able to do?

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Speaker 2: Well?

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Speaker 4: I think it's very important because African American people and

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Speaker 4: minorities have a really tough time raising capital for their businesses,

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Speaker 4: going to banks to get loans, We're going to venture

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Speaker 4: capital to raise capital. And so in twenty twelve, Barack

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Speaker 4: Obama and Joe Biden kind of launched this regulation called

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Speaker 4: the Jobs Act and then went into it went into

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Speaker 4: law in twenty fifteen, which means any person can raise

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Speaker 4: capital from the general public for their business, regardless of

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Speaker 4: their net worth or annual income up to one million dollars.

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Speaker 4: That was the first rule. So we did that and

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Speaker 4: twenty twenty. So think about how important that is for

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Speaker 4: people that aren't accredited investors to invest. But then someone

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Speaker 4: like me that had a startup that wanted to raise

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Speaker 4: capital but VC was not necessarily rout at the time,

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Speaker 4: or me going to get a bank loan to raise

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Speaker 4: an excess of a million dollars. So that's why that's

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Speaker 4: important for any business that you want to start, primarily,

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Speaker 4: you know what I'm saying, like small businesses, which fan

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Speaker 4: base was at the time, to be able to raise

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Speaker 4: capital and significant.

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Speaker 5: For those who want to break into the tech space.

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Speaker 5: What advice and insights would you give those who may

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Speaker 5: feel like it's not for us. And if you can

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Speaker 5: do your journey all over again, what steps would you

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Speaker 5: wish you would have taken to get here faster?

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Speaker 4: Ooh, everything for us? Everything. There's nothing that you know,

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Speaker 4: we can't do as a people. So every single solitary

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Speaker 4: thing that exists on the planet. You know, we can

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Speaker 4: go to space, we can build tech, we can you know,

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Speaker 4: invent cures for diseases, all kinds of stuff. So I

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Speaker 4: don't think there's anything we can't do. I would say, study,

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Speaker 4: you know, learn the landscape. I had to study the

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Speaker 4: landscape of social media. I was kind of like a

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Speaker 4: person that used social media a long time before, but

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Speaker 4: just studying the landscape of how social media works, it

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Speaker 4: was interesting to be able to like jump right in.

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Speaker 4: I honestly would not change anything, And I know that

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Speaker 4: sounds crazy. I feel like my inexperience in the space

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Speaker 4: gave me an opportunity to go down my own path

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Speaker 4: and not try to follow what other people have done,

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Speaker 4: which probably would have wound up dead ends or maybe

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Speaker 4: had me discouraged in what I was trying to do.

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Speaker 4: So I love everything about what we've been able to do,

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Speaker 4: So I think it's extremely important. I think it's extremely

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Speaker 4: awesome and what we've been able to accomplish.

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Speaker 6: So talking about being naive to the space, A lot

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Speaker 6: of times when you're naive, you're extremely creative. And that's

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Speaker 6: something that fan base has stood on being creative in

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Speaker 6: a space because obviously we don't have the same capital.

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Speaker 6: And when I say way, i'm talking about the company

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Speaker 6: don't have the same capital as some of the big

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Speaker 6: players inside the space. But what happens when you see

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Speaker 6: your creativity being taken by a company or being implemented

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Speaker 6: by a larger company with more capital, how do you

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Speaker 6: guys combat that?

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Speaker 4: How do you deal with it? You know it's a strategy,

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Speaker 4: Well I don't. I have a belief that there's enough

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Speaker 4: room for everybody. Doesn't mean that fan base will well

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Speaker 4: just be you know, extinguished out of the market. But

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Speaker 4: I also think that every social media platform has a lifespan.

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Speaker 4: It will live, it will die, and so I look

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Speaker 4: at Facebook as a legacy platform. I look at Instagram

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Speaker 4: and TikTok and x now as middle aged platforms. So

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Speaker 4: there's always going to be another social media platform because

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Speaker 4: young people are always going to want to be involved

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Speaker 4: in platforms that their parents are not on. They want

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Speaker 4: to have their own communities, their own spaces, And so

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Speaker 4: I look at fan base as more as a success

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Speaker 4: or a future platform, as opposed to a platform that's

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Speaker 4: just ready to be the number one platform in the

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Speaker 4: world right now, but over the next five, six, seven years,

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Speaker 4: I think that'll be you know the case. I'm not

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Speaker 4: really worried because what I noticed it tells me a lot.

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Speaker 4: It tells me that I always look at black culture

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Speaker 4: and technology as kind of this relationship. It's like technology

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Speaker 4: tech companies put a bunch of legos on the table, right,

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Speaker 4: and then we come along and make the coolest shapes

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Speaker 4: of the coolest objects out of the legos that are presented,

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Speaker 4: and then these companies take those ideas and then implement

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Speaker 4: them into their business and then boom, you've got this

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Speaker 4: whole you know, entire you know, new technology that's been

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Speaker 4: invented or pioneered by us. So I think we'll always

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Speaker 4: innovate the space. I'm not worried about that. I'm used

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Speaker 4: to that. It's amazing as the plan go ahead.

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Speaker 3: Re stort, Well, I was going to ask you about

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Speaker 3: equity crowdfunding. I think that it's important people just to

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Speaker 3: have some level of understanding. So it's a way for

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Speaker 3: people to actually invest in a company. It's beneficial for

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Speaker 3: the companies because they can you know, get around the

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Speaker 3: VC world and they can raise you know, substantial amounts

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Speaker 3: of money. But from an educational standpoint, how do investors

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Speaker 3: actually get paid on this? Because I know it can

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Speaker 3: be difficult to receive you know, it's five hundred dollars.

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Speaker 3: It could be like, you know, ten thousand people that contribute, right,

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Speaker 3: So I think education is extremely important because when people

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Speaker 3: aren't fully educated and they don't see a return or

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Speaker 3: they don't know how to you know, get the money back, well,

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Speaker 3: then it turns into a scam. So that that's important

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Speaker 3: to fully educate people on the process of investing, what

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Speaker 3: the expectations are, how it.

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Speaker 6: This episode is brought to you by P and C Bank.

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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy Noman, the United States

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Speaker 1: Secretary of Homeland Security. Under President Trump. Attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

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Speaker 1: are here illegally, your next you will be fine nearly

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Speaker 1: one thousand dollars a day. Imprisoned and deported, you will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right. Leave now. Under President Trump America's laws,

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Speaker 1: border and families will.

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Speaker 2: Be protected sponsored by the United States Department of Homeland Security.

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Speaker 3: Works when they can get paid out. If they do

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Speaker 3: get paid out, the percentage like, can you just walk

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Speaker 3: us through that? Because, like I said, I think that

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Speaker 3: it's fully important. It's very important to educate people on

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Speaker 3: that because if not educated, then you know, other narratives

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Speaker 3: ought to be created.

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Speaker 4: Yeah, so, I mean, you guys cover both areas on

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Speaker 4: this show. But it's typically like pre ipo investing in

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Speaker 4: post ipo investing, So post IPOs when the companies on

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Speaker 4: the stock market, you can go buy shares NASDA, you

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Speaker 4: know what I'm saying, and invest in companies and do

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Speaker 4: stuff like that. Pre IPO investing is really a very

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Speaker 4: rarefied air that's really not available to most people because

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Speaker 4: of this rule called the accredited investor rule. And this

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Speaker 4: rule has been in effect since nineteen thirty three, which

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Speaker 4: means you have to have a networth of a million

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Speaker 4: dollars minus your house or make two hundred thousand dollars

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Speaker 4: a year for two consecutive years to even qualify to

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Speaker 4: invest in an early stage company. So when you think

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Speaker 4: about the Microsoft's, the Apples, the Ubers, the Ibms of

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Speaker 4: the world, they were all invested in by already rich people.

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Speaker 4: So it was rich people saying, hey, look, let's make

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Speaker 4: a rule so that we get the earliest access to

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Speaker 4: the best opportunities of investment. And then tell the general public,

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Speaker 4: we're protecting you by not risking your capital to invest

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Speaker 4: in these companies because you're an unsophisticated investor. We don't

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Speaker 4: want you to squander your life savings or your mortgage

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Speaker 4: or whatever it is you know to invest in these companies.

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Speaker 4: But I always say, no one has a problem with

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Speaker 4: us going to take our money and gamble five thousand

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Speaker 4: dollars ten thousand dollars on in Vegas, or go buy

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Speaker 4: lottery tickets five thousand dollars five hundred dollars worth of

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Speaker 4: lottery tickets. And so when you pre IPO invest in

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Speaker 4: the C stage companies such as Fan base. I always

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Speaker 4: say this, you are with us to the moon or

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Speaker 4: the ground, so you get along. You are along for

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Speaker 4: the ride, which every investor is, and there's not a

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Speaker 4: company out here. There are people that have invested in

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Speaker 4: startups that have gone unicorn and have gone bust. They

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Speaker 4: still take that same risk. The difference with equity crowdfunding

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Speaker 4: is that people are able to invest in small amounts.

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Speaker 4: Two hundred and fifty dollars five hundred dollars and I'm

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Speaker 4: not saying that's not a lot of money, but sometimes

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Speaker 4: there are minimums to invest in these other companies, these

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Speaker 4: these pre IPO companies, fifty thou twenty five thousand, ten

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Speaker 4: thousand dollars. That's a lot, five thousand dollars, that's a lot.

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Speaker 4: But to be able to say I can take two

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Speaker 4: hundred and fifty bucks, which is something that I would

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Speaker 4: spend on food or some shoes or some drinks at

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Speaker 4: the club and invest in an early stage company's kind

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Speaker 4: of a really big deal. And I think being able

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Speaker 4: to take advantage of this regulation is something that is

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Speaker 4: game changing for people. So I understand that people are

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Speaker 4: always concerned about scams, but that's why I think there's

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Speaker 4: limited it's called limited risk.

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Speaker 2: If limited risk is you're.

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Speaker 4: Investing two hundred fifty dollars, five hundred dollars, one thousand dollars,

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Speaker 4: there's risk involved, but it's not you risking one hundred thousand,

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Speaker 4: two hundred thousand, half a million dollars. And sometimes you

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Speaker 4: know people invest that in those those prec routes as well.

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Speaker 2: Yeah, that's a follow up to that.

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Speaker 6: So when we go into raising, how do what determines

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Speaker 6: the allocation that's going to be the amount raised? Right,

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Speaker 6: because we'll see companies or will hear it, they're trying

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Speaker 6: to raise two million, they're trying to raise five, ten, fifteen.

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Speaker 6: What are the factors that you determined to say, like

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Speaker 6: this is the amount that we need to raise? Is

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Speaker 6: it marketing? Like what are the things that go into

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Speaker 6: account when you're trying to raise a specific amount?

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Speaker 4: Well, for me, I put into perspective of equity versus valuation.

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Speaker 4: So if I would say, okay, I'm going to raise

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Speaker 4: my very first round I raised, I was going to

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Speaker 4: raise a million dollars at a twenty million dollar valuation, right,

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Speaker 4: So that's that's like two and a half percent of

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Speaker 4: the company or five percent, sorry, five percent of the company,

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Speaker 4: So it's not really a lot of equity to give

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Speaker 4: away for one million dollars. You know, to get five

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Speaker 4: percent of the company away at a twenty million dollar valuation.

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Speaker 4: So what you're typically looking to do for me is

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Speaker 4: raised funds needed to run the business. But also be

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Speaker 4: mindful of the equity that you're giving up in your business,

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Speaker 4: because a lot of times when you think about angel

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Speaker 4: investing or VC investing, especially when you don't have capital.

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Speaker 4: And I'll say this too, also, I bootstrapped fan base

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Speaker 4: in the beginning, so a lot of times tech startups

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Speaker 4: need that early early capital, that one hundred thousand, one

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Speaker 4: hundred and fifty thousand, ty thousand dollars to get started.

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Speaker 4: I spent two hundred thousand dollars of my own money,

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Speaker 4: so then I avoided giving up equity there, right, And

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Speaker 4: a lot of times that's where you get hit the hardest.

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Speaker 4: Those that first one hundred and fifty two hundred thousand

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Speaker 4: dollars might cost you ten to fifteen percent of your company,

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Speaker 4: depending on which angel investor, which route you take. So

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Speaker 4: I avoided giving away equity there. Then when it got

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Speaker 4: to the point where I needed to raise capital, I

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Speaker 4: saw the landscape and said, Okay, this looks like the

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Speaker 4: music business. To me, this looks like the vcs are

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Speaker 4: the record companies artists, and the Billboard charts and the

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Speaker 4: app store charts are very similar. So for me, I'm

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Speaker 4: trying to stay independent as long as I can to

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Speaker 4: put myself in a position to have leverage. So when

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Speaker 4: I'm valuing my company, I'm still going by the same

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Speaker 4: metrics that other companies have raised and set their valuation

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Speaker 4: that but I'm being mindful of not taking too much capital,

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Speaker 4: right because I don't want to say, Okay, fan base

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Speaker 4: right now is probably at this current round we just

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Speaker 4: did was value to eighty five million dollars, right, So

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Speaker 4: if I said, Okay, I'm going to raise thirty million

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Speaker 4: out of eighty five million out evaluation, that's like thirty

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Speaker 4: three percent of the company. I don't need that. I

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Speaker 4: don't need. I don't need that, you know, I don't

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Speaker 4: need that kind of stuff. So for me, I say,

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Speaker 4: let's keep the valuation low but enough to continue to

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Speaker 4: scale the company. Now we're getting into escape velocity zone

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Speaker 4: with fan base, where we need to raise large amounts

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Speaker 4: of capital to spend that capital faster to build our

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Speaker 4: team to build faster, better products, faster and move quicker.

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Speaker 4: So I think we've proven ourselves in this RecF space.

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Speaker 4: I think I'm done with the RECCF space. I think

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Speaker 4: I've mastered it and I'm pretty well versed in it.

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Speaker 4: But now we're moving into where we raise escape velocity capital,

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Speaker 4: and that's extremely important.

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Speaker 1: An illegal alien from Guatemala charged with raping a child

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Speaker 1: in Massachusetts. An MS thirteen gang member from El Salvador

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Speaker 1: accused of murdering a Texas man of Venezuelan charged with

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Speaker 1: filming and selling child pornography in Michigan. These are just

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Speaker 1: some of the heinous migrant criminals caught because of President

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Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States

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Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 1: crossings are at the lowest levels ever recorded, and over

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Speaker 1: one hundred thousand illegal aliens have been arrested. If you

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Speaker 1: are here illegally, your next you will be fine nearly

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Speaker 1: one thousand dollars a day, imprisoned and deported, you will

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Speaker 1: never return. But if you register using our CBP home

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Speaker 1: app and leave now, you could be allowed to return legally.

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Speaker 1: Do what's right leave now. Under President Trump, America's laws,

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Speaker 1: border and families will be protected.

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Speaker 2: Sponsored by the United States Department of Homeland Security,