Use of Proceeds
Funds raised from this campaign will go to two main things: adding to our inventory and increasing advertising. Both are key in scaling our business. If we reach our goal of $100K, the proceeds will be used as follows:
Our plan is to grow our revenue 5X revenue year over year, to $14 million in 2019.
We will achieve this by scaling sales. We’ll move from direct to consumer at MI-OLA.com to trunk shows, to a festival tour in 2018, and then flagship retail outlets and a wholesale deal with a large retailer like Nordstrom or Saks in 2019.
Our strategy is to grow the business to hit $14 million in revenue in 2019. At that number, we will be well positioned for acquisition.
We are actively developing collaborations and relationships to facilitate an acquisition. While nothing is certain, we are planning for investors to see a cash event in 2019.
What is a SAFE?
SAFE means Simple Agreement for Equity. The SAFE was first rolled out to Y-Combinator companies on Clerky in YC's Winter 2014 class. Since then, it has become the predominant method for YC companies to raise their first seed capital. By using the SAFE, they have raised capital at virtually no legal cost - the SAFE is a 4 page document! And, hundreds of millions of dollars of capital have gone into startups already using SAFEs. Shortly after the SAFE was created, 500 Startups developed their version, called the KISS (Keep It Simple Security).
Why did we choose a SAFE?
We know startups have a "pie-in-the-sky" valuation problem, and at MI OLA, we want our investors to be both those who see the benefit of our brand's ability to infiltrate the market and those who buy and wear our swimwear. As a flexible, one-document security without numerous terms to negotiate,the only question up for debate with a SAFE is the valuation cap. Because a safe has no expiration or maturity date, there should be no time or money spent dealing with extending maturity dates, revising interest rates or the like. We believe a SAFE is the right option for both us and our investors to get everyone the best terms possible.