Team ProductShareIssues with Advisor Lars Fabricius and CondaLabs Marketer Team
Memo for Minute Book
Subject: Additional Fundraising Efforts Required Due To Private Sale Delays Caused by Lars Fabricius and CondaLabs Marketer Team
Date: @Jul 26, 2024
Prepared by: @Anton
Overview:
This memo outlines the recent issues encountered with advisor Lars Fabricius (Twitter, LinkedIn) and the CondaLabs marketer team during the private token sale for ProductShare. These delays have significantly impacted our operations and fundraising efforts, necessitating additional fundraising solutions. This memo also details the intended use of funds from the bridge investment, including paying the ChainRaise filing fee and potentially engaging ThinkFish to secure additional capital.
Background:
ProductShare initiated a private token sale with the goal of raising $110,000 to secure immediate funds for essential operations, including the registration of the Marshall Islands DAO to protect us from potentially infringing on SEC regulations during the token sale in the US, as well as other foundational steps necessary to launch the StakeShare token.
Key Issues:
- Delays in Fund Release:
- Despite the funds being collected by CondaLabs, they have not been released to ProductShare.
- The funds were supposed to be released in the first week of June. However, due to continuous delays and complications caused by Lars Fabricius and the CondaLabs marketer team, we have not received any of the funds.
- Operational Impact:
- ProductShare has been operating without any capital for over a month, burning through the little buffer we had in our treasury.
- Throughout June, there was extensive back-and-forth communication as we tried to meet various demands from Lars and CondaLabs, but they continually created delays. When we finally set a firm deadline of July 15, they stopped communicating altogether.
- Advisor Compensation and Contract:
- Lars Fabricius leveraged his advisory role to make ProductShare increasingly dependent on him, ultimately putting himself in a position to extort the company.
- Lars requested a large compensation of 4 million StakeShare tokens, which is ten times the standard advisor grant of 395K PSS.
- We spent significant time drafting a contract that was largely favorable to Lars to meet his demands. The contracts can be found here:
[ Advisor Agreement | Finders Fee Agreement]. - Employee Morale and Retention:
- The delays and lack of funds led to several employees leaving the company due to unpaid wages.
- This has further strained our operational capabilities and morale within the team.
Immediate Fundraising Solutions:
Given the critical situation, we must act upon the following solutions immediately to secure the necessary funds for our operations and future growth:
- ChainRaise Filing:
- Part of the funds from the bridge investment will be used to pay the ChainRaise filing fee of $5,000. This will allow us to raise the capital needed to launch the StakeShare token. ChainRaise is a FINRA licensed and regulated crowdfunding portal that will help automate our capital raise process. Details of the process and associated costs can be found in the ChainRaise documentation: ChainRaise Platform Listing Agreement, ChainRaise Timeline, and ChainRaise Newsletter.
- Engagement with ThinkFish:
- We are considering engaging ThinkFish to assist in raising additional capital. ThinkFish offers various packages to support fundraising efforts:
- Pro Package: $6,000/month ($15,000 quarterly) for extensive LinkedIn and email outreach, profile optimization, and a dedicated account manager. This package guarantees 8-15 meetings monthly.
- Plus Package: $4,000/month ($10,000 quarterly) targeting fast-growing companies, ensuring 6-10 meetings monthly.
- Power Package: $2,500/month ($5,000 quarterly) for budget-conscious founders, guaranteeing 3-5 meetings monthly.
Details of ThinkFish's service offerings and their impact on our fundraising efforts can be found in their documentation: ThinkFish 2024 Service Offerings, ThinkFish Onboarding Agenda, and ThinkFish Overview.
Steps Taken:
- Partnering with CLC Partners:
- We have partnered with CLC Partners (www.clc.partners), a trustworthy partner who will take over the token presale project.
- Legal Actions:
- We are exploring legal routes to force Lars and CondaLabs to either release the funds to ProductShare or refund them to the investors. We are ready to publish the history of our discussions with them should we face any further roadblocks from them.
- Communication and Transparency:
- We have prepared a public statement to address the delay and reassure our community and investors.
- Contingency Plan:
- A comprehensive contingency plan has been developed to ensure continuity of operations despite the current challenges.
Next Steps:
- Securing Bridge Investment:
- We are seeking a bridge investment or loan of $65,000 to cover immediate operational needs for the next two months. This enables to pay the ChainRaise filing fee and to subscribe to the ThinkFish Power Package, facilitating our capital raise for the StakeShare token launch.
- Advisor Engagement:
- Continued engagement with other advisors and stakeholders to seek support and address the current financial shortfall.
Budget Aug - Sep
Conclusion:
This memo serves to document the challenges faced due to the actions of Lars Fabricius and the CondaLabs marketer team. The steps outlined are aimed at mitigating the current situation and ensuring that ProductShare can continue to operate and achieve its goals. The engagement with ChainRaise and potentially ThinkFish will be critical in securing the necessary funds for our operations and future growth.
Attachments:
- ChainRaise Platform Listing Agreement
- ChainRaise Timeline
- ChainRaise Newsletter
- ThinkFish 2024 Service Offerings
- ThinkFish Onboarding Agenda
- ThinkFish Overview
- Updated StakeShare Tokenomics and Financial Model
- Contract with Lars Fabricius: [Contract Link]
- Communications History with CondaLabs and Lars Fabricius
- Communications with Lars Fabricius
- Partnership Agreement with CLC Partners
Signatures:
Anton Polski
CEO, ProductShare DAO LLC