Below are the details of the structure.
New Company Structure
Parent Company: Squad Technologies
This is made up of our core team. We operate in 6-week cycles. Before each cycle based on the previous one, we decide which product to focus on.
We will brainstorm, design, develop, and then market/validate each initial product. Each product will be focused on our mission to boost the collective health of the human race.
Products
Each product will be its own entity majority owned by Squad Technologies. Once our core team reaches product market fit for the product, we will build a team around it incentivizing the leaders with equity in the specific product entity.
Leaders will include an operator, developer, and distributor. The distributor will be an industry expert with a large following online that can quickly and consistently market to our target audience.
Our current products include SquadUp (launching tomorrow) and Upspace (80% complete). SquadUp is like BeReal but for habits. Upspace is like Spotify but for health.
Distribution
For each product, once we reach product-market fit, we will partner with an industry leader who is either a creator, celebrity, athlete, etc. who has a massive distribution channel to join us as a co-founder of the specific product. They will get equity in exchange for continuous distribution.
This model has successfully been done with CPG products (Ex. Feastables by Mr. Beast or Skims by Kim Kardashian), but CPG products have heavy and expensive physical and operational overhead with inventory, manufacturing, etc. We can leverage this same model, but with software that has very little physical and operational overhead enabling it to scale very fast with significantly less costs. A couple of our founders in the parent company are becoming increasingly connected with huge creators.
Investors
With oversight from the parent company, each individual product entity will be able to raise its own capital for expansion.
For the parent company, Squad Technologies, we will only be looking for one additional partner to invest enough capital to give us two years of runway in exchange for 10% equity in the parent. This partner will also get first dibs to invest in the individual product entities as they reach product-market fit.
Return
Unfortunately, the public markets have been entirely captured by financial institutions that take all the voting rights forcing their agendas that don't align with the individual shareholders as seen during Cancel Culture when unrelated companies colluded to cancel people they wanted silenced. Unless radical change occurs within the next 10 years, we intend to remain private.
We prefer to be a sustainable and sovereign company.
With that said, we plan on giving returns to our investors through dividends and/or private acquisition of one of our products. Not only does this give us more sovereignty, but also a more liquid, and potentially lucrative model for our investors.
We would love to hear what you think of this new structure.
Best,
Shaughnessy
P.S.
SquadUp launches tomorrow! We will send you info when it goes live.