Ranchi Mall Startup Blockchain Contract (RSBC) T&C

This is a follow up post to the original article “Ranchi Mall Startup Blockchain Contract” done by us few days back. As an administrator to the RSBC, we, 366Pi Consulting, received diverse queries from startups around having difficulty to understand the contract terms and values. Blockchain being a new technology, we expected such queries to emerge. However, for startups, willing to get registered under RSBC, it’s more important to understand the contract than the blockchain technology. Before we jump to the contract brief it’s equally important to understand the ethos behind RSBC. So, let’s get started with latter first and move over to the former later.

RSBC isn’t like any of the legacy funding mechanism- Angel, VC, PE, Banks, etc- wherein financial numbers are given more trust than trusting an individuals’ passion. It’s not a pump & dump scheme with an eye to quick ROI. RSBC is an attempt to help entrepreneurship flourish the way it should be. RSBC is about freedom; giving free-hand to founders to build & grow the way they prefer (As long as it doesn’t violates the law of land). RSBC is about time immemorial; we understand it takes time to raise a startup to a level of sustainability. At time when breaking the investment jinx requires building momentum with investors, writing business plans, sharing pitch decks, making investment pitch and answering innumerable questions about business & finance, RSBC funds you without asking a question. You just need to talk to us and share your vision. If that resonates with us then you become part of our contract. While, legacy investment channels gauge a startup’s performance by Q-o-Q or Y-o-Y financial performance, RSBC uses every metrics but financial.

Ranchi Mall Startup Blockchain Contract funds you without asking for any typical documents like Pitch Deck, Business Plan, etc. If you succeed then everyone succeeds. If not, then loss is of RSBC with no questions asked.

As far as RSBC contract terms is concerned, the details are as below:

1. Investment Against What? Every startup selected under RSBC receives an amount of INR 65, 000 (Approximately US$ 1000). RSBC do not take any equity against this payment. This is more like a reward to follow your passion, vision, and enthusiasm. Hence, it’s just like a booster to give your vision a push in the right direction. What RSBC secures as a part of this payment is “Right to Investment”.

2. What is “Right to Investment”? Right to Investment has two parts i.e

a. Matching Rights

b. Preferential Rights

3. What is Matching Rights? It is a right to match best investment offer at all rounds. For Example: If your startup gets an investment offer of $$$ million valuation at round X then Ranchi Mall too get the right to invest same amount at the similar valuation terms.

4. What is Preferential Investment Rights? It’s a right to invest at the first round valuation up to 3rd round. Ranchi Mall may or may not exercise this right and hence, it’s preferential. For Example: If a startup gets valued at X$ in 1st round, Y$ in 2nd round, and Z$ in 3rd round then Ranchi Mall get a right to invest at the first round valuation (X$) up to the 3rd round. This preferential right will lapse after 3rd round irrespective of whether RSBC exercises the right or not.

There is a very strong chance that Ranchi Mall will emerge as the first investor that most of the startups struggle to find. All startups need to do is to meet the objectives set by themselves in association with 366Pi.

Are there any categories to monitor startup’s progress? Yes!! Every startup, based on their performance, gets categorized as

1. Dead

2. Under Observation

3. Promising

4. Super Exciting

“Under Observation” is the default status across all the categories and also the starting point of the journey. Every startup, at the time of receiving first installment of payment, is given few milestones to achieve. Every startup founder gets a free hand to decide the milestone of their choice, as long as they make sense. Successfully achieving the milestones make startups liable for receiving second installment of the payment and also mark them up in category map.

Where’s the catch? There’s no catch. Everything is fair & transparent in the blockchain land and it’s likewise with the RSBC. As an administrator of RSBC, 366Pi will be making periodic social media updates & Medium posts to keep every stakeholder informed and on the same level playing field. And, that’s what our next Medium post is going to be about. We shall be sharing the “STATUS” report of first two startups, Independent Planners & Wapol Naturals, signed under the RSBC.

About 366Pi Consulting

366Pi help your business be future ready to leverage upon every growth opportunity. Our #Vision for 2018 is Digital and hence, our service focus for the year is Digital Marketing, Digital Transformation, ICO Strategy, and Crowdfunding. Know more about us at 366Pi Consulting

Connect with 366Pi founders at Amitesh Anand and Sushant Bharti