Whether or not raising $4M is needed, I don't know. My first thought was, "OK, they need money for R&D that doesn't include preorders...cool...but then what the hell was the Angel Seed Funding used for, especially to warrant a 30% stake?"
Hi Korbman, we wanted to address this question specifically. The Angel's Seed funding has gotten the company to this point - a working, low-power, Scrypt mining chip. It takes significant time and R&D funds to get to this point.
The $3.6 Million will be used to manufacture the chips and manufacture/source the remainder of the Alchemist's necessary components. The $400,000 remaining (listed as R&D on the prospectus) will be used for rent, staff costs, accommodations for business partners, and any other incidental R&D costs or costs otherwise. Basically, operating funds needed to get everything prepared for shipping in July.
That's sort of what I figured (and freedomno1 pointed out my oversight before), but there wasn't any detail surrounding it in the prospectus. In any case, thank you for the clarification.
Quick question: How did you guys arrive at the $3.6M figure for mass manufacturing, and what happens if you only end up raising, say, 10% of the total $4M?
Congrats on the chip by the way!