Thank you for the comments and private messages here, e-mails, and those that joined us during our Open Office Hours. Wanted to add in some further Q&A based on questions we've received:
Q: Why don't you raise money from angels, venture capital, or traditional lending?
A: We have raised Angel funds from private investors for Ignite Financing direct business operations and expenses. Our BTM Fund model allows Havelockinvestment.com qualified investors to participate in fractional ownership of many BitcoinATMs, increasing returns and reducing individual risk. This model is similar to purchasing Hash Shares from an organization like PetaMine (PETA), where you own a percentage of their hash capability, rather than buying an ASIC miner individually.
Q: Can you give more specifics on how the Fund works?
A: Basically, it is "fractional ownership" of the pool of equipment lease inventory, meaning that the Fund is backed by the actual equipment that is purchased and leased to our qualifying operators globally.
Since there are no re-investment provisions in the Fund, people are free to re-invest in additional Ignite Financing sponsored Funds in the future for their own re-investment if they so wish. Therefore, the Fund functions more like a loan with a variable return rate, backed by the BitcoinATMs, rather than a standard equity style of security. This allows investors to manage their own investment/re-investment based on the Fund's ability to meet it's objectives.
Q: What is Seedcoin's involvement now?
A: Ignite Financing is part of the Seedcoin Incubator program, along with a lot of other great companies. Seedcoin made a decision to restructure SF2, but we wanted to start fulfilling orders as soon as possible due to our current orders and further interest from additional operators. After discussing with Seedcoin, Havelockinvestments, and our advisors and Investors, we made the decision to raise independently, and specifically, for the Inventory of equipment.
For specifics on Seedcoin Fund 2 (SF2), please contact Seedcoin.
Q: How do the leases work?
A: Leasee Operators are required to pass pre-qualification and a credit check, as the the lease will be a debt to the operator. Once an operator is approved for the lease, Ignite Financing will collect a pre-payment charge and will order the machine from the manufacturer if we don't have one in stock. When the machines is delivered, the lease payments will start (everything is invoiced in BTC). The lease terms are very similar to other high value equipment leases.
During the lease, operators can choose to: upgrade to newer equipment, break the lease (there is a fee for this), or purchase the equipment.
At the end of the lease, operators can choose to: renew the lease, upgrade to a newer BitcoinATM purchase the machine, or return the equipment.
Q: Saw your Tweet regarding the "Safe Harbor" program, can you explain?
A: Basic information is here:
http://ignitefinancing.com/2014/08/safe-harbor-program/This is a new program for operators that have purchased a BitcoinATM, but for various reasons are no longer able to operate it. Ignite Financing can lease the machine to another operator (same qualification required as any of our other leases) and the owner can continue to receive a return for a machine that they would otherwise have to sell.
Q: How quickly will the investment be deployed to leasees?
A: We have open orders for over 80 BitcoinATMs. We believe we can deploy the entire inventory within 2-3 months and be generating revenue returns based on manufacturer lead times.