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RocketClub — Get startup shares in the products you use & love
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@_jacksmith You're absolutely right, and thanks for the feedback. The number of shares is actually 1:1 compared to the number of shares outstanding in the company. But we'll improve on that messaging.. its also why we display the % stake in the company, so its clear X members are sharing Y%
@rocketclubco ok; I imagine that it would be different for different startups though. the fact that it says 2000 people sharing 1% does make it more clear though.
@_jacksmith Yes, its different for different companies. We decided not to show a discrete number of shares for companies who have a very small number of outstanding shares.
"Product Hunting" huh? Nice touch with the typewriter JS on your front page! This a great idea, good work.
+1 for MIT startups!
Awesome idea. But regulators unfortunately don't always make life easy for innovators. I'd hate to see you shut down before your prime -- are you in the clear legally?
@gerrithall Great question! We structure RocketClub as platform providing marketing services to early-stage startups through its part-time workers or consultants on our site. Our members are compensated via stock appreciation rights by RocketClub based on the payment we receive and hold in escrow from the companies listing on the platform.
Essentially the members get the financial benefits of stock ownership without the tax obligations, which is a win-win for everyone :)
@rocketclubco Signed up and it looks like a great product. I have 4 questions: 1. Are the members (like me) considered as part-time workers/cosultants? 2. How is the payment amount that you receive from companies determined? 3. Have you considered using Blockchain (Bitcoin) based Escrows? 4. What is the business model to make money? Thanks!
@babu_ck @gerrithall great questions! #1: yes members, such as yourself, are considered consultants for RocketClub, #2: the total 'cash' out is based on the # of shares you own, which is stated for each campaign, times the value of each share at the exit event. #3: no not yet, we don't want to complicate things just yet, but have gotten that feedback. #4: we take a cut of the payout based on the amount of time we hold the shares under management.
This reminds me a bit of @quire (formerly alphaworks) with the very very important distinction that you're trading services rather than money and don't have to be an accredited investor. But I'm also a little unclear on the legal/tax implications - I don't understand how you could avoid a huge tax penalty if/when you finally exercise your shares.
@gillianim Our members actually earn stock appreciate rights (SARs), which don't have any tax liabilities. When RocketClub exercises the warrants granted by the startup, we do pay taxes. Its just that members receive a check in the mail after those fees. @chenny408 is the master here.. will let him confirm..
@rocketclubco @gillianim that is correct. the tax liability comes when we exercise our warrants, hence we can defer paying taxes until then.
I've always thought there should be a way to crowd-source support for startups, but never really had a good idea on how it could be done. This is a great shot at it! Takes a village to build a startup, and RocketClub seems to be the bridge to the village. Consider me a supporter :)
@alirtariq It does take a village to build a startup. Hopefully we will pave the path for a new way for all future startups.
Really like the concept, just applied to be part of the fun & for RocketClub. Planning on trying to get a venture listed with cofounders!
This is getting some really cool feedback from people who are not really exposed to new technology and products in my network. I'll share posts frequently, and this share has already encouraged many friends to reach out and ask me about how they can participate. Definitely on to something great here, and I'm excited to be a part of the first user group!
@lombardinelson Thanks Mark! I'm super excited to hear that there is interest here. We might seem a little techie focused right now, but the vision is that this can be for anybody. Early-adopters come in all shapes and sizes! At some point, every consumer encounters a product/service that is new to them from their perspective.
How does this work if you need the early users to use the product on a regular basis? I would only want to offer equity if the person was contributing to the product on a weekly basis for 4 years. Does this operate on a vesting schedule like early employees? I love the idea, but trying to wrap my head around the inner workings of it.
@brandwagon Thanks for the comment. Contributing to your product on a weekly basis for 4 years sounds steep! Our platform helps a startup track member engagement over 1-12 months, and the member only receives their share once they've completed all the tasks over the specified time period. The idea is to connect your company with people who believe in your product/company, users will leave if they lose hope or feel mistreated. We don't believe golden handcuffs is the solution to a product people no longer find interesting.
Email me erik@rocketclub.co if you need a demo!
@rocketclubco @brandwagon If there were a vesting schedule though, I think that would be fair. If the user contributed for the 1st year and then left, they still deserve 25% of what was promised - not all of it. Same as if an early employee called it quits, they would take their vested equity with them.
@brandwagon I guess its possible depending on how much of your company you plan to share with your community? I feel like we're exploring new territory here. I'd LOVE to see a company give out more than 50% one day. That would change the game.
This is a great idea, definitely solving the problem of how to get early stage startups that initial group of early adopters! Can't wait to use it!
@joelburke2014 Thanks! if you sign up today through Product Hunt, we are automatically approving everyone!
Cheers @lemayjoe! Get a piece of Noble Brewer http://www.rocketclub.co/noble-b...
@tyrale Yes, your math is correct. But generally startups are valued at much more than $500k. Very early stage companies are usually valued between $500k-$1.5M (early like RocketClub where we are a team of two)
Check this out page to find out how much different startups are valued at: https://angel.co/valuations
@rocketclubco Even at a generous 5m evaluation that only pays out $25 to each person. Sounds like really cheap crowd sourced testing and sharing for the hope of a very small payout.
@tyrale A $5M valuation is a company that has not raised a Series A round of funding yet and not really considered a win at all. Spottly is probably in the range of being worth $5M today and were seeking 1000 members for 1%. http://www.rocketclub.co/spottly...
The goal is to become 100-500x more valuable..
@tyrale Came across a much better link here. The average tech exit is $242.9M. For more data see here: http://techcrunch.com/2013/12/14...
@tymrtn Register as a company here and create a campaign: http://www.rocketclub.co/users/s...
Ping me directly if you ever have any questions .
It's not about us.. let me introduce @dvillarrealm of Banter! His app gives you the low-down on the hottest bars in town. Real-time photos and info so you can make every night out the type of night you want it to be: http://www.rocketclub.co/spottly...
@rocketclubco Erik and Paul have done an amazing job with the RocketClub platform and we're really glad to be featured on the site. As we start building our community of nightlife-lovers, we knew the best way to grow was recruiting ambassadors to help us grow Banter in their communities... RocketClub is making that possible. If anyone here likes to go out to bars, restaurants or clubs, check out Banter! It shows you real-time information about the local nightlife scene the same way Waze shows you information about traffic. And please send us any feedback.
@rocketclubco Oh, and here's the correct link to our campaign ;)
http://www.rocketclub.co/banter-...
@dvillarrealm is the real deal. I was sold the first day we met, 'Waze for Nightlife' just sounds inevitable. Who wouldn't want that when they hit the town? I surely hope they build that community of ambassadors, its for all of us.
It’s not about us.. let me introduce @lauralynnz and @claudeb_mit of Noble Brewer. They curate award winning homebrew beers and drop them at your door. Don’t think I need to say more :)
http://www.rocketclub.co/noble-b...
@lauralynnz and @claudeb_mit -- I tried a sip of the Yerba Buena Cascadian Dark Ale the other week, it was delicious -- strong and hoppy, with a hint of s'mores. When does Batch #2 ship?
@gerrithall @rocketclubco We're shipping batch 2 now so everyone who signs up via RocketClub will receive get to try it including one beer from a 5 Time California Homebrewer of the year with multiple 1st places at the largest beer competition in the world.
@claudeb_mit Oh snap! Thats exactly what I'm talking about! Beer from a "5 Time California Homebrewer"
@rocketclubco For people wondering why we're here... Since we're building a community of craft beer lovers who want to support talented homebrewers and try their tasty creations, RocketClub made perfect sense to us to allow our earliest members to share in our success. Why wait to crowdfund equity like BrewDog or do other community based ownership plans when the largest upside for our members is now and it's when we need their feedback and support the most. It's the ultimate win-win!
It’s not about us.. let me introduce @Edwyn of Spottly. His app will help you find the best local foods anywhere you go (particularly Asia). If you like to eat at the best spots everyday, this is for you:
http://www.rocketclub.co/spottly...
It’s not about us.. let me introduce @MohamadShaaban and @FrontierOdyssey of SHOPnCHEF. They create custom meal plans based on your entire family’s dietary needs and restrictions. They even deliver the groceries if you’re out in the San Jose area! http://www.rocketclub.co/shopnch...
Uh... could somebody please give @MohamadShaaban an invite so he can explain why SHOPnCHEF is awesome? :)
Hola Product Hunt!
RocketClub allows anyone to get a real stake in the products they use and love.
Sounds crazy? Yes, we think so too, but it ain’t stopping us from trying..
We built RocketClub because we wanted to help early-stage companies get traction. Most of us on PH probably know this well, getting traction is TOUGH. The idea came from wanting this solution for ourselves -a way to incentivize our own network, community, and early-adopters to become invested in the success of the product. The media makes us believe new products are launched and become overnight successes, whereas in reality, all products come out crawling and need the nurturing of early supporters. It's only right that early believers have a real stake (stock appreciate rights) and are compensated for their time and efforts.
We’re just at the beginning of a long mission. RocketClub also needs your help. Find out more and get a stake in RocketClub here :)
[EDIT] Thank you everyone for the awesome support. We just made top of the list today (don't care if we don't stay there.) For us, it really is about helping other companies. We hope we can make good on that goal.
@mossibat Thanks Mohsen! We don't have any crazy process since its mostly just a conversation between @chenny408 and I. We mainly make sure there is a committed team and an interesting product. Email me directly erik@rocketclub.co if you are considering, we love talking to new startups
This seems awesome. Also, I love one of your first featured products (@noblebrewer)
@mishachellam Thank you. I love Noble Brewer. But I also love Banter!, Spottly, TeaCha Tea, Food Moves, and SHOPnCHEF :)
Hustle X