If and when all the Partners voted on you, we’ll offer you Traction Tribe’s LAVP. We’ll sign a contract based upon our public term sheet – and from that point, we’re talking about serious business. We ask you to give up reasonable amount of equity in exchange for cash investment and for our services. We try to keep dilution low, in most cases lower than 15 %. From the moment we sign, we’re business partners having the exact same goal: growing your venture.
Our term sheet is non-binding- as term sheets generally are. After we sign it, we ask a short, 30 days no-shop period to do due diligence on you. We do NOT change, renegotiate or bargain about terms after the due diligence. We sign the final contract, or we do not sign – it’s a binary decision. If you were transparent, we sign the final contract and the show begins. If you lied to us and we catch you, it’s a deal-breaking disappointment. Having various issues is part of the business life, we can deal with a wide variety of problems if we know about them. However, we don’t work with those who are not transparent. Be honest, or get lost.
What you get
We provide you several benefits, like office space in our co-working office, located in the heart of the city. From the very first day, our goal is scaling your startup and take it to the next level. Our international mentor team will provide you unique support in developing your business model, pitching your idea, polishing your business English, mastering techniques of the lean methodology and generally developing your business to a bigger scale.
If you expect something like an easy-going community club full of folks being enthusiastic in innovation and being all in a flutter all day long – well, then life with us will seriously disappoint you. Our office is a workplace and your fellow entrepreneurs work their ass out trying to get further traction for their businesses – which doesn’t mean the lack of fun. But mostly it’s hard work, regular abandonment of your comfort zone, scheduled classes taylor-made for your specific needs, completion of milestones one after another, having Skype-conversation for hours in a foreign language and making a night shift in the office with a couple of toasted penguins ghosting weed on our camouflage sofa (just testing whether you read until this). In the gross: blood, sweat and tears. Building a global company is not a joyride – it’s backbreaking work, tenacity, but above all, the ability to challenge your own barriers. For example, stealing those penguins from the zoo was way over our barriers, but we made it. And changing things is always exciting but painful at the same time. It won’t be like a vacation at all.
We expect you to focus 100 % on your company, as if it were your newborn child. The length of the catalyst process varies from 3 to 6 months, while you’ll burn money – your own and ours too. Right after your preparation period in Hungary we’ll encourage you to fly to the Traction Tribe California Headquarter in Los Angeles for a couple of months and crown your own work with even more traction, revenue generation, further scaling and ideally, a follow-on round of investment from a U.S. angel investor or venture capital firm. If you fail raising a next round, but your business scales, don’t worry: we have both the capital and the willingness to finance your further growth. If you scale, we back you up. Our team will help you locally in Los Angeles too, but please keep in mind that sooner or later you and your business have to step further. Consider your participation in our program as an opportunity to become a fast scaling global venture on a large and developed market. We provide you one shot – it depends on you whether you grab it, or you let it slip.