SMART CITY

HYPER ACCELERATOR PROGRAM

For a couple of reasons:

1) Sm@rtr® is a commercial "Joint Venture" between millions of different entities, some individuals, some organizations, all of whom are joint venture "partners" where each partner makes a financial contribution to the development of the Sm@rtr® joint venture startup company. This financial supporting contribution gives them the right to obtain reciprocal value from the company Sm@rtr®. As a startup, you are contributing alongside all of the different types of stakeholders, who are coming together to pool resources and capabilities to jointly build a massive business development resource in the form of a strategic startup company - Sm@rtr® JVCC. Consequently, Sm@rtr® will be able to meet your startup's every need along your startup's growth and development journey over the next five years. Together Everyone Achieves More (TEAM).

2) Whatever you invest money into, you will value more and that will be evident in a much higher level of team engagement and seriousness throughout the accelerator program activities and process.

Wisely, Prudently, Creatively

A complete lack of cash or having little cash is simply another PROBLEM to be SOLVED quickly, just as your startup has selected a specific problem to solve with it's smart city-relevant solution. Finding the cash to pay the fee for participation in our startup program, is essentially a "multi-part" FIRST PROGRAM TEST:

1) a test of your team's wisdom and understanding of the immense value to be obtained from the program;

2) a test of your team's resolve to secure the entrance fee and its belief/confidence in its ability to secure it;

3) a test of your team's ingenuity and creativity in defining and executing a solution that allows you to obtain the requisite accelerator participation fees.

TIPS: Your participation fees can be secured via

- launching a crowdfunding campaign among family and friends

- sponsorship by your alma mater university or a strategic partner company

- securing a business credit line in the form of a business credit card (we can help US startups with that)

- hosting a paid startup meetup event in your area or city

- selling your car or that big flat screen TV that isn't generating income (you can get one when you're successful)

- joining our referral program and earning commission by referring all stakeholder types to join the Network

We could list a hundred ways here, but the point is, if you truly understand the value of being accepted into our accelerator program, your team will move heaven and earth (legally of course), to secure the requisite fee. On one hand, its a matter of assessing your team's collective "tangible" assets, determining which are not truly needed and then liquidating them to re-invest the cash that was tied up in those things, into something more valuable for the future success of your startup. On the other hand, its a matter of assessing your collective "intangible" assets (relational capital, contacts, level of influence) and monetizing that via our referral program or through a "sponsorship/partnership" arrangement. For example, future client sponsors your accelerator program fee and gets to buy their first product from your "startup at cost"... a WIN WIN.

So don't let not having the participation fee in hand now, stop you from applying altogether. Just be sure to initiate your plan to secure the requisite program fee FIRST, then apply only when you are just a few days away from getting the program fee collected. We advise this approach, because once your startup is accepted, you will need to complete payment of the program fee within 5 working days of receiving our formal acceptance notification correspondence via email. Of course, you will need to work fast, as once this accelerator program is announced publicly from March 1st, the application volume will escalate quickly and those accepted startups which have the ability to pay the requisite program fees, will start to lock down the limited seats in each tier.

In a manner of speaking, yes; they can be paid as an ANNUAL subscription.

However, you will end up paying significantly more than you need to. The 5-Year subscription plan will save you a whopping 60% on the cost of the Annual subscription.

Yes, as long as Sm@rtr® performs according to plan

The only thing that would prevent us from disbursing the funding allocations to startups would be:

a) the disruption of a major natural disaster event preventing normal business operations

b) the disruption from the sudden eruption of a major war involving war activity within the US borders

c) a sudden global financial crisis like that of 2008, causing investors to stop making investments

d) if global investors do not believe that Sm@rtr® JVCC is an excellent investment opportunity

A combination of various sources.

The funding for startups comes from:

1) Membership fees paid by the JV Partner Network members (consultants, service providers, investors, etc.)

2) Accelerator fees paid by the participating startups each year, both current and new cohorts

3) Investment made by accredited investors and investment funds into Sm@rtr® JVCC over the program term

4) Revenues generated by the various Business Operations Units of Sm@rtr® JVCC over the program term

5) Investments made directly into the accelerator startups through the direct efforts of Sm@rtr® JVCC

6) Leveraged debt financing associated with our Colombia smart city real estate project

It depends on their business plan and actual cash flow needs.

If a participating startup is deemed by Sm@rtr® to need the full allocation in the first 12-24 months, that is what we will work to facilitate. To avoid non-optimal use of funds, we determine and facilitate funding in stages aligned with actual operational needs.

Then you will get it in a subsequent year.

Funding allotments are by default spread over the 5-year program period (20% of allotment per year) However, disbursement can be expedited where practical at Sm@rtr®'s sole discretion, if we believe it to be in the best interest of a given startup. If for example, Sm@rtr® only disburses/facilitates 50% of the funding allotment portion your startup was to receive in year #1, then Sm@rtr® will refund 10% of your startup's participation fee. If Sm@rtr® disburses none of the funding your startup was to receive in year #1, then Sm@rtr® will refund 20% of your startup's participation fee. Sm@rtr® would add the delayed payment to the next year's disbursement.

Not Really.

We will monitor how the startups deploy the funding allocation. If they begin to misuse the funds provided (buying a Maserati, paying off a student loan, etc), then we will immediately take legal steps to recover the full funds disbursed as is practical and the startup will be removed from the program.

Optionally, at its discretion.

If Sm@rtr® does choose to take equity in any of the startups, the amount of equity taken will be based on the specific accelerator program "tier" which the startup enrolled under. As Sm@rtr® is not a "VC" firm but rather is a "JVC" firm, we are much more focused on nurturing your startup's growth, rather than on the capturing of maximum equity stakes. We will thus take notably smaller equity stakes in your startup, allowing you to limit dilution early on, while we work together to help you build up a stronger valuation as quickly as possible. The following table shows our equity caps for each of the six program tiers.

HAP Tier 1 | Allocation: $10-25M* | OPTIONAL Equity Taken: 7.0% | 5YR Program Fee: 1% of Allocation

HAP Tier 2 | Allocation: $5-9.5M* | OPTIONAL Equity Taken: 6% | 5YR Program Fee: 1% of Allocation

HAP Tier 3 | Allocation: $2-4.5M* | OPTIONAL Equity Taken: 5.0% | 5YR Program Fee: 1% of Allocation

HAP Tier 4 | Allocation: $1-1.5 | OPTIONAL Equity Taken: 4% | 5YR Program Fee: 1% of Allocation

HAP Tier 5 | Allocation: $500-900K | OPTIONAL Equity Taken: 3% | 5YR Program Fee: 1% of Allocation

HAP Tier 6 | Allocation: $250K | OPTIONAL Equity Taken: 2% | 5YR Program Fee: 1% of Allocation

HAP Tier 7 | Allocation: $125K | OPTIONAL Equity Taken: 1% | 5YR Program Fee: 1% of Allocation

* Funding above $25M can be facilitated, but requires definitive proof that such higher funding is absolutely necessary and terms will be custom created. Payment terms are possible for Tiers 1, 2 and 3, solely at our discretion and thus are not guaranteed.

No, not in terms of a dividend or profit share payout.

The benefits of being a JV Partner of Sm@rtr® differ according to the category of stakeholder JV Partner you fall into. Here's what each JV Partner stakeholder group gets in terms of value/benefit:

STARTUPS:

Startup Funding Opportunity Access;

Specialized Startup Acceleration Services Access;

Strategic Collaboration Opportunity Access;

Investor Relations Development Opportunity Access;

High Profile Smart City Solution Deployment (Contract) Opportunity Access;

Sm@rtr® Resources Directory Listing Opportunity Access;

Community (Online) Engagement/Collaboration Opportunity Access

CONSUMERS: 

Experiential (Hospitality/Events) Opportunity Access;

International Employment Opportunity Access;

Competitions & Show Participation Opportunity Access;

Financial Savings Opportunity Access;

Regulation Crowdfunding Opportunity Access;

Colombia Smart City Volunteer Opportunity Access;

Community (Online) Engagement/Collaboration Opportunity Access

Blockchain Based Loyalty Program Access

INVESTORS: 

Premium Sm@rtr® JVCC Private Investment Opportunity Access;

Community (Online) Engagement and Collaboration Opportunity Access;

Guaranteed Colombia Smart City Direct Investment Access (separate subsidiary company)

SERVICE PROVIDERS: 

Service Supply Contract Opportunity Access;

Sm@rtr® Resources Directory Listing Opportunity Access;

Community (Online) Engagement/Collaboration Opportunity Access

CONSULTANTS: 

Service Supply Contract Opportunity Access;

Sm@rtr® Resources Directory Listing Opportunity Access;

Community (Online) Engagement/Collaboration Opportunity Access

We have a different mandate.

The typical startup accelerator is a 3-6 month program. They provide meaningful value but they provide it only for a short time and then you're largely on your own. This is a reflection of the fact that the typical accelerator does not have a powerful "Unicorn Grade" business model capable of generating millions of dollars in revenue on a continual basis. They simply cannot sustain the provision of accelerator services at a high level to their startups for more than a few months, if they want to serve as many startups as possible.

Ultimately, most traditional accelerators are functioning as "alternative VCs", where the goal is to find startups with potential to be big and capture 5-10% equity stakes early, without having to go the route of setting up a VC Firm and spend months soliciting limited partners for capital to purchase stakes in startups with. However, the net result is that the startups do not get the sustained support necessary to unlock their true and full performance potential. When we look at the websites of typical accelerators and click on the links for their past cohorts three years prior, most of those links are now dead, as the startups are now dead three years on.

If you're taking a road trip from California to New York, you're going to make sure that you take a route where you will have guaranteed access to several gas stations along the way. It will take at least five years for your startup to begin to reach its true potential if it gets the constant supply of "fuel" and "oil" it needs along the entire journey. We are the startup gas station that is always just there when you need it, supplying a range of key resources, not just funding.

Ultimately, it goes back to why we're doing this in the first place; we're 100% about Accelerating Sustainability Transformation Globally, to fight the threat of climate change. That means "smarter" cities, sooner rather than later. That requires startups with the best smart city/sustainability solutions to become powerhouses, not die off in three years due to a lack of key long term resource access. That means first and foremost we must have the ability to attract massive capital consistently over time. That in turn means crafting a startup investment proposition that is ORDERS OF MAGNITUDE MORE COMPELLING than anything investors have seen before.

This is why we have positioned Sm@rt® not just as the world's largest commercial joint venture, but much more than that, Sm@rtr® is designed and engineered from the ground up by its founder, to be the world's first "UNICORN FACTORY". Living up to that positioning, requires a LONG TERM commitment to each startup we work with. Five years is the minimum time period that makes sense to us. We hope you'll agree.