Cooperativ - Start a Project. Share economics and control.

1. v1.1 Cooperativ Start a project. Share economics and control. 1

2. v1.1 50 million people are now making or supplementing their livings by selling creative content on the Internet.* 2 * ~2m full-time creators and ~46.7m amateur creators, according to SignalFire’s Creator Economy Market Map (https://signalfire.com/blog/creator-economy/)

3. v1.1 Individual creators have hundreds of platforms to help them do so. 3

4. v1.1 None of these platforms are built for teams. 4

5. v1.1 THE PROBLEM Let’s take an example. You and two friends build a game to sell on Steam (game marketplace). Whose bank account receives the money? Who owns the intellectual property and has the right to sell it on another platform? How do you compensate other contributors who only help with parts of the project? 5

6. v1.1 THE PROBLEM First, it’s difficult to share ownership of a project without registering a business. Incorporation is expensive, time-consuming, intimidating, creates a confusing tax responsibility, and forces the entrepreneur to make a bunch of decisions she may not be ready to make. 6

7. v1.1 THE PROBLEM So people start with informal agreements, which lead to disaster. The hack to avoid incorporation is so common that it has become famous: writing down an agreement on a napkin. These napkin agreements are notoriously vague, and can become a major source of legal trouble. People need a better napkin. 7

8. v1.1 THE PROBLEM Second, the usual compensation mechanisms don’t work for early-stage projects. Having little cash doesn’t just mean projects can’t pay people, it also means they can’t expect contributors to make long-term commitments. Team members start new jobs, have kids, or lose motivation. 8

9. v1.1 THE PROBLEM Equity is therefore a bad option for both the project and the contributor. Many early contributors will help for a month or two and then move on. If you succeed, they should get something for their work, but only the ones who stick around should be on your cap table. 9

10. v1.1 We built Cooperativ to fix this. It makes starting a business as easy as setting up a Facebook page. 10

11. v1.1 HOW IT WORKS 1. Create a Cooperativ Project You create an account with a simple profile describing your project and connect it directly to a creator platform or other income stream. 11

12. v1.1 HOW IT WORKS 2. Configure Contributor Credits* You configure revenue share for you and your co-creators, then create another class of tokens to give the other contributors rights to the first dollars that your project earns. 12 * You can read an exhaustive description of Contributor Credits and how they work here: https://sunshinelabs.medium.com/a-new-way-to-compensate-contributors-to-early-stage-project-5fdefcf57493

13. v1.1 HOW IT WORKS 3. Send Project Invitations You configure an invitation, which comes pre-designed with simple legal terms. You just select one or two of the payment methods and click send. Your collaborator reviews and accepts. 13

14. v1.1 HOW IT WORKS 4. Share Success (and expectations) When you pay your friend 20,000 credits, he expects to get $20,000 if the project works out. If he stays with the company, you can offer to let him trade in his credits for equity. 14

15. v1.1 Who needs this? 15

16. v1.1 CUSTOMER SEGMENTS Creator Teams People who build products or create content for a relatively small and committed audience. Needs: • The ability to avoid incorporation - their businesses usually remain small and low-risk, and therefore do not benefit from limited liability enough to justify the cost. • • Basic tools for splitting project control and creator-platform income across members. Trustable or "trustless" ways of committing future income to contributors HoopUp Early traction: Game Entertainment & Media Game 16

17. v1.1 CUSTOMER SEGMENTS Pre-startup Projects Teams working on a scalable idea who expect to pivot a lot before finding product-market-fit Needs: • • Zero baggage - should not spend time creating, filing taxes for, and often unwinding, a legal business entity. Ability for contributors to come and go - Contributor Credits allow contributors to earn a stake without prematurely populating the cap table. • Ability to make promises across borders - contributors based in other countries should be protected. Early traction: Health and fitness Developer tools Services platform 17

18. v1.1 CUSTOMER SEGMENTS Corporate "Intrepreneurship" Programs Large corporations that want to encourage employees to innovate independently within the company, or de-risk internal startups by utilizing external contributors. Needs: • • • Non-equity ways to share risk and reward with the internal entrepreneurs and external contributors. Clear, pre-defined intellectual property terms Closed communities, with approval processes for external contributors. Early concept validation: • One well-known European retailer with offices in Berlin has expressed interest in using Cooperativ and Contributor Credits to incentivize and compensate external contributors to internal start-up projects. 18

19. v1.1 CUSTOMER SEGMENTS Collaborations We Haven't Thought of Yet If it is as easy to start a business as it is to launch a Facebook page, people will use it to solve other problems and innovate further. Examples: • • • • • Employee-owned businesses Temporary collaborations In-game / “Metaverse” marketplaces Community-owned marketplaces Educational projects Note: We think that decentralized governance tools, which we hope to introduce later, will allow for significant creativity in this area. 19

20. v1.1 This is just the foundation. We are taking the best ideas from the blockchain world and applying them to the needs of real businesses. 20

21. v1.1 WHAT WE WILL DO NEXT 1. Flows replace contracts Cooperativ will manage projects’ revenue according to “flows" that creators configure up-front and cannot change. This gives all collaborators confidence in the promises creators make. It’s trust without legal contracts. 21

22. v1.1 WHAT WE WILL DO NEXT 2. Procedures govern flows Cooperativ will introduce the ability to create procedures, which give team members collective control of how payment flows are changed. This allows maximum flexibility while protecting members’ interests. Even large teams can function fairly and securely without ever engaging lawyers or signing contracts. 22

23. v1.1 WHAT WE WILL DO NEXT 3. Governance facilitates finance With ownership and control mediated by the platform, Cooperativ will be able to enforce agreements between parties. This “trust infrastructure” creates the following opportunities: Equity fundraising On-chain lending Joint ventures When a project’s assets can only be issued and controlled through platform procedures, investors can fund projects with confidence. Projects can define procedures that allocate project assets to lenders as collateral. Projects can define procedures that allow them to share decision-making with other projects. • Access to blockchain lending ecosystem • Share access to assets • Platform-wide marketplace for pre-approved investors • Tokenize and share control of Intellectual property • Borrowing opportunities for “unbanked” populations • Extremely high transparency 23

24. v1.1 Our Team A flexible combination of contributors and advisors 24

25. v1.1 CONTRIBUTORS Contributors are people who have done significant work on the project and who are compensated in a combination of cash and Contributor Credits. Some have asked to join full-time. Gabby Valdespino Nate Faber Contributor | UX Design Contributor | Blockchain Tools Sean Morgan Robin Raymond Contributor | Webapp Development Contributor | Blockchain Tools Gabby and Sean worked together to design and build the Project Profiles on Cooperativ. Nate and Robin worked together to develop Sunshine Labs’ Ethereum-based Contributor Credits, and Continuous Contributor Credits. 25

26. v1.1 ADVISORS Advisors are people who regularly review Sunshine Labs’ strategy and product with a particular focus on their areas of expertise. Mark Tracy Jason Allen Advisor | Experienced Entrepreneur Advisor | Legal Scholar Mark has served in leadership roles at Cargill, as well as Indigo Ag, and was most recently CEO of Cloud Agronomics. While at Cargill, Mark and his team empowered farmers globally through the creation of new financial tools, and also led that company’s effort to use distributed ledger technology. Jason is a currently a Senior Research Fellow at Humboldt University. He researches the impact of digital technologies on the law, with a focus on the law of money (cryptocurrencies, CBDC), digital assets, and governance. Jason helps Sunshine Labs understand the legal principles, approaches and limitations that create both opportunities and challenges for our business. Mark provides Sunshine Labs with business, strategy, and fundraising advice. 26

27. v1.1 FOUNDER Jacob Chase-Lubitz is a product strategist with seven years of experience designing multi-sided platforms and business models, crafting product roadmaps, and managing development projects. He served as Director of Product Development at Everybill LLC, where he lead the design of an award-winning concept for a healthcare payment platform. In his role as Product Strategist at Artory GmbH, Jake was responsible for conducting customer research and forming go-to-market and pricing strategy. Jacob Chase-Lubitz Founder | Business & Product Strategy (and a bit of everything else) Jake has also worked as a Software Engineer. 27

28. v1.1 Market & Strategy The Creator Economy and Crypto community are about to intersect. Cooperativ is capturing the nexus by applying blockchain technology only where it creates value. 28

29. v1.1 SIGNALS Short Term (strong creator economy growth) •Yearly spend on influencer marketing is projected to double from 2021-2022 (Mediakix / SignalFire) •VC investment in creator platforms has increased 8x between 2020 and 2021 (The Information) •Payouts to creators has at least doubled on many of the larger platforms in 2020 •A number of industry leaders/reports describe creator teams as the next phase of industry development Medium Term (major investment from Big Tech) “Big Tech” companies are spending billions on subscription-based creator platforms, including Twitter Super Follows and Facebook for Creators. •Facebook has committed $1 billion to fund new creators on its platform in 2022. •The shift to work-from-home reduces the impact of geography, facilitating the fluid, asynchronous working models on which creator teams depend. Long Term (decentralization & the “metaverse”) The largest technology and gaming companies are investing heavily in “the Metaverse”: an immersive digital space in which people work and socialize. This technology will further reduce the significance of geography, increasing demand for fast, trustable, cross-border business environments such as Cooperativ. Major investments include: •Facebook: Oculus, Metaverse for Work •Apple: much-anticipated products in the areas of augmented and virtual reality •Epic games: Fortnight, tools for other businesses to build fortnight-like experiences 29

30. v1.1 We are raising $400,000 to go from Alpha to Beta 30

31. v1.1 THE ASK Goals. • Build Project Invitations so users can easily onboard themselves and their team • Build Revenue Tokens so that projects can manage compensation for creators in addition to contributors • Improve usability and design • Begin experimenting with various channels for traction and community development 31

32. v1.1 THE ASK Needs. Webapp / traditional software engineer (full-time) This person will be responsible for expanding the Cooperative Alpha into a full-featured Beta. Software Engineer with blockchain experience (full-time) This person will be responsible for building blockchain-based tools and integrating them with the Cooperativ platform. (Note: requires competence with blockchain development languages and basic smart contract development principles, but does not need to be a highly-experienced blockchain engineer) UX Designer (latter six months) We already have tight feedback loop between users and feature development, and can therefore put off design refinements until after we have built and tested all the core features. We will therefore onboard a full- time UX designer to further improve features for which we already have users. 32

33. v1.1 THE ASK Multipliers. • Fully remote team - global labor access and eliminates office costs • Berlin grant programs for startups (currently applying) • Partnerships - we are collaborating with businesses in our market Terms. • $400,000 SAFE (convertible note) • Valuation cap of $4m 33