XRP is the cryptocurrency at the heart of Ripple. Instead of primarily acting as an alternative currency, XRP is used as a bridge currency in exchange transactions, and as a spam prevention tool. Ripple’s success to date has led to XRP having the second highest market capitalization of any cryptocurrency, after Bitcoin.
CrossCoin Ventures, LLC will be the actual investor. Ripple Labs will own no equity to avoid any potential conflicts of interest.
We do not take a board seat upon your joining the accelerator but do typically take a board seat (or board observership) if we make a separate investment.
If we do get a board seat, we also agree to convert it over to a board observer seat if you raise a preferred stock financing (which of course we will help you with).
We do not require you to sell us preferred stock. We prefer to get the same common stock you hold as founders so our interests are completely aligned.
The typical investment is a combination of XRP and cash to purchase restricted common stock in your company. We are happy to share further details on the logistics of the investment during an initial or follow-up meeting.
The range of ownership is consistent with other accelerator programs and varies from 3-6% of fully diluted common stock depending on the stage of the company and if you have received prior investment. In exchange, you receive active support from CrossCoin Ventures and Ripple Labs and you will also receive up to USD$50,000 of XRP. If we are actively involved in designing initial UI / UX mock-ups, recruiting team members, and providing interim CFO or CTO services we may ask for as much as 10% of fully diluted common stock.
It depends. It can be as little as $1 for those companies that do not require money to an average of $25,000 for the median case to as much as $50,000. However, the non-monetary value you get from your participation in the Accelerator should be much greater than the investment in cash and XRP.
Yes. We take common stock, not preferred stock or convertible notes which are currently how most angels and venture investors commit capital. We are also able to customize the program based on the company’s stage and capital raised to date.