The Microcredit Program is an angel investment channel available to Chisel partners. This is also considered part of the Pre-Seed funding round for Early Stage Startups. There are numerous investors connected to the platform. Upon approval of your funds, you will be given temporary access to the Dashboard and your funds will be escrowed into an account visible on your dashboard. (Remember, your contract with Chisel is effective beginning on the date payment is received or in other words, released from escrow.) Founders will have 21 calendar days to release the funds in their escrow or it will be returned to the program. Microcredit funds generally range between $5,000 and $20,000; however, this range can increase depending on the size of available investment capital. Funds available through this program are made in exchange for convertible debt or ownership equity.

Escrow is a trust account or a space that holds your money while a transaction is being processed. Think PayPal.

This is the money you need to get a business started. It comes in many forms; grants, crowdfunding, investments, loans, etc. and usually comes from family and friends and your local community. There are several platforms that offer tech infrastructure and development support. Sping and Tygermom are two of them. Crowdfunding is a great source for founders with an existing MVP to get free money. Think Kickstarter and Indiegogo. Accelerators and incubators are also popular sources for early stage capital and they usually come with training.

Yes!-Once your MVP is completed, or in other words Version 1 of your software has been deployed into the marketplaces, you can return to the Microcredit program and apply for additional funding. If approved, you will be responsible for two set of funds or you can request that your funds be consolidated. .

A rate of return is the net gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s initial cost. The formula is calculating a ROR is: Rate of Return = [(Current value of investment) minus (Initial value of investment)] divided by (Initial value of investment) times 100. For brand new startups, your ROR value begins the moment an MVP is completed and you have your first paid contract or customer.

A minimum viable product. A functioning software without the bells and whistles.

A loan or debt payment over time in the form of installments or transfers.

The total cost of credit represented as a yearly percentage.

Anything of value that is owned.

Stock from large companies, less risk.

A person who is paid to buy and sell for someone else.

A period of increased stock trading and rising stock prices.

Recurring fluctuations in economic activity consisting of recession and growth and decline.

Considering Covid-19 that affected all of us, this question is more important than ever. The Microcredit program offers a one-time 6 month Deferred Payment Plan for eligible founders. Founders can self-enroll through the program.