Somos LuchaInvestment terms

We invest USD 80,000 in exchange for 8% of the company.

It is essential to understand all the details. First of all, we do it through a convertible vehicle, that is, the investment process does not require a purchase/sale of shares, and therefore it is faster and more efficient.

Likewise, this percentage will be diluted as you add other investors to the company. For example, today, on average, we have between 4-6% of the most successful companies in our portfolio.

We charge USD 12,500 for Somos Lucha's 4-month process, so you have USD 67,500 cash left over to grow the company. We will give you some recommendations and ideas on how to use this money, but you have complete freedom to do it as you like. We do not ask for any report or approval of expenses.

We structure it this way, so that you really see it as an expense, and get ALL the value possible from the program, it is a service to grow your company.

"Somos Lucha" is focused on providing you with personalized advice that will allow you to focus on operating your company and consolidating the foundations of its growth. You will have access to 1-1 on-demand mentoring with our network of mentors to address the issues that are most relevant to your company.

Also, the opportunity to share experiences with a community of founders from different Latin American countries, as incredible as you and with similar challenges.

If you are not yet registered as a company, that does not prevent you from applying. Once the offer is made, we will send you office options that can help you complete the entire legal process at your cost.

Once selected in the admission, our process to make the investment is simple and we only have 4 prerequisites to disburse the investment:

1. Be incorporated as a company: Ideally as a Delaware CCorp or LLC, although we also invest in companies in Cayman. If you have a different entity, don't worry, once you have the offer in hand, the law firms can help you look for options to make a matrix and explore options that work for both of you.
2. Let this entity be the holding company: 500 only invests in the parent company (holding company) in the United States or Cayman, so if you have an operating company in your country you have to do a flip and make sure it becomes a subsidiary of the parent entity.
3. Have vesting: A share vesting contract for each founder. This is to protect you as partners and us as investors from the departure of one of you. The standard is 4 years of vesting with 1 year of the cliff.
4. Intellectual property: Contract for the assignment of intellectual property rights to the entity. This is signed by all those who have developed technology and founders so that we all make sure that the intellectual property belongs to the company and not to a specific person.

Once we have all these requirements, we will use a KISS-type convertible contract to make the investment, if it is a Delaware CCorp it would be this.

We highly recommend hiring a good lawyer as it is very important to lay a good legal foundation for the company!