• Average investment range $100K to $1.4 million = $400K average
  • Average valuation of company at time of investment = $2.3 million.
  • Instrument = convertible debt note.
  • $400K into $2.3 mil. valuation = 17.5% equity for cash investment alone
  • Additional 3% to 9% sweat equity for mentoring services and tag along on booth exhibits and investment meetings.  All 3 to 9% goes to Cal-X Stars shareholders.
  • 3% royalty on gross sales for 1st full 3 years of sales.  1st year is not triggered until $100K in revenues aggregate is reached.
  • 7% warrants, 15 year strike time, strike price equal to seed round price.
  • *BONUS OPTION* Liquidation preference.  Cal-X Stars shareholders receive 3X return before other shareholders are paid.
  • Preferred stock 5:1 voting rights.
  • Right to participate pro rata in future rounds.
  • Two board seats if desired.
  • Lead Cal-X Stars Mentor gets stock option agreement in company equal to CFO level – 20% vesting a year for 5 years.
  • Company must use our selected investment banker and registered broker dealer for Round A financing ie; Merriman Capital, Roth Capital, Andrew Romans, Brighton Capital, Crowdfunder.com, MicroVentures, Angelist.co, Healthioxchange.com.
  • Unless extraordinary reason submitted in writing companies must use Cal-X Stars chosen vendors for services where we have negotiated volume rates ie; Enterprise Rental Car, Virgin American Airlines, Leverage PR, Regard.com, Crowdfunder.com, HealthiosXchange.com, FundingRoadMap, WhenYouWish.com, EquityNet.com, ZimpleMoney, Kaiser Health, Silicon Valley Bank, MethvenLaw, 4ColorFlyers, 4 Color Displays.

Note – Cal-X Stars Business Accelerator, Inc. owns 50.1% of the Cal-Xelerator,  it’s seed stage feeder, with anti-dilution provision in place.

The basic criteria for a social good impact startup to enter our accelerators or to receive investment from Leonhardt Ventures are…

>  Must be cash flow positive within 12 months.
>  Truly innovative product not easily copied.
>  Must address large and growing purposeful market.
> The product itself should have a social good purpose nature to it.  No TOMS shoes type strategies for us.
>  Must be on track for $20 milion in revenues minimum by year 3.
>  Must be interested to have a future listing on the California Stock Xchange.
>  Must score well on the Worthworm and EquityNet Valuation Calculator Programs.
>  Must score well on B Lab Certification Testing for Social Good Impact.
>  Must score well on the Tom Peters Innovation Culture Test Criteria.
>  Must have or be willing to create a high emotional impact video.
>  Preferrably should have crowdfunding built into their financing strategy.

Criteria for cardiovascular life science startups to join our accelerator..

>  Must have breakthrough product addressing a cardiovascular large unmet market.
>  Must be willing to enter Dutch auction to sell off innovation within 3 years.
>  Preferrably one 510K product that generates revenues in short run and a PMA blockbuster that creates higher profits long run.
>  Must engage well with our scientific advisory board and cardiovascular mentorship team.
>  Preferrably something likely to sell in 3 years to Medtronic, St. Jude, Boston Scientific, Abbott Labs, Cordis J&J or Sorin Biomedica.
>  Preferrably a stem cell component to the technology.

Note – Cal-X Stars will only accept a maximum of 30 startups.  15 cardiovascular life science and 15 social good impact innovations maximum by charter.  We are completely full now as of August 2014 for the next 5 years UNLESS we sell off, license out or drop a currrent portofolio company.   Cal-Xelerator will accept up to 4 companies twice a year to enter the 108 day “create to great” startup launch program.

Our Basic Terms…

>  We take 9% sweat equity for mentorship services (3% goes to lead mentor, 3% to brain trust, 3% to the 70+ mentors + 35 scientific advisory board members + shareholders).
>  We increase ownership stake with milestone driven cash investments with goal to have about 20% equity position by Round B.
>  Our accelerator shareholders receive a 3% topline royalty on revenues for the 1st three years.
>  Our team produces your company video, newsletter, web site and social media pages.
>  You should have a crowdfunding component to your financing strategy which engages our Cal-X Crowdfund Connect services.
>  Cal-Xelerator company founders must locate to a Santa Monica area co-working space for the entire 108 day intensive “boot camp” mentorship program.  They must be committed full time to their startup launch.
>  We showcase our portfolio companies at over 20 cardiology conferences a year and over a dozen social good impact investing forums.
>  We hold at least one board seat preferrably two.