8vdX - Extend your seed extension with a ‘seedex booster’ of up to $1M

We are excited to announce the launch of 8vdX Seedex Booster, a new addition to our expanding product portfolio at 8vdX. This product offers early stage startups the opportunity to access seed extension debt of up to $1 million.

Until recently, we were focused on providing bridge to Demo Day loans to current YC batches. However, the current market environment has given us the opportunity to expand our product offering.  The 8vdX Seedex Booster aims to solve some of the fundraising challenges currently being faced by founders including;

• Not enough funding runway to meet the performance benchmark expectations of series A investors
• Decreased valuations that require founders to achieve significantly higher targets in order to avoid a down round
• Raising seed extension rounds can be challenging in the current environment

8vdX's Seedex Booster program augments a startup’s seed extension raise with up to $1 million of additional funding with founder friendly venture debt.

How it works is pretty simple:

8vdX is offering to contribute up to 25% of a startup's seed extension round, with the remaining 75% sourced from insiders or others. Our ticket size is between $250k-$1 Mn, capped at 25% of your seed-ex round. Here is an example of how it would work:

• Let’s say you are a startup which has just launched a $1 Mn seed-ex round and applied for the 8vdX seedex booster. After evaluating your startup, 8vdX gives a commitment of $250k representing 25% of the total seed-ex round.
• We will disburse the $250k along with the $750k equity investment from other investors. If you raise $750k in multiple tranches, we can make pro-rata disbursements.
• Maturity of up to 18 months or Series A closing, whichever is earlier

Assuming, the following terms have been negotiated and agreed upon by both parties:

• Interest cost:
  • cash interest of 1% per month ($2.5k) that you pay each month and
  • bonus SAFE of 5% i.e. ($125k) with the same valuation cap as the seed extension investors.

8vdX allows for flexibility in selecting a combination of cash interest and bonus SAFE.

• Repayment schedule: The seedex booster will be repaid with the Series A funding. However, founders have the option to create an amortization schedule to prepay the loan or extend it upon maturity.

Overall terms are founder-friendly terms as there is no prepayment penalty, no collateral, no personal guarantees & no enforcement action.

Please apply at 8vdx.com or email us at zeronote@8vdx.com

Our aim is to help you achieve your maximum potential and successfully raise Series A funds. How do we know this approach works? We have firsthand experience using it to drive growth and secure successful fundraises for startups. In fact, our own business model was developed through observing startups leverage our capital to accelerate their growth and secure successful fundraises.

We are thrilled to have already partnered with over 20 YC startups and look forward to supporting you as well. Join us in driving this innovative approach to fundraising!

Interested startups, please visit our digital platform to learn more and apply. The entire process is simple, transparent, fast, and completely digitized. If you have any questions, please feel free to email us and we will be more than happy to set up a call.

Thanks,

Team 8vdX