The ask
One deal. $2,000,000.
$2,000,000 to take the packs from five hand-built companies to a priced product with a sales motion, and to finish the takeoff engine that upgrades every one of them. The investor elects the structure: a 15% loan, or 20% equity with a Year 5–8 buyback ladder.
Deal — Mirror Engineer
$2.0M
A 15% loan, or 20% equity with a Year 5–8 buyback ladder.
Already shipping
5
Companies built on the pack. One live on its own domain.
Granted
2
U.S. patents — separate venture, first right of participation.
Where this sits. At $2.0M and pre-revenue, this is a seed-stage / angel raise — not private equity. We recommend the equity path (Option B): capital stays working in the business instead of pulling monthly debt service, and it aligns the investor with the upside. The 15% loan (Option A) is offered as the conservative alternative.
Deal 1 — two paths to $2,000,000
Option A — Debt (loan)
| Capital provided | $2,000,000 |
| Structure | 5-yr amortizing loan |
| Annual rate | 15.00% interest |
| Monthly payment | $47,579.86 |
| Total repaid (Yr 5) | $2,854,792 · 1.43× |
Conservative / lender posture. Monthly obligation pulls cash before revenue ramps.
Option B — Equity buyback · RECOMMENDED
| Investment | $2,000,000 |
| Equity stake | 20% |
| Implied entry valuation | $10,000,000 |
| Monthly payments | None |
| Base buyback (Yr 5) | $3,500,000 · 1.75× |
Buyback ladder: Yr 5 $3.5M (1.75×) · Yr 6 $3.9M · Yr 7 $4.3M · Yr 8 $4.7M (+$400K/yr if declined). No monthly drain — capital stays in the business.
Deal 1 — use of funds ($2,000,000)
| Use | Allocation | Purpose |
|---|
| Founder compensation | $600,000 | ~$175K/yr so the founder goes full-time — the single biggest unlock. |
| Software developer (coder) | $260,000 | Contract developer to finish and harden the engine and storefront. |
| Revit operator #1 — ME library | $220,000 | One full-time operator building the EZ-Footings & Western Forms families — a second added as revenue allows. |
| Intellectual property & legal | $200,000 | Patent & IP counsel — in line with the ~$80–100K that secured the founder’s prior-company hardware patents. |
| Go-to-market | $260,000 | Marketing, ads, and the founder’s industry & national-brand channels. |
| Operations | $160,000 | ~$60K/yr base cost to run the business. |
| Contingency / reserve | $300,000 | Buffer and debt-service reserve — also funds the second Revit operator once revenue supports it. |
| Total | $2,000,000 | |
Allocation is the deployment plan for the raise; final split confirmed with the investor. Reporting and use-of-funds discipline are covered under Investor Protections below.
Important — what this deal is and isn’t: This transaction conveys no ownership of Climate Tech Building Systems and does not include its hardware, patents or systems. The investor’s only connection to CTBS is a first right of participation in that separate, future venture, described in the term sheet below.