In preparation for Backer due diligence, you will need to stand up a virtual dataroom. For this, we recommend you use a virtual dataroom service that allows you to track investor engagement (e.g. Docsend).

At the minimum, your dataroom should include:

• An overview speaking to your historical performance

• Material speaking to the performance of your borrowers

• Transaction structure and security overview document explaining how security works in the instance of a default

• Agreements you have in place with your borrowers

• Deal Specific Documentation such as:

  • Term sheets

  • Loan Agreements

  • Security Agreements

  • Any other transaction documents you think necessary

Once all the setup for the Borrower Pool is done, it's time to open the borrower pool and close the fundraise. This happens in the below steps:

• Open the Borrower Pool: On the pre-agreed day, the Borrower pool will open for funding

• Backer Funding: Once the Borrower pool opens, Backers will be able to fund your Borrower Pool. They do so by:

• Signing the Agreement + Funding - Below is an image of the Agreement Signing and Funding interaction

Please note that the 'Loan Agreement' hyperlink above takes the Backer to a copy of the Loan Agreement that the Borrower provides.

• Funding Complete: Once the pool has been fully funded, the Borrower Pool will be locked

• Borrower Executes the Agreement: You will receive the details of the Backers who participated in your Borrower Pool. You will be responsible for appending their details to the loan agreement and executing the agreement.

• Creating a live dataroom: You will be responsible for creating a live dataroom, and granting access to all Backers who participated in your Borrower Pool. In this dataroom you will upload:

  • The executed transaction agreements

  • Any relevant updates for the Backer community from time to time.

Here, you will need to decide on the structure and terms of the deal in question, as well as the timeline for bringing the borrower pool to the community and ultimately getting it funded

Here are some recommended sample deal structures

Below are some of the early actions you will need to take when exploring a deal on the Goldfinch protocol:

• Create your Metamask Wallet: As described above, you will need a Metamask wallet to interact with the Goldfinch Protocol. You should set this up as soon as possible. You can begin the process of setting up your wallet here

• Open your Crypto Exchange Account: You will also need to set up your business account at a crypto exchange to help you convert from fiat to crypto and vice versa. This can be a time-consuming process, so we advise you to get started on this as soon as possible. Here are some crypto exchanges we would recommend. Please let us know if you would like introductions to any of the below

• Open a Bank Account with a Crypto-Friendly Bank: Please begin the process of opening a bank account with a crypto-friendly bank. As you will be receiving large sums of money from your crypto exchange account, it is important to work with a bank that is amenable to crypto transactions. Please see below a list of banks that we would recommend

• Familiarize yourself with communications platforms like Discord, Telegram, Signal, etc. which you need to communicate with the Goldfinch community during your raise process. You can learn more about these here.

• Counsel: Select counsel which is familiar with securities law in the jurisdiction into which you are raising. Your counsel would be responsible for all securities and disclosure advice. Please refer to the KYC Requirements in the Legal Considerations mentioned above for context.

As you look to launch a borrower pool on the Goldfinch protocol, here are the operational considerations you should take into account. For simplicity, we have broken this down into stages. We recommend budgeting a minimum two months of operational prep ahead of your initial launch on the platform.

Currently, as a first step anyone who is interested in Borrowing on Goldfinch should fill out the Borrower Inquiry form.

As we get closer to going live, you will need to decide on what tools to use to run the funding process. These include tools for:

• Sharing and signing of a Non-Disclosure Agreement between your fund and the Backers who will be performing due diligence. We recommend that this be a one-way NDA

• A Dataroom to share diligence information between you and the Backer community. This can be hosted on tools similar to Docsend or Box allowing you to provide tracked, tiered access to your data

• Two-way messaging between you and the Backer community. This can be hosted on a bilateral communication tool allowing you to respond to communicate with Backers. Examples of such tools are Discord or Telegram. Here are descriptions of how to set up a Discord server, and a Telegram group respectively.

• An optional video AMA session where the Backers get to learn about your opportunity and ask you questions. You can host this on platforms such as Youtube or Crowdcast to help add a human touch to your raise

• Optional co-marketing on the launch of your pool with the Warbler Labs team

You will also have to decide on the content and timing of announcements that go out to the Goldfinch community.

Below is a template document to help you track of all things tooling and announcements

Template Announcements + Tooling