Translucent Portals Inc. Opens Door For Series A Funding
DALLAS, Aug. 15, 2019 /PRNewswire-PRWeb/ -- With a confident CEO and a sustainable, scalable business model, Translucent Portals Inc. wants to give Facebook a run for its money. Valued at $33 million, the user-driven production and distribution company for niche market media content is currently raising $3.3 million in Series A funding with an eye to expanding its operations. The company currently generates revenue through online subscription sales and advertising on its Teacher's Partner website and is readying to launch its next website, ROUSIX, to help motivate K-12 students.
Offered via a private placement memorandum, shares in the Series A funding round are priced at $0.033 apiece. The round is structured as an 11.1% convertible debt instrument with a 36-month lock-up period. Holders will retain the option to convert their loans into common class A shares of Translucent Portals Inc.
"The company will not retain the right to prepay notes," explains founder and CEO Adam S. Hamid. "We want to appropriately compensate investors for their belief in our unique business model."
Hamid started Translucent Portals in 2017, funding his startup by charging $35,000 to his personal credit cards and borrowing an additional $40,000 from friends and family. The Series A funding will enable him to rent office space, hire additional staff, purchase inventory and equipment, expand marketing efforts, and prepare the necessary Rule 15c2-11 documentation.
Translucent Portals generates at least $1.1 million annually through subscription and advertising sales and spends $2,400 a month on ads. "Our monthly cash-burn rate is currently $3,400," says Hamid, who has been taking a token salary of no more than $100 per week.
With the Series A round underway, Hamid is already looking ahead toward Series B, in which Translucent Portals will become a publicly listed company through a reverse merger with a public company. "We aim to be publicly listed in September and freely trading shortly thereafter," Hamid says.
With his "A-Team" advisory board of educators, bankers and business experts, Hamid foresees bright prospects for Translucent Portals. The young entrepreneur's confidence springs from knowing what it takes to overcome adversity. Hamid rediscovered his faith and tutored fellow inmates while serving over nine years in federal prison for drug-related offenses. At the same time, he studied economics and marketing at Ohio University via correspondence. "In solitude, I was able to gather my thoughts, reflect on my past, and create my future," he reveals.
The company's distribution model involves a wide variety of websites, each targeting a particular niche market with at least 100,000 members. Hamid is confident the company can attract at least 10% of those users to the corresponding sites, thereby building dedicated communities whose members contribute content for use by others in the community. Each site's community will become a ready-made audience for advertisers to target, so ad sales will make up most of the company's revenue.
By providing an extensive quantity of unique niche content on each site, Translucent Portals anticipates being able to sell high volumes of related products. Content development costs will be minimal because end-users will be producing most of the sites' downloadable materials, thus maximizing the company's returns.
"Multiply the potential number of users per site by the number of interest groups, and you'll see that the total number of memberships network-wide could be enormous," says Hamid. "We want to give people a way to earn money from the content they've created by distributing it widely through our channels. People's time and energy has value, so we believe they should share in the gross revenues."
People who license material they've developed to the platform will get paid. Just like musicians, authors and actors, those who contribute content will earn residuals whenever someone downloads or views their materials. Each site will split 70% of its total revenue proceeds among the content creators on a prorated basis. "Think YouTube meets iTunes meets Facebook," explains Hamid.
About Translucent Portals
Focusing on niche markets such as education and local areas, Translucent Portals builds dedicated communities of members who both supply and consume the content offered on its websites. For more information, visit http://translucentportals.com.
SOURCE Translucent Portals Inc.
