Cadi is avoids the cash wasting traps by focusing on Progress.

October 15, 2023

Navigating the challenges of capital management is a critical aspect of entrepreneurship, particularly for Cadi. We adopted an ambitious product-building strategy combined with crowdfunding, which carries the potential for inefficient spending or investing in opportunities that don’t yield a positive return on investment.

While many peers in the crowdfunding space have faltered, our conversation with Howard Marks, the founder of StartEngine, shed light on a common pitfall: mismanagement of funds. Startups can easily fall into financial snares. Fortunately, Matt and I have always been driven by a principle: to endure and succeed, you must spend judiciously. We prioritize investments that bolster our product or steer us towards profitability. Despite the hurdles, Cadi remains resilient and progressive.

It’s been disheartening to observe some partners not delivering the promised value, even as they benefit from Cadi’s growth. This list includes legal teams, crowdfunding platforms, marketers, data providers, and resale agencies, among others. Our focus is now sharper than ever: invest in value-driven products and services that align with our long-term vision.

On the topic of share issuance, let me clarify a few things. Every investor in Cadi rightfully owns their shares, inclusive of any bonus shares. We maintain meticulous internal records that document each investment. The visible difference post-share issuance is the ability to view your investment via dashboards like Dealmaker or StartEngine. These platforms, while regulated by the SEC, unfortunately, leverage their position to impose exorbitant fees for share issuance, not including separate legal costs. Such expenses, at this juncture, are untenable for Cadi. Every dollar spent must contribute towards our growth, not jeopardize it.

We acknowledge the importance of a transparent capitalization table and consistent investor communication. We're streamlining our investment documentation, moving towards consolidating all pertinent data. Subsequently, platforms like Cake and Carta are on our radar for efficient information tracking. Expect the share issuance to align with our ongoing funding rounds.

As always, Go Cadi

Tyler Gottstein

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