SparkToro is developing a search engine for audience intelligence to help users discover and analyze target audiences. The company announced a $1.3M investment round from 35 individual angel investors to fund product development and private beta testing. SparkToro is organized as an LLC and set up a structure that permits dividends and profit distributions while prioritizing profitable, measured growth over a venture-style "growth at all costs" approach. Under the structure, the company must return all investors' capital before founders receive profit distributions or raise salaries above a fixed cap; in an acquisition investors receive the greater of their initial investment back (less amounts already returned) or their pro rata share of units. Investors have pro rata rights in future rounds and future structural changes require approval by holders of 80%+ of units. The founders made the investment documents public, said they do not plan to hire employees for the next six-to-nine months, will avoid renting office space, keep data and computing costs low, and will reserve most of the round for ramp-up when the public V1 launches.

Total raised

$1M

Funding rounds

1

Latest round

Equity

Latest activity

Jun 2018