12.5 ETH investment (25% stake) in DroneNFTs.io

Status: Proposal Author(s): BenStoneski
Created: 11 December 2021
Discussions-to: Limited due to confidentiality
Implementation (optional): January 2022

Buzzed Summary
Buzzed Bears look for investment opportunities and DroneNFTs.io is the perfect chance to combine two fucking awesome things… Drones and NFTs. I would like to offer a 25% ownership stake in DroneNFTs to Buzzed Bears in exchange for 12.5 ETH to help with the startup costs, marketing, and contribution payments to those that want to assist with this Company. Contributions not to exceed 2.5 ETH per month. Monthly forum for discussion and status updates required.

Abstract ‌
This proposal is to seek out both initial investments via monetary contributions from the honeypot as well as solicit the community to build out the go-to-market strategy and execution of the Company.

Buzzed Bears have over $1M in the DAO and at current prices of $4k per ETH, the investment would approximate $50,000. I have purchased the domain and paid to have my website guy build out the site that will be a place for Drone Pilots as well as other digital artists that are not familiar with Crypto / NFTs to submit their photography, videography, and digital artwork on the blockchain for review, pricing, and minting.

I currently own TopShot Aerial Photography, LLC, an Indiana based Drone company. We have grown the Company 18x since 2016 and have some really great things going on. However, throughout my time with TopShot, my business partner and I have held full time jobs while trying to grow the Company. After 8+ years in public accounting, I have decided to resign from my job (timing TBD) and pursue my passion of entrepreneurship in both TopShot, DroneNFTs, and other small business consulting. I have a lovely wife, a 2.5-year-old son and new daughter who is six months, so the thought of turning down a well-paying salary and going out on my own is a bit scary. But as my degenerate friends like to say, “Scared money, don’t make money” or “You have to spend money to make $money$” :blush:.

Things that DroneNFTs will need:

  • Management, Strategic direction and oversight of business
  • Marketing / Sales support
  • Digital Artist outreach (transform non-crypto artists to Crypto)
  • Process and form submission automation
  • Guidance on best processes and chains to mint high quality photos, video, and digital artwork on the blockchain
  • NFT Platform knowledge and support (OpenSea / Coinbase)
  • Hard work and collaboration
  • Love and support

Motivation ‌
Being the first to market is important. A community working together towards building a successful business is one the coolest things that I could think of for a DAO. If we can bring talented drone pilots and digital artists to the space and help them make money…everybody wins.

I currently own 34 bears and have been a (mostly quiet) Buzzed Bear supporter from minting. I have also submitted my resume to the Buzzed Bears within Bip-015 for consideration to be the HoneyPot manager. This submission is related to the above proposal as I strongly believe that if I was to have some compensation from the Buzzed Bears to pay the bills, we can build out accounting / finance functions within Buzzed Bears (already approved proposal) and build DroneNFTs into a successful business. One of the things I like the most about Buzzed Bears is the thought that the community is all about multiple streams of revenue; this is a great opportunity to get into something on the ground level.

Specification Overview

12.5 ETH to be provided for 25% ownership in DroneNFTs.io to help with the startup costs, marketing, and contribution payments to those that want to assist with this Company. The contributions and use of funds should not exceed 2.5 ETH (or $10,000 per month) which will allow for at least 5 months of runway (likely much more). Additional contributions unlikely and would require separate proposal.

Rationale:

Let’s build a viable business with reoccurring revenue… together

Test Cases ‌

None - I believe we are one of the first to market. #DroneNfts

Copyright ‌
Copyright and related rights waived via CC0.

@CryptoChicca @DefiJesus @n00bleLAND

Is this investing in another nft project or an actual drone company?

If the latter, I’d want to see historical + projected financials & KPIs. Basically a pitch deck with verifiable numbers to support business case. I have trouble seeing this investment as a sustainable option based on description.

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First of all, congrats on the career move and props for putting this out into the world. Like you said, its scary to put yourself out there and I respect anyone that does.

Secondly, its an interesting proposition. However, I do agree with @Jimpson that we would need to definitely see a proper ptich deck with some projections, KPIs, and get some key questions addressed before it can even be considered.

Where is the revenue coming from for DroneNFTs?
What is the $10k/month being spent on?
What’s the business model?
Whats the competitive advantage?
What are the risks?

12.5eth is a big chunk of money. We do not currently have any allocation for investing in businesses. I think it would be amazing to support a Bear in this way, but for the Honeypot it may not make a ton of sense. When you invest in a company, you will only see returns if that company is sold or it starts to pay dividends. In my view, a company like this would not provide any returns for the Honeypot within 3 years. Not saying it can’t happen, but realistically this might be a difficult case to make.

With all that said, I would love to see a proper pitch. Maybe there is another solution rather than buying 25% of a company. Maybe we can start by giving some other kind of support. I don’t currently have an idea for that at the moment, but I’m sure there is a way.

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Love the feedback so far - thank you!
Clarification: The value proposition is to build a platform for photographers, videographers, and other digital artists that are unfamiliar with crypto an easy way to get their content onto the marketplace.

This is sort of the storyboard that is being built out:
|-|Create NFTs from your Drone Photos and Videos|
|-|“Industry Leader in creating one-of-a-kind Drone NFTs”|
|-|“The easiest way to create your own NFT, secured on the blockchain”|
|-|“You need no crypto knowledge – just your content to start making money”|

Under the DroneNFT umbrella, we would have featured artists, pilots, photography / videography categories, etc. We help artists mint and market their collections under the established brand that we build. The way to get ROI would be

  1. Sales of 1 of 1 art (NFTs) and collections.
  2. Build out online marketplace for prints (Etsy / Dropshipping /etc. )
  3. Ongoing royalties

Hope this provides some clarification.

Where is the revenue coming from for DroneNFTs?

  • See above
    What is the $10k/month being spent on?
  • Compensation to the anticipated team members, Google Ads, minting initial collection and to establish a brand name in the space
    What’s the business model?
  • Consulting with artists to get their work on the blockchain
    Whats the competitive advantage?
  • First-ish to market. I have a well-established drone Company to provide initial content and connections in the industry.
    What are the risks?
  • No artists want to participate (potential cost is too high for them to mint…ongoing gas price problem).
  • The digital art that we mint does not sell.

Potentially a lower investment would be preferred? I am going to move forward with this regardless :laughing: …but figured that BBH could get in financially / operationally if anyone was interested. I am already working on the site so potentially when we have a visual it might help. My first digital artist will actually not be Drone related but it is my father-in-law: Dropbox - Wes Shealey - Horses.jpg - Simplify your life

…“12.5eth is a big chunk of money. We do not currently have any allocation for investing in businesses. I think it would be amazing to support a Bear in this way, but for the Honeypot it may not make a ton of sense. When you invest in a company, you will only see returns if that company is sold or it starts to pay dividends. In my view, a company like this would not provide any returns for the Honeypot within 3 years. Not saying it can’t happen, but realistically this might be a difficult case to make.”
…Similar to any DAO that people are invested in right now… when do we get our returns :wink:

I just don’t think this is a BBH funded initiative. There were some discussions of supporting graffiti artists (legally), don’t know where that went.

Hey!!! So good reading this post. Love your ideas. Having read the other comments I tend to agree it needs more flesh out. However, I’m thinking of a different solution. Given the reservations from some bears around not understanding the industry snd future protections etc what if BBH were able to offer the dev services as part of the launchpad. So @Mesk85 is working on a launchpad for artists from the BBH brand and maybe there is some way for the honeypot to earn a bit of money and provide you with the solution to market. That way you keep all the revenue you make but just pay whatever fee it is for that service. As to the love and support I’m happy to provide that haha and I’m always in the hideout if you wanna chat strategic plans vision etc just a thought this avenue may enable you to get in your feed quicker, like you take a deposit from the person and manage their proceeds start to end and utilise the support of BBH to get it to market but for all intents and purpose the customer fees with you direct and it could either be done via the BBH domain or even just maybe your own website so it looks like you provide the full outcome. Some thoughts to consider.

3 Likes