The Polymath will be a weekly news magazine publishing analysis and commentary at the highest level of intellectual sophistication. Like all startups, it will require some initial capitalization.To that end, we are engaging in an ongoing reward crowdfunding that will likely transform into an equity crowdfunding that has the potential for extraordinarily high returns. Our goal is 100K USD, which in our case, will be used primarily for building circulation mainly by promoting the formation of the Leonardo Blog Network, however, some will be used to fund prelaunch operations. It is our intent to be immediately profitable upon launch, with investment in circulation, if any, limited to cash flow. So, there should be no need to fund losses. For more seasoned investors, our burn rate should be nil.
We are using an innovative capitalization (crowdfunding) method that will provide significant flexibility for both The Polymath (Polymathica Media Corporation) and its investors. It will involve the issuance of 1/12 page in-line ads that, at the company's discretion and without assurances, may be converted to equity shares. Because you will be buying advertising, there will be no initial securities restrictions and there could be immediate liquidity (there will be no restrictions on sale). Once the offering is completed, the ads will be converted to shares in a Turks & Caicos LLC, Polymathica Media Corporation, LLC, at the rate of one ad = 10 shares.
Once this Round One financing is completed and The Polymath has been launched, a Round Two offering will be made. It will also offer 200,000 shares, however, the share value is expected to be 5USD (equivalent to $500 ads) for a total proceeds of 1.0 million USD. Once fully subscribed and deployed, a Round Three may be offered for another 200,000 shares at a share price to be determined at that time. The determination of whether there will be a Round Three will be based primarily upon the success of subscriptions efforts.
Round One will provide $100,000 of funding. Use of proceeds will be as follows:
Build Subscriptions $45,000
Fund Operations $45,000
Crowdfunding Expenses $10,000
The Polymath will publish a weekly, pdf magazine with no subscription cost and ad supported. It's articles will be general news and published at the highest level of Intellectual Sophistication (a term referring to a combination of intelligence, erudition, objectivity and intellectual discipline). The magazine will be targeted at the upper 4% of the population in intelligence.
Psychologist Dean K. Simonton found that speakers are most persuasive when speaking to an audience with an deviation IQ about 1.2 sigma (standard deviations) below their own. In the article, 'The Inappropriately Excluded' a number of inferentially supportive studies are cited. At present there are virtually no publications writing to this market, which will average around +2.3 sigma deviation IQ. This is odd, in that this IQ level, in common parlance, around 134, is characteristic of people in leadership positions in the intellectually elite professions. Not only are they thought leaders, they are generally in influential positions to affect purchase decisions. In other words, advertisors should have a high interest in reaching them in cost effective ways.
With about 2 billion people on the Internet, this market is estimated to be about 80 million, though, since there is a positive correlation between IQ and Internet use, it may be a bit higher. However, The Polymath will appeal to the intellectually sophisticated, not just the high IQ person. The content will assume more than a little emphasis on erudition and objectivity. Since there is not correlation between IQ and objectivity, we expect that, for us, market saturation will be around 10% or 8 million. Based upon tested and verified virality rates, we are projecting circulation at launch + 3 years at 4.2 million.
Both our source of writers and much of our subscriptions will derive from the Leonardo Blogger Network, it is important to consider it when considering the marketing strategy for The Polymath.
The Profit Model
The Polymath will control expenses by allocating a percent of revenue to each function. Experience, of course, can, and probably will, modify this somewhat, but we believe that it is more or less accurate.
Payment to Author 45%
Ad Sales 5%
At our 4.2 million three year circulation goal, assuming 96 pages of advertised content per week, income will be 4200 X 10USD CPM X 96 pages X 52 weeks X 30% profit = 62,899,200 USD or EPS of $6.29. At 25 P/E this imputes a market value of 157.25 USD. This translates to 570% annual return, well above the usual expectations for Angels and Venture Capitalists. Clearly, as with all investments at this point in enterprise development, the returns are so high because the risks are so high. Because this is a crowdfunding program with a reward of prepaid ads and, at higher levels, other forms of enticement, the disclosure rules of equity sales do not apply. Still, we make the same disclaimers. There is no guarantee that The Polymath will be economically viable. We believe that it will be wildly successful, but that is an opinion, not a assurance.
It is very important to recognize that the growth and profitability of The Polymath and, ultimately, Polymathica Media Corporation, LLC will be predicated upon the success of the Leonardo Blogger Network, since we will be relying upon it for both content and subscribers. If, ultimately, that is not successful, we will still pursue The Polymath, though the early years of profitability will be less. While, at the lower levels of one to three ads, we may consider the support to be primarily for The Polymath with lesser consideration of the potential gains in value. However, at the higher levels of support, we strongly suggest that the potential viability of the Leonardo Network to be considered.
Polymathica Media Corporation, LLC
Our market of 8 million intellectually sophisticated media consumers are poorly served in virtually all forms of media. We are beginning with news blogs and a magazine, but they are also under-served in video news media, entertainment video media, books, journals, lifestyle magazines and video, podcasts, etc. In other words, once we have assembled the communication channels to this market, there are many more media opportunities. By developing all of them, Polymathica Media Corporation could grow in market capitalization to 20 billion USD or similar to Fox Corporation. This will result in per share valuation of 2,000 USD or 4,000X appreciation. If we accomplish this, as we hope within ten years, this will provide the investor with a sustained capital appreciation of 2.29X per year. A single 50USD prepaid advertisement will result, ultimately, in a valuation of 200,000USD.
A Vision, Not Just an Investment
We are doing this, not as an investment opportunity but as a vision. The current state of the news media is horrible. Virtually every outlet presents highly biased content. Additionally, because news is generally presented in short snippets, it is vastly overly simplified. This is extremely damaging to society because these consumers of sophomoric and biased news use it to inform them on their choice of leaders. These +2.3 sigma, intellectually sophisticated readers of The Polymath are thought leaders among their social sphere. Consequently, exposing them to more intellectually sophisticate analysis, these conclusions will spread out from each of them and 'discombobulate' the partisan and disingenuous rhetoric being spread by politicians and their supporting news media. Soon, we will present an article entitled 'Medicare Advantage for All' that presents a workable plan to solve the many problems of the U.S. healthcare system. Not only will this improve the workings in the U.S., it will likely be emulated in much of the developed world whose healthcare systems are less than optimal. This one article can change the world for the better, not in a partisan way but in an intellectually sophisticated way. However, it can only do that if it is widely read. Leonardo and then The Polymath can do that.
The point is that while we are trying to raise money on this page, the purpose is to improve the modern world.
The Crowdfunding Offer
Reward Crowdfunding provides ever greater rewards for larger support. Ours is somewhat different because you will be buying prepaid ads that will, with success of The Polymath, provide a reward greater than the contribution. However, we will also provide an additional reward for larger purchases, as follows:
50USD: one prepaid ad and an email for your records substantiating your support
150USD: three prepaid ads, an email for your records and membership in a private group called 'The Polymath'.
350USD: seven prepaid ads, an email for your records, membership in a private group called, 'The Polymath' and participation in a quarterly conference call once The Polymath is launched
1,000USD: twenty prepaid ads, an email for your records, membership in 'The Polymath', quarterly conference calls and listing as a Founding Patron on the Title Page of each issue of The Polymath
3,000USD: sixty prepaid ads, an email for your records, membership in 'The Polymath', quarterly conference calls, listing as a Founding Patron and membership in the Editorial Advisory Committee (equivalent to the Board of Directors) for the first two year term, after which membership is via shareholder election. The reason for this last reward is because you have made a substantial financial commitment and you should have substantial input durng the early stages of the development.
Why a Turks & Caicos LLC?
Once we have completed the original reward crowdfunding, it is our intent to incorporate The Polymath as Polymathica Media Corporation, LLC, a limited liability corporation of Turks & Caicos. While we could change the location of the incorporation upon legal counsel's advice, it is not likely. Turks & Caicos LLCs provide many advantages
- Not only are Turks & Caicos LLCs not subject to income tax, unlike other jurisdictions, that is guaranteed for 20 years, even if a corporate income tax is instituted later.
- It may be incorporated with just one person and that person need not be a resident or citizen of Turks & Caicos.
- Stockholders are not reported to the government of Turks & Caicos. That means that Turks & Caicos cannot interfere in your equity position and it will not report that position to your government.
- It is very important that The Polymath does not appear associated with any of the large nations of EUNA (Europe and North America). While Turks and Caicos is a member of the British Commonwealth, it is a sovereign nation that does not participate in an meaningful way in global geopolitics. It can be viewed as 'neutral ground'.
- As a globally owned corporation, Board Meetings and Stockholders' Meetings have no natural location. While we may move them around EUNA over time, Turks and Caicos is about as idyllic a location as can be found. It is becoming the Monaco of the Western Hemisphere, but it is nowhere near as cramped.
- Because it is part of the British Commonwealth it is not viewed as suspiciously as other 'tax havens'. Banking is easier and if we begin issuing dividends in the future, the international transactions should be less complicated.
If The Polymath interests you, of course, you should subscribe to The Polymath. Prior to launch it will be used to provide interested parties with updates and further information. For example, we are working on setting up a monthly subscription where you can buy a fixed number of ads every month with an automatic deduction for six months with a possible renewal period. Remember, if we hit our three year goal, a 150USD purchase could be worth 50,000USD and ultimately, perhaps, as much as 500,000USD. So, don't hesitate simply because you can only afford to purchase a few ads at this time. We look forward to welcoming you to our team.