Start-Up Guide for the Technopreneur: Financial Planning, Decision Making and Negotiating from Incubation to Exit, + Website

Appendix B

Sample Funding Proposal

Sigma C, Inc. Funding Proposal

This Funding Proposal is dated as of June 17, 2012, and offered by and among Sigma C, Inc., a Delaware Corporation (the “Borrower”), and Prospective Investors (the “Lender”).

WHEREAS, the Borrower has requested that the Lender extend credit to the Borrower consisting of a Revolving Credit Facility in an aggregate amount of $2,000,000 (the “Indebtedness”). This proposed funding represents the third funding round of Borrower. The proceeds from the first round of funding totaling $250,000 allowed Company to complete the Research & Development of its innovative subscription service, patent its core technologies, and successfully conclude Beta testing. The proceeds from the second round of funding totaling $500,000 permitted Borrower to finance the successful commercial launch of its subscription service, ongoing customer support, Website maintenance, and initial marketing efforts.

The drawn proceeds of the Credit Facility shall be used to fund the execution of the Borrower’s growth and expansion plans into new geographic markets requiring further software development for enhanced scalability and localization of service offering, hiring additional sales and marketing personnel, and paying for fees and expenses related to this Credit Facility. The Lender is requested to extend such credit to the Borrower subject to the terms and conditions hereinafter set forth.

Proposed Funding Terms

Revolving Credit Facility Amount ...