1. Program Overview
EduCreds Labs is raising $100,000 in pre-seed funding structured as three tranches aligned with achievable milestones. This structure protects investor capital by releasing funds only as the company demonstrates progress, while providing EduCreds with sufficient runway to reach key commercial inflection points.
Tranche 1 ($25,000) is being pursued as a non-dilutive grant to cover foundational requirements — legal incorporation and production readiness — without requiring SAFE conversion at the earliest stage. Tranches 2 and 3 ($75,000 total) are structured as SAFE instruments with a post-money valuation cap of $2,500,000.
| Tranche | Amount | Timing | Instrument | Unlock Trigger |
|---|---|---|---|---|
| Tranche 1 | $25,000 | Q3 2026 | Non-dilutive / Grant | Initial commitment — foundational activities |
| Tranche 2 | $50,000 | Q4 2026 | SAFE ($2.5M cap) | Legal incorporation complete, pilot deployed, 3+ institution LOIs |
| Tranche 3 | $25,000 | Q1 2027 | SAFE ($2.5M cap) | 5 pilot institutions active, revenue pipeline established |
| Total | $100,000 | Q3 2026 – Q1 2027 | Mixed | Path to $250K–$500K Seed round by Q3 2027 |
2. Tranche 1 — $25,000 (Q3 2026)
Tranche 1 funds the non-negotiable foundation: legal status, production infrastructure, and the first five institution pilots that generate the traction evidence required for Tranche 2 investment.
| Line Item | Amount | % of Tranche | Rationale |
|---|---|---|---|
| Legal & Incorporation (URSB, blockchain compliance) | $5,000 | 20% | Required before investment closes; company must be formally incorporated under URSB to sign contracts, open bank accounts, and receive equity investment. Includes blockchain legal compliance review. |
| Cloud Infrastructure & Security Hardening | $4,000 | 16% | Production-grade Azure infrastructure configuration, security hardening, SSL certificates, penetration testing, and load testing. Currently supplemented by Microsoft for Startups Azure credits but additional spend required for pilot-grade deployment. |
| Product QA & Pilot Deployment (5 institutions) | $6,000 | 24% | Quality assurance testing across all 7 microservices, bug resolution, UI/UX refinements, and onboarding support for the first 5 pilot institutions. Pilot results generate the traction evidence for Tranche 2 investor conversations. |
| Team Stipends (4 months, core team) | $7,000 | 28% | Modest stipends for the founding team through the fundraise period. Without minimum income support, founders face pressure to take external employment, creating a key-person risk at the most critical stage of the company. |
| Operations & Administration | $3,000 | 12% | Running costs: domain renewals, software subscriptions, office/coworking space at National Innovation Hub, communication tools, and miscellaneous operational expenses. |
| Total Tranche 1 | $25,000 | 100% |
3. Tranche 2 — $50,000 (Q4 2026)
Tranche 2 transitions EduCreds from a pre-revenue platform to a market-ready business with active sales, regulatory standing, and a growing institutional customer base.
| Line Item | Amount | % of Tranche |
|---|---|---|
| Sales & Marketing (events, partnerships, outbound) | $20,000 | 40% |
| Regulatory Compliance & Legal (data protection, contracts) | $10,000 | 20% |
| Product Development (features, API, employer portal) | $12,000 | 24% |
| Team Expansion (1–2 sales/engineering hires) | $8,000 | 16% |
| Total Tranche 2 | $50,000 | 100% |
4. Tranche 3 — $25,000 (Q1 2027)
Tranche 3 funds East Africa regional expansion and positions EduCreds for the Seed round with active revenue and a multi-country presence.
| Line Item | Amount | % of Tranche |
|---|---|---|
| Regional Expansion (Kenya, Tanzania — legal, partnerships) | $12,000 | 48% |
| Demonstrations & Industry Events | $5,000 | 20% |
| Product Localisation (Swahili, Kenya SIS connectors) | $5,000 | 20% |
| Operations | $3,000 | 12% |
| Total Tranche 3 | $25,000 | 100% |
5. Allocation Visual Overview
6. Milestones Unlocked by Each Tranche
Tranche 1 ($25,000) — Q3 2026 Deliverables
- EduCreds Labs formally incorporated under URSB — legal entity established
- Production infrastructure deployed and security-hardened on Azure
- 5 pilot institutions onboarded and issuing test credentials
- First verified credentials issued and verified end-to-end on production infrastructure
- Founding team retained through Tranche 2 fundraise
- Investor-ready outcome: Legal entity + working product + first institutions = Tranche 2 trigger
Tranche 2 ($50,000) — Q4 2026 Deliverables
- First paying customer contracts signed (target: 5–10 institutions)
- $10,000–$30,000 ARR established
- Employer verification product launched with 2–3 anchor employer clients
- Kenya market entry legal and partnership groundwork complete
- PDPA compliance and DPA templates finalised
- Investor-ready outcome: Revenue + employer network + Kenya entry = Tranche 3 trigger
Tranche 3 ($25,000) — Q1 2027 Deliverables
- Multi-country presence: Uganda + Kenya (+ Tanzania in progress)
- 20+ institutions in pipeline; 10+ paying customers
- $75,000–$100,000 ARR run rate
- SAFE conversion pathway active (qualifying Seed financing in progress)
- Investor-ready outcome: Multi-country + $100K ARR = Seed round readiness ($250K–$500K target)