Funding Options

Updated: December 19, 2025
Version: 4.0
Author: Secret Trees Core

Key Insight

Secret Trees doesn't need €4.2M to build 100 cottages. It needs 100 signed Ricardian Contracts (demand-first).

The GreenPact Protocol

The Breakthrough: Demand-First Funding

Each cottage costs €84K. Here's how it gets funded through the GreenPact model:

Source	Amount	%	Who Provides
Secret Trees	€84,000	100%	Investor equity + subs + profits
Construction Company	€0	0%	Contractor (paid normally)
Property Owner	€0	0%	Land only (no cash)
Total	€84,000	100%

Why This Works: Property owners provide land only (zero cash investment). Secret Trees funds 100% of the cottage (construction companies are just contractors). Everyone achieves 20% returns at scale (25-50 cottages). This future cash flow can be used as collateral.

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Three Funding Pillars

Pillar 1: Property Owner Land (0% Cash)

Who: Landowners with 1+ hectares suitable for hemp cultivation

What They Contribute:

• Land only (no cash investment required)
• Property owners manage their own bookings/rentals

What They Get:

• Fixed rent: €3,000-5,000/year
• Profit share (20%): €4,000-5,000/year
• Total: €7,000-10,000/year on ZERO cash investment

Why They Participate: Passive income with zero risk - they provide land only.

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Pillar 2: Secret Trees Platform (100% - €84K)

Who: Secret Trees as the coordinating platform

What We Contribute:

• €84K per cottage from multiple sources:
  • Investor equity
  • Subscription revenue
  • NFT sales (Phase 2)
  • Reinvested profits

What We Get:

• 80% of rental profits (after property owner share)
• All CCT revenue (carbon credits)
• Hemp by-products revenue
• Platform coordination fees

Why This Works: Multiple funding sources reduce risk, profits reinvest into growth.

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Pillar 3: Construction Companies (Contractors)

Who: Local construction companies specializing in hempcrete/sustainable building

Role: Contractors paid normally for their work (NO investment required)

What They Contribute:

• Construction expertise and labor
• Local knowledge
• Materials procurement

What They Get:

• Paid for construction work (normal contractor relationship)
• Steady work pipeline as platform scales
• Specialty in sustainable construction (portfolio builder)

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Bootstrap Phase (€130K)

Proving the Model First

Before scaling to 100 cottages, we prove the model with 1-2 demonstration cottages at Secret Trees Gardens.

Three-Stream Fundraising:

Stream	Amount	Source
Corporate Pre-Sales	€50-60K	2-3 corporations pre-buying CCT
Subscription Pre-Sales	€10-15K	100-150 monthly subscribers
Investor Funding	€55-65K	5-10 investors (equity or future NFT)
Total	€130K

What €130K Funds:

• 1-2 demonstration cottages (complete infrastructure)
• Land preparation, roofing, utilities, solar, water/sewerage
• MRV device testing and validation
• Platform development
• Working towards EU CRCF certification

Investment Options for Bootstrap Phase

Option A: Equity Investment

• Stake: 7-10% equity in Secret Trees Gardens LLC
• Benefits:
  • Profit sharing from property revenue
  • Property appreciation
  • Cottage usage rights
  • Exit potential (acquisition/IPO)
• Legal: Private placement (accredited investors)

Option B: Future NFT Membership

• Offer: NFT membership (after Phase 1 complete, 2027+)
• Benefits:
  • Lifetime platform access
  • DAO governance rights (if 3+ NFTs held)
  • Platform fee discounts (20% off)
  • Founding member status
  • NO financial returns (legal compliance)
• Legal: Digital collectible via Latvian Biedrība

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Scaling Phase (100 Cottages)

The Self-Sustaining Flywheel

Once the model is proven, scaling happens through the GreenPact mechanism:

Year 1: 2 cottages operational

• Generate €80K revenue
• Platform takes €8K in fees
• Reinvest to fund 2 more cottages

Year 2: 5 cottages operational

• Revenue: €200K
• Platform fees: €20K
• Corporate pre-sales fund 5 more cottages

Year 3: 15 cottages operational

• Revenue: €600K
• Platform fees: €60K
• Flywheel accelerates: corporate demand exceeds supply

Year 4: 40 cottages operational

• Revenue: €1.6M
• Platform fees: €160K
• Multiple property owners joining the network

Year 5: 100 cottages operational

• Revenue: €4M+
• Platform fees: €400K+
• Self-sustaining ecosystem

Platform Revenue at 100 Cottages

Revenue Stream	Conservative	Optimistic
CCT Fees (Origination + Trading)	€75K	€150K
Cottage Coordination Fees	€420K	€420K
Rental Commissions	€220K	€490K
Subscriptions	€120K	€750K
Verification Fees	€20K	€50K
Total Annual Revenue	€855K	€1.86M

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Why GreenPact Works

For Property Owners

• ✅ €7-10K/year income on ZERO cash investment
• ✅ Provide land only - no construction risk
• ✅ Manage their own bookings (their business)
• ✅ Professional platform support

For Corporations

• ✅ 25-50% below market pricing
• ✅ Immediate tax write-off
• ✅ Guaranteed delivery (Ricardian Contract)
• ✅ Blockchain verified

For Construction Companies (Contractors)

• ✅ Steady work pipeline (paid normally for work)
• ✅ No investment required from them
• ✅ Long-term partnership opportunity
• ✅ Growing market in sustainable construction

For Secret Trees Platform

• ✅ Multiple funding sources (equity + subs + NFTs + profits)
• ✅ Fee-based revenue model
• ✅ 20% returns achievable at 25-50 cottage scale
• ✅ €855K-1.86M at 100 cottages

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EU Funding (Bonus Accelerator)

Important

EU funding is a BONUS accelerator, NOT the business foundation. Secret Trees MUST be self-sustaining without grants.

Potential EU Programs

• Horizon Europe: Climate tech innovation grants
• LIFE Programme: Environmental projects
• LIAA (Latvia): Business development support
• EIC Accelerator: Scale-up funding

Why It's Optional

• Business model works without grants
• Grants have long timelines (12-24 months)
• Compliance requirements add overhead
• Self-sustaining model is more attractive to investors

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Next Steps

• Business Model - Complete platform model
• Growth Model - 5-year projections
• Financial Projections - Detailed numbers
• Investment Memo - Executive summary

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Last Updated: December 20, 2025
Version: 4.1
Author: Secret Trees Core