Funding Options
Updated: December 5, 2025
Version: 2.0
Business Operations
These are funding approaches for Secret Trees business operations. Not sequential phases - different ways to fund the same ongoing business.
Funding Options for Business Operations
Secret Trees is an ongoing carbon credit business. These are two different approaches to funding operations:
Bootstrap Approach (€130K)
Three-stream fundraising with complete infrastructure
What It Funds:
- Secret Trees Gardens (1 hectare initial demonstration)
- 1 demonstration cottage (complete infrastructure)
- Land preparation, roofing, utilities, solar, water/sewerage
- 14 tonnes CO₂ sequestration
- Working towards EU CRCF certification (Q3-Q4 2026)
- Platform development
Three Revenue Streams:
- Corporate Pre-Sales (€50-60K): Pre-sell Year 1 harvest via Ricardian Contracts
- Subscription Pre-Sales (€10-15K): 100-150 monthly subscribers
- Investor Funding (€55-65K): Two investment options:
- Option A: Equity (7-10% in Secret Trees Gardens LLC)
- Option B: Future NFT Membership (Phase 2, 2027+, governance only)
How It Works:
- Raise €130K from three sources
- Build 1 cottage with complete infrastructure
- Generate revenue from multiple streams:
- Carbon credits: €560-840/ha/year
- Hemp products: €500-1,000/ha/year
- Eco-tourism: €9-25K/cottage/year
- Scale organically with profits
- This is the ongoing business
Timeline:
- Year 0: Build first cottage, prove model (€130K investment)
- Year 1: Grow hemp, generate CCT revenue
- Year 2+: Self-funding begins, organic growth
Budget Update
Previous budget (€85K) was incomplete - missing €45K in essential infrastructure (land prep, roofing, utilities, solar, water/sewerage). Updated to realistic €130K for complete infrastructure.
Accelerated Growth (€350K+)
Optional VC funding for faster scaling
What It Funds:
- Everything in Bootstrap (€130K), plus:
- 2-3 cottages immediately
- Platform team hired earlier
- 5-10 communities onboarded faster
- Marketing and sales acceleration
How It Works:
- Raise from climate tech VCs
- Accelerate cottage construction
- Hire team earlier
- Scale platform faster
- This accelerates the business (optional)
Timeline:
- Year 1: Build 2-3 cottages, hire team
- Year 2: 5-10 communities onboarded
- Year 3+: Faster growth trajectory
Investment Options for Bootstrap (€130K)
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)
- Structure: Property-level investment
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
- Structure: Governance only, launches after Phase 1 success
Recommendation
Start with bootstrap approach (€130K for complete infrastructure).
Consider VCs later if you want to scale faster.
Key Point: These are not sequential phases. They're different funding approaches for the same ongoing business.
Why Bootstrap First:
- Proves model thoroughly with complete infrastructure
- Maintains control
- De-risks investment
- Demonstrates sustainability
- Shows revenue generation
- Two investment options (Equity OR Future NFT)
When to Consider VCs:
- After proving model
- If you want faster growth
- When you're ready to scale
- Your choice, your timing
Business Model
Regardless of funding approach, the business model is the same:
Primary Revenue: Corporate carbon credit sales (ongoing)
- Target: Corporations needing carbon offsets
- Revenue: €10-27K per hectare (multiple streams)
- Certification: Working towards EU CRCF Category 4 (Q3-Q4 2026)
- Timeline: Continuous business operations
Optional Scaling: VC funding for acceleration
- Not required for business operations
- Accelerates growth if desired
- Your choice based on goals
For complete financial details, see Investment Memo and Financial Projections.