I recently received an email from Purism support about an exciting investment opportunity in the company. Me of all people. Here is what it contained:
We are contacting you either because you have directly asked us about investing in Purism in the past, or you are a Purism supporter who we thought would be interested in hearing about a special investment opportunity. If you are not interested and don’t want any more emails from us, please let us know and we will be happy to remove you from this private mailing list.
Purism has accepted investment over the years in the form of convertible notes, generally from larger investors, yet we frequently are contacted by people who would like to invest a smaller amount because they believe in our cause and social purpose, and want to be a part of it beyond just buying our products. Soon after Purism closes a large equity round, this early-stage note opportunity will not be available. We have opened this limited investment opportunity for our supporters to get the benefit of early investment at terms better than the next investment round. That means you!
With this investment opportunity we are accepting increments starting at $1000 and have simplified the entire investment process. We invite you to get more information on this investment round including how to invest, where we will use the funds, and our current progress in this round at our private investment page at https://puri.sm/ir/convertible-note/.
CEO and Founder
I am not the only one who has received this email. In fact there is already a whole reddit thread on it. Now let me give you my baseline thoughts in an effort to kick off a rational discussion on this event:
As far as I’m concerned, this is spam. I neither solicited this kind of communication from Purism nor expected it.
The informational page here is misleading on the surface as it appears to indicate that Purism has raised 2.5 million dollars on day one, when in reality if you scroll down they clarify that 2.5 million of it was raised back in December of 2019.
Purism states that if you invest, these are the terms of the agreement, between you and them. However given that Purism has already retroactively changed the terms of their return policy for Librem 5 buyers/backers/investors more than once, I wouldn’t trust that statement. Unless its signed and notarized, you have no way of forcing Purism to keep their word.
They claim up front that the note will pay 3% interest annually but then later on imply hat you should not expect to receive annual interest payments and instead expect that to become equity during a conversion event of some sort:
When do I get my return on investment?
This is considered early stage investment, typically in growing technology companies, whereby you desire to invest early and see all the upside of holding that investment past the conversion event—where you become a shareholder—and into future equity events, such as dividend payments, IPO, or acquisition. This process is typically measured in years, and should not be considered a short-term investment.
Beyond that, I’m curious to hear what thoughts others in this community might have on this event.