Test 056

Sarah’s close note is here. From: Sarah Kim To: Morgan Chen, Devon Hayes Cc: Anna Martinez Date: Thu, 22 Feb 2024 10:58:00 -0800 Subject: Northstar close confirmed + board memo points Morgan, Devon, Anna — - Scaffold’s $18M Series B has closed. - Northstar Ventures led the round. - Sofia Alvarez / Northstar board seat is effective at close. - Final board and stockholder signatures are in, the amended and restated certificate has been filed, and the release call is complete. Board-package memo points - The round got done on the bounded case we have been using, not on a widened growth story. - Mercury’s activation / first-admin path is better in a way we can defend: Sep 2023 15/24 activated within 7 days and 12/24 first live sync; Oct 2023 19/27 activated and 16/27 first live sync. - Hybrid pricing is credible enough for the current landing motion: Pilot $2,500/month up to 50 monthly active developers, Growth $7,500/month up to 200 monthly active developers, and overage $1,000 per additional 50 monthly active developers. - Evergreen is the clearest current enterprise-pattern signal because the bounded flow worked for a second-admin group without customer-specific exceptions. - Evergreen still points to the open enterprise-readiness backlog rather than finishing it: SSO timing, admin-change audit history, admin-versus-billing-owner separation, and a standalone procurement packet. - Expansion should still be described as something we have to earn. Better activation does not equal solved expansion. - Post-close board expectations should sit on retention evidence and enterprise expansion milestones, not a fast Series C story. - Milestone shape I would use: protect the activation gains; improve first-admin to second-admin handoff; make the enterprise-readiness backlog legible and shippable; turn Evergreen-style signal into repeatable evidence without inventing custom exceptions. Devon’s unchanged near-final investor note is below so it stays in one place before anything goes out. - Hold until Sarah confirms actual close. - Subject: Scaffold financing update - Investors — - $18M Series B led by Northstar Ventures, with Sofia Alvarez joining the board at close. - I want the note to stay plain: workable oxygen on a bounded story we can defend, not a victory lap. - The case that got underwritten is the same one we used through diligence: better Mercury activation / admin path, credible hybrid pricing, Evergreen as a real enterprise-pattern signal, and expansion still not solved. - September cohort: 24 accounts in the bounded Mercury flow; 15/24 activated within 7 days (63%); 12/24 reached first live sync within 7 days (50%). - October cohort: 27 accounts in the bounded Mercury flow; 19/27 activated within 7 days (70%); 16/27 reached first live sync within 7 days (59%). - Activation lift here means more real-source connection and week-one live sync, not preview / sample behavior. - Evergreen is still the clearest current enterprise-pattern example because the bounded flow worked for a second-admin group without customer-specific exceptions. - Evergreen also kept the next backlog explicit: SSO timing, admin-change audit history, admin-versus-billing-owner separation, and a standalone procurement packet. - Hybrid pricing remains Pilot $2,500/month up to 50 monthly active developers; Growth $7,500/month up to 200; overage $1,000 per additional 50. - MAU is still the honest ramp measure; no seat / directory reframing and no Evergreen carveout. - What has not changed: expansion after initial admin / setup remains uneven and still has to be earned. - We are not reading the financing as proof that enterprise readiness is done or that Mercury expansion is suddenly clean. - Post-close board focus should stay on retention evidence and enterprise expansion, not a fast Series C narrative. - Closing line I was aiming for: narrow process, defensible package, no fundraising theater. Now that this is actually closed, please build the final close package: a short internal team note from me, plus a final tone pass on Devon’s investor recap before he sends it. Keep the memo grounded in the same unflashy facts — better Mercury activation, credible hybrid pricing, Evergreen as the clearest enterprise-pattern signal, and expansion still needing to be earned. Post-close milestones should point to retention evidence and enterprise expansion, not a fast Series C story.