Internal Proposal · Prepared for Discussion

Funding the next phase of Paleon Training.

A cost accounting of what's already been built, a funding ask to take it to market in Nigeria, and the numbers behind how it breaks even.

Prepared for
Founding partners
Platform
Paleon Training Portal
Target market
Nigeria

01 — Executive Summary

The platform is built. What's missing is capital, not code.

Between the two of you, the Paleon Training platform has already been built to a production-ready standard: a full learning management system with five complete curricula, a working payment system, and an admin back-office — represented on paper by roughly 950 hours of software development and 200 hours of curriculum authoring, contributed without either partner drawing a salary.

What the business needs now isn't more building — it's the cash to go from "built" to "selling": a real payment gateway for the Nigerian market, a marketing budget to acquire the first paying students, and a small working-capital buffer. This document sets out that cost, proposes a funding structure for a third partner to cover it, and works through — with real course pricing and cited market data — how the business breaks even and turns a profit.

Sweat equity to date
£34,500
950 dev hrs + 200 content hrs @ £30/hr
Recommended raise
£15,000
see funding ask, §5
Break-even
2–11 months
depending on traction, see §6

02 — What's Been Built

A production LMS, not a prototype.

The platform is live and in active use. It includes:

One real gap to flag honestly: the payment gateway is currently a placeholder that simulates a successful charge — it was built this way deliberately to get the platform working end-to-end first. Before real Naira transactions can flow, it needs to be connected to an actual Nigerian payment processor (Paystack or Flutterwave are the standard choices). This is accounted for in the funding ask below.

03 — Market Opportunity: Nigeria

A large, young, underserved, mobile-first market.

Nigeria is not a speculative market to enter — it's already the platform's designed home currency and payment rail. The macro case is strong:

Competitive landscape

The market is real enough that competitors already exist and are well-funded: Decagon, AltSchool Africa, and Utiva are the established names, alongside HNG Internship, Semicolon, and ALX Africa. None of them currently cover the specific mix this platform does — cyber security, GIS/drone mapping, and renewable energy digital systems alongside the more commonly-offered digital marketing and social media tracks — which is a genuine differentiation angle, not just a pricing one.

04 — Development Cost Breakdown

What it would cost to build this from a standing start.

At a blended rate of £30/hour for two developers, here is what the platform represents in market-rate development time — this is the sweat-equity basis for the ownership discussion in §7, not a bill either partner is owed.

WorkstreamHoursCost @ £30/hr
Project setup, database schema, Docker/infrastructure50£1,500
Auth & role-based access (student / instructor / admin)70£2,100
Course / module / lesson content system140£4,200
Quizzes, assignments & capstones140£4,200
Enrollment & payment-gating logic50£1,500
Payments (gateway, bank transfer, FX, admin confirmation)120£3,600
Admin panel (candidate management, CRUD)90£2,700
Frontend UI build-out (39 components, responsive/mobile)160£4,800
QA, bug-fixing, cross-device fixes80£2,400
Deployment & DevOps25£750
Marketing pages25£750
Software development subtotal950£28,500
Curriculum authoring & illustration (5 curricula, 98 lessons) — instructional design, not software dev200£6,000
Total value contributed to date1,150£34,500

This reflects two people working with heavy AI-assisted development, completed over roughly two weeks — not a claim about typical unassisted developer velocity. The hours are an itemized effort estimate by feature area, cross-checked against the codebase's actual scope (lines of code, migrations, services, components), not a reconstruction of the real calendar time spent.

05 — The Funding Ask

£10,000 covers the minimum. £15,000 is the safer number.

£10,000 is workable, but it's tight — it funds roughly three to four months of meaningful marketing spend before the business needs to be self-sustaining off enrollment revenue, with very little buffer if the first marketing channel underperforms. £15,000 gives the same plan a six-to-nine-month runway and a genuine contingency line, which matters more than the extra £5,000 given that customer acquisition cost for this market is currently unproven.

Use of fundsLean (£10,000)Recommended (£15,000)
Marketing & customer acquisition£4,000£6,500
Payment gateway integration (Paystack/Flutterwave) & compliance£1,500£1,500
Hosting & infrastructure (12 months)£1,500£2,000
Legal & regulatory (company/NDPA compliance, contracts)£1,000£1,500
Content maintenance budget—£1,500
Contingency / working capital£2,000£2,000
Total£10,000£15,000
Recommended £15,000 allocation
Ranked by share of the raise
Marketing & customer acquisition £6,500 Hosting & infrastructure £2,000 Contingency / working capital £2,000 Payment gateway integration £1,500 Legal & regulatory £1,500 Content maintenance budget £1,500

06 — Break-Even & Profit Projections

Grounded in the platform's real course pricing.

These figures use the platform's actual, already-live course prices — this is not a hypothetical pricing exercise.

CoursePrice (NGN)
Renewable Energy Digital Systems₦250,000
Cyber Security Fundamentals₦200,000
GIS & Drone Mapping₦200,000
Digital Marketing₦150,000
Social Media Management₦150,000
Average course price₦190,000

At an illustrative £1 = ₦2,000 (verify against the live rate — the Naira has been volatile), the average course nets roughly £95, or £92 after a ~3% payment-processing fee. All projections below use £92 net revenue per enrollment.

Three enrollment scenarios

ScenarioEnroll./moMonthly marginMo. to £15kYr 1 profit
Conservative15£1,38010.9£13,560
Moderate40£3,6804.1£41,160
Optimistic100£9,2001.6£107,400

Year 1 net profit = 12 months of margin at that rate, less ~£3,000/year in ongoing hosting and platform costs. Figures are gross margin (revenue net of payment fees) before any owner drawings or tax.

Cumulative margin vs. the £15,000 funding line
Twelve months, three enrollment scenarios
£0 £30k £60k £90k £120k 0 2 mo 4 mo 6 mo 8 mo 10 mo 12 mo £15,000 — funding recovered £16,560 £44,160 £110,400
Conservative — 15/mo Moderate — 40/mo Optimistic — 100/mo

These are illustrative, not forecasts — customer acquisition cost for this market is unproven. Treat the conservative case as the planning assumption and the other two as upside, and validate CAC with a small pilot spend before committing the full marketing budget in one go.

07 — Proposed Equity Structure

A starting point for negotiation, not a formula to accept as-is.

One defensible, transparent way to value the split: treat the £34,500 of development work as the two founding partners' contributed value, add the incoming partner's cash, and split ownership proportionally to what each side put in.

If the raise isIncoming partnerEach founding partner
£10,00022.5%38.75%
£15,000 (recommended)30.3%34.85%
Treat this as a discussion starter, not a term sheet. Sweat-equity valuation by hourly rate is one legitimate method, but a cash investor taking real risk on a pre-revenue product will often reasonably push back on it — pre-revenue "cost to rebuild" and "what it's actually worth today" are different numbers. Get a solicitor or accountant to draft the actual shareholders' agreement before anyone signs anything; this section exists to give you a reasoned number to walk in with, not to replace that advice.

08 — Risks & Mitigations

What could go wrong, and what's already in the plan for it.

RiskMitigation
Payment gateway is currently mockedFunded explicitly in the £15k ask (§5) — first task before any real revenue can flow
Naira/FX volatilityPricing is already Naira-native; keep a GBP contingency buffer rather than converting all cash upfront
Unproven customer acquisition costValidate with a small pilot spend before committing the full marketing budget
Established competitors (Decagon, AltSchool, Utiva)Differentiate on curriculum mix (cyber security, GIS/drone, renewable energy) they don't cover
Nigeria Data Protection Act (NDPA) complianceBudgeted under legal & regulatory (§5) before handling Nigerian user data at scale
Curriculum currency (esp. cyber security)Content maintenance budget line reserved specifically for this (§5)
Key-person dependency (2–3 people)Document processes as the team grows; revisit once past break-even

09 — Next 90 Days

What happens once the funding lands.

  1. Days 1–30 — Get transaction-ready

    Integrate a real Nigerian payment gateway (Paystack or Flutterwave), complete company/legal formation, and review NDPA compliance before taking a single live payment.

  2. Days 31–60 — First cohort

    Activate the referral program, start a small paid-marketing pilot, and onboard the first paying students with analytics in place to actually measure customer acquisition cost.

  3. Days 61–90 — Read the data, then scale

    Review real CAC and conversion numbers against the scenarios in §6, adjust pricing or channel mix accordingly, and plan the second cohort's marketing spend based on what's actually working.