Champion 40A Inc
Property Tech / Marketplace · Delaware C-Corp · USD
GSV INVESTMENT FII
$500,000
Convertible Note · Oct 2022
CURRENT VALUE FII
$0
Written off · Total loss
MOIC BL
0.00x
Blended value $0
STATUS DPI
Shutdown
Finalized · Company ceased ops
TIER DPI
Red
Complete write-off
FINANCIAL ASSESSMENT
Q3 2022 Statement of Operations & Balance Sheet (USD)
Source: Champion Lender INC — Quarterly Financial Statements for the Quarter Ended 30 Sep, 2022; Monthly P&L Reports (2020–2021); IC Presentation (Aug 17, 2022)
| LINE ITEM (Q3 2022) | AMOUNT (USD) |
|---|---|
| Revenues (Lead Generation) | $1,014,642 FS |
| Brokered App Commission | $999,217 FS |
| Total Revenue | $2,013,859 |
| Cost of Revenues | $745,259 |
| Gross Profit | $1,268,600 |
| Advertising & Marketing | $312,943 |
| Commissions | $376,500 |
| Technology | $118,502 |
| Payroll | $87,750 |
| Contractors | $76,288 |
| Other Operating | $79,832 |
| Total Operating Expenses | $1,051,815 FS |
| Net Income (Q3 2022) | $216,785 |
ANNUAL REVENUE TRAJECTORY (USD)
2021 ANNUAL REVENUE
$5.4M
IC Presentation · 150% YoY growth
CASH (SEP 2022)
$3,131,750
Balance Sheet · Q3 2022
TOTAL ASSETS
$3,134,834
Sep 30, 2022 · Incl. $3K fixed
GROSS MARGIN (Q3)
63.0%
$1.27M GP on $2.01M revenue
INVESTMENT STRUCTURE
Deal Terms
Source: Convertible Promissory Note (Oct 6, 2022); Warrant to Purchase Shares (Oct 2022); Credit Memo (Oct 6, 2022); GSV Fund II Record Sep 2025
CONVERTIBLE NOTE
SecurityConvertible Promissory Note CN
Principal$500,000 USD CN
Interest Rate8% per annum CN
CompoundingOn principal and unpaid interest
Maturity DateOctober 5, 2024 CN
Valuation Cap$10,500,000 CN
Discount20% on qualified financing CN
Qualified Financing≥$500,000 equity raise
LenderGSV Investors II LP
WARRANT
SecurityCommon Stock Warrant WC
Coverage5% of Fully Diluted WC
Exercise Price$1.05 (409A) WC
Term10 years
Issue DateOctober 2022
ExpiryOctober 2032
HolderGolden Section Holdings, LLC
Current Value$0 (Worthless)
CONVERSION TERMS
Conversion PriceLower of: (A) 80% of equity price, (B) $10.5M cap / FD shares
Auto at Maturity$10.5M / FD shares → Preferred Stock CN
Change of Control2x principal + accrued interest CN
Liquidation Pref1x (on conversion to Preferred)
No PrepaymentWithout Majority Holder consent
CREDIT MEMO (GST SERVICES)
DateOctober 6, 2022 CM
Amount$250,000
TermsIn-kind services credit for companion note to GS Holdings
Usage Limit1/3 of any GST Services invoice
INVESTMENT HISTORY
Investment Timeline
Source: GSV Fund II Record (Sep 2025), Convertible Note (Oct 2022), Warrant (Oct 2022), IC Presentation (Aug 2022), GS Value Tracker (Dec 2025)
2015 – MAY 2021
Champion Lender LLC Operations
Viola Carmona founds Champion Lender as a mortgage broker and lead generation firm in Orlando, FL. Company operates as LLC, generating significant revenue: $868K (2019), $2.4M (2020), $5.4M (2021). Incorporated in Delaware as C-Corp on May 24, 2021.
AUG 17, 2022
GSV Investment Committee Presentation
Champion 40A presented at IC. Key metrics: $5.4M ARR, 150% YoY revenue growth, 70% gross margin, $10.5M pre-money valuation, $2.5M target raise. Dual SaaS platform (B2C homebuyer app + B2B mortgage LOS). Helped over 500 families.
SEP 30, 2022
Q3 2022 Financials — $2.01M Quarterly Revenue
Quarterly financial statements show $2,013,859 revenue, $1,268,600 gross profit (63%), net income $216,785. Cash on hand: $3,131,750. Total assets: $3,134,834. Company was profitable and cash-rich.
OCT 6–7, 2022
Convertible Note Executed — $500,000 USD
GSV Investors II LP issues convertible promissory note to Champion 40A Inc. Principal: $500,000 at 8% compounding interest. Valuation cap: $10.5M. Maturity: Oct 5, 2024. Separate companion note issued to Golden Section Holdings, LLC.
OCT 2022
Warrant Issued — 5% FD Shares
Golden Section Holdings, LLC receives warrant to purchase 5% of fully diluted shares at $1.05/share (409A valuation). 10-year term expiring October 2032.
DEC 2025
Finalized — Written Off
GS Value Tracker confirms status: Finalized. Tier: Red. Company shutdown. Convertible note matured Oct 5, 2024 without conversion or repayment. Total loss: $500,000. MOIC: 0.00x. No recovery expected.
| DETAIL | VALUE |
|---|---|
| Instrument | Convertible Promissory Note FII |
| Investment Date | October 7, 2022 FII |
| Principal | $500,000 USD |
| Cost Basis | $500,000 |
| Current Value | $0 |
| Gain / Loss | −$500,000 |
| Currency | USD |
| Fund % Weight | 0.00% FII |
PORTFOLIO STATUS
Blended Value
$0
$0
MOIC
0.00x
0.00x
Strategy
Shutdown
Shutdown
Tier
Red
Red
PRODUCT & COMPANY
Champion 40A — Mortgage Technology Platform
Source: IC Presentation (Aug 17, 2022), Founder Diligence (Jul 2022), Pitch Deck, Financial Statements Sep 2022
Champion 40A Inc (operating as “Champion Lender”) was a dual SaaS platform targeting inequities in the mortgage, real estate, and banking space. The company built technology to reduce mortgage denials for minority borrowing populations, who are denied at double the rate of other borrowers — representing $1.6 trillion in loan originations left on the table.
The platform consisted of two products: (1) a B2C “HOME” app for borrowers focusing on credit & financial education, home matching, and mortgage readiness; and (2) a B2B “HOME Pros” loan origination software for mortgage lenders/brokers that replaced 6 separate platforms (POS, CRM, LGS, LOS, SMM, CTS) with one integrated solution.
REVENUE STREAMS
Mortgage Brokerage Fees
Lead Generation
HOME App Fees (B2C)
Brokered App Commission
COMPETITORS (IC PRESENTATION)
Black Knight
Blend
Calyx Software
Rocket Companies
BALANCE SHEET HIGHLIGHTS (SEP 30, 2022)
| ITEM | AMOUNT (USD) |
|---|---|
| Cash and Cash Equivalents | $3,131,750 FS |
| Fixed Assets (Land) | $3,084 |
| Total Assets | $3,134,834 FS |
| Accounts Payable | −$3,392 |
| Loan Payable | $25,000 |
| Total Liabilities | $21,608 |
| Retained Earnings | $3,155,856 |
| Common Stock (par) | −$10,535 |
| Total Equity | $3,113,226 |
COMPANY DETAILS
Founder / CEOViola Carmona
Legal EntityChampion 40A Inc
JurisdictionDelaware C-Corp
HQOrlando, Florida
SectorProperty Tech / Marketplace LP
Cap Table (Jul 2022)10M auth / 5M issued · 100% Carmona
Cash Raised (Carta)$600,000
POST-MORTEM ANALYSIS
Risk Assessment & Write-Off Factors
Source: Financial Statements Sep 2022, IC Presentation, Fund II Record, GS Value Tracker Dec 2025, Legal filings
HIGH
Revenue Model Transition Risk: At the time of investment, revenue was primarily from traditional mortgage brokerage and lead generation ($2.01M quarterly). The technology platform (HOME app + HOME Pros LOS) was still in development. The company needed to transition from a services-heavy model to a SaaS platform but failed to execute this pivot.
HIGH
Market Timing — Interest Rate Environment: The investment was made in October 2022, during a period of rapidly rising interest rates by the Federal Reserve. Mortgage origination volumes collapsed industry-wide, directly impacting Champion’s core brokerage and lead generation revenue streams.
HIGH
Note Maturity Without Conversion: The convertible note matured on October 5, 2024 — only 24 months after issuance. The company was unable to raise a qualified financing (≥$500K) to trigger conversion, nor repay the $500K principal plus accrued interest. This short maturity window left little runway for the business transition.
HIGH
Sole Founder / Single Stakeholder: Viola Carmona held 100% of equity (5M shares). The cap table showed no co-founders, advisors, or ESOP. This concentration of control created key-person risk and limited the governance and support structures typically needed for a successful technology pivot.
MED
High Sales & Marketing Spend: Advertising & Marketing ($312,943) and Commissions ($376,500) together consumed $689K of the $1.05M in Q3 2022 operating expenses (66%). The business was heavily dependent on paid acquisition to drive mortgage lead volume, reducing margin sustainability.
MED
Legal Proceedings: GST filed an Original Petition against Champion Lender, indicating a dispute between the portfolio company and the Golden Section ecosystem. Such legal proceedings can drain resources and management attention during critical growth phases.
GP RECOMMENDATION
Verdict: EXIT — WRITTEN OFF
Champion 40A Inc has been fully written off. GSV Investors II LP invested $500,000 via a convertible promissory note in October 2022, targeting a property tech company building a dual SaaS platform for mortgage equity. At the time of investment, Champion Lender was generating over $2M in quarterly revenue from mortgage brokerage and lead generation, with $3.1M cash on its balance sheet. However, the company’s core revenue was tied to mortgage origination volumes, which collapsed as interest rates rose sharply in 2022–2023. The intended technology pivot (B2C homebuyer app + B2B LOS platform) was never fully executed. The convertible note matured on October 5, 2024 without conversion or repayment. GS Value Tracker confirms the company status as Finalized with Red tier. Total loss: $500,000 (MOIC 0.00x). The warrant (5% FD shares at $1.05) is also worthless. No recovery is expected.
TOTAL INVESTED
$500,000
Convertible Note · Oct 2022
TOTAL LOSS
−$500,000
Complete write-off · MOIC 0.00x
STATUS
Finalized / Shutdown
Red tier · No recovery expected
Prepared by Derek · March 2026 · Sources: GSV Fund II Record (Sep 2025), GS Value Tracker (Dec 2025), Convertible Promissory Note (Oct 2022), Warrant (Oct 2022), Credit Memo (Oct 2022), IC Presentation (Aug 2022), Financial Statements Q3 2022, Monthly P&L Reports (2020–2021), Balance Sheet (Dec 2021), Cap Table (Jul 2022), Founder Diligence (Jul 2022)
SOURCE DOCUMENTS
FII GSV Fund II Record — Sep 2025
BL GS Value Tracker F2 Blend — Dec 2025
DPI GS Value Tracker F2 DPI — Dec 2025
LP GS Value Tracker LP Presentation — Dec 2025
CN Convertible Promissory Note — Oct 6, 2022
WC Warrant Certificate — Oct 2022
CM Credit Memo — Oct 6, 2022
FS Financial Statements — Q3 2022
IC IC Presentation — Aug 17, 2022
PD Pitch Deck — Champion 40A