Series A  ·  Rule 506(c)

One hundred million dollars,
structured to match the opportunity.

JIL Sovereign is raising $100M to scale a bi-directional payment integrity network already operating in production. The structure is milestone-gated, mission-locked, and sized against a federal opportunity that conservatively returns multiples of the entire raise on a single engagement.

Round Size
$100,000,000
Security
Class A Pref.
Tranches
Three
Status
Open
01The Premise

A capital structure should match the size of the prize, not the comfort of the founder.

JIL Sovereign is not raising to find product-market fit. The L1 is live in production. The patent estate is filed. The verdict engine, validator network, and post-quantum cryptographic stack are operating today. What we are funding is the velocity of capture across federal, state, managed care, and international markets that are converging on payment integrity simultaneously.

A $10M seed would be malpractice given what is in front of us. A $100M Series A is the floor that gets JIL to default-alive enterprise scale without a dilutive bridge round. It is also the amount that makes our financial model conservative rather than aspirational.

Reference Engagement · Single Federal Audit

One four-year federal engagement covering Medicare FFS, Medicare Advantage, Part D, Medicaid, CHIP, SSI, and SSDI. Total dataset: $10.648 trillion. Reported improper payments: $629.9 billion. Recommended blended fee structure at 50/50 partner split.

$10.6T
Dataset under audit
$629.9B
Reported improper payments
$786M
Net to JIL, single engagement
7.9x
Return on full $100M raise

The $786M figure is one engagement. It assumes a single federal pathway, a 50/50 partner split, and conservative recovery assumptions. It does not include state Medicaid programs, MCO enterprise revenue, the Asset Intelligence self-serve channel, the Wallet Intelligence Engine at $0.12 to $0.50 per check, or any international vertical. The point is not that this number will be hit precisely. The point is that the floor of what is possible already justifies the ceiling of what we are raising.

02Valuation Framework

Priced as infrastructure, not as software.

JIL Sovereign is a five-layer integrity infrastructure for digital and regulated payments, not a single-product SaaS company. Infrastructure is priced on position, replacement cost, regulatory moat, and the flows it enables, not on a multiple of present revenue. The tier framework below summarizes how the company is priced today and what unlocks each subsequent tier.

Replacement Cost Floor $620M to $1.3BCode base, patent portfolio, validator mesh, and jurisdictional posture priced at fully-loaded replacement rates. The minimum a strategic acquirer would pay to replicate what is built.
Single-Product Infrastructure $1.5B to $3.0BOne product line as anchor narrative. Defensible today with no preconditions.
Multi-Product SOTP $4.5B to $8.0BThe five-layer integrity platform with shared moat. The pricing tier this round is structured against.
Strategic Rail-Priced $8.0B to $13.0BRequires one signed strategic anchor: custodian integration, federal pilot, top MCO, top-10 bank, or sovereign fund lead.
Category-Defining $13.0B and aboveMultiple anchors, sovereign round, or strategic auction with a card network, core banking platform, or major custodian.

The Series A is structured against the multi-product SOTP tier. Investors enter at the pricing supported by what is built, with the upside of the rail-priced and category-defining tiers as a function of the operating execution that the round itself capitalizes. The full sum-of-the-parts methodology, comparable transactions, replacement cost workings, and product-line valuation rationale are documented in the Infrastructure Valuation Memorandum.

03Structure at a Glance

The terms in one page.

Material terms are summarized below. Full term sheet, capitalization table, and operative documents are made available in the dataroom following NDA execution.

Issuer JIL Sovereign Technologies, Inc.Delaware C-Corporation, headquartered in Texas. Operating IP licensed from JIL Sovereign Holdings LLC (Wyoming).
Round Series A PreferredRule 506(c) general solicitation. Accredited investors only.
Round Size $100,000,000Deployed across three milestone-gated tranches.
Security Class A Convertible Preferred StockOne vote per share. Standard preferred protective provisions.
Pre-Money Valuation $4.5B to $8.0B todayDefensible sum-of-the-parts range across the five infrastructure product lines. Expanding to $13B+ with one signed strategic anchor. Full framework in the Infrastructure Valuation Memorandum.
Minimum Subscription $250,000 (accredited)$5M strategic minimum. $25M lead minimum.
Closing Rolling, 12 to 18 month windowFirst close on lead commitment of $25M or aggregate $35M.
Liquidation Preference 1x non-participatingStandard. No senior tiers.
Anti-Dilution Broad-based weighted average
Governance Five-seat boardTwo founder, two investor, one mutually-agreed independent. Standard information and pro rata rights for major investors.
Use of Proceeds See allocation breakdownFederal GTM, state and MCO expansion, international scaling, validator network, engineering, working capital.
Mission Lock 10% of profits to Human FlourishingEncoded in operating documents. Not a marketing commitment.
04Use of Proceeds

Where the capital goes, and what it buys.

Capital is allocated against the markets currently converging on payment integrity. The largest line is federal go-to-market because that is where the largest near-term cash conversion lives.

Federal Go-to-Market
$30M · 30%

FedRAMP, StateRAMP, and DoD IL certification pathways. False Claims Act law firm channel build. Certified partner integration program where partners cover integration costs in exchange for a 50/50 revenue split. Targets a 60 to 120 day path to first federal revenue.

State Medicaid Expansion
$15M · 15%

50-state priority sequencing led by Texas, Florida, Georgia, Tennessee, and Oklahoma. State-level retroactive forensic audit channel and Pre-Settlement implementations against Medicaid FFS and MCO contracts.

MCO Enterprise Rollout
$15M · 15%

Managed care organization enterprise sales motion. Pre-Settlement and Retroactive product lines into payer environments. UnitedHealthcare and Optum outreach scheduled for activation in mid-2026.

Engineering & Patent Estate
$15M · 15%

Expansion of the 250-service architecture. Continued patent prosecution beyond the 53 filings made in 2026. Verdict engine and Wallet Intelligence Engine evolution. SOC 2 Type II, HITRUST, and FedRAMP certification.

International Operations
$10M · 10%

Operational center buildout in Switzerland, UAE, Singapore, and Brazil. Multi-jurisdictional regulatory work to support the 13+ jurisdiction validator footprint and cross-border payment integrity use cases.

Validator Network
$8M · 8%

Scaling from 10 live validators to 20 active and 20 standby across 13+ jurisdictions. Hardware, hosting, redundancy, and validator compensation infrastructure.

Working Capital & Reserves
$7M · 7%

Operating reserves, legal and compliance overhead, executive recruiting against the formalizing board, and contingency for opportunistic acquisition or partnership activity.

05Tranche Architecture

Capital released against milestones, not against optimism.

The $100M is structured as three tranches tied to operating milestones. Investors fund against demonstrated execution rather than projected execution. Founders are accountable to documented gates rather than narrative.

Tranche I
$35M
First Close
Federal certification and first revenue

Funds FedRAMP authorization pathway, certified partner integration program, FCA channel activation, and the federal go-to-market team. Target outcome: first federal contract executed and recognized revenue inside 12 months of close.

Trigger: Lead commitment confirmed
Tranche II
$35M
Milestone Release
State and MCO expansion

Funds the 50-state Medicaid sequencing motion, MCO enterprise rollout post mid-2026, and Wallet Intelligence Engine commercialization. Capital released only on validated revenue, certification, and pipeline milestones from Tranche I.

Trigger: Defined ARR & certification gates
Tranche III
$30M
Scale Release
International scale and validator completion

Funds the international operational buildout across Switzerland, UAE, Singapore, and Brazil, completes the 40-validator network across 13+ jurisdictions, and capitalizes the bench depth required to operate as a global infrastructure provider.

Trigger: Federal and MCO scale validation
06Equity Architecture

A dual-class structure built for permanent mission alignment.

JIL Sovereign operates a dual-class equity structure. Class A receives full economic rights and standard governance. Class B exists to lock the company's mission into its constitution, not its marketing.

Class A
Investor & Employee
Voting1 vote per share
Issued ToSeries A investors, 2026 EIP grants
EconomicsPari passu with Class B
TransferStandard
Class B
Founder & Mission
Voting10 votes per share
Issued ToFounder only
EconomicsPari passu with Class A
TransferPermitted Transferees only

Why the structure matters. Class B exists for one reason: to keep JIL Sovereign's mission, including the 10% of profits commitment to Human Flourishing, structurally protected against pressure to abandon it after a future round, an acquisition discussion, or a public listing. Investor economics are unaffected. Class A and Class B participate equally in distributions and exit proceeds. What changes is that the company's stated purpose cannot be silently retired by a transient board majority.

For investors aligned with faith-driven theses, this is the difference between a company that talks about mission and a company that has written it into its capitalization. For institutional investors with no faith orientation, this is simply a stable governance feature that protects long-term brand value, employee culture, and the regulatory posture that comes from operating as visibly trustworthy infrastructure.

07What is Already Built

This is not a deck. It is a production system.

The number that should anchor the diligence conversation is not the round size. It is the amount of work that is already done. Investors are funding velocity, not invention.

1.2M
Lines of code in production
Across the L1, validator stack, verdict engine, and product surfaces.
250
Microservices live
Operating in the production environment today, not on a roadmap.
53
Patents filed in 2026
Spanning consensus, verdict logic, sealed escrow, and CourtChain evidence.
148
Verdict checks across 15 categories
FWEA verdict logic plus Wallet Intelligence Engine signals.
10
Validators live across jurisdictions
Scaling to 20 active and 20 standby across 13+ jurisdictions.
17min
$8.3M audit of 49.87M Medicare records
Reference benchmark for the FWEA verdict engine throughput.

Cryptographic stack: Ed25519 with Dilithium-III hybrid signing, ML-DSA-65 post-quantum signatures, Kyber key encapsulation. CourtChain produces FRE 902(14)-compliant digital evidence. Four thesis pillars, five product lines, nine SKUs. The capital does not need to invent the network. It needs to scale a network that already works.

08Path to Liquidity

Three paths, none requiring a forced exit.

Strategic acquisition.

JIL Sovereign sits at the intersection of infrastructure categories that the largest payment, clearing, and healthcare data players already know they need to own. The DTCC analogue for tokenized assets, major payment networks, healthcare data majors, and cybersecurity primes are all rational acquirers at scale.

Public listing.

Target window of 2029 to 2031, contingent on revenue scale, regulatory posture, and market conditions. The dual-class structure is engineered to survive the listing process, not be unwound by it. Public-company governance is contemplated in the operative documents.

Secondary tender.

Future financing rounds are expected to include secondary capacity for early Series A holders who choose partial liquidity ahead of a primary exit event. This is contemplated as a feature of subsequent rounds rather than a special accommodation.

09Process

From first conversation to close.

JIL Sovereign runs a structured diligence process. The intent is to respect the time of serious investors and to produce a relationship that survives the close.

Mutual NDA and dataroom access

Standard mutual NDA grants access to the structured dataroom. Includes term sheet, financial model, capitalization table, legal opinions, technical architecture documentation, and the patent estate index.

Founder diligence call

A working session with Jeff Mendonca and the operating team. The objective is to test the model, the market, and the timeline together rather than to deliver a pitch.

Technical and regulatory review

Optional deep dive into the L1 architecture, the verdict engine, the post-quantum cryptographic stack, and the certification roadmap. Designed for technical partners or specialist diligence advisors.

Term sheet

Term sheet negotiated against the published structure. Material variations are accommodated where they strengthen alignment without rewriting the architecture of the round.

Confirmatory diligence

Standard legal, financial, and operational confirmatory diligence under a defined window. JIL provides counsel coordination and a single point of contact.

Definitive documents and close

Execution of subscription documents, capital wired, and the investor onboarded into the quarterly reporting and information rights cadence. First-close investors receive priority allocation in subsequent tranches.

Open Round · Series A · Rule 506(c)

If the math works, start the conversation.

JIL Sovereign is opening this round to a deliberately small circle of lead investors, strategic partners, and accredited capital that wants exposure to payment integrity infrastructure at the layer where it actually settles.