Nickelytics on Republic | Deal Review

Apr 11, 2021 4 min read
Nickelytics on Republic | Deal Review

Company Overview & Business Model

Problem Addressed: Out-of-home advertising (OOH) industry has failed to keep up with sophisticated advertisers and brands' growing demands. Because of its complex and opaque nature, the outdoor industry can't compete with the modern digital world, where Facebook and Google campaigns can be placed in minutes, and success can be measured in a few clicks.

The Product: Nickelytics's technology bridges the gap between the physical and digital worlds by aggregating real-time GPS data from outdoor ads and geolocation data from nearby mobile devices. Data partners capture the unique IDFA/ADID identity for each device, build an affinity and demographic profile of the exposed audiences, then cross-reference the user-data in real-time to accurately measure the ad's online impact. This data empowers advertisers to drive website traffic, track clicks & conversions, and determine ROAS with ease.

How Nickelytics Makes Money: The company makes a commission on all transactions that happen on their marketplace. (15% commission on existing OOH & digital OOH inventory, and 50% commission on 'newly' created OOH inventory).

Customers: B2B brands, companies, and agencies interested in expanding their home brand presence.

Nickelytics Business Structure

  • Form: Corporation
  • Jurisdiction of Incorporation/Organization: Delaware
  • Date of organization: September 28, 2018

The Deal Terms

  • Security: Crowd SAFE
  • Valuation Cap: $6,500,000
  • Discount Rate: 0%
  • Min. Offering Amount: $25,000
  • Max. Offering Amount: $1,070,000
  • Min. Investment: $250

The Team

Judah Longgrear (Co-Founder & CEO): Before becoming the co-founder of Nickelytics, Judah was the founder and CEO of The Nickel Ride, an eco-friendly on-demand rideshare service paid for by advertisers. This business grew to operate in 5 cities with 60 advertisers and provided over 100K free rides in southwest Florida. Previous to his most recent entrepreneurship endeavors, Judah enjoyed significant success in the corporate world. As a business development executive at companies like Salesforce, Netapp, and Gartner, he developed strategy, led diverse, cross-functional teams, contributed to creative problem-solving, and built partnerships. While working for these giants, he acknowledged the principle that mastery of measurement is the holy grail to growing a business.

Sven Hermann (Co-Founder & CTO): During his time at Siemens Corporate Technology (formerly Siemens Corporate Research) in Princeton, NJ, Sven was bit by the entrepreneurial bug. Although writing patents, publishing papers, and working on cutting-edge technologies was an incredible experience for Sven, he decided to quit his job in 2017 and start his own company. While growing the local startup community and running his software development and consulting firm Hatch It, he also built a disaster relief platform called Supply Samaritan to relieve the pain in his community after Hurricane Irma.

Sven met Judah while both of them worked out of the same office space and joined Judah's previous startup, The Nickel Ride, as CTO. After various ups and downs with this endeavor, the two started Nickelytics together, in a hard pivot out of The Nickel Ride. As many startup stories go, they realized that the internal tools and processes they had built for their previous venture were valuable, and were able to incorporate those into the company they're building today.

Sven has a background in electrical engineering and software engineering. He possesses the unique skills to translate both business needs into technical solutions and develop a business plan around existing technological IP, making him an invaluable member of the Nickelytics team.

Note: A media reports that Sven left the company. I'd love to know more from the founder.

Employees: The company currently employs 8 employees.

Nickelytics Cap Table

The table below lists the beneficial owners of twenty percent (20%) or more of the Company’s outstanding voting equity securities, calculated on the basis of voting power:

Nickelytics’s Cap Table
(Source: Nickelytics’ Form C)

Competition

Several key competitors have expanded into the out of home advertising marketplace model. Some of the key players include Trax, Billups, Adquick, Adstruc, and Adomni. According to the founder, they have not made substantive improvements in simplifying out of home campaigns and focused on unlocking new inventory by leveraging underutilized assets such as park benches or individual vehicles. Nickelytics aims to be the most extensive inventory provider for launching out of home campaigns in the most popular cities to the most urban.

Intellectual Property: The company does not own any patents or trademarks.

How will Nickelytics Use The Funds Raised On Republic?

Nickelytics use of Republic campaign’s proceeds
(Source: Nickelytics’ Form C)

Debt

Nickelytics’s debt
(Source: Nickelytics’ Form C)

Financials & Liquidity

The company had $33,000 in cash as of November 30, 2020. The company has a monthly burn rate of roughly $15,ooo/month, leaving it with a runway of roughly 2 months.

Nickelytics’s Income Statement
Nickelytics’s Income Statement (Source: Nickelytics’ Form C)
Nickelytics’s 2020 Financials
Nickelytics’s 2020 Financials (Source: Nickelytics' Republic Campaign)

Conclusion: Did I Invest?

I’m still in the process of writing a full deal report and decide whether or not I will invest in Nickelytics. I will send my final investment decision on Saturday (April 17) to subscribers of the Angel Notes newsletter (you can join through the form below). See you soon!

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