|1||🤖 Patent pending AI, machine learning & blockchain tech replace humans unlike Rocket Mortgage.|
|2||💰 Successful VC backed pre-seed raise | Revenue generating with major bank partnership.|
|3||📊 MIT & UChicago MBA grad software engineers.|
|4||🚀 Live app with fast growing user base | +314% downloads over the past 30 days.|
|5||✅ Founded by licensed mortgage loan officers, real estate agents & certified blockchain experts.|
|6||🏁 Execution: team released Bee App 1.0 on time and under budget all during a global pandemic.|
|7||📱 For young, new buyers who love personal finance apps like Robinhood, Chime, Fair and Carvana.|
|8||🤑 Possible Amazon licensing deal for Alexa.|
Bee Mortgage is the first to market a mortgage app with this technology. This will be of immense appeal to the young home buyers now entering the housing market as Bee app ends the back and forth interactions and paper shuffle of the traditional mortgage process. To date, Bee has delivered beyond expectation and done it under budget. This team executes and with the addition of the MIT software engineers, there's no one more qualified to disrupt the $3.4 Trillion mortgage industry than the Bee team.
No email chains, fax machines, or hold music. No need to leave your couch.
Today’s mortgage process is built upon outdated systems and rely on expensive intermediaries. The mortgage industry is decades behind, failing to meet today’s mobile consumer expectations.
🦾 Our tech does the heavy lifting
Most borrowers won’t have to scan in any documents like paystubs or bank statements.Automation allows Bee to validate and make decisions in an instant, eliminating the need for a loan officer to manually collect and verify information.
📱 A process so simple, you can do it all on your phone
Everything from rate shopping through closing can be done from your couch. Getting pre-approved is as easy as answering a simple set of questions. Bee will keep you updated through the rest of the underwriting process and you'll finish with a virtual closing.
It feels like you’re being guided through the process by an expert, just without the pesky phone calls and emails.
✅ Faster closing times with lower rates and payments
What more can you ask for? Bee's automated process allows us to operate at a lower costs and we pass the savings along to the borrower.
Competitors still rely on human loan officers to drive the majority of their process. After a customer submits a loan application online, their file is passed off to a loan officer for the next steps. At this point, they are beholden to the loan team to process their loan. Bee will be the first end-to-end mobile solution, from rate shopping through closing.
Bee's platform will eliminate the need to deal with a loan officer - this means the mortgage process will be driven by the borrower, on their time and schedule. Of course, Bee has a team of mortgage experts available if they prefer to speak with a human.
Here’s what your funding will help us achieve:
Everyone called us crazy (some still do). This is our story of failure, success, and one couch surfer.
Curtis, a front-line mortgage loan officer, had a light bulb moment when he read a research
paper on the benefits of blockchain for the mortgage industry by PricewaterhouseCoopers.
Realizing this trusted validation protocol was the missing element for an end-to-end mobile mortgage tech stack, he went home and talked his wife Cynthia into launching BeeMortgageApp -- a complete mobile mortgage experience with a UX so easy to use a first time buyer can use it -- with no money and 8 kids.
Soon thereafter, this guy started surfing on the couch while we built Bee with literally no money.
Rejected by multiple VCs noting all the ways it won't work, we took the idea to consumers directly who rallied behind the idea and were met with immediate success raising $300,400.
We released our MVP, Bee App 1.0, a mortgage affordability calculator helping new home buyers identify their ideal monthly payment and home sale price before they start looking at homes, for Android in May and iOS in August on time and under budget all during a global pandemic.
We also signed a partnership with a national bank and began generating revenue! The initial feedback on the MVP has been outstanding with many people commenting how easy it is to use! Success!
We also launched our digital advertising campaign, shot our next raise video, and passed 1,000 downloads!
L- R: CTO Holly Davis, Lead UX Designer Angie Luu, COO Cynthia Wood, CEO Curtis Wood, VP of Products Matt Offers, CMO Kristin Scheurer, Director of Agent Partnerships Dwight Skyers, VP of Originations Munir Valiani.
Bee Mortgage App has financial statements ending June 30 2019. Our cash in hand is $40,770, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,000/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Think Robinhood app for mortgages + AI/ML
With AI/machine learning and blockchain, we're building the first end-to-end mobile mortgage experience that will eliminate the need for a human loan officer to manually verify and validate loan file data. In other words, a true mobile mortgage for Generation Mobile that's the largest home buying group this year ($1.2 Trillion).
In five years, we hope to be a unicorn known as the first direct mobile lender onboarding massive numbers of new home buyers (and others), powering super streamlined refinances, generating $100M+ in loans, and an IPO in 10 years. These projections cannot be guaranteed.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Bee Mortgage App, Inc. was incorporated in the State of Delaware in April 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in April 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $300,400 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 6 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 6 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Bee Mortgage App, Inc. cash in hand is $40,770, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $20,000/month, for an average burn rate of $20,000 per month. Our intent is to be profitable in 12 months.
Since June 30 2020, we released our MVP on Apple and have launched a marketing campaign to drive downloads. We continue development on the full standardized mortgage application that should be completed during this fund raise. We are currently only spending $10,000/month in expenses as we have completed the MVP development.
Over the next 6 months, we expect revenues to be over $100K and expenses to be around $200K. This reflects the early stage nature of our business, as we need to spend on development in order to reach our milestones. We do not need additional to reach a revenue-generating point--once the customers we have in our pipeline convert, will be generating revenue. These projections cannot be guaranteed.
For additional capital outside of this offering, we have cash in the bank that we raised in a prior funding round and we have some wonderful and committed anchor investors who believe in Bee as much as we do!
Minority Ownership Impact
Any equity of Bee Mortgage App, Inc. (the “Company”) obtained as a result of this transaction may or may not have voting rights attached to it as otherwise herein stated. You will most likely be a minority shareholder of the Company at all times regardless of the valuation of future equity offering rounds and will therefore have limited ability to influence decisions of the Company’s management team. As a minority shareholder, you may be also be restricted to Company information and may be subject to Company status information standard minimum reporting requirements to minority shareholders. By investing in the Company, all investors are trusting the Company’s management to make decisions in the best interests of the Company, its customers, mission, team members, partners, and the shareholders it serves.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company plans to raise more capital in the future with possibly more than one round of funding. Dependent upon the offering, new investors may receive additional equity shares in the Company and existing shareholders may experience a decrease in ownership percentage (dilution) upon the issuance of new shares by the Company, possibly at a lower price. Future offerings may provide the new investors with advantages and rights not available to you as a previous investor.
Investing in early stage companies like Bee Mortgage App, Inc. without a proven track record of performance or sound liquidity such is highly speculative in nature and presents significant risk to you the investor. In short, you may lose your entire investment. Prior to investing, you need to thoroughly research and understand all potential risk associated with investing in the Company. Until the Company has achieved profitability and is without need of raising additional capital, the chance of you losing your entire investment remain very high. Therefore, you should not invest more than you are willing to comfortably lose.
Like the Company, many companies engaging in crowd funding are early stage start-ups with a high likelihood of failure due to various factors contained in these risk disclosures. Regardless of future revenue and/or profitability performance, good and bad, there is no guarantee that you will ever see a return on your investment, or that you will ever be in a place to exit your investment for a profit or a loss.
As with all investments, you should proceed with caution, do your own research, due diligence, and seek professional investment advice prior to investing. A professional adviser may identify and alert you to risk not covered in these disclosures. The realization of any of the risks contained herein or unknown risks not disclosed could lead to an immediate need for the Company to raise additional capital, make difficult and unpopular operational decisions, or cease operations altogether. You understand that in the event you lose your entire investment you may have limited or no recourse against the Company as these risk disclosures
There is no guarantee that any investment is immune from fraud. While most public offerings, including Reg CF and Standard Agreements for Future Equity offerings, require screening standards, oversight and reviews, the risk of fraud remains high when investing in any early stage company including start-ups such as the Company.
There is no guarantee as to the validity or accuracy of the Company’s claims or representations about technology, projections and forward-looking statements, advertising materials related to this crowdfunding raise, or past or future performance. You are required to undertake your own diligence and/or consult your financial advisor with respect to the accuracy and validity of the Company’s materials.
Loan And Future Indebtedness Risk
If funds in excess of those raised are needed by the Company, the Company retains the right to make or arrange for a loan to the Company, to be repaid prior to any authorized shareholder dividend payments. The repayment of any such loans could possibly have the effect of delaying shareholder cash distributions in the event that available EBITA is insufficient to increase retained earnings.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
The Company’s success is extremely sensitive to various known and unknown internal and external societal, regulatory, global, and economic factors. These factors may negatively impact the performance of the Company and its ability to achieve stated objectives, achieve revenue or profitability, or its ability to access needed additional capital.
Known factors include, but are not limited to:
1. Local, regional, national, or global economic recessions.
2. Changes in capital market conditions and the Company's ability to obtain future funding.
3. Changes or declines in employment within the Company and outside the Company.
4. Real estate and/or home lending market conditions and regulatory conditions.
5. Domestic or international tax policy changes.
6. Domestic and global political conditions.
7. Wars, natural disasters, pandemics, illnesses, mass hysteria, and other potential crisis.
Unknown factors include ones undisclosed herein that could occur without forewarning or knowledge thereof. Such events could lead to a sudden and intense need for the Company to raise additional capital, make difficult and unpopular operational decisions, or cease operations altogether.
There is a high likelihood that future Company performance may not achieve its stated objectives herein. All statements, claims and representations of future performance are for the most part hypothetical, based on management's good faith and best efforts estimates, analysis, and forecasts. Current management expectations and projections regarding future performance, financial trends, societal trends, economic trends, global trends, and other reasonable beliefs impacting the business, financial conditions, and the results of its operations form the basis for the projections and other forward-looking statements made herein. As socioeconomic trends change, there is a high likelihood that such assumptions made in good faith and contained herein may become less reliable creating a circumstance where adjustments to the Company’s operations may be required.
Achievement of stated performance contains risks based on known and unknown internal and external factors that could lead to material changes or variations of actual results. There is no guarantee that the Company's financial and operations performance will meet expectations or herein stated projections and forward-looking statements.
The Company’s securities you may be acquiring at a later date through this investment transaction may be illiquid. The Company’s current and future securities may not be converted into cash. With limited exceptions, you may not be lawfully able to sell or transfer your securities during a certain period of time. After this period, Federal and State securities regulations may limit or restrict your ability to sell or transfer your securities. In the event you are able to sell your securities you will likely have a hard time finding a buyer due to a lack of an established market, and, if such a marketplace exists, it may experience low volume or few participants. You should be prepared to hold your investment for a very long time.
Data and information regarding the Company and the investment opportunity is limited. You may not have or be able to obtain all the information requested or sought after in order to make a sound investment decision. While the Company is required to disclose certain information such as an offering document, annual financial statements, annual reports, information concerning intended use of funds and material changes, such disclosures and information contained herein do not represent all the data or risks associated with investing in early stage companies such as the Company.
Available information will be limited as the Company does not have a fully developed business plan and long history of operation. Investing in crowdfunding companies presents significantly more risk than investing in publicly traded companies due to the limited amount of data and information provided by a company engaging in a Reg CF raise. Unlike the Company, publicly listed companies are required to file annual and quarterly reports and promptly disclose material information, providing the ability for the investor to more closely and thoroughly monitor their investment.
The Company requires ongoing intensive capital formation and allocation until profitability is achieved which may not happen due to various internal and external known and unknown factors. The amount of capital the Company is attempting to raise in this offering will not be enough to sustain its business operations to profitability. The Company will have to raise additional capital to continue development, and fund operations and expansion. There is no guarantee that additional capital will be able to be raised by the Company even if this raise is successful. If the Company is unable to acquire additional capital it may be required to alter its business plan, business strategy, sell assets, reduce workforce, restructure under the protections of a bankruptcy filing, or cease operations and dissolve. Under such scenarios, no return of capital, shareholder settlement or refund would be issued to investors. The Company's inability to secure future capital could adversely impact the business, its valuation, and/or the value of shareholder securities.
There is a high likelihood that the Company will require access to capital via a credit facility in order to support business growth finance requirements. Acquiring extensions of credit with favorable terms can be challenging and is highly dependent upon macro-economic conditions coupled with aforementioned internal and external known and unknown factors. If the Company is unable to obtain needed credit it could be forced to modify business strategy, growth projections, or take other action necessary to raise additional capital or conserve existing funds. The Company's inability to secure future credit could adversely impact the business, its valuation, and/or the value of shareholder securities.
Use of Funds Risk
The projected use of funds and proceeds from this Reg CF offering is a best estimate. Actual capital allocation may differ based on business conditions at time of execution and is solely based on the Company's discretion. The Company’s investors should be comfortable with the provided intended fund usage description and understand the Company's leadership and management team reserves the right to re-allocate use of proceed funds based on the needs of the Company.
Personnel and Management Risk
Investing in the Company is an investment in the founders, employees and management team. Their ability to execute the business plan and make sound operational decisions will be important factors in the viability and success of the Company. As the Company’s securities holder, you will not be able to participate directly in the Company’s day-to-day operations or engage management or other employees. The Company’s security holders do not have special right of access to the Company unless otherwise granted. Your investment in the Company will in part be allocated by the Company to fund employee, management and executive officer compensation. This compensation is exclusively set by Company leadership.
Professional Guidance Risk
Many early stage companies often attribute their early success to the involvement and guidance of professional early stage investors. These investors often provide post transaction value to the organization. They may be on the company’s board or oversight committee and may play an integral role in the company’s development through access to their capital resources, professional networks and prior experience in assisting start up or early-stage companies in scaling and executing their business plans. The Company does not currently have the guidance of any such professional investors and may not have such guidance in the future.
Realized market demand for the Company’s minimal viable product or flagship mortgage application may not yield forecasted sales or revenue expectations contained herein. All demand calculations factored into the forward-looking sales models are based on hypothetical estimates that may not be obtained when the products and services are released.
The Company is pre-revenue and will face challenges in its efforts to grow the business and monetize its products and services. It has limited operating capital and will be largely dependent upon its ability to finance operations from the sale of equity, the issuance of debt or other financing alternatives. The Company's failure to successfully raise operating capital or effectively monetize its products could potentially result in an adverse impact to the business, up to and including bankruptcy.
The Company’s primary product and service is currently a consumer mobile app for direct residential lending. This app is not yet released or live to download. Any of the current products or services offered prior to its release are variants of the one primary product and service offering. In order for the Company to achieve its sales projections and generate revenue it will need to capitalize on the market for the mobile residential lending services being offered. Changes in consumer tastes may impact demand which could adversely impact the Company's ability to generate revenue.
The Company plans to offer its primary product and service within a highly regulated marketplace. Federal and State licensing may be required. Failure to obtain such licensing could result in an adverse impact on the Company’s ability to meet sales and revenue objectives, and investor securities. The risk that legislative or policy decisions and changes on a Federal or State level may result in higher costs or obstacles to success for the Company is extremely likely. In an uncertain regulatory environment, the Company's operations may be subject to direct or indirect adoption, expansion or interpretation of various laws and regulation. Compliance with current and future laws and regulations may require the Company to significantly change its pricing models or business plan. These additional changes may have a material and adverse impact on its operations and financial results. Furthermore, the introduction of new services may require the Company to comply with additional, yet to be defined, laws and regulations. The failure to adequately comply may delay or possibly prevent some of the Company's products or services from being offered, which could have a material adverse impact on the Company's financial condition and results of operations.
The residential lending marketplace in which the Company plans to release products and services is extremely competitive and intense. It is currently occupied by very large, well-capitalized companies including banks, direct lenders, and brokers. The Company will be operating at a disadvantage to these companies as these market participants have proven track records of performance, brand recognition, and access to vast amounts of capital and human resources. The Company does not possess or will be able to acquire such competitive advantages. Marketplace competitiveness is likely to greatly increase in the future. The Company may face declining sales, diminished revenue, or smaller margins as a direct result of competitive marketplace conditions or a larger company copying its products, services or technology. Changes in consumer preferences or the inability to successfully compete with other companies with similar products or services could negatively impact the Company’s financial performance.
Risk of Limited Operating History
As a newly established entity with a never before attempted business strategy, the Company cannot provide more than limited information for which investors may use to base their investment decisions on due to its limited operating history.
Intellectual Property (IP) Risk
The Company’s performance and success may be impacted by its ability to obtain, maintain and protect legal protections on its intellectual property rights to the technologies and processes used to deliver its products or services. The Company is currently pursuing legal protections for such property however the scope of the protection or whether it will be granted has yet to be determined. Any patents or intellectual property protections issued may be challenged, circumvented, or determined unenforceable in the future. Intellectual property enforcement may be time consuming and cost intensive while simultaneously diverting the Company's attention away from successfully executing its business plan.
Despite the Company’s patent attorneys advising it that its data process and structure is likely patentable, the decision to grant a patent is ultimately up to the USPTO. An incumbent competitor or new entrant could copy or illegally obtain the Company’s intellectual property, which would require the Company to engage in costly litigation. Such event could lead to a sudden and intense need for the Company to raise additional capital, make difficult and unpopular operational decisions, or cease operations.
Key Person Risk
Due to the Company’s small size, it is susceptible to key person risk. The success of the Company will largely be dependent upon the experience and skill of its oversight committee, board of directors, executive officers and tenured employees. The Company can make no guarantees that key individuals necessary for successful operation of the business objectives will continue to be employed by the Company for any defined period of time. Loss of any key persons for any reason could cause irreparable harm to the Company’s ability to deliver value to shareholders, meet business objectives, and could cause the Company and your investment to suffer.
Third Party Risk
The Company relies on multiple third-party services that are essential to its operations and achievement of business objectives. It is possible that these third parties will fail to perform their services as represented or will perform them in an unacceptable manner that will result in a material negative impact to the Company and shareholder value. Your investment may be adversely impacted by the Company's reliance on third party service providers and their performance.
Sales and revenue projections are based on hypothetical marketing estimates. However, the Company may not be able to successfully maintain, promote and grow the brand through its marketing and communication strategies. Increasing the number of customers while establishing brand awareness and loyalty may prove difficult in the hyper competitive marketplace in which the Company operates. Inability to successfully market the Company and increase its customer base will adversely impact the Company's operations and inhibit success while posing a risk to shareholder investment.
The Company’s success is largely dependent upon market adoption of its products and services including its minimum viable product and primary mortgage lending mobile app. While the residential lending marketplace is well established, certain aspects of the market for the Company’s technologies are still nascent. The introduction of new technologies and an evolving regulatory environment could negatively impact the Company's ability to execute on its business plan and generate forecasted revenue.
Challenges will be found in engineering all advertised product design features for loan origination. The Company is a ground-up rebuild of the mortgage origination process using blockchain as the key data validation protocol, a method yet to be adopted, demonstrated, proved, or approved by any overseeing regulatory body, agency or investor. The Company plans to incorporate as much blockchain integration allowable within the current QM (qualified mortgage) file requirements specifications while working to obtain waivers for the more advanced implementations in the future after proving the technology. As blockchain adoption progresses and the mortgage industry continues to adopt new digital mortgage processes (at regulators behest and advice), regulatory bodies have signaled their urgent cooperation with such technological initiatives as messaged by Treasury last year.
Corporate Governance Risk
The Company is not subject to the corporate governance requirements of the national securities exchanges. Any company whose securities are listed on a national securities exchange is subject to a number of rules about corporate governance intended to protect investors. For example, the major U.S. stock exchanges require listed companies to maintain an audit committee comprised entirely of independent members of the board of directors (i.e., directors with no material outside relationships with the company or management), responsible for monitoring the company's compliance with local, state and federal law. The Company does not possess nor will it be required to implement these and other such controls and investor protections.
With early stage investing, start-up valuation accuracy can be difficult to obtain. Accurate valuation of the Company can be difficult to assess. Public companies are valued publicly and valuations are supported through market driven stock prices and vast amounts of corporate data provided by the public company. Valuation of a private company is established privately by the company itself and can be difficult to assess due to the limited availability of public information and historical records, or limited time in business. There may exist additional classes of equity with rights that are superior to the class being sold through this offering, and new equity classes may be created based on future needs of the Company and at the sole discretion of the current two majority shareholders, Curtis Wood and Cynthia Wood. Creating a new equity class may dilute or devalue prior investor securities.
All of the Company’s crowdfunding investors have a potential downside of great likelihood. If the Company fails to generate enough revenue you could potentially lose all of your investment.
Shares of the Company’s common stock issued through this offering are not secured by any collateral. In no scenario would the securities be redeemable for any tangible asset owned by the Company or its principal employees, management team, or other shareholders.
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