|1||Exceptional Team — Headed by C-suite legal tech exec, celebrity attorney & successful entrepreneurs|
|2||Successful Fundraising — Raised over $1 million (including WeFunder). Funding round closes 12/9|
|3||Large Stable Market — 1.1M divorces, $28B per year|
|4||Unmet Needs — High dissatisfaction with excessive cost, lengthy time, and high conflict of attorneys|
|5||Disruptive Tech — AI-based dispute resolution resolves disagreements even in contentious divorces|
|6||Major Benefits - Get divorced 10 months faster and for $20K less vs. attorneys|
|7||COVID Increased Opportunity — Divorces spiking, virtual services in demand, disposable income down|
|8||High Growth Potential — Market share of just 5% in top 25 US states = $160M annual revenue|
Divorce is an unfortunate reality of our modern society. We may have mixed emotions about the underlying issues, but in many ways it’s simply another legal process that is part of the infrastructure of our lives. And, as is so often the case, it’s a process that is overdue for significant reform. BlissDivorce is on a mission to not just make a difficult process easier for all parties, but also make it more cost effective. Nobody wishes divorce on any couple, but there is no reason to make the process more painful than necessary.
I’ve always believed the best venture investments have two key ingredients. First, a large existing market that under-serves it’s customers. That’s true of the market for divorce services in the United States, a market big enough to imagine multiple successful winners in it’s disruption. Secondly, a great management team. I’ve known Scott since our grad school days at MIT, and have complete confidence in him. I believe Scott has assembled the right mix of technical, entrepreneurial and domain knowledgeable talent to make BlissDivorce the business and customer success it has every opportunity to become. I’m excited to be the lead investor in this great venture.
The best way for two people to reach an agreement is to work it out between themselves. But this can be hard to do in a divorce, when emotions run high and spouses are not getting along. So they hire opposing attorneys, which results in an expensive, drawn-out, painful process.
BlissDivorce has created a better approach. Using AI-based online dispute resolution technology, we guide couples through a convenient process to reach an agreement and move on with their lives without the time, cost, and frustration of attorneys—even in a contentious divorce in which spouses are not getting along. With a huge market and experienced leadership team, BlissDivorce is poised to deliver significant revenue and social impact.
In most divorces, spouses hire opposing attorneys. This results in a high-conflict process that is not only detrimental to a family’s wellbeing, but also to their finances. One study found that divorces, on average, wipe out 70% of a family’s wealth.
It’s not surprising this system leads to high dissatisfaction and pain. In 40+ in-depth interviews, people consistently told us about four pain points during the divorce process:
Our new vision for the divorce experience: two spouses are empowered to create the best agreement for them, even if they’re not getting along. Our driving principle is that the best people to work out a divorce agreement are the spouses themselves.
To bring this vision to life, we’ve developed three key innovations:
While BlissDivorce is a fully online experience, we provide a variety of human support when users need it:
These human backstops will help build trust and confidence, as will our 100% money-back guarantee. If an attorney negotiates an agreement you like better, you get a full refund. This shows our confidence in our product at low risk—few people will go to the expense of taking us up on this.
We tested BlissDivorce with 265 people getting or recently divorced (90% confidence) using a state-of-the-art research methodology called concept testing. The results were exceptional:
With COVID-19, virtual services are in demand, disposable income is down and divorces are expected to spike due to lockdowns. To capitalize on these conditions we are speeding to market with BlissDivorce Virtual Mediation, our MVP. Set to launch this summer, BlissDivorce Virtual Mediation will deliver our full value proposition by using human mediators instead of ODR tools to work out disagreements. This not only gets us to market fast, but gives a pathway to develop our full DIY product.
Finally, we have a truly exceptional leadership team working to bring BlissDivorce to market:
Our high-powered advisory team includes top online dispute resolution thought leaders:
With a huge market of 1.1 million divorces every year in the U.S., we have a big opportunity at even modest share levels. Just a 5% market share in the 25 largest U.S. states results in $160M annual revenue. We believe there is potentially a multi-billion dollar growth opportunity by expanding into other markets (EU) and applying our ODR technology to other legal verticals.
Note: above info contains forward-looking projections which cannot be guaranteed.
BlissDivorce is one of those rare opportunities to not only build a large, disruptive business, but also help reduce the pain and financial hardship so many families go through as a result of divorce. We hope you’ll join us in the exciting and important venture.
BlissDivorce has financial statements ending December 31 2019. Our cash in hand is $159,201.05, as of June 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $47,000/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.
Using patented AI-based online dispute resolution (ODR) technology, BlissDivorce guides couples through a convenient online process to reach a divorce agreement and move on with their lives without the time, cost and frustration of attorneys. By empowering couples, even those in a contentious divorce, to resolve disagreements with our ODR tools, we are the first online platform able to compete directly with the dominant market player: divorce lawyers.
In 5 years, we want redefine divorce. Instead of hiring opposing attorneys, which increases conflict and stress, divorcing couples can use our ODR tools to work out the best agreement for them--even in a contentious divorce. We believe this will establish a strong business to build from: just 5% share of the 25 largest U.S. states generates $160M in revenue. We believe there is a multi-billion $ opportunity in other markets (EU) and by applying our ODR technology to other legal verticals.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Resolution 8 Technologies, Inc. was incorporated in the State of Delaware in January 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in January 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $110,000 in debt and $515,000 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 4 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 2 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
Resolution 8 Technologies, Inc. cash in hand is $36,661.37, as of September 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $41,000/month, for an average burn rate of $41,000 per month. Our intent is to be profitable in 3 months.
There have been no materials changes since the date our financials cover -- financial are up to date through 6/16/2020.
Revenue projections for the next three months:
Sept - $19,750
Oct - $138,250
Nov - $296,250
*These projections cannot be guaranteed.
After completion of our WeFunder campaign we will begin institutional fundraising for our Series Seed/A round. The founders also have the ability to put in additional capital, if needed.
Market traction has not yet been proven - Our concept test of 265 people getting or recently divorced showed exceptionally strong interest in BlissDivorce. But we will not obtain paying customers until after the launch of our MVP.
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.
Sheila Tan is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case. She intends to become full-time after we complete our first priced round (Series Seed or Series A).
Fundraising - We've raised $625k to date. We need to raise at least another $245k to launch our MVP and gather enough market data to prove traction. Launching our full product and expanding throughout California will require a subsequent Series Seed or Series A raise of an estimated $2-3M.
Because we are not a law firm, BlissDivorce cannot practice law. We have been meticulous in the designing BlissDivorce to be a DIY product that offers information but not legal advice. Sheila Tan and Scott Seidewitz are experienced in this issue from their work with LegalZoom, and legal counsel has been engaged throughout the development process. However, we could face legal or regulatory challenges if we are perceived to be practicing law.
Online Dispute Resolution (ODR) tools are a key technology for delivering our value proposition. We have developed 11 tools and filed provisional patents. However, these tools have not yet been fully tested in the market. There is the risk that they will not be successful in resolving all disputes in a divorce. This risk is mitigated by the planned use of human virtual mediators to work out disagreements that remain after use of the ODR tools.
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.
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