I looked at the boothlenders site. The concept looks okay. I think it would be better if it used a peer to peer lending model. A musician applies for a loan. The loan shows up on the booth lender site then investors can invest in the loan. Investors then get paid back monthly ...

Thanks Kevin! We've looked closely at Peer-to-Peer Lending (LendingClub & Sofi). It is a popular model. But not sustainable long term. LendingClub and Sofi pivoted to a more traditional model (using credit facilities). For BoothLenders, the peer-to-peer Cons outweigh the Pros. #1 Some states don't allow peer-to-peer lending. This would eliminate some of our customers. So we can't do that. #2 There is no insurance protection (against borrower's default) or investment upside for investors. ...

BoothLenders

Financing Music Industry Creators

EARLY BIRD TERMS: $989,400 LEFT

$10,600

of a $100,000 goal

RESERVE

min $100

INVESTMENT TERMS

Future Equity

$10M valuation cap 30% discount

Early Bird Bonus: The first $1M of investments will be in a SAFE with a $20M valuation cap and 30% discount

$100, $1K, $10K

boothlenders.com

Los Angeles, CA

Minority Founder

Highlights

The creator economy is misunderstood by traditional financing. 🙄

Today, creators are small businesses. 📊💼💵

We will focus on the music industry creators: musicians, producers, etc. 🎧🎤🎹

Technology allows music industry creators to become small music businesses. 💻📲

Team

Financing Small Music Businesses Everywhere

The Old Music Industry...

Throughout history, if you wanted a career in music, you had to be connected to a major label. Why? Financing!

And those without financing (the 99%), had to bootstrap their careers.

The New Music Industry...

Today, technology allows “the 99%” to become small businesses. But these small businesses still need financing and a lender who understands their industry.

Problem

Small Music Businesses are Underserved

Traditionally, lenders lend to businesses they understand. Why? Because they understand the risk involved.

At BoothLenders, we understand small music businesses and see them as underserved.

Solution

A Lender for Small Music Business

BoothLenders will use traditional underwriting and alternative data to identify fundable small music businesses.

The Test Models

Before committing to a business model, I had to test my theories about the products, marketing, and overall business strategy.

Test Models: Pros & Cons

#1 - Global Aggregator

#2 -US Referral

Key Learnings

The Test Models proved key theories to be accurate. Also provided additional learnings.

Products & Services

BoothLenders will provide credit cards, personal loans, and business loans.

Business Model

BoothLenders will make money from interest income, origination fees, and packaging fees.

Secondary & Tertiary Revenue

BoothLenders will make additional money from credit repair & financial planning fees.

Go to Market Strategy

We will target low to medium-risk small music businesses.

Competition

Articles:

Patreon offers “payday loan”

Stem offers fee-based advance

Royalty Exchange offers a royalty auction program

The Music Fund offers “interest-free” advance

What Makes Us Different:

Total Addressable Market

*TAM = # of Customers x Avg. Lifetime Revenue Per Loan

Average Lifetime Revenue Per Loan

Loan Book Projection

Projected Revenue

Raising Seed-1

Minimum Raise $100,000 - Maximum $5,000,000. Raising Seed-1 to achieve $1M in Revenue in 12 Months.

Seed-1 Milestones

These milestones mark our path to Seed-1 Revenue Goal: $1 Million in 12 months.

Traction

We unearthed global demand.

Our website, social posts, and email engagement indicates a global interest from small music businesses looking for financing.

We developed brand trust.

Our partnerships with other lenders and marketplaces improve and solidify our social brand and trustworthiness.

We discovered product-market fit.

Customers see their small music businesses as large enterprises and would benefit from BoothLenders. Customers would be devastated if this service was never available.

Our projected LTV is $7,740.

Our projected CAC is $3.45.

This is just the beginning!

We understand the music industry, lending, and are establishing a company with the financial and technical infrastructure to build a global enterprise. Our future includes...

Overview