Details
1 | 1000+ nightlife venues in over 50 cities. Our partners include the largest clubs, concert venues, and music festivals in the country. |
2 | Over $7M in gross revenue with ~$875K in gross profit in 2019 |
3 | ~60% YoY revenue growth in Q4'19 |
4 | 4.9/5 stars on iPhone and Android app stores. Over 410K registered users. |
5 | Recently partnered with a major credit card company to become the nightlife booking solution for their concierge program. |
The 65,000+ nightlife venues in the U.S. depend on club promoters: middlemen who take their cut of the pie and operate primarily through word-of-mouth. These 100,000+ individual promoters are highly fragmented, difficult to manage, unreliable, and difficult to scale.
They are independent, take large commissions, and can only promote up to a handful of clubs at a time. Pricing is opaque and inconsistent. Most importantly, it is difficult for customers with no pre-existing contacts to get access to these promoters.
Discotech is highly scalable, with already 1,000+ nightlife venues (clubs, lounges, bars, concert venues, music festivals, pool parties) available in one platform. Pricing is transparent and predictable. Our venue partners can track customer count and prepare appropriately.
Discotech has a 4.9/5 star review on both iOS and Android app stores, with over 6,000 combined reviews.
We have successfully partnered with the best clubs and nightlife venues in the U.S. We have over 1,000 venues running their inventory on our platform, and are present in over 50 cities. We have the largest collection of nightlife specific merchants in our industry.
Discotech has been generating revenue since our iOS launched in 2014. We currently monetize the three different channels of admission on our platform - VIP Table Sales, Ticket Sales, and Guest List Commission. Our revenue has grown steadily year over year with little advertising spend. We finished 2019 with ~$7M in gross revenue, and ~$875K in net revenue. (Our gross profit is roughly $850K)
While our business does have seasonality, our summers are busier and our winters are slower, our company has demonstrated consistent growth each year.
We are adding more new users each year. It took our company roughly 5 years to get to 300,000 users. It then took less than 9 months to go from 300,000 to 400,000. The vast majority of our growth is organic. Because our customers love our product and service, the more users we have the faster that we grow via word of mouth.
The nightlife space has long been plagued by inefficiency and non-transparency. As avid nightlife customers, the team here at Discotech has firsthand experience challenges of working with promoters and going out to hit the town. These negative experiences made us realize that there was an opportunity for technology to streamline the going out process.
Over the last 6 years, we have demonstrated that our business model works. We are now looking to take our company to the next level. This round of funding will go towards scaling our user-base and revenue, as well as developing innovative product features.
Going out with your friends is fun, but planning a night out is anything but. At Discotech, we believe that the nightlife industry is overdue for disruption and that we are part of the solution. We invite you to join us now as an investor and help up make nightlife better for everyone.
Much love,
Ian, Mark, and Ian
1 | 1. Economic/Market Risks - Although the nightlife industry has been on a steady rise over time, it is susceptible to broader changes in the macro-economic environment. Because nightlife is often associated with the luxury and discretionary spend category, significant declines to the domestic/global economic health could reduce demand for nightlife spend. |
2 | 2. Competitor Risk - There is a risk that larger reservation platforms such as OpenTable or Priceline could enter into our space. (We believe they are more likely to acquire into this space rather than start from scratch, but its a possibility) Furthermore, Discotech competes with other start ups that are also competing to disrupt the nightlife space. |
3 | 3. Talent Risk - A key assumption to our growth is the ability to hire and bring on talent that will help us improve our product, operations, and marketing. Finding the right employee fit for Discotech takes time, and a delay in the recruitment process could hinder our growth. |
4 | 4. Privacy Risk - Discotech stores customer data on our servers. While we treat this data with the utmost importance and take measures to safeguard this data, there exists risk of data breach / hacking that presents itself as a risk to our business. |
Director | Occupation | Joined |
---|---|---|
Ian Bushong | CTO of Discotech @ Discotech | 2014 |
Mark Wu | COO of Discotech @ Discotech | 2013 |
Jonathan Funk | Investor @ Ocean Road Partners | 2017 |
Jeffrey Ian Chen | CEO of Discotech @ Discotech | 2013 |
Officer | Title | Joined |
---|---|---|
Ian Bushong | CTO | 2014 |
Mark Wu | COO | 2013 |
Jeffrey Ian Chen | President CEO | 2013 |
Holder | Securities Held | Voting Power |
---|---|---|
Mark Wu | 7,154,089 Common Stock | 29.0% |
Ian Chen | 7,632,119 Common Stock | 31.0% |
Date | Amount | Security |
---|---|---|
06/2017 | $1,200,000 | SAFE |
10/2016 | $125,688 | SAFE |
08/2016 | $45,000 | SAFE |
07/2016 | $35,000 | Convertible Note |
02/2014 | $400,000 | Convertible Note |
Issued | Amount | Interest | Discount | Valuation Cap | Maturity |
---|---|---|---|---|---|
02/22/2014 | $400,000 | $4,000,000 | |||
07/23/2016 | $35,000 | $5,000,000 |
$100,000 | 1. Hire full-time software developer to support our development of web application and new features for the app. |
$250,000 | 1. Hire 2 full-time software developers1. Hire 1 full time operations / business development employee |
$400,000 | 1. Hire two full time software developers2. Hire 2 full time operations / business development employee3. $100K Customer Acquisition and Marketing Spend |
$600,000 | 1. Hire two full time software developers2. Hire 2 full time operations / business development employee3. Light Customer Acquisition and Marketing Spend4. $60K salary per founder |
$1,000,000 | 1. Hire 3 full-time software developers.2. Hire 2 full time operations/business-development employees. 3. $60K salary per founder4. $400K Customer Acquisition and Marketing Spend |
Class of Security | Securities (or Amount) Authorized |
Securities (or Amount) Outstanding |
Voting Rights |
---|---|---|---|
Debt Securities | 0 | 0 | No |
Preferred Stock | 0 | 0 | No |
Other | 0 | 0 | No |
Common | 24,628,771 | 24,628,711 | Yes |
The Securities and Exchange Commission hosts the official Form C on their EDGAR web site.
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