|1||🧠 Autonomous Banking using AI to organize your money in real-time on Autopilot 🚀|
|2||💰 Raised $2.7M from MIT Sandbox and Angels 🏫 Founded @ Harvard|
|3||🤓 Strong team from Harvard, MIT, PayPal, JP Morgan and Barclays|
|4||🤑 Envel Bank accounts are powered by patent-pending autonomous technology|
|5||💸 74% of US employees are living paycheck-to-paycheck, Envel is on a mission to solve this problem|
|6||🚀 Exciting 12 month roll out of new features to disrupt consumer banking|
|7||💳 Unique Envel Visa® Debit Card connects to up to 99 Envel bank accounts with Envel Cardlink™|
I think Envel delivers consumers a unique banking and money management application with clear benefits, and truly demonstrates how consumer banking utilizing Artificial intelligence will evolve now with the inevitable growth of Open Banking. The use of this technology is without geographic boundaries, and the market development opportunities just within the US are potentially numerous. Given that this is version 1.0 we can only guess what other goodies the development team has lined up as new features and releases for 2021.
The bank account as we all know it has remained unchanged for decades, and is a little well, manual, so we at Envel have reinvented banking from the ground up to give you many of the features you’ve always wanted and finally make it work hard for you!
We've built a one-stop Autonomous banking app with Autopilot (yes!) to organize your money automatically for you with little effort, no calculators, no spreadsheet, it just works.. powered by our patent-pending AI. All built upon an Envelope system so you can organize your money in up to 99 FDIC insured Envel bank accounts* we call Envelopes, you can create in seconds.
We believe that the consumer banking system is broken and no longer focuses on serving its customers financial health. Traditional banks profit from getting you indebted and don’t offer you the freedom or advice to help organize and manage your money in a way that helps you.
We have engineered some incredible patent-pending features never seen before in banking to help you become financially fit and achieve your dreams.
Envel has recruited a team of experienced Data and Behavioral Scientists, Engineers and Software Developers, Bankers, including the former CEO of a large bank, Regulatory Compliance Specialists, Innovators and User Experience Experts, to deliver on its mission to reinvent banking.
Normal banks don't offer flexibility and generally offer only one or two core bank accounts. Envel offers you total flexibility with the ability to instantly open up to 99 FDIC insured bank accounts,* which we call Envelopes so you can squirrel funds away into multiple accounts and name them whatever you like, even with an emoji 🤑
Use Cardlink™ to swipe your Envel Visa® Debit Card between any of your Envelopes in a second just before you purchase, whether Starbucks® coffee from your Coffee Envelope or Wallgreens® groceries from Groceries Envelope or Pizza from your Take Out Envelope.
Tired of running out of money before the month ends? Tired of using budgeting Apps or trying to manage your money in spreadsheets, but overspend anyway because your money is all in one bank account? We understand, we’ve all been there and that’s why we have built Envel, to automate all those things that most people don’t have the time for or desire to do.
Envel’s artificial intelligence learns to understand your needs and goals and creates a personalized budget to guide your daily, weekly or monthly spending. It splits your income into the four Autonomous Envelopes and keeps money aside for your goals. We call this Autopilot, the Envel magic!
If you enable Autopilot, we’ll provide you with a guilt-free spending limit for your Cash Envelope linked to your Envel Visa® Debit card*: this is your income minus all your monthly bills and expenditure.
Depending on your needs you have three levels of spending. “Penny Pinching Mode” for when you’re working from home and want to save more. "Beast Mode" for moderate savings or “Party Mode” for when you want to spend more during a holiday, but still want to save.
Say goodbye to overspending. Envel real-time machine learning tracks, flags and alerts if recurring transactions are projected to be too high proportional to income.
Typical banks confuse you with technical products and confusing language, we really want to avoid this. Our objective is to keep our services, our user experience and all our communication fun, clear and easy to understand.
Some of us also need a little encouragement to develop good habits, because for most people managing money is not fun. Therefore, you can choose how you want to be encouraged or prompted by selecting one of our unique humor or savings settings.
From our inception we have been working closely with MIT and leading patent experts to ensure we protect our unique IP, the 'Envel Magic’ that makes our autonomous banking possible. We've filed patent-pending covering 153 countries under invention "System and Method for Autonomous, Intelligent, and Tunable Compartmentalization of Monetary Transactions". We will continue to disrupt and innovate traditional banking and payments to make banking better and we will continue to protect and patent our unique IP!
People need help managing their finances and by using Artificial intelligence, Behavioral Science and patented technologies, we believe Envel can play a very positive role in helping tens of millions of people to improve their financial fitness and achieve their dreams. Envel is committed to a journey of ongoing disruption in an industry that desperately needs change and simplification.
We don’t want to give all our secrets away just yet, but we can confirm that have an exciting roadmap of new products and innovative features, some of which are already designed and built, which we will test with users and the Envel community and which we plan to roll out over the next year.
Unless you’re wealthy, most banks have failed to give you what you need to help you manage and grow your money in a way that makes it easy and stress free. We decided to look at all the traditional bank processes and areas of friction and break the bank to rebuild it so that it will be much better.
Invest today and join our movement to reinvent banking and receive a limited edition Envel “Owner” debit card*
Invest a minimum of $250 in Envel and once you've downloaded the Envel app and upon opening an Envel account, you'll be issued our standard Envel teal blue debit card*. Once the WeFunder.com/envel funding round has closed, we'll ship your unique "Owner" card to you, free of charge.
(You can apply if you’re a US citizen over 18 years old and have a valid US SSN)
* Envel is a financial technology company. Banking Services provided by nbkc bank, Member FDIC. The Envel Visa® Debit Card is issued by nbkc bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.
Envel 🚀 has financial statements ending December 31 2019. Our cash in hand is $982,421.40, as of September 2020. Over the three months prior, revenues averaged $3/month, cost of goods sold has averaged $38,139/month, and operational expenses have averaged $231,696/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.
We believe Envel is one of the world’s first Fintech to focus entirely on building autonomous banking, where we do all the heavy lifting for you to manage your money, so that you can relax and enjoy your life! Envel is a digital banking application that partners with our bank of record which hold your funds, FDIC insured, safe and super secure.
Our objective is to improve the financial health of over 50 million people so that that we can help them achieve their goals. We hope to attract a large market share of the Gen Z and Millennial market and gather a significant share of the under banked in the US and select markets around the world. 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.
Envel, Inc. was originally incorporated in the State of Delaware in February 2017. The Board was formed (and the company "founded") in August 2017. Envel is not a Bank or Investment company. Envel, instead, uses NBKC (National Bank of Kansas City) to hold and manage all our customers accounts. This ensures that all accounts are FDIC insured and protected under US Banking regulations and requirements.
Since then, we have:
Historical Results of Operations
Our company was organized in February 2017 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 $2,725,000 in convertibles.
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 4 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
Envel, Inc. cash in hand is $982,421.40, as of September 2020. Over the last three months, revenues have averaged $3/month, cost of goods sold has averaged $38,139/month, and operational expenses have averaged $231,696/month, for an average burn rate of $269,832 per month. Our intent is to be profitable in 18 months.
We believe 2020 has been a tremendous year for Envel. Envel has raised over $1.7M through one of the toughest economic downturns the world has ever seen, and the year is not over yet. In May, Envel was approved through its banking partner to begin Alpha testing with real money accounts for only 10 users. In September, it was approved to move to Beta testing, to allow 150 users to use its debit card and use its AI to help them manage their money and build strong financial fitness. Now, Envel is in both the Apple Store and Google Play and available to the general the public. Over the last 4 months, Envel has continued to build up its staff of developers, data scientist, and regulatory, financial and customer service professionals so that it can be ready for its Q4 2020 full public launch.
Envel is just now starting to monetize its technology and has had minimal pre-launch revenue. Management expects revenues through the next six months to scale rapidly starting with monthly revenues at between $3K to $5K per month and ramping to over $30K per month by April of 2021. We expect monthly expenses to average approximately $268K a month during this period. These projections cannot be guaranteed.
We believe Envel has a very well-respected board with a very well-respected list of existing investors. While Envel can continue to raise seed funding from its existing investors, Envel is expected to move forward with it’s A round of funding through traditional venture capital firms in Q2 2021. These projections cannot be guaranteed.
Any projections of future performance provided to you may prove to be incorrect. Management’s projections of future revenues, expenses and the outlook for the business are based on good faith estimates but are inherently unreliable. Factors such as adverse decisions and future competition will affect the Company’s future revenue streams. In addition, unanticipated factors such as greater diligence costs or increased development or marketing expenses may impact the Company’s profitability. For these reasons, you should not rely upon management’s estimates of future performances in making your investment decision as management’s assumptions (and any limitations on the assumptions) may prove to be significantly inaccurate.
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 is dependent on its key personnel and its ability to hire or retain additional personnel. The Company relies heavily on the expertise, experience, and continued services of its management team. The loss of their services could adversely affect the Company’s ability to achieve its business plan. The Company’s future success will depend on its ability to retain these key persons and its ability to attract and retain additional skilled personnel. The Company’s employees may voluntarily terminate their employment with the Company at any time. There is no assurance that the Company will be able to attract, train or retain qualified personnel in the future and the loss of personnel could have a material adverse effect on the Company.
As an early stage business, we are dependent upon this Offering and other outside financing in order to implement our business plan and complete development and commercial implementation of our software and services. If we do not raise sufficient capital pursuant to this Offering and other outside financing, we may have to delay or modify our business plan. There can be no assurance that any such delay or modification would not have a material adverse effect on us. In addition to this Offering, we may pursue alternative methods of raising funding, including, without limitation, funding from venture capital firms and select private investors and vendors who are partnering with us in the development of our marketplace, as well as subordinated debt from lenders and private individuals and senior bank debt. We will pursue the most advantageous source(s) of funding for the Company and its shareholders at the most attractive terms. As of the date of this Memorandum, we have no commitments for any interim or permanent financing, including any credit facility, and no assurance that any such financing will become available or, if available, at an interest rate or other terms that will be favorable to the Company. If available, such financing may result in the imposition of restrictions on the Company’s future borrowings and operating policies and dilute the ownership of investors and management.
Your Shares may be diluted without your approval. The Company is managed by its Board of Directors and Officers in accordance with the terms of the Company’s Certificate of Incorporation and By-Laws. Consequently, you will have no ability to affect management decisions of the Company, except as expressly required otherwise by applicable law. Following the closing of this Offering, the Company’s CEO will still own a super- majority of the Company’s issued and outstanding Shares. He has the ability to exert significant influence over all matters requiring shareholder approval, including the election of Directors and the approval of mergers or other business combinations. This concentration of ownership may also delay, deter or prevent acts that would result in a change of control, which in turn could reduce the market price of your Shares. These actions could be taken even if they are opposed by other investors, including you.
The Company may alter the use of proceeds in this Offering without notice to you or your approval. The Estimated Use of Proceeds described in the “Summary of the Offering” section of this Memorandum reflects the Company’s anticipated use of the proceeds of this Offering. However, there is no obligation on the Company’s part to use the proceeds for those purposes, and the Company will have significant discretion in applying the net proceeds of this Offering. The Company’s failure to apply the proceeds of this Offering effectively could have a material adverse effect on the Company.
Factual statements have not been independently verified. Except to the extent that legal counsel has been engaged solely to advise as to matters of law, no other party has been engaged to verify the accuracy or adequacy of any of the factual statements contained in this Offering. In particular, neither legal counsel nor any other party has been engaged to verify any statements relating to the experience, skills, contacts or other attributes of the Directors, officers and employees of the Company, or to the anticipated future performance of the Company.
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 expects to incur significant operating losses in the near future until the Company’s products achieve some measure of market acceptance and the Company’s revenues exceed its expenses. The Company’s business does not have an established record of profitability and the Company may never be profitable. In addition, the Company expects its operating expenses to increase over time as the Company expands its operations. If the Company’s future revenues do not offset these expected expenses, the financial performance will be adversely affected; ultimately we could go out of business.
The Company may not be able to adequately protect its intellectual property and proprietary rights. The Company regards its products and services and underlying technology as proprietary. The Company will seek to protect its proprietary rights through a combination of confidentiality agreements and copyright, trademark and trade secret laws, and patent protection. The Company’s future patents, if any, may be successfully challenged and may not provide the Company with any competitive advantages. The Company may not develop proprietary products or technologies that are patentable and other parties may have prior claims. In addition, third parties may copy aspects of the Company’s future products and services or otherwise obtain and use its proprietary information without authorization or develop similar technology independently.
The Company may not be able to properly manage growth. The Company may experience a period of rapid growth in its headcount and operations, which may place a significant strain on the Company’s management, administrative, operational and financial infrastructure. The Company’s success will depend, in part, upon the ability of the Company’s senior management to manage this growth effectively. To do so, the Company must continue to hire, train and manage new employees as needed. If the Company’s new hires perform poorly, if the Company is unsuccessful in hiring, training, managing and integrating these new employees, or if the Company is not successful in retaining existing employees, the Company’s business may be harmed. To manage the expected growth of the Company’s operations and personnel, the Company will need to continue to improve its operational, financial and management controls, reporting systems and procedures. The additional headcount and capital investments will increase its cost base, which will make it more difficult for the Company to offset any future revenue shortfalls by offsetting expense reductions in the short term. If the Company fails to successfully manage its growth, the Company will be unable to execute its business plan and its results will suffer.
The COVID-19 pandemic has negatively impacted the global economy, disrupted consumer spending and global supply chains and created significant volatility and disruption of financial markets. The extent of the impact of the COVID-19 pandemic, including our ability to execute our business strategies as planned, will depend on future developments, including the duration and severity of the pandemic, which are highly uncertain and cannot be predicted. Concerns have rapidly grown regarding recent worldwide surges in the outbreak of COVID-19, and as a result consumer spending will likely also be negatively impacted by general macroeconomic conditions. Furthermore, a decline in consumer confidence, including from the impacts of any recession resulting from the COVID-19 pandemic or other economic events, may negatively impact our ability successfully to roll out our products and services, and adversely impact traffic on our websites. Any reduction in customer visits to our websites will likely result in a loss of sales and profits and other material adverse effects.
Unproven Market Acceptance. Although the Company believes there is a need for the products and services proposed to be offered by the Company, its management is unable to guarantee (i) the level of market acceptance those products and services will achieve and (ii) the number of customers willing to download and continually use this application.
General Risk of Insolvency. Each purchaser bears the risk that the financial situation of the Company could deteriorate. There will be no security or guarantee to any purchaser in the Offering.
An investment in the Company is speculative. Purchasers of the securities offered hereby may not realize a return on their investment and could lose their investment. Purchasers should carefully review this offering disclosures and consult with their attorneys, tax advisors, and/or business advisors prior to purchasing the securities offered hereby.
The Company has implemented a comprehensive compliance program that addresses the financial regulatory environment. This includes Anti-Money Laundering (AML) and Fraud controls. While these controls significantly mitigate the risk of a fraud or AML event occurring, it can never eliminate that risk. These areas will always present a threat to the Company and the impact will depend on the volume and velocity of these events occurring but can present large monetary loss, regulatory enforcement and risk our relationship with our core processing and banking partners. However, the Company's compliance team is extensively trained and experienced in this space and will remain consistently vigilant through a blend of cutting edge technology, industry best practice and field tested expertise and knowledge.
The Company has several strategic banking partners. Its two most critical are its partnership with its core banking platform (Q2 Corepro) and its bank of record (National Bank of Kansas City). Preservation of these relationships is critical to the ongoing operations and ultimate success of the Company. Our Agreements with these two entities impose numerous requirements upon the Company, especially in the areas of our staying compliant with the complex regulatory scheme applicable to all banks and related entities. If we fail in those or any other contractual obligations, our relationships with these banking entities would likely be severed. If we could not promptly establish similar relationships with similar entities, our operations could be materially jeopardized and we could go out of business.
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