|1||Company grew over 21,900% from launch in under a year. 📈|
|2||Unique co-creating partnership with Hootsuite (20M social media professionals worldwide).🌎|
|3||Team and founder are scrappy and extremely frugal with resources to maximize returns. 🎉|
|4||Small businesses globally today more than ever must have an affordable digital marketing strategy which HelloWoofy.com uniquely provides at cup of coffee level pricing. ☕|
|5||7,000+ SMBs using HelloWoofy to maximize their digital marketing (social media, blog and more) ✅|
|6||20M API calls made using proprietary API, EmojiData.ai recommending best text, emojis and more 📊|
|7||10+ hours a week a typical marketeer can save; 📈Improve the bottom line|
|8||Digital marketing platform driven by AI/data science; 🔬 Patent pending|
As founders investing in founders, we are excited to lead the investment in HelloWoofy. While HelloWoofy checks all the boxes for a great early-stage investment, we are most excited about the issues that HelloWoofy tackles head-on. As business owners, we have seen and experienced firsthand the large gap in technology available to SMBs compared to their enterprise-level competitors. HelloWoofy’s smart marketing platform addresses this gap head-on by offering comparable, and in many ways superior, features at a fraction of the price. HelloWoofy isn’t just taking a piece of the pie from a competitor- HelloWoofy is creating a larger pie by bringing in SMB customers that otherwise wouldn’t pay but continue to feel the urgent need to become digitally savvy today.
Arjun Rai and the HelloWoofy team practice exactly what we preach at Seed Round Capital: Focus on paying customers while continuously improving the product. Instead of hiding behind the CEO title, Arjun is actively involved with customers and holds weekly virtual how-to meetings and while soliciting feedback directly from customers. They are truly building something great and the customer feedback and traction speak for themselves. We are particularly impressed with the Amazon Alexa integration. They are the only platform with this capability- at any price- and HelloWoofy’s timing is perfect with smart speaker use increasing over 82% in the past few months.
We believe Arjun and the HelloWoofy team are going places. Aside from investors, we are happy customers- and we aren’t alone. I’d encourage you to check out their social media channels and their customer Facebook group, Content Masters. HelloWoofy believes in giving small businesses a voice, and we do too.
Brad Jenkins and Austin Hill
Seed Round Capital
You know what it's like running a small businesses with limited to no resources on shoe string budgets, right? Now, in 2020 your means to run your business offline are nearly impossible...so what does an "underdog" small business do? They join HelloWoofy.com, a smart marketing platform designed for just such a customer...an underdog and best of all, it costs the price of a lovely cup of coffee.
Welcome to HelloWoofy.com, our humble startup from New York City grew a staggering 21,900% in under one year helping some of the most impacted small businesses around the world. Career coaches, health coaches, coffee shops, nail salons, course creators, direct sellers, car mechanics, travel agents and more...think the entrepreneurs that generate ~70% of the jobs in our economy needed an affordable tool that was smart (cutting edge enterprise data science and artificial intelligence research) and simple to use...we filled this gap making it our mission...supporting "underdogs".
Low End Solutions are Linearly Designed and Lack Data Science to Help Small Businesses Compete Against their Competitors with Unlimited Marketing Resources / Budgets…
High End Solutions are Linearly Designed and Show Data with Very Little Science to Help Small Businesses Compete Against their Competitors with Unlimited Marketing Resources / Budgets...Plus, Typical Solutions Cost $50,000 - $500,000 a year!
The biggest issue with creating the perfect social media or blog post is knowing which words to use, which phrases to include and in many cases, which hashtags and emojis to use.
It would be so much easier for a small business owner on a limited shoe string marketing budget to have the ability to perfect these points and more. Well, with over 150 million data points, HelloWoofy's backend is able to decipher and suggest the perfect combination formulating the perfect post every time. Now, every small business owner can compete against budgets that have unlimited marketing resources...just as easily!
1. Crafting engaging social media posts
2. Writing creative blog posts like a journalist (with automated citations coming soon)
3. Smart writing anywhere (using the Google Chrome HelloWoofy extension)
4. Smart speaker marketing (Laying the "rails for the railroad marketing commerce of tomorrow" to reach quarantined customers at home)
Working alongside senior executives at Amazon Alexa division, HelloWoofy created a scalable in home broadcasting solution for small business owners at the price of a cup of coffee. As simple as creating a Facebook post, small business owners can create an audio, video or text to audio post and broadcast to their customers within their homes (with opt in from the customer or end user) content that is engaging, unique and grabs attention immediately. 📈
In the spirit of co-creation, HelloWoofy reached out to the executive team at Hootsuite, one of the largest and highly respected players in our industry, to provide a data science driven solution to existing 18M+ customers at an extremely affordable price. As a result, the co-creation efforts has brought affordable intelligent technology to thousands of SMBs globally. HelloWoofy generates, stores, schedules and does so much more on its own in addition as a "layer" or "add on" for 18M+ Hootsuite customers.
📈 HelloWoofy.com, Smart Marketing 😍 has financial statements ending December 31 2019. Our cash in hand is $110,000, as of November 2020. Over the three months prior, revenues averaged $9,500/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $38,000/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.
Woofy Inc. is a smart marketing for underdogs aka small businesses at the price point of a cup of coffee. Manage using data science social media marketing, content marketing, optimizing any form of writing and smart speaker marketing. Learn more at HelloWoofy.com!
In 5 years, we hope to be a multi billion dollar enterprise supporting smallest of small businesses with a cutting edge marketing focused platform worldwide. These projections cannot be guaranteed.
Woofy, Inc. was incorporated in the State of Delaware in September 2016.
Since then, we have:
Historical Results of Operations
Liquidity & Capital Resources
To-date, the company has been financed with $412,500 in convertibles and $100,000 in SAFEs.
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 7 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
Woofy, Inc. cash in hand is $110,000, as of November 2020. Over the last three months, revenues have averaged $9,500/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $38,000/month, for an average burn rate of $28,500 per month. Our intent is to be profitable in 12 months.
Since the date of our financials, our total addressable market as a result of COVID increased allowing us to expand our sales efforts going into 2021.
In six months, we aim for our revenues to be $10,000-$15,000/month and expenses continuing to be at $35,000-$38,000/month. As we scale and grow out user base, we hope to generate meaningful revenue. These results cannot be guaranteed.
For additional capital, we can rely on credit cards for the business with $40,000 available plus a monthly credit line via Brex.
The SEC recently approved amendments to Regulation Crowdfunding in which the fundraising limit for crowdfunding issuers will be increased from $1.07 million during a 12-month period to $5 million during a 12-month period. These amendments will take effect 60 days after the publication in the Federal Register. The Company reserves the right to increase the Maximum Fundraise Target once such amendments take effect. If the Company increases the Maximum Fundraising Target, investments made prior to such limit increase may be diluted accordingly.
Our business could be negatively impacted by cyber security threats, attacks and other disruptions. Like others in our industry, we continue to face advanced and persistent attacks on our information infrastructure where we manage and store various proprietary information and sensitive/confidential data relating to our operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack our products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate our network security and misappropriate or compromise our confidential information or that of our customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that we produce or procure from third-parties may contain defects in design or manufacture, including “bugs” and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of our information infrastructure systems or any of our data centers as a result of software or hardware malfunctions, computer viruses, cyber-attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect our business.
We depend on certain key personnel, including senior executives. Our future success depends on the efforts of key personnel. Arjun Rai is our founder and CEO managing many aspects of the business from product to tech to fundraising etc. The loss of his services would have a materially adverse effect on us. We expect to face intense competition to be able to attract and retain additional qualified personnel, and it cannot be assumed we will be able to attract or retain qualified personnel. There can be no guarantee of our future performance and you may lose your entire investment.
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.
We are making forward looking statements. This Form C includes certain forward-looking statements and our estimates with respect to anticipated business prospects and financial performance. These estimates reflect various assumptions of our management that may or may not prove to be correct. Our current expectations are subject to the uncertainties and risks associated with new ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, and thus there is a substantial risk of the loss of your entire investment. Furthermore, even if we are able to develop and deploy our products and services, we cannot ensure a profitable return on investment.
Nothing herein should be relied upon as a promise of our future performance. Our ability to generate future revenues will depend on a number of factors, many of which are beyond our control. These factors include the rate of market acceptance of our products, regulatory developments and general economic trends. Due to these factors, we cannot anticipate with any degree of certainty what our revenues, if any, will be in future periods. You have limited historical financial data and operating results with which to evaluate our business and our prospects. As a result, you should consider our prospects in light of the early stage of our business in a new and rapidly evolving market.
Government regulation could impose burdensome requirements and restrictions that could impair demand for our products. Any government regulation of our products or services, whether at the federal, state or local level, may increase our costs and the price of our service, may have a negative impact on our revenue and profitability, and may challenge the commercial viability of our business. Changes to foreign, state, and local laws governing privacy, customer data, integration of partners or their use of data, and changes in payment system or partnering requirements could all have adverse impacts.
Our additional financing requirements could result in dilution to existing equity holders. The additional financings which the Company will require may in the future be obtained through one or more transactions which will effectively dilute the ownership interests of stockholders. The Company has the authority to issue additional shares of common stock and preferred stock, as well as additional classes or series of ownership interests or debt obligations which may be convertible into any one or more classes or series of ownership interests. Such securities may be issued without the approval or other consent of the Company's stockholders. Additionally, the Company may amend its creation documents to permit it to have more shares than it presently does. Rights of first purchase or rights of first refusal can also impact dilution and approval requirements for stock issuance.
The market for our product may be smaller than we expect and we may not be able to generate the revenue we expect. There can be no assurance that the market for our product is as we expect. Furthermore, the unit cost may not be achieved for many reasons, including the pricing of competing products, general economic conditions and the market. We may face significant competition in our markets, including new competition from other companies. We are competing with a variety of companies in the United States and abroad. A number of companies are much larger, wellestablished, have longer-standing relationships with customers and potential business partners, have greater name recognition and have, or may have, access to significantly greater financial, and marketing resources. If we are unable 12 to compete effectively with competitors, our business, financial conditions and results of operations may be adversely affected.
The Company's management may have broad discretion in how the Company uses the net proceeds of an offering. Unless the Company has agreed to a specific use of the proceeds from an offering, the Company's management will have considerable discretion over the use of proceeds from their offering. You may not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.
The Company has the right to limit individual Investors commitment amount based on the Company’s determination of an Investor’s sophistication. The Company may prevent Investors from committing more than a certain amount to this Offering based on the Company’s belief of the Investor’s sophistication and ability to assume the risk of the investment. This means that your desired investment amount may be limited or lowered based solely on the Company’s determination and not in line with relevant investment limits set forth by the Regulation Crowdfunding rules. This also means that other Investors may receive larger allocations of the Offering based solely on the Company’s determination.
The Company has the right to conduct multiple closings during the Offering. If the Company meets certain terms and conditions, an intermediate close of the Offering can occur, which will allow the Company to draw down on half of the proceeds committed and captured in the Offering during the relevant period. The Company may choose to continue the Offering thereafter. Investors should be mindful that this means they can make multiple investment commitments in the Offering, which may be subject to different cancellation rights. For example, if an intermediate close occurs and later a material change occurs as the Offering continues, Investors whose investment commitments were previously closed upon will not have the right to re-confirm their investment as it will be deemed to have been completed prior to the material change.
The Company has the right to extend the Offering deadline. The Company has the right to end the Offering early. The Company may extend the Offering deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the Target Amount even after the Offering deadline stated herein is reached. While you have the right to cancel your investment in the event the Company extends the Offering, if you choose to reconfirm your investment, your investment will not be accruing interest during this time and will simply be held until such time as the new Offering deadline is reached without the Company receiving the Target Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Target Amount, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you. The Company may also end the Offering early; if the Offering reaches its target Offering amount after 21-calendar days but before the deadline, the Company can end the Offering with 5 business days’ notice. This means your failure to participate in the Offering in a timely manner, may prevent you from being able to participate – it also means the Company may limit the amount of capital it can raise during the Offering by ending it early.
The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. You should not rely on the fact that our Form C is accessible through the U.S. Securities and Exchange Commission’s EDGAR filing system as an approval, endorsement or guarantee of compliance as it related to this Offering.
Neither the Offering nor the Securities have been registered under federal or state securities laws, leading to an absence of certain regulation applicable to the Company. No governmental agency has reviewed or passed upon this Offering, the Company or any Securities of the Company. The Company also has relied on exemptions from securities registration requirements under applicable state securities laws. Investors in the Company, therefore, will not receive any of the benefits that such registration would otherwise provide. Prospective Investors must therefore assess the adequacy of disclosure and the fairness of the terms of this Offering on their own or in conjunction with their personal advisors. Compliance with the criteria for securing exemptions under federal securities laws and the securities laws of the various states is extremely complex, especially in respect of those exemptions affording flexibility and the elimination of trading restrictions in respect of securities received in exempt transactions and subsequently disposed of without registration under the Securities Act or state securities laws.
Investors will not be entitled to any inspection or information rights other than those required by Regulation CF. Investors will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information – there are numerous methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Investors. This lack of information could put Investors at a disadvantage in general and with respect to other security holders.
The Company may never elect to convert the Securities or undergo a liquidity event. 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 14 conversion of the Securities nor a liquidity event occurs, the Investors 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.
There is no present market for the Securities and we have arbitrarily set the price. The offering price was not established in a competitive market. We have arbitrarily set the price of the Securities with reference to the general status of the securities market and other relevant factors. The Offering price for the Securities should not be considered an indication of the actual value of the Securities and is not based on our net worth or prior earnings. We cannot assure you that the Securities could be resold by you at the Offering price or at any other price.
In the event of default on the Convertible Notes, the assets of the Company would not be sufficient to repay all of the Investors’ loans.
Though the Convertible Note provides that noteholders may declare all or any portion of the unpaid prinicipal amount due, together with all accrued interest, and demand repayment, the Company may have insufficient assets to satisfy any such demand. If the assets were liquidated pursuant to a default and foreclosure, we can not assure you that there would be sufficient cash generated to pay off the principal or interest due on the Convertible Notes.
The Company is relying on the funds raised in this offering to reach a point of scalability. Should we be unable to secure those funds we may not be able to generate additional revenues or generate any return on your investment. All Investors should first assess the level of risk associated with investing in the Company and should also consult with their tax advisors regarding any applicable tax considerations.
Our limited history makes the prospects of realizing a successful business model wholly speculative. We are a seed-stage company and have little operating history or operating results. We are a seed-stage company and have little operating history or operating results. As a result, we have limited operating history upon which to base an evaluation of us or our prospects. We have limited resources and will be largely dependent upon the minimum amount of proceeds of this and potentially other offerings in order to continue to scale our business. We may encounter difficulties as we continue to scale our business, many of which may be beyond our control. If additional capital is not available when required or is not available on acceptable terms, we may be forced to modify or abandon our business plan. This could result in a cessation of operations and a loss of your entire investment.
Already have a Wefunder account? Login
Don't have a Wefunder account? Signup