|1||We are poised to conquer an underserved, $450 billion market comprised of 75 million collectors|
|2||hobbyDB is home to 480,000 collectors who have collections worth $911 million|
|3||$4 million in capital raised from Producer Adam Goldberg, Techstars, & 680 collectors just like you|
|4||We power the databases and price guides behind brands such as Funko and Hard Rock International|
|5||Funko is profitable for us, representing an annual contribution of $250,000 and growing|
|6||CEO ran the largest set of collector forums & founded the biggest European eBay business w/ $40 million GMV|
|7||User wish lists house 8.6 million items worth $767 million|
I am always interested in pursuing projects that help collectors and elevate the hobby. HobbyDB is an integral part of that equation. By working to catalog so many items and variations of known collectibles, the most comprehensive database for collectors has been created. The site grows daily and the knowledge shared is unparalleled.
The ability to show your items and share with other collectors at one central location on the web your favorite items is just one feature. Perhaps you can find that one items you have been searching for years, and then connect and acquire it. We all know that feeling collectors have when their passion is ignited.
It is more rewarding for a collector to not only accumulate items but also to garner knowledge, and HobbyDB provides that source. Today you are one click away from learning more about your hobby from one source than anything like it in the past. Whether is it a PEZ dispenser, Hot Wheel or an Action Figure, one site has all the tools needed to collect and learn in the modern era.
The opportunity to explore, share and celebrate your passions is the lead goal of HobbyDB, and the tremendous efforts so far collecting information for collectors or dealers exists now.
As collections grow having a place to electronically catalog your items is just one tool offered. And having the opportunity to purchase or sell items all one one site is an added bonus. HobbyDB, the most extraordinary place to collect and learn.
One becomes part of a community larger than your local shows, or national, so large it is international and over 500,000 people are part of it. Be part of this exciting journey and become an owner and participant!
By investing you have the opportunity to be part of the dream of the founders, a project so ambitious many thought it couldn’t be done. But they have created an amazing place to do so much with your hobby. Collect and invest in what maybe the best resource for your passion.
I am investing because I believe in the product and the people behind it.
We are home to more than 480K collectors who use hobbyDB to research and manage their collections.
What makes us different from the other platforms is our foundation - a database of every collectible ever made supercharged by a price guide. Built and maintained by the most awesome community of super-fans and collectors around, our goal is to add 100 Million collectibles to the database by 2025 (and 100 billion by 2050).
Our army of 2,463 volunteers is the heart of hobbyDB. These fearless souls make up a dedicated task force with special powers that help keep hobbyDB data as accurate and organized as possible.
With the community’s help, the database has grown to cover a huge 586,000 collectibles and their related subjects, plus 4.4 million price points.
Get to know the solution for the $450 billion collectible and licensed goods market.
It's larger than every marketplace that you know of. Almost 3x that of Etsy.
And collectors are loving it!
With all of this data, hobbyDB is now the authoritative resource for the following collectible brands -
What our collectors are saying about us -
Since the beginning, we’ve always wanted to give our collectors the opportunity to own a part of the project. So when crowdfunding became possible, we knew it was the right step to take for our community. And now, we have more than 641 community members who own a piece of hobbyDB.
As we move forward, we want to continue to ensure that fellow collectors, community members, contributors and volunteers always have the opportunity to own a piece of what they use every day and are helping to build.
MEET OUR INDUSTRY BACKERS
Find out why industry leaders love hobbyDB here.
MEET OUR COMMUNITY BACKERS
Get to know our incredible hobbyDB super site contributors who are also owners here.
Get to know how hobbyDB can help you with your collection -
Organize your collection, exactly the way you want it.
With hobbyDB’s advanced collection management tools, you’ll always have a detailed record of the items you own, accessible with just a few clicks!
And, with the power of the database at your fingertips, you’ll be able to see even the slightest variation, which can sometimes make a HUGE difference in the value of your item.
No other resource goes to that level of detail.
And with the Wishlist, you will never again miss an item that you need when it comes up for sale.
Our community’s wish lists already represent the potential of $767m in marketplace sales.
Know exactly how much your collection is worth!
Price Tracker - Using the hobbyDB price tracker, see how much any of your favorite collectibles are worth and how their values change over time.
You can also chart the value of your collection and track your the value of your top ten items over time.
The price guide now has 4.4M estimated values and we have plans to grow it to 10M price points by 2021. Currently the price points come from hobbyDB and other online marketplaces, and we are adding the ability to add retail prices, auction house prices and printed price guides to the database.
Show your collection to the world.
Curate and display your collection the way you like to.
Collectors have never really had one place to show off all of their collection to their online communities. Now with the hobbyDB Showcase, members can customize the way they display their collections to the world.
Buy & Sell with confidence!
Harness the power of the database to find the exact item you’re looking to add to your collection or sell off to a new home.
How we make money - Conquering one collectible segment at a time
Our first collectible segment is already profitable for us, representing an annual contribution of $249,700 and growing. That is $11.35 per Funko database entry. If we can replicate this process with no other improvements and no new data for the other existing database entries, hobbyDB will earn a net contribution of $45.7m.
FUTURE PLANS FOR THE BUSINESS - What does 2021 look like?
Add even more data to the database
We’ve got more than 1 million data donations to add to the database. From Comics to film posters, be on the lookout for more of your favorite collectibles in the database in the new year.
Become the ultimate collectible influencers
With thousands of users, we’re uniting to create a powerful sphere of influence. We’ve already partnered with big names in the collectibles industry -- Funko, Hard Rock, Mego, and Topps -- and with the power of our user network, we’ll continue to offer valuable input on what true fans want to see created next.
Add even more price points to the price guide
With more than four million price points added to the database already, we’re well on our way to becoming the ultimate price guide for collectibles. And with our newest auction house partner, Heritage Auctions, we will be able to double the number of price points in the guide.
Be THE place for every collector to host their collection and wish list (and eventually sell them)
hobbyDB has financial statements ending December 31 2019. Our cash in hand is $123,000, as of September 2020. Over the three months prior, revenues averaged $42,300/month, cost of goods sold has averaged $7,800/month, and operational expenses have averaged $45,600/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.
Built by collectors for collectors (and now owned by collectors), hobbyDB is the ultimate home for collectors and fans worldwide. With a powerful and detailed database of collectibles super-powered with a price guide, you can explore any fandom, track your collection, and use our secure marketplace to safely buy and sell.
In five years, we hope to have more than 100 million items in the database and 20 million price points in our price guide we’ll be the Wikipedia/Kelly Blue Book of collecting. The default place everyone goes for information on collectibles and fandoms - and the most trusted collectors’ marketplace for 10 million users. With our user base growing fast and $911m worth of items in their collections already, we’re well on our way. These projections cannot be guaranteed.
Hobbydb Corp was incorporated in the State of Delaware in September 2013.
Since then, we have:
Historical Results of Operations
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 $336,839 in debt and $4,296,406 in equity.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 24 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 12 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
Hobbydb Corp cash in hand is $123,000, as of September 2020. Over the last three months, revenues have averaged $42,300/month, cost of goods sold has averaged $7,800/month, and operational expenses have averaged $45,600/month, for an average burn rate of $11,100 per month.
Since the start of 2020, we have significantly reduced our cost base by half by further integrating our 3 main websites and building tools that allow our contributors to maintain many more parts of the site. We are continuing on this path and this crowdfunding is part of this strategy (we want the site to be owned by the people that build the hobbyDB database).
We have almost reached our ongoing cost basis (we still need to migrate the hosting of one of our sites) and expect to now focus on traffic growth (which automatically increases revenues through advertising and affiliate income) and serve more commercial seller and brands through our Shopify integration and data offerings.
Our assumption is that we do not need to raise further funding but will continue to do so as this is part of our vision of being owned by our most important users, our contributors. We now have 682 shareholders that we could approach in the case need to (we have a very loyal shareholder following as you can see from our past fundraising history further above). We hope to reach break even in Q1 2021, with about $170k in monthly revenues and expenses.
The SEC requires that we identify risks that are specific to our business and financial condition. We are still subject to all the same risks that all companies in our business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). You should consider general risks as well as specific risks when deciding whether to invest.
Risks Relating to the Company and Its Business
We operate in a highly competitive space and competition presents an ongoing threat to the success of our business.
Our business depends on our ability to maintain and scale our technical infrastructure.
Our reputation and ability to attract, retain, and serve our users depend on the reliable performance of our site and its underlying technical infrastructure. Our systems may not be adequately designed with the necessary reliability and redundancy to avoid performance delays or outages that could be harmful to our business. If hobbyDB is unavailable when users attempt to access it, users may not continue using our services.
Computer malware, viruses, hacking, phishing attacks, and spamming could harm our business.
As social-network hosting information that may be used to identify users and their networks, we may be the subject of computer malware, viruses, hacking, phishing attacks, and spamming. Should we be unable to effectively manage these attacks and threats to user information, we may experience harm to our reputation and our ability to retain existing users and attract new users.
We have historically experienced net operating losses and may not be profitable for the foreseeable future.
We have experienced past net operating losses since inception of hobbyDB and we may continue to see such losses as we undertake our business plan. While we anticipate that we will eventually get to consistent profitability, we cannot guarantee that result and we do not have the operational history to support any assumption about future profitability.
The amount of capital we are attempting to raise in this offering under Regulation Crowdfunding may not be enough to sustain our business plan, and we intend to raise additional capital in the future.
Our future plans rely upon assumption and analyses prepared by our management.
Our management has prepared assumptions and analyses that are driving our business plan. If these assumptions prove to be incorrect, or the analyses are applied incorrectly, our financial results may be negatively impacted. Whether actual operating results and business developments will be consistent with our management’s assumptions and analyses depend on a number of factors, many of which are outside our control, including, but not limited to:
- Whether we can obtain sufficient capital to sustain and grow its business
Changes to Legislation and Taxes
You will not have significant influence on the management of the company.
The day to day management, as well as big-picture decisions, will be made exclusively by our executive officers and directors. You will have a very limited ability, if at all, to vote on issues of company management and will not have the right or power to take part in the management of the company and will not be represented on the board of directors of the company. Accordingly, no person should purchase our stock unless he or she is willing to entrust all aspects of management to our executive officers and directors.
An investment in our securities is speculative and there can be no assurance of any return on investment.
Investors will be subject to substantial risks involved in an investment in the company, including the risk of losing their entire investment. An investment in our securities is speculative and may not result in a positive return. Investors should only invest an amount that they are willing to lose entirely.
Our management has broad discretion with regards to the use of proceeds in this offering.
Our management is entrusted to make decisions in the best interest of the company. That includes using their discretion when applying the proceeds of this offering to our operations. While we state what our intended uses might be, changed circumstances and the emergence of opportunities may result in uses of proceeds that differ from what is disclosed here.
We depend on the efforts of our small management team.
Our future success depends on the efforts of a small management team. The loss of services of any member 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.
Coronavirus. We do not know the impact the pandemic will have on our business but assume that with people confined to their home we will benefit from more traffic and attention to hobbies.
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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