Invest in Jurny

Hi Eric, Great questions. Jurny's software was designed to benefit both ends of the spectrum - from hosts managing a few units to those with extensive portfolios. Our goal is to provide an easy-to-use yet comprehensive solution, enabling even small-scale hosts to operate like seasoned professionals. The advantage of a vertically integrated product, if done correctly, is its scalability. True, hosts with fewer units might not be using as many automation and optimization tools currently, but it's not due to a lack of need. They can gain immense value from features like AI guest messaging, automated guest verification, and dynamic pricing. The core reason hosts don't utilize multiple solutions is the complexity involved in managing and implementing them. Our industry insight into this issue led us to develop a solution to this widespread problem, making Jurny's product stand out from its competition. Concerning your question about CAC, it's calculated only on paying customers, not free users. Given the average contract value of nearly $9k per year and LTV of $17k, our CAC to LTV ratio is around 26x - an excellent rate for any SaaS company. But I understand why it may not have been clear, so I appreciate you asking. As for our freemium product, it was just launched on May 16th and has already more than doubled the number of hosts on our platform in less than a month. While it's early days on this product, we're conservatively projecting a conversion rate to paid customers over 40% since we're already above 20% in less than 30 days. The ability to offer a free product is a considerable industry-wide achievement, made possible only through an extremely streamlined system facilitating fully automated self-onboarding, something our competitors can't provide. Thanks again for all the great questions - Luca

It's huge for us! This shows exactly where the space is heading and where resources are being allocated. There couldn't be a clearer validation than this, literally Airbnb acquiring an AI startup in the hospitality industry for $200m. And this is just the very beginning... excited for what's ahead!

Those are all great questions, and I would be happy to walk you through our short and long-term go-to-market strategy. 1. Our platform is already adapted for boutique hotels and is being utilized by companies with a mix of long-term and short-term rentals. To adapt it to larger hotels, the only thing we need is an integration with top-tier food and beverage software, which is relatively easy to do. However, it's not a priority based on our current go-to-market strategy. 2. We are not limiting ourselves to short-term rentals. In fact, we already have several independent hotels on our platform, and we've had discussions with some larger hotels as well. Our main focus currently, however, is the short-term rental market. This sector is where the most innovation is happening in our industry, it's where the early adopters are, and it's where disruption will originate. Contrary to what many may believe, there are several fast-growing companies in this space that are adopting cutting-edge technologies, like Jurny, to operate beyond typical short-term rentals and take over entire independent hotels and converting them into high-margin, high-profit machines. From my decade-plus experience in this industry, I've seen this sector of the market moving at an incredible pace, and I believe these fast-growing companies will be the disruptors of our industry and set the standard for everyone else. Our strategy is to target these companies for the next few years and let the hotel market come to us organically. Once we believe the hotel market has developed a greater need for innovation and becomes more receptive, we will shift more of our efforts in that direction. 3. Our model is not dependent on OTA platforms like Airbnb, VRBO, and Booking. We do have deep API integrations with them to allow our customers to distribute their units on these platforms, but those platforms themselves provide almost no automation. We bring in 99% of the automation that's possible on these platforms – things like automated messaging, a unified inbox for all channels, a unified calendar system for all channels and units, automated review management, IoT smart connectivity, and much more, which these platforms do not provide. That's the reason there's a market for what we do. In addition, we also offer a custom booking engine that management companies can use to receive direct bookings, potentially bypassing OTAs altogether. Let me know if you have any other questions.

Great question. Jurny stands distinct from the likes of Guesty and Hostaway primarily due to our modern, streamlined approach to hospitality management, which was born out of our own experience with the limitations of existing property management systems. I used to personally manage over 300 units across 5 different cities and the limitations of those systems were a big issue and that is why we decided to build Jurny. While Guesty and Hostaway were among the pioneers in the Airbnb management software space, they operate with an outdated approach of attempting to be a marketplace for multiple vendors across numerous verticals (eg. pricing, guest verification, IoT management, etc.). This results in a fragmented, complex system with poor integrations. Conversely, Jurny opts for a more agile and efficient model, focusing on one vendor per vertical, and even developing some of our own in-house solutions such as access control and IoT control. This makes Jurny more scalable and user-friendly and the industry first vertically integrated system. Some key advantages of Jurny include: 1. **Eliminating fragmentation**: With Jurny, there's no need to choose from hundreds of different solutions and attempt to assemble your own system. Our platform is pre-built, streamlined and efficient. 2. **Unified dashboard**: Instead of managing multiple dashboards, Jurny offers a comprehensive all-in-one dashboard where different solutions interoperate seamlessly. 3. **Easy onboarding**: We offer a quick and intuitive onboarding process that only requires a few clicks, while our competitors often take weeks to set up their system and each third-party integration. 4. **Affordability**: Our automated processes allow us to offer a freemium product with no onboarding fees, unlike our competitors who often charge significant fees due to their reliance on manual work. 5. **Adoption of new technologies**: Jurny's modern architecture facilitates easy adoption of new technologies like AI, setting us as a leader in this domain within our industry. Overall, our approach is built on direct industry experience, cutting-edge technology, and a commitment to simplicity and ease of use. In every industry whenever a company streamlines complex processes and make them simpler for the end user, without a compromise to the end product, comes out as winner.

Thank you George! I appreciate the comment.

Our ultimate goal is to go public, but potential buyers could be strategic. Specifically, large Online Travel Agencies (OTAs) such as Expedia, Booking.com, or Airbnb could see us as a valuable acquisition, considering our technology enhances property management efficiency, making short-term rental more accessible to a much a larger audience. OTAs are also some of the most liquid companies in the industry, enhancing their ability to make substantial acquisitions. Another possibility could be our larger competitors, as an acquisition might be a strategic move for them to eliminate competition and integrate our unique features. However, the financial demand for such a deal could be substantial, and it may be more challenging for them to meet our valuation expectations.

Great questions! While capital efficiency will continue to be a core focus for us, given the surge in demand for our product, we are now primarily concentrating on revenue growth and profitability. In fact, just by adding an additional $1m in ARR, we anticipate reaching profitability. On the subject of debt, our aim is to convert the majority of it into equity. All our current debt is a mix of venture debt and convertible notes, set to convert when we secure a priced round above $3m. Regarding dilution, shareholders in this round are positioned advantageously. They are investing via a convertible note with a $20m cap and a 20% discount. This implies that, even if our next fundraising round achieves a valuation of over $100m, investments from this round will convert based on the $20m valuation. Given our profit margins and the efficiency of our product, post the next round, we don't foresee the need for extensive fundraising. We believe we can scale our business into the billions with relatively limited resources. I hope this provides clarity to your questions.

Thank you, Jason. To achieve profitability, we only need an additional $1.6m in new ARR (Annual Recurring Revenue). Given our current growth, we project that we'll be profitable by the end of Q1 next year.

Thank you for your question. Our subscription pricing is either $29, $69, or even up to $299 per unit/home/apartment per month under our Pro+ plan. It's important to note that many hosts manage more than one unit. In fact, our average customer manages 9 units, spending an average of $82 per unit. This translates to an Annual Contract Value (ACV) of $8,900 per customer. We conservatively estimate our LTV by multiplying the ACV by 2. Although we believe the actual figure may be higher, as you rightly noted, our company is still too young to accurately determine this. I hope this gives you more clarity, and please feel free to ask if you have any more questions.

Thank you for your great suggestions and questions. 1. That is not a concern for us for two reasons. First, the current industry size is massive – there are 7 million units listed on Airbnb. Just 250k paying units could put us over $200m in ARR. The second and more important reason is that the adoption of technology, especially technology that improves efficiency and bottom-line profits, usually increases during distressed times. So, whichever way it goes, we will be in a strong position as long as we continue to develop our platform. 2. Yes, we could definitely partner up with those companies. Any introductions are welcome. Long-term rentals are not our current focus, but our platform is designed to easily adapt to other verticals within the real estate sector. 3. I aim to provide at least one update a week during the fundraising process, and my goal is to maintain a similar cadence afterward, sending these updates via email.