|1||Kazoo secured a technology partnership with RapidSOS that links to 250M+ mobile devices|
|2||Kazoo connects into 4,700 emergency call centers with 93% U.S. coverage|
|3||Kazoo's award-winning UI design team has created apps for Apple, Twitter, Snapchat, and Kanye West|
|4||Our leadership team includes top-tier tech entrepreneurs and business leaders|
|5||Founders invested $400K plus backed by 298 Reg CF investors|
|6||Multiple subscription revenue models—B2B, B2B2C, and B2C|
|7||It's an ideal time to invest in the $400B mobile app and security markets with a 16% growth rate|
|8||This is your chance to get Kazoo at a low $3M valuation with significant ROI potential|
History has shown that there aren't many SAAS applications that give immediate access to emergency services during times of crisis. Kazoo has created a platform that has an amazing ability to connect families to loved ones. I have known Peter for almost a year now and we consistently talk about what his vision is of connecting people to emergency services, and I have no doubt that Kazoo will bring to market not only a successful product but one that makes people's lives better.
Having a powerful app to facilitate people to get help in time is a $277 billion market in the U.S. alone.
Concerns about security, privacy, and accessibility are at the forefront of the modern world. As we see more and more high-profile tragedies and acts of violence in our backyards, there is a growing need for safe, data-protected technology that helps us locate our loved ones in a time of crisis.
Kazoo has made a premier SOS app that provides on-scene live video streaming, paired with precise location data, to a person in crisis’s emergency contacts while calling 911. With the increasing complexity of technology, Kazoo made the user experience as simple and intuitive as possible. And, Kazoo connects into 4,700 emergency call centers with 93% U.S. coverage. By making this technology publicly available, we are taking emergency services to a whole new level.
In today's world, there are less predictable situations (such as the pandemic, social justice movements), which can directly impact our personal and public health and safety. In virtually every emergency situation, Kazoo's app can help people in need.
With Kazoo, you can carry the assurance of your emergency contacts in your pocket at all times. During an emergency and in seconds, they can see what’s happening, your location, and communicate with you, all while contacting emergency services in-app with one tap.
Kazoo combines powerful safety features, secure group communications, and location-based services that provide increased peace of mind.
Kazoo partnered with RapidSOS to provide emergency call center coverage for 93% of the U.S. Kazoo is certified as RapidSOS Ready, which means that users can share life-saving information in an emergency with local first responders. This ensures the right information gets to the right people at the right time.
Kazoo secured an affinity partnership with Stand for the Silent (SFTS), an international anti-bullying organization with more than 300,000 social media followers on Facebook, Twitter, and Instagram. SFTS's marketing channel will provide a cost-effective and efficient route to reach a highly targeted paid subscriber base to drive its B2B2C revenue.
Developed with the safety of the end-user in mind, there are 3.5B smartphone users worldwide—the Kazoo app is literally for any smartphone user age 10+. Our cost-effective and efficient B2B2C sales and distribution model is through corporations, universities, rideshare companies, and organizations to reach tens of millions of end-users.
These days, workplace health and safety procedures are important for the well-being of both employees and employers because human loss is immeasurable and intolerable—loss or injuries can employ major loss to the families. By addressing workplace hazards with Kazoo's enterprise safety technology, employees work at their best through each workday.
Kazoo's revenue model includes both a business-to-business and business-to-consumer strategy. Both are subscription-based models, which provide a consistent revenue stream for Kazoo. Our corporate pricing includes a one-time integration fee, plus a tiered monthly per-user fee.
With our current B2B and B2B2C pricing models, the projected revenue chart shows Kazoo's growth potential over the next four years. For our B2B revenue model, we accounted for securing multiple corporate accounts per year based on our sales pipeline projections. For our B2C model, we project 25,000 annual subscribers by Q4 2021 with a 2x growth rate in 2022/2023 and 1.5x in 2024. Additionally, the model incorporates industry-stand assumptions for user conversation after a 7-day trial, organic vs. direct conversions, churn, and overall user acquisition costs. By year 2024, we project a B2B:B2C revenue ratio of 57.7% (B2B): 42.3% (B2B2C)
10,000 lives could be saved every year by reducing 9-1-1 response times by just one minute. With 240 million 9-1-1 calls made annually—80% calling from mobile devices—the demand for a robust personal security app (that works) is self-evident—thus providing tremendous growth potential for Kazoo.
Kazoo provides an essential service to 3.5B smartphone users worldwide, 33M of which purchase 1-2 apps/mo. Kazoo's total addressable market in the U.S. is $285B, and we've targeted a $12B serviceable market. Kazoo's scalable and cost-efficient go-to-market strategy focuses on national corporate channel partners to reach millions of end-users.
Kazoo has made a premier SOS app that instantly alerts your loved ones, live streams video, pinpoints your location, and connects with 9-1-1—with one tap. No other app on the market does this so seamlessly and efficiently. The Kazoo app bundles group communications, location-based services, and social features like no other app in the market does.
Kazoo's vision is to enhance public safety and security with scalable mobile solutions that are accessible by anyone and everyone at any time. We strive to be the leading public safety mobile app company to both consumer and corporate customers. Kazoo's comprehensive technology roadmap is the future of personal safety.
Founders bootstrapped $400,000 of their own funds to get the company going, and the company did a Reg CF raise through Wefunder in 2020 and raised $160,000.
Kazoo has financial statements ending December 31 2019. Our cash in hand is $21,343, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $3,000/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.
Kazoo made a premier SOS app that instantly alerts loved ones, live streams video, pinpoints your location, and connects with 9-1-1—with one tap. No other app on the market does this so seamlessly. The Kazoo app bundles group communications, location-based services, and social features like no other app in the market does. Kazoo's enterprise safety technology also applies to companies because human loss is immeasurable and intolerable—loss or injuries can employ major loss to the families.
Kazoo's vision is to enhance public safety and security with scalable mobile solutions that are accessible by anyone and everyone at any time. We strive to be the leading public safety mobile app company to both consumer and corporate customers with millions of users worldwide. Kazoo's innovative and comprehensive technology roadmap is the future of personal safety.
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Kazoo LLC was incorporated in the State of District of Columbia in April 2019.
Since then, we have:
Historical Results of Operations
Our company was organized in April 2019 and has limited operations upon which prospective investors may base an evaluation of its performance.
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 $436,679 in debt and $15,000 in equity.
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 5 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
Kazoo LLC cash in hand is $21,343, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $3,000/month, for an average burn rate of $3,000 per month. Our intent is to be profitable in 12 months.
Since the date of our financials, we have determined that additional is funding is needed to complete and market the product for company growth.
We expect to need $175,000 in capital to reach a revenue-generating point by April 2021. Six months after that point, we hope to be generating $15k in monthly revenue and $35-$40k in monthly expenses. These projections cannot be guaranteed.
For additional sources of capital, we can rely on a credit line.
We have a limited operating history upon which you can evaluate our performance, and accordingly, our prospects must be considered in light of the risks that any new company encounters. The Company is still in an early phase and is just beginning to implement its business plan. There can be no assurance that it will ever operate profitably. The likelihood of its success should be considered in light of the problems, expenses, difficulties, complications and delays usually encountered by companies in their early stages of development.
The amount of capital the Company is attempting to raise in this Offering may not be enough to sustain the Company’s current business plan. In order to achieve the Company’s near and long-term goals, the Company may need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all.
Although dependent on certain key personnel, the Company does not have any key man life insurance policies on any such people. The Company is dependent on certain key personnel in order to conduct its operations and execute its business plan, however, the Company has not purchased any insurance policies with respect to those individuals in the event of their death or disability. Therefore, if any of these personnel die or become disabled, the Company will not receive any compensation to assist with such person’s absence. The loss of such person could negatively affect the Company and its operations.
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 is not subject to Sarbanes-Oxley regulations and may lack the financial controls and procedures of public companies. The Company may not have the internal control infrastructure that would meet the standards of a public company, including the requirements of the Sarbanes Oxley Act of 2002. As a privately-held (non-public) Company, the Company is currently not subject to the Sarbanes Oxley Act of 2002, and it's financial and disclosure controls and procedures reflect its status as a development stage, non-public company. There can be no guarantee that there are no significant deficiencies or material weaknesses in the quality of the Company's financial and disclosure controls and procedures. If it were necessary to implement such financial and disclosure controls and procedures, the cost to the Company of such compliance could be substantial and could have a material adverse effect on the Company's results of operations.
We may implement new lines of business or offer new products and services within existing lines of business. As an early-stage company, we may implement new lines of business at any time. There are substantial risks and uncertainties associated with these efforts, particularly in instances where the markets are not fully developed. In developing and marketing new lines of business and/or new products and services, we may invest significant time and resources. Initial timetables for the introduction and development of new lines of business and/or new products or services may not be achieved, and price and profitability targets may not prove feasible.
In order for the Company to compete and grow, it must attract, recruit, retain and develop the necessary personnel who have the needed experience. Recruiting and retaining highly qualified personnel is critical to our success. These demands may require us to hire additional personnel and will require our existing management personnel to develop additional expertise. We face intense competition for personnel. The failure to attract and retain personnel or to develop such expertise could delay or halt the development and commercialization of our product candidates.
We are subject to income taxes as well as non-income based taxes, such as payroll, sales, use, value-added, net worth, property and goods and services taxes, in both the U.S. and various foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and other tax liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe that our tax estimates are reasonable: (i) there is no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our income tax provisions, expense amounts for non- income based taxes and accruals and (ii) any material differences could have an adverse effect on our financial position and results of operations in the period or periods for which determination is made.
We have not prepared any audited financial statements. Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.
We need to rapidly and successfully develop and introduce new products in a competitive, demanding and rapidly changing environment. To succeed in our intensely competitive industry, we must continually improve, refresh and expand our product and service offerings to include newer features, functionality or solutions, and keep pace with price-to-performance gains in the industry. We must continue to respond to market demands, develop leading technologies and maintain leadership in analytic data solutions performance and scalability, or our business operations may be adversely affected. We must also anticipate and respond to customer demands regarding the compatibility of our current and prior offerings. These demands could hinder the pace of introducing and implementing new technology.
We rely on agreements with third parties to provide certain services, goods, technology, and intellectual property rights necessary to enable us to implement some of our applications. Our ability to implement and provide our applications and services to our clients depends, in part, on services, goods, technology, and intellectual property rights owned or controlled by third parties. We exercise limited control over our third-party vendors, which increases our vulnerability to problems with technology and services those vendors provide. If the services, technology, or intellectual property of third parties were to fail to perform as expected, it could subject us to potential liability, adversely affect our renewal rates, and have an adverse effect on our financial condition and results of operations.
The Company intends to use the proceeds from the Offering for unspecified working capital. This means that the Company has ultimate discretion to use the proceeds as it sees fit and has chosen not to set forth any specific uses for you to evaluate. The net proceeds from this Offering will be used for the purposes, which our management deems to be in our best interests in order to address changed circumstances or opportunities. As a result of the foregoing, our success will be substantially dependent upon our discretion and judgment with respect to application and allocation of the net proceeds of this Offering.
Our business, results of operations, and financial condition may be impacted by the recent coronavirus (COVID-19) outbreak. The ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, has caused substantial disruption in international and U.S. economies and markets. If repercussions of the outbreak are prolonged, they could have a materially significant adverse impact on our business. The Company’s management cannot at this point estimate the impact of the outbreak on its business, and no provision for this outbreak is reflected in the accompanying financial statements.
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 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 Offering 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 Offering Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Target Offering 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.
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.
There is no guarantee of a return on an Investor’s investment. There is no assurance that an Investor will realize a return on its investment or that it will not lose its entire investment. For this reason, each Investor should read this Form C and all Exhibits carefully and should consult with its own attorney and business advisor prior to making any investment decision.
On August 10, 2020, Nga Thi Howard, a former CEO and former manager of the Company, filed a lawsuit in the United States District Court for the District of Columbia captioned as Howard v. Goodman, No. 1:20-cv-2187 (D.D.C.). Ms. Howard alleges, among other things, that Peter J. Goodman, the CEO, President, and Manager of the Company, improperly removed Ms. Howard as a manager and misused the Company’s assets. There are no direct claims against the Company. Mr. Goodman has filed a motion to dismiss and a counterclaim against Ms. Howard for defamation. After receiving the parties’ filings, the judge assigned the case to mediation. A mediator has been appointed, and a mediation date is being scheduled.
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