Question 1

Three questions: 1) Your valuation of $7M off of a $100K top line in May, may seem high, any chance you have more details on your costs, growth prospects, market size, pipeline, and previous funding? 2) As you mentioned this business of concierge like services seems to be comm...

Accepted Answer

Birju, Happy to discuss everything in more detail over email - bmcfarland@magnises.com. 1) We are planning on expanding to five additional cities in the next twelve months (DC, San Francisco, LA, Chicago, and Miami). There are 400,000 people in our target demographic in New York alone, and we accepted over 1,000 in our first three months. 2) Over the past several decades financial institutions, the large banks and CC companies who are our main competitors, have spent enormous amounts of time ...

Question 2

How do you plan to use the funds raised?

Accepted Answer

To further develop our mobile technology that allows us to recommend and fulfill requests and perks on-demand. Also, to help us expand to our next cities.

Question 3

You have phenomenal 3-month growth and a very exciting business up and running. What are your costs related to the $180,000 in revenue generated thus far?

Accepted Answer

We are currently running cash-flow positive, but will ramp up the team and expand to additional cities with the current raise.

Question 4

Losing 1/4 of your member to churn: Do you have any comparables, or explanation as to this being a good rate of churn?

Accepted Answer

Charlie, our annual retention is 80% (annual churn is 1/5). As a comparison to other companies attacking similar audiences, we're well ahead of the pack including Harry's (annual retention of 60%), Apple Music (annual retention is 79%), and Spotify (20% monthly churn). We believe our retention is extremely impressive considering subscription services and the market we're going after.

Question 5

What percentage of your perks/experiences sourced from members? If the business model depends on member sourced perks, would that pose a problem in the future regarding consistency and quality of experiences in the future? How did you arrive at a 17 million valuation? How are ...

Accepted Answer

Dilraj, thanks for reaching out. 1) As we grow Magnises, it's imperative that we're able to scale the offering proportionally with the member base. As our member-base has grown, we've been able to increase the quality and volume of our offering as over 75% of our perks/experiences come from members. The quality of perks and brand partnerships has dramatically increased as well. In two years, we've gone from small local partnerships to working with (and getting paid) by some of the best (in th...

Magnises

Professional growth platform for aspirational millennials

$129,886

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Magnises

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$129,886

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