Question 1

After looking over the info provided for Splitsy, I have a couple of questions: (1) As I understand it, you don't have an actual product yet, correct? (2) What will your product ultimately provide that users can't obtain with a calculator? Is it just the automatic bill payment...

Accepted Answer

Hi Kevin, Thank you for all the great questions. 1.) Yes, that is correct that we do not have our product launched yet. We are currently finalizing the MVP development and will be rolling that out to our BETA users in early Q2 of this year. Our goal is to work quickly and efficiently with our BETA users to test and launch our product. 2.) Our product provides a much-needed solution to those who are currently splitting bills with peers. The issue is not our target market's inability to calcula...

Question 2

Hi, Are you all planning on remaining an LLC for tax purposes? I really like the pass-through model. Also, do you all anticipate becoming profitable any time within the near future? Thanks

Accepted Answer

Hey Lucas, Thanks for reaching out to ask these questions! 1.) We intend on remaining an LLC for the foreseeable future given the advantages it provides for start-ups, including its tax benefits. We do not anticipate making a change within our corporate structure unless it proves to have large advantages for the company long-term. 2.) Our exact breakeven point is tough to pinpoint as it will be entirely dependent on how quickly we are able to scale our product(s). The majority of our variable...

Question 3

I like this concept. What are your main competitors in this market? I would imagine one would be Splitwise; what would you say your platforms advantage over Splitwise is?

Accepted Answer

Hi Merid - We're excited to hear you like the concept! We have a few competitors in the space, most notably Venmo, CashApp, & Splitwise (as you mentioned). These applications are all great and serve a great purpose for paying friends back for stuff like fast food that is relatively inexpensive to cover for your friends. While consumers do use these applications for Rent & Utilities, many are put with the financial burden of covering these large transactions for their peers. We have a ...

Question 4

Remaining an LLC is a mistake long term, you won’t attract capital from investors seeking to take advantage of the QSBS tax credit.

Accepted Answer

Hi Patrick - Thank you for the information on the QSBS tax credit in relation to remaining an LLC. We are not opposed to transitioning away from an LLC at a later date. I'd be interested in hearing more from you on this!

Question 5

Hi Brad, I definitely see the need and looks like a good business model long term including the ideas on how to expand the customer base. One customer-oriented question for you. Three of us are sharing a flat, I presume our Splitsy accounts are all connected to our banks with ...

Accepted Answer

Hi Stu, This is a great question and one that we hear often. Currently, we will not authorize that individual user's payment for our MVP but still process the rest of the funds (i.e, 2 of the 3 individuals). We will then notify the users in the group that the bill wasn't completely paid and they will have to work individually to get that last portion paid. This isn't ideal, but it follows a very similar process as to what you would do if you split a flat without Splitsy. We will then be rolli...

Splitsy

Share monthly bills with roommates. We pay the bill then charge each person.

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