SoldWell SAMPLE Seed Round One Pager PDF

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Summary

This is a one page sample document for a real world fund raising round from a real estate technology startup...

Description

INVESTMENT HIGHLIGHTS SoldWell is a new PropTech company that will disrupt the $178 Billion Real Estate Brokerage industry in the US and Canada. We will slice through the traditional high commission brokerage model by offering full service and commissions as low as 0%, using a unique business model powered by technology.

Background Many industries have undergone fundamental technological transformations that have dramatically reduced the cost of a transaction (for example stock trading). So far, the Real Estate (RE) Brokerage industry has not. To know this, you just have to look at the price consumers pay for the service. Typically, fees to sell a home using a fully brokered service are 5% in Canada and 6% in the US, so it’s common to pay $50K to $60K to sell a $1M property for example. These rates have changed very little over time and consumers have been long frustrated paying ever increasing fees as home prices rise.

Market Opportunity and Competition • Total brokerage fees (USD) in 2020: $163.7B (US) and $14.1B (Canada) • Market divided: full service/ full commission and discount service/ discount commission • One US based discount brokerage has enjoyed tremendous growth recently; Redfin: ○ $186M to 886M revenue in the last 5 years ○ NASDAQ listed company with a valuation of $5.9B (as at Aug. 12/21) ○ Offers 1.5% selling commission or 1% if you buy your next home with them ○ $886M revenue represents 0.5% of the total US/ Cdn market ○

5 Year Revenue / EBITDA $300,000,000 $233,000,000 $166,000,000 $99,000,000

The SoldWell Concept

$32,000,000 -$35,000,000

SoldWell was created to drive down the cost of a RE transaction and pass those savings onto consumers. SoldWell’s value proposition to consumers is simple:

Year 1

Year 2

Year 3

Revenue

Year 4

Year 5

EBITDA

Investment Opportunity (USD)

Full service and 0% commission As a full service broker, SoldWell provides similar value to an established player like ReMax or Royal LePage, but for as low as 0% selling commission if you buy your next home with us.

Seed Round Investment Terms: ● Total Investment : $3,000,000 ● Investment Type : Convertible Debenture ● Term : 5 Years ● Coupon : 6%

SW capitalizes on the fact that sellers pay commissions, while buyers do not, and we use that fact to create a classic win/ win scenario. We reduce our customers' selling commission to zero and generate most of our revenue representing the customer when they buy their next home, when they pay no commission in any case.

Our financial model shows 5th year revenue of $244M. Using 4 - 8x revenue as a metric, this yields a company valuation of $980M - $1.96B. • similar public company valuations (Aug. 12/21): Zillow 8x, Redfin 7x 12 month trailing revenues

At SoldWell, full service means: • Easy-to-use technology to empower the customer to create their own listing, and more • Highly trained, licensed agents to assist with high value advice • 24/7 on-demand help with RE, service or tech issues • Delivering a low commission with good service

Year 5 projected revenue of $244M represents approximately 1% market share in the 23 local US & Cdn markets SW plans to be operating in at that time.

SoldWell reduces costs by using technology to drive efficiencies: • Simple app to create your own listing and find a home • Electronic Document Signatures and ID Verification • Room Scanning and Measurement; accurate floor plans on every listing! • Live video platforms: support, virtual showings and Open

The investment potential 16.3 to 32.6 times the initial investment. For example: • $100k invested could be worth between $1.626M and $3.252M in the 5 year business plan cycle. • $200k invested could be worth between $3.252M and $6.504M in the 5 year business plan cycle.

$244M revenue represents just 0.14% of the total US and Cdn RE Brokerage market of $178B last year.

Please ask for our full Investor Presentation & visit soldwell.com for our short intro video....