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BabyQuip

Baby gear rental service for families traveling with small children

BabyQuip is offering securities under both Regulation CF and Regulation D through SI Securities, LLC ("SI Securities"). SI Securities is an affiliate of SeedInvest Technology, LLC, a registered broker-dealer, and member FINRA/SIPC. SI Securities will receive cash compensation equal to 7.50% of the value of the securities sold and equity compensation equal to 2.50% of the number of securities sold. Investments made under both Regulation CF and Regulation D involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. Furthermore, this profile may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures in the offering's draft. The contents of this profile are meant to be a summary of the information found in the company’s Form C. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering information, a copy of which may be found both here and below.


Company Highlights

  • Led by Fran Maier, co-founder and first GM of Match.com and Founder of TRUSTe (now TrustArc), who brings over 25 years experience building trusted online brands
  • Families love BabyQuip, awarding it with World Class NPS scores over 90 (based on Q1 2021) and over 18,000 5 Star Reviews
  • Now a national brand for baby gear rentals with over 800 Quality Providers, covering 49 US States and 4 Canadian Provinces
  • Formed strategic partnerships with Guesty, AvantStay, and hundreds of affiliate partnerships, as well as host referral agreement with VRBO
  • Successfully bounced back from the pandemic and has experienced growth. 2021 YTD (thru September) Gross Merchandise Value of $4.3M is over 2X 2020 ($1.8M) and over 1.5X 2019 ($2.8M) - GMV unaudited, not including refunds

Fundraise Highlights

  • Total Amount Raised: US $3,211,669
  • Total Investors: 590
  • Total Round Size: US $4,999,999
  • Raise Description:  Seed
  • Minimum Investment:  US $1,000 per investor
  • Security Type:  Preferred Equity
  • Pre-Money valuation :  US $18,000,000
  • Offering Type:   Side by Side Offering

BabyQuip is the vacation lifesaver. As a leading baby gear rental company, we deliver clean, insured, quality baby gear —from car seats to strollers and more—to families on the go. With BabyQuip, families can "Pack Light. Travel Happy."


Traveling with babies and toddlers is already difficult for parents - the bulky baby gear makes it even harder. BabyQuip has helped nearly 70,000 parents across the US and Canada have happier vacations. Families love BabyQuip, consistently rewarding it with an NPS Score above 90 (world class) and over 18,000 five-star reviews (99% of all reviews).

BabyQuip's managed marketplace and robust platform provide its community of over 800 independent contractors, called Quality Providers (QPs), the opportunity to build a business renting baby gear. Prospective QPs, mostly moms, undergo an application process, interview, background check, and extensive training on safety, cleaning, and hospitality. They are able to start delivering baby gear to families within days of setting up their profile. Quality Providers determine their inventory (gear they own), operating hours, delivery radius, prices and more.

QPs enjoy the extra income ($1000+/month avg this past summer among QPs with orders) and gratifying work. In addition to ongoing lead generation, the QPs benefit from an active and supportive community and coaching on how to build their business through social media and affiliate marketing.

Trust and safety are our top priorities. We know parents want the peace of mind that the baby gear is safe, clean and insured. BabyQuip provides category leading liability insurance that covers QPs as well as the company.

BabyQuip outperforms any known regional or mom ’n pop competitors. The company has a well-established social media presence with over 32K followers across all platforms. As a result of its national presence, the company has formed strategic partnerships including Avantstay, Guesty, as well with hundreds of affiliates.

In early 2020 the company was featured on Shark Tank. It survived the pandemic and experienced rapid growth in 2021 up 72% over 2019.

Pitch Deck

Media Mentions

The Team

Founders and Officers

Fran Maier

Founder and Chief Executive Officer

Fran formed BabyQuip (then Babierge) in 2016. Prior to BabyQuip, Fran is best known for her 10+ years leading TRUSTe (now TrustArc), the leading privacy trustmark and solutions provider, and her role as Co-Founder and first General Manager of Match.com, the earliest and most successful dating platform. She has been active as an advisor to start-ups, many led by female entrepreneurs, as well as being an angel investor. Fran is a graduate of Stanford University and the Stanford Graduate School of Business.

Fran is also an Airbnb “Superhost” in both San Francisco and Santa Fe and has first-hand knowledge of the need for baby gear for traveling families.

“I love BabyQuip because I know how precious it is for families to enjoy their time together and because we help women make some extra money for their own families on our platform. It really reminds me of Match.com because we are creating a new category and everyone is so grateful!”

Fran Maier

Founder and Chief Executive Officer

Fran formed BabyQuip (then Babierge) in 2016. Prior to BabyQuip, Fran is best known for her 10+ years leading TRUSTe (now TrustArc), the leading privacy trustmark and solutions provider, and her role as Co-Founder and first General Manager of Match.com, the earliest and most successful dating platform. She has been active as an advisor to start-ups, many led by female entrepreneurs, as well as being an angel investor. Fran is a graduate of Stanford University and the Stanford Graduate School of Business.

Fran is also an Airbnb “Superhost” in both San Francisco and Santa Fe and has first-hand knowledge of the need for baby gear for traveling families.

“I love BabyQuip because I know how precious it is for families to enjoy their time together and because we help women make some extra money for their own families on our platform. It really reminds me of Match.com because we are creating a new category and everyone is so grateful!”

Joe Maier

Chief Technology Officer

Joe Maier, CTO, is a product driven technology developer with a passion for creating scalable user friendly applications. Joe Maier comes to BabyQuip after five years as a technology consultant at Accenture, where he designed and built back end processes and web applications for clients. Joe holds a B.S. degree in Computer Science, Mathematics and Economics from American University.

“Millennials are today’s parents and we love traveling and exploring. I love BabyQuip because it makes it possible for new families to travel to places that would otherwise be too difficult and create new experiences for everyone. It’s also awesome to see our providers take advantage of and work our platform to be entrepreneurial and earn some cash for themselves all while helping others.”

Joe Maier

Chief Technology Officer

Joe Maier, CTO, is a product driven technology developer with a passion for creating scalable user friendly applications. Joe Maier comes to BabyQuip after five years as a technology consultant at Accenture, where he designed and built back end processes and web applications for clients. Joe holds a B.S. degree in Computer Science, Mathematics and Economics from American University.

“Millennials are today’s parents and we love traveling and exploring. I love BabyQuip because it makes it possible for new families to travel to places that would otherwise be too difficult and create new experiences for everyone. It’s also awesome to see our providers take advantage of and work our platform to be entrepreneurial and earn some cash for themselves all while helping others.”

Nicole Kitzman

Director of Lead Generation & Community

Nicole oversees Quality Provider Recruiting, the Quality Provider Community and Customer Lead Generation. She spent 10 years at Google working with Fortune 500 companies on Adwords, YouTube and other Google products. She brings extensive Adwords, Analytics, Account Management and Customer Service knowledge to BabyQuip.

Nicole loves the gig economy! In addition to being one of the original BabyQuip QPs, she is also an AirBnB SuperHost. She first rented baby gear back in 2011 when traveling with her young twins. She has been hooked on this business ever since.

Nicole attended Pennsylvania State University with a BS in Marketing and International Business.

“BabyQuip is a game-changer for traveling with young children. I rented baby gear for the first time in 2011 (years before BabyQuip existed) when I traveled with my one year old twins. I became slightly obsessed with the idea both as a solution for simplifying travel with young children, but also as a fun and lucrative side gig. In 2014, I launched my own mom and pop baby gear rental business in San Francisco and then again in 2015 when I moved to the DC area. After learning about BabyQuip, I joined as a Quality Provider and was so passionate about our mission, I now work for the company full time.”

Nicole Kitzman

Director of Lead Generation & Community

Nicole oversees Quality Provider Recruiting, the Quality Provider Community and Customer Lead Generation. She spent 10 years at Google working with Fortune 500 companies on Adwords, YouTube and other Google products. She brings extensive Adwords, Analytics, Account Management and Customer Service knowledge to BabyQuip.

Nicole loves the gig economy! In addition to being one of the original BabyQuip QPs, she is also an AirBnB SuperHost. She first rented baby gear back in 2011 when traveling with her young twins. She has been hooked on this business ever since.

Nicole attended Pennsylvania State University with a BS in Marketing and International Business.

“BabyQuip is a game-changer for traveling with young children. I rented baby gear for the first time in 2011 (years before BabyQuip existed) when I traveled with my one year old twins. I became slightly obsessed with the idea both as a solution for simplifying travel with young children, but also as a fun and lucrative side gig. In 2014, I launched my own mom and pop baby gear rental business in San Francisco and then again in 2015 when I moved to the DC area. After learning about BabyQuip, I joined as a Quality Provider and was so passionate about our mission, I now work for the company full time.”

Key Team Members

Patricia Johnson

Partnerships Consultant

Jennifer Wold

Director of Marketing and Communications

Term Sheet

A Side by Side offering refers to a deal that is raising capital under two offering types. Investments made through the SeedInvest platform are offered via Regulation CF and subject to investment limitations further described in the Form C and/or subscription documents. Investments made outside of the SeedInvest platform are offered via Regulation D and requires one to be a verified accredited investor in order to be eligible to invest.

Fundraising Description

  • Round type:
    Seed

  • Round size:
    US $4,999,999

  • Raised to date:
    US $3,211,669
    US $876,674 (under Reg CF only)

  • Minimum investment:
    US $1,000

  • Target Minimum:
    US $400,000
  • Key Terms

  • Security Type:
    Preferred Equity

  • Share price:
    US $0.8132

  • Pre-Money valuation:
    US $18,000,000

  • Option pool:
    4.22%

  • Is participating?:
    False

  • Liquidation preference:
    1.0x
  • Additional Terms

  • Custody of Shares

    Investors who invest less than $250,000 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information. 


  • Closing conditions:
    While BabyQuip has set an overall target minimum of US $400,000 for the round, BabyQuip must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments made via Regulation CF. For further information please refer to BabyQuip's Form C.

  • Transfer restrictions:
    Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered "restricted securities" and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

  • Use of Proceeds

    Investor Perks

    Early Bird Investor Perk - Invest $10k by January 14, 2022 to receive the $50k investment perks

    Investment between $1,000 and $7,499

    • Swag (BabyQuip branded t-shirt and canvas tote bag)
    -or-
    • Donation of $25 to charity (choose between Feeding America or Unbound)
    Investment between $7,500 and $49,999
    • Swag (BabyQuip branded fleece, water bottle, canvas tote bag)
    • 25% BabyQuip discount for all of 2022 for you and a friend (good for baby gear rentals and baby gear cleanings)

    -or-

    • Replace Swag with donation of $150 to charity (choose between Feeding America or Unbound)

    Investments between $50,000 and $99,999

    • Above swag package PLUS baseball cap
    • 50% BabyQuip discount for all of 2022 for you and a friend (good for baby gear rentals and baby gear cleanings

    -or-

    • Replace swag with donation of $200 to charity (choose between Feeding America or Unbound)

    Investments between $100,000 and $149,999

    • Above swag package PLUS branded backpack
    • 50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
    • Dinner with Fran and other female founders

    -or-

    • Replace swag with donation of $300 to charity (choose between Feeding America or Unbound)

    Investments of $150,000 or greater

    • Above swag package
    • 50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
    • Dinner with Fran and other female founders / invite to annual investor dinner
    • Investor name added to website
    • 4 night stay at Fran's beautiful Santa Fe rental property, fully-equipped with all the baby gear you need (some restrictions apply)

    -or-

    • Replace swag with donation of $500 to charity (choose between Feeding America or Unbound)

    Returning SeedInvest Investors of $20,000 or greater

    • Above swag package PLUS branded backpack
    • 50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
    • Dinner with Fran and other female founders
    -or-
    • Replace swag with donation of $200 to charity (choose between Feeding America or Unbound)

    It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

    Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.

    Prior Rounds

    This chart does not represent guarantees of future valuation growth and/or declines.

    Pre-Seed

  • Round Size
    US $1,705,833
  • Closed Date
    Mar 30, 2018
  • Security Type
    SAFE Note
  • Valuation Cap
    US $4,500,000
  • Seed

  • Round Size
    US $1,052,778
  • Closed Date
    Jun 30, 2019
  • Security Type
    Convertible Note
  • Valuation Cap
    US $8,000,000
  • Seed

  • Round Size
    US $843,290
  • Closed Date
    Jun 30, 2019
  • Security Type
    Preferred Equity
  • Pre-Money valuation
    US $9,000,000
  • Seed

  • Round Size
    US $1,300,623
  • Closed Date
    Apr 30, 2021
  • Security Type
    Preferred Equity
  • Pre-Money valuation
    US $10,500,000
  • Market Landscape

    The Baby Gear Rental market is massive, underserved, and a multi-billion dollar opportunity. Family travel is a $150B market in US alone with $30B spent by approx 7 million families that have children 3 and under. $23B is spent annually on baby gear for 4M US babies born each year. High luggage fees and increased stays at vacation rentals makes renting baby gear more attractive. Millennials eschew ownership and are comfortable both working for and using gig economy gig economy services.

    Prior to BabyQuip,  the baby gear rental category was nascent, as there were no companies operating nationally.  The sector was dominated by some regional players and small mom'n pops in tourist destinations.   Category awareness is now at 80% and BabyQuip brand awareness to 64% (Zoho Survey, 2021).

    Risks and Disclosures

    Investors will not have the ability to vote as a separate class on the issuance, authorization, or designation of securities in a Permitted Financing or a Deemed Liquidation Event where holders of Series Seed Preferred Stock will receive an amount per share of not less than one and a half times (1.5X) the applicable Original Issue Price. “Permitted Financing” means a financing transaction in which the securities issuable in such financing (1) shall have an original issue price greater than the Original Issue Price of the Series Seed-6 Preferred Stock, and (2) shall be subordinate or senior to or pari passu with the Series Seed Preferred Stock. In the event of a Permitted Financing, investors will not have the right to vote as a separate class on the issuance, authorization, or designation of securities, increase or decrease the authorized number of shares of any class or series of capital stock, or authorize or create (by reclassification or otherwise) any new class or series of capital stock having rights, powers, or privileges. Additionally, investors will not have the right to vote as a separate class in a Deemed Liquidation Event where the holders of Series Seed Preferred Stock will receive an amount per share of not less than one and a half times (1.5X) the applicable Original Issue Price.

    The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The Baby Gear Rental market is an emerging industry where new competitors are entering the market frequently. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.

    The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway until end of year, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.

    The Company projects aggressive growth in 2022. If these assumptions are wrong and the projections regarding market penetration are too aggressive, then the financial forecast may overstate the Company's overall viability. In addition, the forward-looking statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

    The outbreak of the novel coronavirus, COVID-19, has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Funds, their performance, and their financial results.

    If the contractor classification of the Quality Providers (“QPs”) that use BabyQuip’s platform is challenged, there may be adverse business, financial, tax, legal and other consequences. The definition of Independent Contractor is regularly subject to claims, lawsuits, arbitration proceedings, administrative actions, government investigations and other legal and regulatory proceedings at the federal, state and municipal levels challenging the classification of gig workers as independent contractors. The tests governing whether a gig worker is an independent contractor or an employee vary by governing law and are typically highly fact sensitive. Laws and regulations that govern the status and misclassification of independent contractors are subject to changes and divergent interpretations by various authorities which can create uncertainty and unpredictability for BabyQuip. For example, recently, California passed Assembly Bill 5 or AB 5, which limits the use of classifying workers as independent contractors rather than employees by companies in the state. Other jurisdictions have passed similar bills, seeking to classify gig economy workers as either independent contractors or employees.

    The Company continues to maintain that QPs on its platform are independent contractors, but its arguments may ultimately be unsuccessful. A determination in, or settlement of, any legal proceeding, whether BabyQuip is party to such legal proceeding or not, that classifies a comparable gig worker as an employee, could harm its business, financial condition and results of operations, including as a result of: monetary exposure arising from or relating to failure to withhold and remit taxes, unpaid wages and wage and hour laws and requirements; injunctions prohibiting continuance of existing business practices; claims for employee benefits, social security, workers’ compensation and unemployment; and other claims, charges or other proceedings under laws and regulations applicable to employers and employees, including risks relating to allegations of joint employer liability or agency liability.

    Quality Providers (“QPs”) for the Company could take actions that could harm the Company’s business. The Company’s QPs are obligated to operate in accordance with certain brand standards. Nonetheless, QPs are independent contractors whom the Company does not control. The QPs operate and oversee their daily operations and have sole control over their equipment, as well as delivery, and pick-ups. As a result, these QPs make decisions independent of the Company that bear directly on the ultimate success and performance of their store. The failure of any QP to comply with BabyQuip’s brand standards could potentially have repercussions that extend beyond that QP’s own market area and materially adversely affect not only the business as a whole, but also the business of other QPs and the general brand image and reputation of the BabyQuip name. This, in turn, could materially and adversely affect the business and operating results.

    If the Company is not able to attract and retain QPs, its financial performance may be negatively affected. BabyQuip’s future growth and performance depends on its ability to attract, develop and retain qualified QPs who understand and appreciate its culture and are able to represent the brand effectively. A material decrease in profitability of QPs may make it more difficult to attract and retain QPs. There can be no assurance that the Company will continue to be able to recruit and retain a sufficient number of QPs and other candidates to meet growth targets. BabyQuip’s ability to maintain current performance and achieve future growth additionally depends on QPs’ ability to meet their equipment needs while controlling other costs. For example, if QPs are unable to avoid excess inventory shrink, BabyQuip’s business and results of operations may be adversely affected.

    Any failure by QPs to comply with product safety laws may damage the Company’s reputation and brand and harm its business. Many of the products available on the site are subject to regulation by the Federal Consumer Product Safety Commission, the Federal Food and Drug Administration and similar state and international regulatory authorities. As a result, such products have been and could be in the future subject to recalls and other remedial actions. Many of the products available are for children, and these products are often subject to enhanced safety concerns and additional scrutiny and regulation. Product safety concerns may require the Company to voluntarily remove selected products from the site. Such recalls and voluntary removal of inventory could result in, among other things, lost sales, diverted resources, potential harm to reputation and increased customer service costs and legal expenses, which could have a material adverse effect on the business, financial condition and operating results. Some of the products available may expose the Company to product liability claims and litigation or regulatory action relating to personal injury, death or environmental or property damage. Although BabyQuip maintains liability insurance, it cannot be certain that coverage will be adequate for liabilities actually incurred or that insurance will continue to be available on economically reasonable terms, or at all.

    The Company is dependent on the leisure travel industry. The Company’s financial prospects are significantly dependent upon leisure travelers using its services. Leisure travel, including short term rentals at the end destination, is dependent on personal discretionary spending levels. Leisure travel services tend to decline during general economic downturns and recessions. If worldwide economic conditions worsen, it could lead to a general decrease in leisure travel and travel spending, which could negatively impact the demand for the Company's services. Additionally, events beyond the Company’s control also may adversely affect the leisure travel industry, with a corresponding negative impact on its business and results of operations. Natural disasters or outbreaks of pandemics and epidemics have disrupted normal leisure travel patterns and levels. The leisure travel industry is also sensitive to other events, such as work stoppages or labor unrest at major airlines, political instability, regional hostilities, increases in fuel prices, imposition of taxes or surcharges by regulatory authorities, travel related accidents, and terrorist attacks, any of which could have an impact on its business and results of operations.

    The Company's existing investors have not waived their pre-emptive rights and may plan on exercising those rights. The pre-emptive right entitles those investors to participate in this securities issuance on a pro rata basis. If those investors choose to exercise their pre-emptive right, it could dilute shareholders in this round. This dilution could reduce the economic value of the investment, the relative ownership resulting from the investment, or both.

    The reviewing CPA has included a “going concern” note in the audited financials. The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

    The Company has incurred losses from inception of $4,494,310 and has negative cash flows from operations, among other factors, raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt or the sale of stock, its ability to continue profitable sales of its services, and its ability to generate positive operational cash flow.

    Management has determined, based on its recent history and its liquidity issues that it is not probable that management’s plan will sufficiently alleviate or mitigate, to a sufficient level, the relevant conditions or events noted above. Accordingly, the management of the Company has concluded that there is substantial doubt about the Company’s ability to continue as a going concern within one year after the issuance date of these financial statements.

    There can be no assurance that the Company will be able to achieve or maintain cash‐flow‐positive operating results. If the Company is unable to generate adequate funds from operations or raise sufficient additional funds, the Company may not be able to repay its existing debt, continue to develop its product, respond to competitive pressures, or fund its operations. The financial statements do not include any adjustments that might result from this uncertainty.

    The Company has outstanding liabilities. Notes payable consisted of the following as of December 31:

    On April 20, 2020, the Company borrowed $101,094 (the “PPP Loan”) and on June 9, 2020 the Company borrowed

    $150,000 (the “SBA Loan”) from a U.S. Small Business Administration (the "SBA") loan program. The PPP Loan has an initial term of two years and an interest rate of 1% per annum, which the Company expects will be forgiven prior to maturity. If repayment of the PPP Loan is required, payments begin after a six‐month deferral period, in which interest accrued, and payments are to be made in equal installments over an 18‐month period. Of the $101,094 balance, $33,696 is considered a short‐term liability. Accrued interest payable on the PPP Loan amounted to $719 as of December 31, 2020.

    The Paycheck Protection Program loan balance of $101,094 and the SBA loan balance of $150,000 were forgiven subsequent to year end.

    The SBA Loan requires installment payments of $731 monthly, beginning on January 9, 2021 over a term of thirty years. Interest accrues at a rate of 3.75% per annum. The Company agreed to grant a continuing security interest in its assets to secure payment and performance of all debts, liabilities, and obligations to the SBA. Accrued interest payable on the SBA Loan amounted to $3,219 as of December 31, 2020.

    During 2021, Company’s SBA loan was increased by $200,000. The terms of the loan stayed the same as described above.

    ​​Convertible Loans

    Prior to 2019, the company issued convertible loans in exchange for cash totaling $47,500 (the “Purchase Amount”).

    Convertible notes can be converted at a set price of $0.4923. During 2019, the full amount was converted into 106,023 shares of common stock.

    Total interest expense recognized during year ending December 31, 2020 and 2019 was $4,774 and $3,517, respectively.

    Safe Warrants

    Between January 2017 and December 2018, the company entered into simple agreements for future equity (“SAFE securities”) with investors, for total proceeds of $2,008,333, including $100,000 issued to the Company’s CEO. During 2019, the company issued additional SAFE securities in the principal amount of $702,777, including $100,000 issued to the Company’s CEO. The SAFE securities did not bear interest and had no maturity date.

    The SAFE Agreements entitle the holder to convert the SAFE agreements into the Company’s preferred stock (this classification of stock has not yet been authorized or established). The terms provide for automatic conversion of the SAFE agreements’ purchase amounts into the Company’s preferred stock if and upon a qualified equity financing event, which is generally defined as a transaction or series of transactions involving the issuance of the Company’s preferred stock at a fixed pre‐money valuation. Conversion price means either (1) the Safe price or (2) the Discount price, whichever calculation results in greater number of shares of Safe Preferred Stock (as defined in the agreement).

    In the case of a liquidation event (as defined in the SAFE agreement), the SAFE agreement is convertible into either: a) cash of the purchase amount; b) the number of common shares determined by dividing the purchase amount by the liquidity price (as defined in the agreement).

    During 2019, the Company has classified these SAFE notes as a short‐term liability as the qualified financing event is expected to be completed within 12 months.

    During 2020, all SAFE warrants were converted into a total of 6,108,565 shares of Series Seed Preferred Shares.

    At both December 31, 2020 and 2019, the Company had $0 and $2,711,111 balance outstanding, respectively.

    The Company has conducted Related Party Transactions. During 2019, the Company received funds in the amount of $35,000 from CEO. The outstanding amount was paid in full during the year ended December 31, 2020.

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for theseshares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only be obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

    BabyQuip's Form C

    The Form C is a document the company must file with the Securities and Exchange Commission, which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Download BabyQuip's  Form C

    Frequently Asked Questions

    About Side by Side Offerings
    What is Side by Side?

    A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.


    What is a Form C?

    The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.

    Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.


    What is Rule 506(c) under Regulation D?

    Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.


    What is Reg CF?

    Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $5 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.


    Making an Investment in BabyQuip
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by BabyQuip. Once BabyQuip accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to BabyQuip in exchange for your securities. At that point, you will be a proud owner in BabyQuip.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Your accredited investor status
    5. Social Security Number or passport
    6. ABA bank routing number and checking account number (typically found on a personal check or bank statement) or debit card information, unless paying via a Wire transfer.

    How much can I invest?

    Non-accredited investors are limited in the amount that he or she may invest in a Reg CF offering during any rolling 12-month period:

    • If either the annual income or the net worth of the investor is less than $107,000, the investor is limited to the greater of $2,200 or 5% of the greater of his or her annual income or net worth.
    • If the annual income and net worth of the investor are both greater than $107,000, the investor is limited to 10% of the greater of his or her annual income or net worth, to a maximum of $107,000.

    Separately, BabyQuip has set a minimum investment amount of US $1,000.

    Accredited investors do not have any investment limits.


    After My Investment
    What is my ongoing relationship with the Issuer?

    You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.

    In certain circumstances a company may terminate its ongoing reporting requirement if:

    1. The company becomes a fully-reporting registrant with the SEC
    2. The company has filed at least one annual report, but has no more than 300 shareholders of record
    3. The company has filed at least three annual reports, and has no more than $10 million in assets
    4. The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
    5. The company ceases to do business

    However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.


    How can I sell my securities in the future?

    Currently there is no market or liquidity for these securities. Right now BabyQuip does not plan to list these securities on a national exchange or another secondary market. At some point BabyQuip may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when BabyQuip either lists their securities on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.


    Other General Questions
    What is this page about?

    This is BabyQuip's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the BabyQuip's Form C. The Form C includes important details about BabyQuip's fundraise that you should review before investing.


    How can I (or the company) cancel my investment under Regulation CF?

    For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours prior to the offering end date or an earlier date set by the company. You will be sent a notification at least five business days prior to a closing that is set to occur earlier than the original stated end date giving you an opportunity to cancel your investment if you have not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.


    What if I change my mind about investing?

    If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your account's portfolio page by clicking your profile icon in the top right corner.