- Generated over $1M in lifetime revenue (unaudited)
- Investors include Resolute Ventures and Mint Capital (Othman Laraki); Resolute has previously backed Bark & Co, Greenhouse, Clutter, uJet, and Signifyd, among others
- Other Notable investors include Jason Calacanis (investor in multiple unicorns including Uber and Thumbtack), Steve Russell (former board of Ring Doorbell), Gokul Rajaram, and AngelList Access Fund
- Was sold through Best Buy, both in stores and online, and sold out in approximately 4 weeks
- Featured in prominent media publications such as Venture Beat and Forbes
- Total Amount Raised: US $2,669,000
- Total Round Size: US $3,500,000
- Seed :
- Minimum Investment: US $5,000 per investor
- : Convertible Note
- US $8,500,000 :
Distrust in Facebook and social media is increasing - 52.2% of users are not confident about their privacy on the internet. Due to this, there is a growing reluctance among some users to post pictures of their family online. But families are spread apart and are desperate for tools to help them stay connected in this digital age. Currently, users are in the unfortunate position of having to choose between privacy and connectedness.
Loop breaks through this dilemma by offering a solution that has the convenience of a social network without the tradeoffs of privacy. We have built a family messaging app plus an elegant home display that is simple, private, and fun. This innovative hardware and software solution provides an experience that we believe surpasses any app solution alone.
We have shown there is a strong demand for a private and family friendly social platform – to date we have generated over $1M in revenue and are building out a monthly subscription business. We have a passionate and diverse group of customers from parents, millennials, and even teens, who want a simple solution to connect their family.
Loop is a private social network for families. Families use the app to share pictures, videos, message, and even video chat. Loop also has an elegant display device that sits in the home. The home display streams content into channels, bringing back the communal family experience of televisions and radios from the 50’s and 60’s.
It's a private, closed system without ads, and only includes the people you care about the most.
We charge $249 for a single Loop and $199/Loop if you purchase a bundle of 3 or more units. The app is free and customers can share the app with multiple family members, with or without the Loop display. In Q2 we plan to unveil a premium subscription service in which we will charge $3-$9/mo for cloud backup, video support, and auto-synchronization with online sources. We make up to 40% gross margin on the full price hardware and an estimated 70-80% gross margin on the subscription service.
We are focused on family and offering users privacy. Our business model of selling hardware plus subscription frees us from the need to sell data to advertisers.
In addition, our unique combination of software and hardware provides a user experience that we think is substantially better than any standalone app. The home display also adds a stickiness that improves retention and engagement.
Loop has been referred to as "Snapchat for your family," but we believe that "family" represents a market opportunity larger than even Snapchat's ($10B) because although teens represent a significant demographic, everyone has family. Family is a unifier among age groups and for many, it's the most important thing in life.
As major platforms become bigger, it opens up opportunities for vertical "focused" networks to emerge. For example, NextDoor (social network for neighborhoods) is having incredible success.
With privacy and trust at the forefront, we believe the timing is perfect to build a family-focused network.
In the future, our aim is for Loop to be recognized around the world as the trusted place for family to stay connected.
We are a DTC (direct to consumer) brand and currently use online advertising to drive traffic to our website. In Q3 we plan to sell through Amazon.com and in 2020 we expect to add on retail. We previously ran a nationwide test at Best Buy stores where we sold out in less than four weeks.
We are also in discussions with HSN/QVC to test the direct TV model and generate awareness, and with Adobe to integrate with Lightroom which could open up millions of photographers and their highly curated content.
Network Effects and Viral Growth
Within a family, Loop has natural network effects - the product/service becomes more valuable with each additional family member who joins. There is also natural virality as people are encouraged to invite others into the system. We expect Loop to catch on and show viral vector for growth once we hit critical mass.
Our mission is to help families stay connected.
This story of Loop started with a simple problem - Brian wanted to send pictures of his young son Alex to his father who lived across the county. There were many tools but nothing seemed to truly solve the problem. Social media seemed far too public and even the devices we use added friction. This presented unique challenges and opportunity.
Brian’s research at the Stanford Design School (d.school) led him to dive deeper into the problem and discovered an innovative solution that included private messaging based app plus a home display. It solved the problems of privacy, simplicity, and it rested on a robust business model.
Brian joined the Highway1 accelerator and met Sital and Ethan, two childhood friends from Cupertino. Ethan was a world class designer from RISD and Altitude. Sital ran software engineering for Words with Friends, one of the world’s most popular social mobile games. The team joined forces and built this product that is changing the way families communicate around the world.
Early birds (First 10 people)
- Free Loop + 3 years free service
- California Labs sweatshirt (Our legal company name)
Big Spenders: $50k+
- Free Loop 3 pack + lifetime free service
- 2x California Labs sweatshirt
- Teleconference with founders for roadmap discussion
- Free Loop 5 pack + lifetime free service
- 3x California Labs sweatshirt
- Meet with team in San Francisco, all expenses paid, and roadmap discussion
- Official advisor status
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Frequently Asked Questions
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 Loop. Once Loop accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Loop in exchange for your securities. At that point, you will be a proud owner in Loop.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because Loop is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. 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 portfolio page by clicking your profile icon in the top right corner.
Currently there is no market or liquidity for these securities. Right now Loop does not plan to list these securities on a national exchange or another secondary market. At some point Loop 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 Loop either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.
This is Loop'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.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in Loop’s profile.