- Deployed at a top-10 (USA) retailer's select site (Target Corp)
- Client deployment achieved a 64% reduction in returns and an 80% increase in conversion on their eCommerce site
- 2019 NRF Expo (700 international exhibitors, 40,000 visitors) rated "Best in Show" across multiple top rankings (Top 3, 5, 7)
- Launched smartphone-based app for body replica (“avatar”) creation, minimizing the human error and subjectivity that may stem from self-reported measurements
- Winner "Most Fundable Company" competition, Pepperdine Graziadio Business School national contest. Through rigorous multistage diligence, from among 4,500+ early-stage applicants (Oct. 15, 2020)
- Total Amount Raised: US $167,200
- Total Round Size: US $1,500,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Crowd Note
- US $15,000,000 :
- Side by Side Offering
Online apparel sales ($95B, USA) are increasing at 10.8% annually. This trend has accelerated further post-pandemic due to the need for touch-less commerce.Apparel eCommerce is beset with two large and costly problems; high returns and low conversion resulting in ~$19B in waste cost and ~$16B in lost sales (2020). As online accelerates, so do the problems.
Online shoppers return 30-40% of apparel purchases and buy only 2-3% of what they browse. This happens because they cannot see how the clothing fits and looks on themselves. It’s the opposite of an in-store experience, where they try on clothing and view it in a mirror, resulting in low returns (~9%) and high conversion (~25%).
Perfitly’s comprehensive end-to-end (ETE) solution mimics the in-store process in full detail, creating a true ‘try before you buy’ experience online by showing the shopper in a recommended size and letting them personalize the choice by sizing up/down. The results have been game-changing. At recent large pilot-trials at a top-10 retailer, the in-store selection by shoppers matched their Perfitly enabled online selection by >79%. These results cross-validated the results at Perfitly’s client deployments where returns reduced by 2/3 and conversion increased by 80%.
The performance of the platform continues to raise Perfitly’s profile. We currently have 6 deployments at retailers ranging from small to ‘mega’. Several others are in various stages of early discussions to deployment planning.
Perfitly has accomplished the ‘try before you buy’ visualization through fusing complex leading-edge AR/VR-AI technologies into a fully home-based solution. The functionality is delivered as a ‘try it on’ button on the client retailer's website/app as an accurate, fully scalable, cloud-based SaaS solution with sub-second response times… a fun, quick and easy experience.
A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.
US $107,200 (under Reg CF only)
Investors who invest $50,000 or less 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.
The US fashion eCommerce market is estimated at $110B in 2020 (eMarketer, Statista) of which 70% is attributed to apparel. Apparel e-commerce had been growing at 10.8% before the pandemic. But has surged from 31% to over 40% of total sales and is expected to sustain. Simultaneously, return rates have leapt to 50% of sales, up from 30% avg. resulting in over $20B in waste annually (the problem that Perfitly solves directly).
By 2025, apparel e-commerce in USA is expected to reach ~$170B. When Europe and Asia are included, the worldwide total is estimated to reach ~$950B. Discounting for products not covered by Perfitly (childrens-wear, intimates and accessories), Perfitly’s addressable market today is estimated at ~$65B (USA), plus an equal amount in Europe. Adding other regions, it totals ~$320B, growing at ~10%. Perfitly’s focus for 2020/21 remains USA, with gradual entry into Europe by 2Q2021.
The market is highly fragmented. Perfitly’s focus is on digitally savvy, large retailers and is opportunistic about others.
As a B2B2C SaaS Solution, our marketing efforts are directed to the online apparel retailers, rather than the consumer. The outreach is therefore through direct contact with retailers via; (i) shows/conferences; (ii) speaking spots; (iii) industry contacts, (iv) direct outreach; (v) industry news.
We are developing a strong presence in the market and have recently gone ‘live’ on a USA top-10 retailer (Target) in a rolling deployment. Several retailers are in various stages of the sales pipeline.
Perfitly has several competitors. No other offering has created significant traction (<2%), owing to insufficient and/or inaccurate approaches (see slide 20 in deck). By avoiding shortcuts and harnessing the latest in technologies, Perfitly has overcome the shortcomings and solves the two largest problems (high returns and low conversion).
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 Apparel eCommere Tech 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 2021. 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 Company has not prepared any audited financial statements. Therefore, investors have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make investment decisions. If investors feel the information provided is insufficient, then they should not invest in the Company.
The reviewed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of December 31, 2019 and 2018, the Company has a net operating loss of $1,387,330 and $1,402,71, an operating cash flow loss of $1,410,904 and $1,350,183, cash in bank of $62,161 and $79,174 respectively. The Company’s situation raises a substantial doubt on whether the entity can continue as a going concern in the next twelve months.
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.
It is possible that our flagship product ("Perfitly's ETE Solution", or "ETE") gets commoditized and offers low differentiation to market players. Perfitly may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for the Company to establish itself as a well known brand in the competitive Apparel eCommerce Tech space, and the product may be in a market where customers will not have brand loyalty. If competitors develop equal products, Perfitly may be forced to compete on a pricing basis, which could negatively affect their revenue.
True Fit maintains broad market presence and economies of scale not accessible for smaller players such as Perfitly. Further, existing companies and/or larger companies that engage in the Apparel eCommerce business or are within the Apparel eCommerce Tech space could introduce new or enhance existing products and/or may introduce them at lower price points. This could negatively impact the company's growth
The Company may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for Perfitly to dramatically increase the number of customers that they serve or to establish itself as a well-known brand in the competitive Apparel eCommerce Tech space. Additionally, the product may be in a market where customers will not have brand loyalty.
The Company may be unable to protect its intellectual property adequately. The company currently has applied for patents on its 1 product — ETE. To the extent they do seek patent protection, any U.S. or other patents issued may not be sufficiently broad to protect their proprietary technologies. In addition, patents, even if granted, may be held invalid or unenforceable if challenged. Any intellectual enforcement efforts Perfitly seeks to undertake, including litigation, could be time-consuming and expensive and could divert management's attention.
The Company’s Board does not keep meeting minutes from its board meetings. Though the Company is a Delaware Limited Liability Company and Delaware does not legally require its corporations to record and retain meeting minutes, the practice of keeping board minutes is critical to maintaining good corporate governance. Minutes of meetings provide a record of corporate actions, including director and officer appointments and board consents for issuances, and can be helpful in the event of an audit or lawsuit. These recordkeeping practices can also help to reduce the risk of potential liability due to failure to observe corporate formalities, and the failure to do so could negatively impact certain processes, including but not limited to the due diligence process with potential investors or acquirers. There is no guarantee that the Company’s board will begin keeping board meeting minutes.
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 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 \u2014 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 entrepreneuror 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 nothave the benefit of such professional investors.
Frequently Asked Questions
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.
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.
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.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 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.
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 Perfitly, LLC. Once Perfitly, LLC accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Perfitly, LLC in exchange for your securities. At that point, you will be a proud owner in Perfitly, LLC.
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)
If you are investing 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.
An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Separately, Perfitly, LLC has set a minimum investment amount of US $1,000.
Accredited investors investing $20,000 or over do not have investment limits.
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:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- 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.
Currently there is no market or liquidity for these securities. Right now Perfitly, LLC does not plan to list these securities on a national exchange or another secondary market. At some point Perfitly, LLC 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 Perfitly, LLC 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. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is Perfitly, LLC'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 Perfitly, LLC's Form C. The Form C includes important details about Perfitly, LLC's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had 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.
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.