- Launched in March 2018 with an iOS app in New York City and on Android in late June
- 125+ retail stores across Boston, New York, Philadelphia and Washington DC
- Grown to 3,500 users at a rate of approximately 35% month-over-month since March 1, 2018; 1,274 active users in June and 1,600+ stored small and large items
- Conversion Rate (transactions/user signups) - 27% (March 2018 - June 2018)
- Average transaction of $20.00 (rates start at $2 / hour)
- Total Amount Raised: US $93,500
- Total Round Size: US $1,200,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Crowd Note
- US $3,500,000 :
- Side by Side Offering
StoreMe's mission is to be the leader in hourly or daily storage by connecting people who want to store their luggage and bags with retail stores that are willing to provide safe and secure storage. Our goal is to help Customers enjoy their visit to a city and enhance the daily lives of locals. We also want to boost economic activity and vibrancy of local businesses with more foot traffic.
Today, people on the go (Customers) are weighed down by their luggage and bags inhibiting their city experience. The problem is Customers in many cities must rely on walking, bikes and public transportation to navigate. There are few places for visitors and residents to drop off their belongings to make their day more manageable.
Hence, there is a compelling opportunity in cities for hourly or daily storage in convenient and verified retail stores (Hosts) to hold people’s luggage and bags. Customers win because they benefit from an improved city experience. Businesses win as they monetize unused storage space and also gain increased revenue from additional foot traffic.
The solution is a mobile application that provides on-demand hourly or daily storage of Customers' luggage and bags in many retail stores in a city. Similar to on-demand apps, Customers search for a nearby location and simply drop off their luggage and bags. They can reserve space at a StoreMe location, knowing that it will be available when they need it.
The business ecosystem includes three components -- Customers, retail stores (Hosts) and delivery. This community provides Customers with a convenient network of retail stores to facilitate storage and delivery across the city and elsewhere.
StoreMe's value proposition:
- Customers find convenient storage locations at affordable prices, security in knowing their items are insured up to $2,500 per transaction and a more enjoyable city experience
- Hosts earn extra revenue, market awareness to the StoreMe community, additional foot traffic through their doors, sales opportunity at both drop-off or pick-up and realize the intangible benefit of making potential Customer lives a little easier
- Delivery/shipping provides extra revenue, connects the Host network, and provides convenience to the Customer as they navigate a city (will be developed as the product matures)
For example, a Customer can drop-off and pick-up at the same location, delivered to another location for a standard fee, or have it shipped.
StoreMe started operations in March and traction through June has been super positive:
- Total # of Hosts - 125+ across BOS, DC, NYC & PHI
- Total downloads - 4,000
- Total users - 3,500 (growing at 35% on avg. month-over-month)
- Active users - 1,274 in June
- Total Customer payments - 647
- Total # of stored small and large items - 1,600+
- Conversion rate - 27% (transactions/email signups) (March 2018 - June 2018)
StoreMe is a mobile application that provides on-demand hourly or daily storage of Customers' luggage and bags in retails stores in a city. We are in the business of monetizing unused space hourly or daily.
Primary target audience includes:
- Tourists such as Airbnb and hotel guests, who need a place to store their luggage before check-in or after check-out so they can continue enjoying the city before their flight
- Business travelers in for the day or overnight, who do not want to lug their luggage from meeting to meeting or before they check-in or after check-out of their hotel
- Locals/commuters with gym bags, briefcases or other small items, who do not want to carry their belongings as they move around a city
- Shoppers going from store-to-store, who do not want to carry their purchases and want to enjoy their shopping experience
Our revenue model is straight forward. StoreMe's share is 40% and the store's share is 60% of each storage transaction. Storage cost is based on the size, number and time items are stored. The first 30 minutes are free after reserving space, and we then charge:
Small item (tote bag, briefcase, shopping bag)
- 1st hour is $2.00
- Each additional hour is $1.00 up to 7 hours
- $7.50 daily rate (24-hours)
Large item (carry-on, suitcase)
- 1st hour is $3.00
- Each additional hour is $2.00 up to 7 hours
- $14 daily rate (24-hours)
Our future revenue streams include:
- Delivery based on the number of delivery transactions with StoreMe receiving $3 from each delivery
- Premium accounts for Hosts, who pay a monthly subscription fee to gain Customer analytics and market segmentation capabilities
- Other revenues from a percentage of in-store purchases from StoreMe Customers
What Customers are saying (5 star Google Review):
"Union Station in Washington DC charges $6/hour to store 1 piece of luggage so I googled to see what other options were available. Thank goodness for StoreMe! I chose Khepra's Raw Food & Juice Bar (just a quick Lyft ride away) both to store my luggage for the day and to get a healthy lunch. Food was incredible there and I'll definitely be back for more high vibe food and storage. Excellent experience all around! Thanks for setting up such a great app and service!"
"Super convenient and friendly service at location that was right around the corner from where we were. Just downloaded the app, made the reservation and was able to drop off our two bags and get on our way. Really easy and would recommend to others!"
“Great service! I downloaded the app shortly before arriving in NYC and quickly found a place to store my luggage nearby . . . User-friendly app and stellar customer service! Will definitely use again. I recommend 10/10.”
“After walking around the city to check out very sketchy luggage storage places, I found this app and it changed my life! I chose a location super close to me and felt confident leaving my 3 bags there for the day. Pick up was a breeze and it was so affordable! I’ll be telling all my friends about this app.”
“Great app and so many locations in the city to temporarily keep your bag/luggage if you’re staying in an Airbnb but can’t check in early. Definitely will use again.”
“Service was fantastic and very easy to use the app. Wonderful way to find luggage storage in Washington DC. Friendly service at Old City Market in DC. Would definitely utilize again!”
“Best thing to have in DC! Was easy to use the app and the luggage was safe & with no issues. Thanks!”
*The above individuals were not compensated in exchange for their testimonials. In addition, their testimonials should not be construed as and/or considered investment advice.
StoreMe is a solution to a short-term storage problem that I, Peter Korbel, experienced many times myself. The solution was immediately apparent to me in 2013, when I was running around New York City for meetings while carrying my gym bag, and I asked a local retailer for help. It was then that I was convinced a mobile application that connected people looking for short-term storage with locations willing to store for a fee was the solution. Fast forward to 2018, StoreMe’s services started in New York City and have expanded into Washington DC, Boston and Philadelphia. With the touch of a button, StoreMe’s technology enables hourly or daily storage of people’s luggage and bags in conveniently located retail stores in a city. Our Customers love the product!
I turned my full-time attention to StoreMe in 2017 and have given 110%+ of my energy to taking StoreMe from concept to product. I connected with Adam Berlinsky-Shine, a former startup CTO with the prominent dating app Coffee Meets Bagel in San Francisco and current lead engineer at Roomi in NYC, for his startup/technology guidance. He put his stamp of approval on our technical approach and oversaw product development in the initial phase of building out the MVP. We developed StoreMe’s brand and UX/UI with Milkshake, a design studio based in Brooklyn, and our back-end/front-end of the mobile app with Espeo, a development team in Poland. In late January 2018, we engaged Hell’s Creative, an agency specializing in digital marketing, to develop our go-to-market strategy with our beta launch in NYC and full launch on March 1 to iPhone users. We also brought on Inqline, a customer support team, to manage all Customer and Host engagement touch points.
With the business in motion, we were joined by Jesse Tayler, a seasoned tech entrepreneur with extensive experience in mobile technology in both SF and NYC, who has managed our ongoing product development. With Jesse leading the StoreMe technology team, I turned my attention full-time to building our business and Host network across all of the aforementioned cities. We now have 125+ retailers across our cities, and growing, and our Customer base has increased month-over-month.
We are super passionate about building this business at scale. As a former college athlete, I understand the importance of teamwork, commitment, and what it takes to succeed first hand. Jesse is equally capable and committed and has the technology knowhow to help establish StoreMe as the leader in hourly storage, an evolving industry with increasing Customer and public awareness.
- Led by energetic, passionate and serial entrepreneur with vision
- Expansive Host network across BOS, DC, NYC and PHI and growing
- Seamless and highly reviewed mobile app experience deployed to both iOS and Android--our Customers love the product.
- Elevated brand and design to build trust and goodwill with Customers
- Unrivaled Customer service and Host management system
- Proven Host sales strategy and commitment to a partner network of businesses that are more than just storage locations
- Plan to connect Host network with Customer analytics and marketing segmentation capabilities
- Implementation of delivery with third party API platform to connect Host network and also ship anywhere
- Post-raise, we plan to enhance the mobile app experience and scale into new markets quickly. Our technology based business has virtually no hard infrastructure costs. We are able to scale into other markets with expanded offline and online marketing resources and minimal and short-term human capital expenditure.
- Our on-demand technology will continue to improve our mobile app storage service and Customer experience in addition to adding new capabilities to the Host dashboard experience and analytics. In the product roadmap, we plan to introduce delivery, the third side of the StoreMe ecosystem, initially through a white label API integration with an established delivery platform.
- Currently, StoreMe has successfully demonstrated the speed with which it can scale into new cities such as Boston, New York, Philadelphia and Washington DC. We expect to grow our business into Chicago and San Francisco in the short-term. Other US cities with significant visitor and local populations as well as international cities that rely heavily on public transportation, biking, and walking are next in our strategy.
- Based on the problem we are solving and Customer feedback, we anticipate this market ballooning over the next few years with more awareness. We have the technology platform and vision to scale and meet both the Host supply and Customer demand.
An online marketplace and hospitality service, enabling people to lease or rent short-term.
A travel and restaurant website company that shows hotel and restaurant reviews, accommodation bookings and other travel-related content.
A financial services, merchant services aggregator and mobile payment company.
A global travel company. Its websites, which are primarily travel fare aggregators and travel metasearch engines, include: Expedia.com, Hotels.com, Hotwire.com, CarRentals.com, trivago, Venere.com, Travelocity, Orbitz and HomeAway.
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 $43,500 (under Reg CF only)
$1,000+ - StoreMe swag (excludes international shipping costs)
$5,000+ - All of the above, plus free storage for 1 year
$10,000+ - All of the above, plus dinner with CEO in New York City
$50,000+ - All of the above, plus participation in regular scheduled quarterly call with StoreMe management
$100,000+ - All of the above, plus paid airfare (domestic and international) and hotel in New York City and a one-time dinner with management. Also includes invitation to annual dinner with the StoreMe management
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
The graph below illustrates theor the of StoreMe, Inc.'s prior rounds by year.
StoreMe, Inc. (“the Company”) is a Delaware corporation that was founded on January 14, 2016, and is headquartered in New York, New York. The Company is an on‐demand mobile application that provides hourly/daily storage of people’s luggage or bags in retail stores.
Liquidity and Capital Resources
The proceeds from the Offering are essential to our operations. We plan to use the proceeds as set forth above under "Use of Proceeds", which is an indispensable element of our business strategy. The Offering proceeds will have a beneficial effect on our liquidity, as we have approximately $42,000 in cash on hand as of April 2018 which will be augmented by the Offering proceeds and used to execute our business strategy.
The Company currently does not have any additional outside sources of capital other than the proceeds from the Combined Offerings.
Capital Expenditures and Other Obligations
The Company does not intend to make any material capital expenditures in the future.
We built an early version of StoreMe's website for marketing purposes and considered a web-enabled solution to the on-demand storage problem. However, based on our understanding of the market, we concluded that a mobile app, similar to Uber or Airbnb, would better serve Customer needs and provide a more optimal user experience.
We selected MilkShake Design Studio, a New York based company, to design StoreMe’s UX/UI interface. We shipped the assets to Espeo, a Polish firm, and had them develop the mobile application’s frontend/backend in our desired tech stack. Leveraging React Native, we built in one code that allowed us to initially deploy to iOS and subsequently to Android saving us time and resources.
Assessment of market landscape
StoreMe conducted market research (through SurveyMonkey) to identify the target audience and to assess the scope of the short-term storage problem and its solution. Based on our sample of 300+ respondents in the Northeast and Mid-Atlantic Regions and Nationally, we found the results to be compelling.
- More than 53% indicated that they would be somewhat interested or more in a safe/guarded/protected place to store their stuff temporarily when visiting or living in a city
- Over 77% travel occasionally or more often to major cities, 58% find themselves carrying too much stuff and 57% would do more, see more, and buy more if they could leave their stuff somewhere temporarily
- More than 54% need to store luggage and 66% shopping bags
- More than 44% indicated would likely be a StoreMe Customer
The promise of millions of shoppers, tourists, business travelers and locals using this service in cities such as Boston, Chicago, New York, Philadelphia, San Francisco and Washington DC to make this a compelling business.
Segment of visitors and residents in US cities with large populations and heavy reliance on public transportation, bikes, and walking. Approximately 225 million people visited Boston, Chicago, New York, Philadelphia, San Francisco and Washington DC
Selected US cities that have many visitors and residents include, Atlanta, Austin, Charleston, Dallas, Denver, Houston, Las Vegas, Los Angeles, Miami, Nashville, New Orleans, Portland, San Antonio, San Diego, Seattle, St. Louis and Tampa
Selected cities that rely on public transportation, walking and biking include, Amsterdam, Athens, Barcelona, Beijing, Brussels, Buenos Aries, Copenhagen, Dublin, Hong Kong, Lisbon, London, Madrid, Mexico City, Montreal, Paris, Rome, Santiago, SaoPaulo, Seoul, Shanghai, Stockholm, Tokyo and Toronto
Total market size
Taking into consideration StoreMe’s expansion into second tier markets and internationally, our addressable market is 1% of approximately 1.4 billion people.
Tier 1 & 2 source for population
US Census Population for 2017 https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
Tier 1 sources for visitors
Boston: 2018 data: https://www.bostonusa.com/media/statistics-reports/
New York: 2017 https://business.nycgo.com/press-and-media/press-releases/articles/post/mayor-de-blasio-and-nyc-company-announce-nyc-welcomed-record-628-million-visitors-in-2017/
Philadelphia: 2017 http://files.visitphilly.com/Visit-Philadelphia-annual-report-2017.pdf
San Francisco: 2015 http://www.sftravel.com/article/san-francisco-travel-reports-record-breaking-year-tourism
Washington DC: 2016 http://www.sftravel.com/article/san-francisco-travel-reports-record-breaking-year-tourism
Tier 2 source for visitors
Assumes that the number of visitors to a city equals 4 times the size of the local population. For Tier 1 cities, the total number of visitors averaged 4.47 times the local populations.
Competition and Competitive Advantage
There are a number of competitors that are operating overseas of which a few of them from Italy, France and London have ventured into the New York market primarily. Additionally, there are a few operators in New York of which a couple have grown to San Francisco and Boston. With few exceptions, all of these operations have web apps geared towards tourists primarily.
StoreMe's current competitive advantage is its determined and passionate CEO along with a seamless mobile app solution for both iOS and Android targeted at tourists and business travelers as well as the everyday locals. Additionally, StoreMe is already in 4 cites (BOS, DC, NYC, PHI), establishing itself as the leader on the East Coast and leveraging the network effect/synergies along the Amtrak line.
Failure to obtain new clients or renew client contracts on favorable terms could adversely affect results of operations. We may face pricing pressure in obtaining and retaining our clients. Our clients may be able to seek price reductions from us when they renew a contract, when a contract is extended, or when the client’s business has significant volume changes. They may also reduce services if they decide to move services in-house. On some occasions, this pricing pressure results in lower revenue from a client than we had anticipated based on our previous agreement with that client. This reduction in revenue could result in an adverse effect on our business and results of operations.
Further, failure to renew client contracts on favorable terms could have an adverse effect on our business. Our contracts with clients generally run for several years and include liquidated damage provisions that provide for early termination fees. Terms are generally renegotiated prior to the end of a contract’s term. If we are not successful in achieving a high rate of contract renewals on favorable terms, our business and results of operations could be adversely affected.
The reviewing CPA has included a “going concern” note in the reviewed financials. The Company has incurred losses from inception of $106,252 which, among other factors, raises substantial doubt about the Company's ability to continue as a going concern for the twelve‐month period from the report date. 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 equity, its ability to attract users to its software platform and its ability to generate positive operational cash flow. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.
The Company does not have an employment contract in place with its officers. Employment agreements typically provide protections to the Company in the event of the employee’s departure, specifically addressing who is entitled to any intellectual property created or developed by those employees in the course of their employment and covering topics such as non-competition and non-solicitation. As a result, if they were to leave StoreMe, the Company might not have any ability to prevent their direct competition, or have any legal right to intellectual property created during their employment. There is no guarantee that an employment agreement will be entered into.
We have not prepared any audited financial statements. Therefore, you have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make your investment decision. If you feel the information provided is insufficient, you should not invest in the Company.
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. The Company’s competitors include major companies worldwide. Many of its 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 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, 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 products and services.
The Company’s success depends on the experience and skill of the board of directors, its executive officers and key employees. In particular, the Company is dependent on its Co-Founders, CEO, Peter Korbel, and its CTO, Jesse Taylor. In particular, Jesse is currently neither employed nor owns equity in the Company. Equity helps align founders' financial interests with those of the business, incentivizing founders to be more invested in the future of the company. The absence of any equity interest in the Company could dis-incentivize Jesse from achieving the Company's goals.
Additionally, there can be no assurance that they will continue to be employed by the Company for a particular period of time. The loss of our key employees or any member of the board of directors or executive officer could harm the Company’s business, financial condition, cash flow and results of operations.
StoreMe faces competition from other companies in the on-demand storage space. Existing companies that engage in the on-demand storage business or are within the market could introduce new or enhance existing products. If StoreMe is able to establish a market around its product, it may find that larger, better funded companies may enter the market, which could negatively impact StoreMe's growth.
On-demand storage is commoditized and offers low differentiation to market players. StoreMe 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 on-demand storage space, and the product may be in a market where customers will not have brand loyalty. If competitors develop equal products, StoreMe may be forced to compete on a pricing basis, which could negatively affect their revenue.
Other actors could maintain broad market presence and economies of scale not accessible for smaller players such as StoreMe. There are low barriers to entry in this market. Further, existing companies that engage in the on-demand storage business are within the same space and could introduce new or enhance existing products. Additionally, some of StoreMe’s competitors may have significant funding and could be able to cross sell products and services to our customers. If a larger, better funded company markets or creates a comparable product at a lower price point, StoreMe may have to reduce prices to remain competitive or could be priced out of the market. This could negatively impact the Company’s growth.
StoreMe may be unable to maintain, promote, and grow its brand through marketing and communications strategies. It may prove difficult for StoreMe to dramatically increase the number of customers that they serve or to establish itself as a well-known brand in the competitive on-demand storage space. Additionally, the product may be in a market where customers will not have brand loyalty.
StoreMe has approximately $38,000 in cash remaining as of July 2018 or 3-months of runway. StoreMe claims that they will cut back monthly cash burn to $14,000 to extend its runway, and will fund a $100,000 bridge loan, which will be released in November, if necessary. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.
StoreMe's expenses may increase as they seek to execute their current business model. Although the Company has 3 months of cash remaining, StoreMe will have increased operating and marketing expenses, which will be ramp up our cash burn to promote revenue growth over the coming months post raise. Doing so could require significant effort and expense or may not be feasible.
StoreMe’s forecasts predict it obtaining approximately less than 1% of market penetration of the on-demand storage market by year 5. If StoreMe’s assumptions are wrong, and their projections regarding market share are too aggressive, its financial projections may overstate its viability.
StoreMe will be a foreign company, operating overseas, which may pose unknown risks. Additionally, StoreMe is subject to foreign laws and regulations regarding privacy, data protection, and other matters. Foreign data protection, privacy, and other laws and regulations are often more restrictive than those in the United States. These foreign laws and regulations are evolving and can be subject to significant change. In addition, the application and interpretation of these laws and regulations are often uncertain.
StoreMe may be unable to protect its intellectual property adequately. The Company currently has no patents on its one product — a mobile application that provides on-demand storage transactions between Customers and Host locations. To the extent that StoreMe seeks 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 StoreMe seeks to undertake, including litigation, could be time-consuming and expensive and could divert management’s attention.
StoreMe may not have accurately forecast demand for its product. The Company may find it difficult to grow its business or to survive if their actual market is smaller than expected.
StoreMe’s operations and revenue may experience some seasonality in off-season travel when cities tend to have fewer tourist visitors. Quarterly results may vary significantly and are not necessarily an indication of future performance. The seasonality of StoreMe’s revenue and operations could exacerbate fluctuations due to other factors, including costs of expansion, upgrades to systems and infrastructure, or changes in business or macroeconomic conditions.
StoreMe is targeting a new and unproven segment within the on-demand storage market, which introduces unknowns, such as customer adoption and retention rate. StoreMe's success is dependent on consumer adoption of a mobile application that provides on-demand storage. There is not yet an established, quantifiable market for on-demand storage adoption, however, given consumer adoption of other on-demand mobile applications solving a real problem such as Airbnb and Uber, this may help mitigate the adoption risk.
StoreMe is currently outsourcing its accounting and financial modeling with monthly oversight. Historical financials may have line items that are misplaced and Company’s balance sheet may be incomplete or incorrect.
Founder and CEO Peter Korbel is key to the operation and development of StoreMe. Peter Korbel currently has a Key Man Insurance policy with $2,000,000 worth of coverage. If something were to happen to Peter Korbel, however, the insurance policy may not be sufficient to cover his loss, which could make it harder for StoreMe to execute in the future.
StoreMe is offering convertible notes which poses unique risks. A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round, or is repaid if not converted by a certain date. 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. Since an investor is lending money to a Company, convertible notes will more often than not accrue interest as well. However, as opposed to being paid back in cash, this interest accrues to the principal amount invested, increasing the number of shares issued upon conversion. Investors face significant risk that the note might not convert if a future financing round never occurs, and that the Company may not have sufficient cash flow to repay the note, with interest, at its maturity date.
The Company has engaged in related party transactions. During 2017 and 2016, cash was advanced to the Company by a founding member of the Company, to fund operations. These advances were non‐interest bearing with no set maturity date. At December 31, 2017 and 2016, related party payables outstanding were $10,767 and $767, respectively. The Company also has several outstanding convertible notes payable from related parties at December 31, 2017 and 2016. Additionally, the founder of the company has contributed $25,000 to the company in July, and does not intend to be paid back for this contribution, although no guarantee can be made.
StoreMe’s convertible notes would convert upon a $2.5M Qualified Equity Financing event. This above-average Qualified Equity Financing threshold increases the risk that the note might not even with a future financing round.
Crowdfunding (defined as online offerings of the securities of early stage companies to retail investors) is a relatively new industry that has only started to develop with the SEC’s adoption of Regulation A+ in June 2015 and Regulation Crowdfunding on May 16, 2016. Early stage companies may be slow to adopt crowdfunding as a method of capital formation, which would mean fewer deals for investors to choose from and less research for us to prepare. Alternatively, investors may be slow to adopt crowdfunding as a viable investment substitute, which would mean fewer early stage companies raising money and a smaller potential customer base. As a result, a risk exists that we acquire fewer customers or acquire customers at a slower pace than we anticipate.
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 these shares 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 — 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.
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 StoreMe, Inc.. Once StoreMe, Inc. accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to StoreMe, Inc. in exchange for your securities. At that point, you will be a proud owner in StoreMe, Inc..
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 government-issued identification
- 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, StoreMe, Inc. 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 StoreMe, Inc. does not plan to list these securities on a national exchange or another secondary market. At some point StoreMe, Inc. 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 StoreMe, Inc. 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 StoreMe, Inc.'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 StoreMe, Inc.'s Form C. The Form C includes important details about StoreMe, Inc.'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 portfolio page
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 portfolio page.