- Nearly $1 million in equipment rentals processed through the platform from 300+ customers
- Notable investors include FirstRock Capital, David S. Rose of AREA Acclerator (also of New York Angels, Singularity University and Gust), Delaware Crossing Investment Network, and Green Egg Ventures.
- Customers include HBO, Paintzen, Global Facilities Management, and vendors for large retail companies
- Supply partnerships with United Rentals, Sunbelt Rentals, Herc Rentals, and 100s of local and regional suppliers.
- Graduated from NYC's AREA accelerator, a Manhattan-based real estate technology accelerator founded by angel investor David S. Rose
- Total Amount Raised: US $55,800
- Total Round Size: US $1,000,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Crowd Note
- US $5,000,000 :
- Side by Side Offering
Construction equipment rental is a $50B a year industry, and it suffers from inefficiencies, fragmentation, and lack of transparency. The combination of these issues increases the cost of doing business, and creates an ideal environment for innovation to thrive.
In equipment rental, pricing is rarely found online, and when found, it is usually incomplete and/or difficult to understand. Because of this, consumers are forced to call several suppliers in order to obtain pricing, availability, and to secure the rental.
For renters, Tobly provides an intuitive technology platform that offers instant pricing, availability, rental lifecycle management, and reporting, all while providing market rates. Additionally, Tobly's platform can collect relevant information and upfront payment to complete bookings in just a couple of minutes.
Tobly’s customers are in facilities management, construction, and video production. Companies in these industries spend hundreds of thousands of dollars on equipment rentals each year. Tobly allows them to gain full control and visualization of the company’s rental activity.
For suppliers, Tobly brings new business at no cost, allowing them to stop worrying about sales and marketing, and focus on their fleet operation. Tobly partners with hundreds of suppliers from market leaders to local businesses.
The product prioritizes local business in order to support the local economy and offers suppliers a more efficient and cost-effective way to generate new business. This ultimately brings cash flow and utilization to an optimal level. Tobly has processed nearly $1mm in equipment rentals through its platform, directly benefiting local businesses.
Tobly is a web app that has been optimized to be used on any device, from desktops to smartphones. Through the app, customers have access to:
- Real-time competitive pricing accessible online.
- Online booking that takes less than five minutes.
- Rental lifecycle management, and reporting.
Tobly is a marketplace business that connects equipment rental suppliers with renters who need the equipment. Tobly monetizes the marketplace by taking a cut from each transaction.
The way it works is customers find the equipment they need and book online. At this point, the customer pays in full with a credit card. Tobly then assigns the deal to one of its preferred suppliers for them to fulfill.
Suppliers offer Tobly discounted rates, allowing them to keep a percentage of the transaction’s final price. Additionally, Tobly offers other services such as equipment rental protection, training, and operator sales.
The company’s efforts have been spent on building digital marketing campaigns mainly focused on search engine optimization and search engine marketing. These efforts have yield scalable, repeatable, and profitable strategies for customer acquisition.
With the funds being raised, Tobly will focus on building a sales engine to complement its marketing efforts allowing the company to company to generate and maintain more business as they scale.
Tobly’s customer base is largely dominated by mid-market companies working in facilities management, construction and video production. Key customers include HBO and Paintzen.
Facility managers use Tobly to schedule routine and emergencies services at multiple locations across the nation. In construction, our core customers are small and medium-size trade contractors such as painters, electrician and HVAC contractors. Lastly, we work with video producer of all sizes needing lifts for the stage set up and lighting.
Tobly provides nation-wide service but focuses its marketing and sales efforts to three metro locations, New York, Miami, and Los Angeles. An important part of the company's revenue growth plan is to expand the focus to six additional metro areas and double our product offer.
Tobly started in 2016 as one of the only companies accepting online equipment rental requests, and today we remain one of the only companies processing a majority of their bookings online. Tobly is capitalizing from market forces pushing the adoption of technology in every aspect of business.
Tobly launched with an interface that allowed people to find us and schedule a rental online. We received immediate validation from early adopters and started growing. Today, Tobly can generate accurate estimates in seconds and the average rental transaction takes less than 5 minutes to perform. Customers can see historical records, download invoices and manage their rental activity, even when the subcontractor is the one paying.
Pablo came up with the idea for Tobly while running a real estate startup he founded in Shanghai. During that time he needed to rent equipment often, and it shocked him how difficult and time consuming it was. Just getting pricing would take hours, or even days, and in many cases, the equipment he needed wasn't even available. This impacted him so much that he decided to research the problem, which made him realize what a huge business opportunity there was in improving the equipment rental process.
The first big problem came with the technology. Tobly's initial prototypes were outsourced, and to say it didn't work would be an understatement. While struggling with this issue Pablo met Tana, a software engineer who was working in his own startup and freelancing as a consultant and quickly became friends. He took interest in the project and started helping Pablo with the product to then join full time and earn his co-founder title for being a valuable team member in both technology and strategic decision making.
2) With that being validated, we tested a few different approaches to the marketplace. From e-stores for suppliers to price comparison engine, we landed on an on-demand model where we saw initial scalable traction through digital marketing.
3) We then optimized the platform only for lift rentals and left out other types of equipment.
4) Recently launched Tobly 2.0 optimizing for scalability, SEO, and speed to market in new locations.
6) Currently working on making specialized tools for facilities managers to use during national jobs.
7) The future roadmap holds more features for national companies, deeper integrations with suppliers, expansion into other languages and currencies.
- Focus: While there are many equipment rental companies, we are the only one focusing on the intersection between Areal Work Platforms and National Facilities Management.
- Asset light business model: Our business model like many other online platforms is built to scale, we do not have any physical constraints to expand into new geographies and asset class as we do not own any equipment.
- Technology: Our technology is built to satisfy the needs of our customer, additionally, having developed it 100% in house, of our technology allows us to built custom features at a faster pace than others using out the box solutions.
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 $10,800 (under Reg CF only)
All non-Major Purchasers will be subject to an Investment Proxy Agreement "IPA". The IPA will authorize SeedInvest to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IPA included with the Company's offering materials for additional details.
For Everyone investing $1k - $100k:
- Company Swag
- Listed as "Early Investor" on the Tobly website.
For Angel Investors
$10k - Exclusive access to Tobly's yearly holiday party.
$25k - All of the above, plus one-on-one strategy meeting with the founding team.
$100k - All of the above, plus private dinner in NYC with the founding team.
For Equipment Rental Suppliers
$10k - Silver supplier status.
$25k - Gold supplier status and one-on-one strategy meeting with the founding team.
$100k - All of the above and Tobly will launch a location of your choice, this includes: inventory list on Tobly, pricing strategy, and localised marketing campaign.
$1k - One-time $120 discount code.
$10k - $1500 store credit.
$25k - One-year 10% discount code.
$100k - Lifetime 10% discount code and equipment expense audit.
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 Tobly's prior rounds by year.
Established on August 8, 2014, Tobly, Inc. (“the Company”) is a corporation that operates an online marketplace for equipment rentals that connects companies that own aerial lifts with customers that need to rent them. The Company is based out of New York, New York and was organized as a corporation in the state of Delaware. The Company also has a whole owned Columbian subsidiary (Tobly SAS) which was established in 2016.
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 $15,000 in cash on hand as of Nov 1st 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.
Trends and Uncertainties
After reviewing the above discussion of the steps the Company intends to take, potential Purchasers should consider whether achievement of each step within the estimated time frame is realistic in their judgment. Potential Purchasers should also assess the consequences to the Company of any delays in taking these steps and whether the Company will need additional financing to accomplish them.
The financial statements are an important part of this Form C and should be reviewed in their entirety. The financial statements of the Company are attached hereto as Exhibit B.
The equipment rental market is a $50B dollar industry and growing. Access platforms (also known as aerial work platforms) is one of the faster-growing segments in the equipment rental industry and accounts for 18% of the market for a total industry size of $9B.
Access platforms are quickly replacing ladders and scaffolding in a short period of time. We foresee the market growing faster than forecast due to the rapid adoption of automation and others technologies providing access to perform the job.
The market share of different equipment types is directly proportional to the share of equipment revenue it represents the rental business. Only five companies control 25% of the market, the next 20% is distributed among under 100 companies with yearly revenue ranging from the high 600 million to the low teens, while the bottom 55% is currently composed of smaller, family-owned business.
In equipment technology, there are a variety of companies tacking different problems. There are a handful of companies in equipment rental management software. Telematics is a growing sector where we see companies such as Verizon and Volvo in data and automation.
In terms of marketplaces, additionally to Tobly, there are two others in the space DOZR and BigRentz. BigRentz being the bigger of the three lacks product and product roadmap, while DOZR is currently focusing on building a pricing engine targeting the earth moving space.
Tobly is poised to succeed in the marketplace by continuing to build its access platform business in its current locations, at the same time of expanding into new geographies. Tobly can generate additional income by expanding its product offering outside of access platforms.
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 company has debt outstanding with its Colombian subsidiary. There is a risk that the debt payment could be overly burdensome for the business if revenue falls.
The Company’s cash position is relatively weak. The Company currently has only $37K in cash balances as of August 2018. This equates to 3 months of runway. 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.
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 construction equipment 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 forecasts project 300% growth in 2018 compared with 2017 GMV numbers. If its assumptions are wrong, and its projections regarding market penetration are too aggressive, its financial projections may overstate its 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’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.
Fluctuations in foreign currency exchange rates affect financial results in U.S. dollar terms. A portion of the Company's revenues come from international operations. Revenues generated and expenses incurred by international subsidiaries are often denominated in local currencies. As a result, consolidated U.S. dollar financial statements are subject to fluctuations due to changes in exchange rates as the financial results of the Company's international subsidiaries are translated from local currencies into U.S. dollars. The Company's financial results are subject to changes in exchange rates that impact the settlement of transactions in non local currencies.
The Company’s success is dependent on consumer adoption of online construction equipment rentals, a relatively unproven market. The Company may incur substantial operating costs, particularly in sales and marketing and research and development, in attempting to develop these markets. If the market for the Company’s products develops more slowly than it expects, its growth may slow or stall, and its operating results would be harmed. The market for the online rental of construction equipment is still evolving, and the Company depends on continued growth of this market. It is uncertain whether the trend of adoption of the construction equipment rental market that the Company has experienced in the past will continue in the future.
The Company has engaged in related party transactions. Further information can be found under the section “THE OFFERING AND THE SECURITIES - Related Party Transactions.”
Tobly has not filed a Form D for previous fundraises. Because of this, there is a risk that they will be required to file for previous raises and any (potential) fines/regulatory action associated with this.
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 an Officer were to leave Tobly, the Company might not have any ability to prevent his direct competition, or have any legal right to intellectual property created during his 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.
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.
Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC (“SI Advisors”). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. (“SI Selections Fund”). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.
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 Tobly. Once Tobly accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Tobly in exchange for your securities. At that point, you will be a proud owner in Tobly.
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, Tobly 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 Tobly does not plan to list these securities on a national exchange or another secondary market. At some point Tobly 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 Tobly 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 Tobly'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 Tobly's Form C. The Form C includes important details about Tobly'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.