- Raised funding from Venture Capital and Angels, including 8VC, OVO FUND, Correlation VC, and the CEO of WISH Inc, Peter Szulczewski
- With the rise of gigs & services apps, Wage App user base grew to over 110,000 in 2021, representing a 31% increase year-over-year compared to 2020
- Partnership with DoorDash for API implementation and affiliate marketing, aimed to provide a supply of drivers to Doordash in different geo-locations throughout North America
- Created an educational tool to demonstrate how the global pandemic has transformed the gig economy, which has been chosen by NowSourcing as the #1 Infographic of 2021 (www.wagedev.com/how-the-global-pandemic-transformed-the-gig-economy)
- Founder and CEO has 10 years experience in technology and since starting Wage Development, and his app has been featured in Business Insider, Chicago Chronicle, Forbes, PCMagazine, Yahoo! Finance, and more
- Total Amount Raised: US $277,232
- Total Round Size: US $3,000,000
- Seed :
- Minimum Investment: US $1,000 per investor
- : Preferred Equity
- US $15,000,000 :
- Side by Side Offering
In 2020, 2 million Americans tried gig work for the first time, and we believe most of them were under-compensated for the job they accomplished. In the last six years, the gig economy has doubled in size to over 1.1 billion gig workers worldwide and 55 million in the US. We believe Wage has a unique advantage of being a horizontal marketplace (for all gig types) rather than a vertical one. With this strategy, Wage can become an on-ramp for individuals to experience the gig economy by using their chosen skillset to get paid appropriately, rather than paid at a set rate, like from a vertical platform.
Local communities and small businesses are experiencing the impacts of the labor shortage, supply-chain problems, and limited infrastructures. And the Covid-19 pandemic has amplified these problems. The gig economy creates an opportunity for people and small businesses to engage with independent freelancers or solopreneurs for short-term or long-term arrangements. Five of the most commonly used categories include Home Services, Personal Services, Computer Services, Event & Entertainment (Photo & Videography), and General Labor (including landscaping/yard-work).
Wage is a community-driven peer-to-peer marketplace, eliminating many of the existing layers between supply and demand. Wage is a gigs-and-services app with transaction transparency, and no intermediary is taking a cut of pay. What the worker charges for the work, they actually receive when the work is complete. With Wage, both supply and demand sides can interact with one another, facilitating direct communication between both parties and allowing them to determine fair rates and times for specific tasks. Unlike apps like Lyft (only transportation) or DoorDash (only delivery), Wage allows for varied tasks and transaction transparency.
Learn more: Linktr.ee/WageApp
A Side by Side offering refers to a deal that is raising capital under two offering types. Investments made through the SeedInvest platform are offered via Regulation CF and subject to investment limitations further described in the Form C and/or subscription documents. Investments made outside of the SeedInvest platform are offered via Regulation D and requires one to be a verified accredited investor in order to be eligible to invest.
US $27,232 (under Reg CF only)
Investors who invest less than $100,000 will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
Tier 1: Investors who invest $5,000 or more will receive perks plus a "Yeti Rambler Mug" with Wage logo, and get to participate in an annual group investor call with the CEO, and gain access to our latest app development and participation in the beta.
Tier 2: Investors who invest $10,000 or more will receive Tier 1 perks plus participation in a yearly group video chat session with the CEO and a Lucite stock certificate display showing the number of shares owned and the Wage Development logo.
Tier 3: Investors who invest $20,000 or more will receive Tier 2 and Tier 1 perks plus participation in a yearly one-on-one video chat session with the CEO and are invited to attend a group leadership dinner in Chicago.
Tier 4: Investors who invest $50,000 or more will receive Tier 3, Tier 2, and Tier 1 perks plus participation in a quarterly group investor call with the CEO and are invited to a one-time private meeting with the CEO.
Tier 5: Investors who invest $100,000 or more will receive Tier 4, Tier 3, Tier 2, and Tier 1 perks plus participation in a one-on-one video chat session with the CEO and are invited to an annual private leadership dinner in Chicago and quarterly private meetings with the CEO.
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.
The graph below illustrates theor the of WAGE's prior rounds by year.
Wage is a universal marketplace connecting employers (managers) with workers to complete tasks in various job categories. Wage is an on-demand marketplace focused on homeowners and small-to-medium-sized businesses, helping them hire local professional talent in a landscape consisting of countless jobs and service apps.
The gig-work market is growing rapidly from approximately $200 billion in 2018 to $450 billion in 2023, with a compound annual growth rate (CAGR) of 17.4%. The gig economy market has grown to 55 million workers in the US with a value of approximately $120 billion. The gig and freelancer market size is projected to be approximately $450 billion in 2023.
The Wage user-base and targeted market are millennials between the ages of 25-40. The average cost for homeowners or small businesses to hire professional help on the Wage marketplace is around $125-$200 for 5 hours of work. Wage provides freelancers with the platform and software to grow their business, and on the demand-side of the marketplace, homeowners and small business owners can accessibly and affordably hire on-demand workers in multiple categories.
Through digital advertising and community outreach, Wage aims to grow the supply of workers by reaching professional freelancers and skilled workers looking for new work opportunities. Consumers choose Wage because of the speed and convenience offered and because Wage is one of the only platform that does not take commission on pay and has no registration fees.
Uber / Lyft - Only transportation & food delivery (Uber Eats), no transaction transparency and apps take commission.
DoorDash - Only food delivery, no transaction transparency and takes commission on drivers.
Fivver / Upwork - Online projects, no in-person tasks, has transaction transparency, does not take commission.
The development and commercialization of the Company's products and services are 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. This 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 similar 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 projects aggressive growth. 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 may face challenges maintaining, promoting, and growing its brand through continued use of marketing and communications strategies. It may prove difficult for the Company to dramatically increase the number of customers that it serves or to establish itself as a well-known brand in the competitive freelance services space. Additionally, the product may be in a market where customers will not have brand loyalty.
The Company must correctly predict, identify, and interpret changes in customer preferences and demand, offer new products to meet those changes, and respond to competitive innovation. Customer preferences for the Company's products change continually. Its success depends on its ability to predict, identify, and interpret the tastes and habits of customers and to offer products that appeal to their preferences. If the Company does not offer products that appeal to customers, its sales and market share will decrease. It must distinguish between short-term fads, mid-term trends, and long-term changes in customer preferences. If the Company does not accurately predict which shifts in customer preferences will be long-term, or if it fails to introduce new and improved products to satisfy those preferences, its sales could decline. In addition, because of its varied customer base, it must offer an array of products that satisfy the broad spectrum of customer preferences. If the Company fails to expand its product offerings successfully across product categories, or if it does not rapidly develop products in faster growing and more profitable categories, demand for its products could decrease, which could materially and adversely affect its product sales, financial condition, and results of operations.
The Company's existing investors may plan on exercising investment rights in this round. The investor rights may entitle those investors to participate in this securities issuance on a pro rata basis. If those investors choose to exercise their pre-emptive right, it could dilute shareholders in this round. This dilution could reduce the economic value of the investment, the relative ownership resulting from the investment, or both.
Maintaining, extending, and expanding the Company's reputation and brand image are essential to the Company's business success. The Company seeks to maintain, extend, and expand its brand image through marketing investments, including advertising and consumer promotions, and product innovation. Increasing attention on marketing could adversely affect the Company's brand image. It could also lead to stricter regulations and greater scrutiny of marketing practices. Existing or increased legal or regulatory restrictions on the Company's advertising, consumer promotions and marketing, or its response to those restrictions, could limit its efforts to maintain, extend and expand its brands. Moreover, adverse publicity about regulatory or legal action against the Company could damage the Company's reputation and brand image, undermine their customers' confidence and reduce long-term demand for their products, even if the regulatory or legal action is unfounded or not material to its operations.
In addition, the Company's success in maintaining, extending, and expanding the Company's brand image depends on their ability to adapt to a rapidly changing media environment. The Company increasingly relies on social media and online dissemination of advertising campaigns. The growing use of social and digital media increases the speed and extent that information or misinformation and opinions can be shared. Negative posts or comments about the Company, its brands or its products on social or digital media, whether or not valid, could seriously damage the Company’s brand and reputation. If the Company does not establish, maintain, extend and expand its brand image, then its product sales, financial condition and results of operations could be adversely affected.
Quality management plays an essential role in determining and meeting customer requirements, preventing defects, improving the Company's products and services, and maintaining the integrity of the data that supports the safety and efficacy of its products. The Company's future success depends on its ability to maintain and continuously improve its quality management program. An inability to address a quality or safety issue in an effective and timely manner may also cause negative publicity, a loss of customer confidence in the Company or the Company's current or future products, which may result in the loss of sales and difficulty in successfully launching new products. In addition, a successful claim brought against the Company in excess of available insurance or not covered by indemnification agreements, or any claim that results in significant adverse publicity against the Company could have an adverse effect on its business and reputation.
The Company's business could be negatively impacted by cybersecurity threats, attacks, and other disruptions. Like others in its industry, the Company continues to face advanced and persistent attacks on its information infrastructure where it manages and stores various proprietary information and sensitive/confidential data relating to its operations. These attacks may include sophisticated malware (viruses, worms, and other malicious software programs) and phishing emails that attack its products or otherwise exploit any security vulnerabilities. These intrusions sometimes may be zero-day malware that are difficult to identify because they are not included in the signature set of commercially available antivirus scanning programs. Experienced computer programmers and hackers may be able to penetrate the Company's network security and misappropriate or compromise its confidential information or that of its customers or other third-parties, create system disruptions, or cause shutdowns. Additionally, sophisticated software and applications that the Company produces or procures from third parties may contain defects in design or manufacture, including "bugs" and other problems that could unexpectedly interfere with the operation of the information infrastructure. A disruption, infiltration or failure of the Company's information infrastructure systems or any of its data centers as a result of software or hardware malfunctions, computer viruses, cyber attacks, employee theft or misuse, power disruptions, natural disasters or accidents could cause breaches of data security, loss of critical data and performance delays, which in turn could adversely affect the business.
Through its operations, the Company collects and stores certain personal information that customers provide to purchase products or services, enroll in promotional programs, register on the web site, or otherwise communicate and interact with the Company. The Company may share information about such persons with vendors that assist with certain aspects of their business. Security could be compromised and confidential customer or business information misappropriated. Loss of customer or business information could disrupt the Company's operations, damage its reputation, and expose it to claims from customers, financial institutions, payment card associations and other persons, any of which could have an adverse effect on its business, financial condition and results of operations. In addition, compliance with tougher privacy and information security laws and standards may result in significant expense due to increased investment in technology and the development of new operational processes.
Changes in employment laws or regulation could affect the Company's performance. Various federal and state labor laws govern the Company's relationship with its employees and affect operating costs. These laws include minimum wage requirements, overtime pay, healthcare reform and the implementation of the Patient Protection and Affordable Care Act, unemployment tax rates, workers' compensation rates, citizenship requirements, union membership, and sales taxes. A number of factors could adversely affect the Company's operating results, including additional government-imposed increases in minimum wages, overtime pay, paid leaves of absence and mandated health benefits, mandated training for employees, increased tax reporting and tax payment requirements for employees who receive tips, a reduction in the number of states that allow tips to be credited toward minimum wage requirements, changing regulations from the National Labor Relations Board and increased employee litigation, including claims relating to the Fair Labor Standards Act.
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 CEO Marcin Zgola and COO Tim Wright. There can be no assurance that they will continue to be employed by the Company for a particular period of time. The loss of the Company's 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.
The Company has an outstanding loan with a related party. The Company currently has an outstanding Promissory Note with its founder and CEO for a principal amount of $300,000. The Promissory Note accrues at an interest rate of four percent (4%) per annum until paid in full. The Company agrees to pay all amounts due hereunder upon demand of the founder and CEO; provided, however, to the extent not previously paid, all unpaid principal and interest shall be due on the maturity date of March 30, 2025. As of December 31, 2021, the outstanding balance of the loan was $300,000.
The Company has outstanding SAFE (Simple Agreement for Future Equity) notes. The Company issued SAFE notes for cash proceeds of approximately $1,310,000. The securities are all convertible into preferred or common shares of the Company and may be converted upon (1) the Company receiving cash in a sale of the Company's preferred stock, and converted into shares of preferred stock at a price of the lower of 80% of the price paid for preferred stock or the valuation cap divided by the fully diluted capitalization or convert into the greater of the number of shares of Standard Preferred Stock equal to the purchase amount divided by the lowest price per share of the standard preferred stock or the number of shares of Safe Preferred Stock equal to the purchase amount divided by the safe price; (2) the sale, transfer, or other disposition of substantially all of the Company's assets, when the holder may elect to convert the security into common shares of the Company at a price equal to the valuation cap divided by the fully diluted capitalization, or a cash settlement of twice the initial purchase price of the security; or (3) a voluntary termination of operations or any other liquidation, dissolution, or winding up of the Company, holders of the securities will receive cash payments equal to the purchase price of the securities.
The Company has not filed a Form D for its prior offering. The SEC rules require a Form D to be filed by companies within 15 days after the first sale of securities in the offering relying on Regulation D. Failing to register with the SEC or get an exemption may lead to fines, the right of investors to get their investments back, and even criminal charges. There is a risk that a late penalty could apply.
The Company’s cash position is relatively low. The Company currently has $75,000 in cash balances as of January 31, 2022. This equates to 3-4 months of runway. The Company believes that it is able to continue extracting cash from sales to extend its runway, as. well as investments in this round. 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 Company's expenses will significantly increase as it seeks to execute its current business model. Although the Company estimates that it has enough runway to continue operation, 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 has not prepared audited financial statements. The Company has prepared reviewed financial statements with an independent CPA. However, a financial review is different than a financial audit; 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 reviewing CPA has included a "going concern" note in the Reviewed Financials. The reviewed financial statements have been prepared by an independent CPA assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred certain losses from inception as it has developed which, among other factors, raises substantial doubt about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management's plans to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operating cash flow. The audited financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.
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.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for theseshares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only be obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
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 $5 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
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 WAGE. Once WAGE accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to WAGE in exchange for your securities. At that point, you will be a proud owner in WAGE.
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
- Your accredited investor status
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement) or debit card information, unless paying via a Wire transfer.
Non-accredited investors are limited in the amount that he or she may invest in a Reg CF offering during any rolling 12-month period:
- If either the annual income or the net worth of the investor is less than $107,000, the investor is limited to the greater of $2,200 or 5% of the greater of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $107,000, the investor is limited to 10% of the greater of his or her annual income or net worth, to a maximum of $107,000.
Separately, WAGE has set a minimum investment amount of US $1,000.
Accredited investors do not have any 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 WAGE does not plan to list these securities on a national exchange or another secondary market. At some point WAGE 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 WAGE 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 WAGE'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 WAGE's Form C. The Form C includes important details about WAGE'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 prior to the offering end date or an earlier date set by the company. You will be sent a notification at least five business days prior to a closing that is set to occur earlier than the original stated end date giving you an opportunity to cancel your investment if you have not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.
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.