SurfUp

SurfUp

Automated recreational equipment rental platform that launched its initial surfboard rental station in January '21

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Security Type
Crowd Note
Categories
Service Businesses
Min Investment
$100
Location
San Diego, CA
Offering Date
March 02, 2021
Expected Close Date
August 02, 2021
Target Raise
$25.00K-$250.00K
Deal Notes

Conversion Provisions: In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the price per share paid on a $2.5 million or $2 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

SurfUp is a hardware and software development company that combines elements from the experience and sharing economies to automate recreational equipment rentals. SurfUp is starting with watersport equipment rentals, namely surfboards. Through the SurfUp app, novice surfers can rent beginner longboard surfboards from a SurfUp rental stations, called SurfPods, and experience the waves in minutes. The SurfPods are a contactless, completely digital rental solution, similar to other sharing economy experiences. Surfers simply unlock a surfboard through the app, ride the surf, and return the surfboard to a SurfPod. SurfUp is aiming to make surfing more accessible with its on-demand surfing solution throughout coastal California.

Based out of San Diego, California, SurfUp expects to provide other watersport rental equipment, such as paddle boards, beginning in Q1 2022 after demo testing market fit. SurfUp is raising up to $250,000 to develop and deploy 30+ SurfPods throughout San Diego.

Perks

$250 1 hour free board rental with confirmation of campaign investment
$500: 1 hour free board rental for you + 1 hour free board rental for a friend you invite
$1,000: Virtual chat with the team
$10,000: Free board rental and surf with the CEO
$25,000+: Receive the $10,000 perk and an opportunity to imprint your name on a SurfPod

Key Deal Facts

Currently developing an automated platform for recreational equipment rentals
Deployed its first automated SurfPod for surfboard rentals in January 2021
Applied for a provisional patent for the SurfPod and SurfUp application integration, the company’s watersport rental equipment platform
Won “Audience Choice” at UC San Diego’s StartR Accelerator program in 2019

Use of Proceeds

  • Intermediary Fees
  • Manufacturing
  • R&D
  • Legal
  • App Development
  • General Marketing
  • Equipment
  • Facility Fees
  • Working Capital

Management Team / Advisory Board Bios

Chris Hissom
Chief Executive Officer
As an avid surfer, Chris Hissom founded SurfUp to make it more convenient to surf at the spur of the moment. Besides creating innovative technology for the surf, Hissom is a Business Development Manager at REPROCELL, a biomedical innovation and discovery platform using stem cells with the goal of improving human health, where he has gained sales, marketing, and account management experience. Chris also has a track record for leading teams. He founded the Neuroscience Club at Santa Barbara City College and the Collaboration for Neuroscience club at University of San Diego (UCSD). He also created the Entrepreneur Suite at UCSD with fellow SurfUp executive, Mishal al-Rawaf. The “E-Suite” hosted bi-weekly sessions where Hissom and al-Rawaf would assess student startup pitches. Hissom has also founded RECALL, a mobile application that aims to help survivors of traumatic brain injuries learn new ways to recall information. Hissom holds a B.S. in Physiology and Neuroscience and an MBA from UC San Diego.

Jonathan Burris
Chief Technology Officer
Jonathan Burris is an engineer with experience in custom design and fabrication of mechanical products. As CTO, Burris is responsible for the design of the SurfUp SurfPod. In addition to his responsibilities at SurfUp, Jon also serves as the Director of Engineering for San Diego Fluid System Technologies, where he leads the custom fabrication team for fluid handling products. Burris holds a B.S. in Mechanical Engineering from NC State, an M.S. in Mechanical Engineering from UCLA, and an MBA from UC San Diego.

Mazen Abugharbieh
Chief Product Officer
Mazen Abugharbieh leads the team’s product strategy and is responsible for the design and development of the SurfUp app. Abugharbieh is also a program coordinator for the City of San Diego’s Innovation and Technology Division within the Development Services Department. He was also Project Officer for the city’s Capital Asset Management Division, where he oversaw the development of a centralized business intelligence repository. Abugharbieh holds a B.S. in Structural Engineering and an MBA with a focus in innovation, technology, and strategy from UC San Diego.

Mishal al-Rawaf
Chief Financial Officer
Mishal al-Rawaf serves as SurfUp’s CFO and brings years of financial leadership to the team. Besides SurfUp, Mishal serves as a director of finance at San Diego's leading Healthcare system, where he is responsible for business development, strategic planning and reporting, and managing a finance department. He is also a contributor to McGraw-Hill Education’s suite of financial textbooks. Mishal earned his B.S. in Finance from San Diego State University and an MBA from UC San Diego's Rady School of Management.

Deal Notes

Conversion Provisions: In connection with equity financing of at least $1 million, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the price per share paid on a $2.5 million or $2 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Amount Raised : $33,272
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Security Description

A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.

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