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Security Type
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Crowd Note
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Categories
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Consumer Goods & Products
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Offering Date
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May 10, 2018
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Expected Close Date
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June 27, 2018
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Target Raise
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$25.00K-$107.00K
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Deal Notes
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- Security Type: Crowd Note
- Round Size: Min$25,000: Max: $107,000
- Valuation Cap: $3 million
- Discount: 20%
- Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of A) a 20% discount to the price paid per share for Preferred Stock by the investors in the Qualified Equity Financing or (B) the price per share based on a $3 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
In 2016, Deloitte estimated that 2.5 trillion photos would be shared online, a 15% increase from the prior year, due in part to the rise of social media. That said, brands know that not all customer interaction takes place online – and for brands that seek user-generated content or increased engagement, offline marketing can represent an underrepresented audience segment. With Pixilated, brands can deliver personalized, engaging experiences through a photo booth interface while capturing data and connecting an offline audience to an online marketing strategy. Launched in 2017, the company’s flagship product, the Pixi Cloud, features marketing campaign management with an insights dashboard and a personalized messaging system – plus a variety of photo booth options for users, including backgrounds, GIFs, and digital sharing options.
Key Deal Facts
Flagship product, the Pixi Cloud, launched in the fall of 2017
Customers have included Comcast, the University of Maryland Baltimore County (UMBC), the Baltimore Ravens, Lyft, Under Armour, Deep Eddy Vodka, GNC, and Royal Farms
Raised $500,000 in 2017
Use of Proceeds
Pixilated developed its own software to serve its growing business-to-business client base and to streamline its existing events operation. The funds raised will be used to further improve its Pixi Cloud software product and implement upgrades to its kiosks. If Pixilated raises the maximum amount of $107,000, it estimates using the proceeds primarily for future wages ($50,000), general working capital ($22,510), equipment purchases ($15,000), research and development ($10,000), and general marketing ($2,000). If Pixilated raises the minimum amount, it estimates using the proceeds primarily for future wages ($10,000), equipment purchases ($10,000), and general working capital ($3,250).
Management Team / Advisory Board Bios
Nicolas China
Co-founder and CEO
At Pixilated, Nicolas drives both product design and growth strategy and builds the supporting organizational infrastructure. Since its founding, he has helped Pixilated generate total revenues of more than $2 million to date. Prior to Pixilated, he spent five years as a project manager for his family's contracting business, managing $5 million in contracts with crews of up to 25 workers. Nicolas graduated from Wake Forest University with a bachelor's degree in Art, specializing in photography, design, and sculpture.
Patrick Rife
Co-founder and CVO
At Pixilated, Patrick oversees business development, sales, and marketing. Prior to Pixilated, he worked for Bonsai Art, where he became Operations Manager. Patrick has managed large-scale art installations at institutions, museums, and for private collectors around the country. Before that, while pursuing a career in music, he ran his own small business focused on satellite network installation and home entertainment technologies. Patrick graduated from the University of Maryland Baltimore County with a BA in Art History.
Deal Notes
- Security Type: Crowd Note
- Round Size: Min$25,000: Max: $107,000
- Valuation Cap: $3 million
- Discount: 20%
- Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of non-voting preferred stock (Conversion Shares) at a price based on the lower of A) a 20% discount to the price paid per share for Preferred Stock by the investors in the Qualified Equity Financing or (B) the price per share based on a $3 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.