Zeehaus (1)

Zeehaus (1)

Real estate equity sharing marketplace using blockchain

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Security Type
Crowd Note
Categories
Real Estate
Min Investment
$100
Location
San Francisco, CA
Offering Date
September 06, 2018
Expected Close Date
November 05, 2018
Target Raise
$50.00K
Deal Notes
  • Security Type: Crowd Note
  • Round Size: Min: $50,000 Max: $1,070,000
  • Valuation Cap: $5,000,000
  • Discount: 25%
  • Conversion Provisions: In connection with an equity financing of at least $1,000,000, Zeehaus has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at a discount of 25% of the price per share of the new preferred stock sold in the equity financing, or a valuation cap of $5,000,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

According to the Urban Institute, Americans have aggregated a tremendous amount of untapped equity in their homes. Unfortunately, given its illiquid nature, it is not easily accessible for homeowners looking for cash.ii To do so, homeowners typically go to a home loan lender and must fill out a great deal of paperwork to qualify.iii Further, for individuals looking to buy a home, they can be priced out of the market due to high prices and/or rising interest rates.iv Millennial renters may also have an especially hard time coming up with the down payment required.v At the same time, purchasing an investment property not only requires a significant down payment, but purchasers must also go through a potentially complex mortgage approval and closing process, and must provide property maintenance if they intend to lease it out, along with high selling costs in the future. Zeehaus is developing a real estate marketplace that seeks to connect existing homeowners and homebuyers with real estate investors. By combining trust agreements with blockchain, Zeehaus aims to fractionalize equity ownership and facilitate real estate transactions through a digitized buying process. Existing homeowners will be able to access cash by selling equity in their home and new homebuyers — by sharing homeownership with investors— will be able to purchase a home at a lower cost both in terms of upfront and monthly payments. Investors will be given the opportunity to have fractional ownership in properties, monthly cash flow, and potential appreciation.

Perks

$1,000: 600 future Zeehaus utility tokens
$2,500: 2,000 future Zeehaus utility tokens
$5,000+: Equivalent number of Zeehaus utility tokens and a 40% discount on future token purchases (discount is capped at the amount invested in this offering in U.S. dollars) for example, a $10,000 investment in this offering will receive 10,000 utility tokens and will be entitled to a maximum discount of $10,000 on a purchase of $25,000 in tokens

Key Deal Facts

2018 Top Pick for TechCrunch Disrupt San Francisco
Patent-pending marketplace for equity sharing is expected to launch 60 days after offering ends
Launching blockchain-based community to pay users for advertising while offering opportunity to control use of personal data
Building blockchain on top of the Stellar network and the Hyperledger network

Use of Proceeds

  • Future wages
  • General working capital
  • Intermediary fees
  • General marketing
  • SaaS subscription
  • Campaign marketing expenses
  • Research and development
  • Legal and accountant fees

Management Team / Advisory Board Bios

Justin Lee
Founder and CEO
Before founding Zeehaus, Justin worked at a data/business intelligence startup in San Francisco. Previously, he spent 15 years in data and system consulting at Accenture, working as an architect and designer in the business intelligence, data analytics, and enterprise resource planning integration. Justin is a licensed real estate agent in California and has experience in system integration and web technology. He holds a Bachelor of Science degree in Electrical Engineering from Cornell University.

Chris Garrett
COO
Chris has a background working in operations and business development roles with SaaS, executive recruiting, and venture capital firms. Previously, he was CEO and co-founder of ICO Masters, a global consulting firm for blockchain technology companies that supported clients scaling businesses and raising capital. As COO of Zeehaus, Chris is responsible for strategic planning, business operations, and business development. He holds a bachelor’s degree in Business Management from Westminster College.

Hila Shpigelman
CMO
Hila has 15 years of marketing experience, starting her career at Brink, a Fortune 500 enterprise, before working with startups. She's also been the CMO at two startups that had successful exits, where she helped build the marketing from the ground up. The most recent company was an apartment marketing tech firm, Modern Message. Hila has an MBA from the University of Manchester and bachelor’s degree in Business and Information Technology from IDC Herzliya.

Deal Notes

  • Security Type: Crowd Note
  • Round Size: Min: $50,000 Max: $1,070,000
  • Valuation Cap: $5,000,000
  • Discount: 25%
  • Conversion Provisions: In connection with an equity financing of at least $1,000,000, Zeehaus has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at a discount of 25% of the price per share of the new preferred stock sold in the equity financing, or a valuation cap of $5,000,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
Amount Raised : $211,693
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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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