BabyQuip

BabyQuip

Baby gear rental service for families traveling with small children

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Security Type
Preferred Stock
Min Investment
$1,000
Location
SANTA FE, NM
Offering Date
January 04, 2022
Expected Close Date
December 11, 2023
Target Raise
$15.00K-$2.31M
No. Investors
540
Security Price
$1.07
Valuation
$18,000,000
Website
babyquip.com
Number of Employees
18
Cash
$1,971,019
Revenue
$3,419,320
Short Term Debt
$754,983
Cost of Goods
$491,886
Long Term Debt
$473,176
Net Income
$-1,991,318

Company Description

Traveling with babies and toddlers is already difficult for parents - the bulky baby gear makes it even harder. BabyQuip has helped nearly 70,000 parents across the US and Canada have happier vacations. Families love BabyQuip, consistently rewarding it with an NPS Score above 90 (world class) and over 18,000 five-star reviews (99% of all reviews).

BabyQuip's managed marketplace and robust platform provide its community of over 800 independent contractors, called Quality Providers (QPs), the opportunity to build a business renting baby gear. Prospective QPs, mostly moms, undergo an application process, interview, background check, and extensive training on safety, cleaning, and hospitality. They are able to start delivering baby gear to families within days of setting up their profile. Quality Providers determine their inventory (gear they own), operating hours, delivery radius, prices and more.

QPs enjoy the extra income ($1000+/month avg this past summer among QPs with orders) and gratifying work. In addition to ongoing lead generation, the QPs benefit from an active and supportive community and coaching on how to build their business through social media and affiliate marketing.

Trust and safety are our top priorities. We know parents want the peace of mind that the baby gear is safe, clean and insured. BabyQuip provides category leading liability insurance that covers QPs as well as the company.

BabyQuip outperforms any known regional or mom ’n pop competitors. The company has a well-established social media presence with over 32K followers across all platforms. As a result of its national presence, the company has formed strategic partnerships including Avantstay, Guesty, as well with hundreds of affiliates.

In early 2020 the company was featured on Shark Tank. It survived the pandemic and experienced rapid growth in 2021 up 72% over 2019.

Perks

Early Bird Investor Perk - Invest $10k by January 14, 2022 to receive the $50k investment perks
Investment between $1,000 and $7,499

Swag (BabyQuip branded t-shirt and canvas tote bag)
-or-Donation of $25 to charity (choose between Feeding America or Unbound)
Investment between $7,500 and $49,999Swag (BabyQuip branded fleece, water bottle, canvas tote bag)
25% BabyQuip discount for all of 2022 for you and a friend (good for baby gear rentals and baby gear cleanings)
-or-

Replace Swag with donation of $150 to charity (choose between Feeding America or Unbound)
Investments between $50,000 and $99,999

Above swag package PLUS baseball cap
50% BabyQuip discount for all of 2022 for you and a friend (good for baby gear rentals and baby gear cleanings
-or-

Replace swag with donation of $200 to charity (choose between Feeding America or Unbound)
Investments between $100,000 and $149,999

Above swag package PLUS branded backpack
50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
Dinner with Fran and other female founders
-or-

Replace swag with donation of $300 to charity (choose between Feeding America or Unbound)
Investments of $150,000 or greater

Above swag package
50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
Dinner with Fran and other female founders / invite to annual investor dinner
Investor name added to website
4 night stay at Fran's beautiful Santa Fe rental property, fully-equipped with all the baby gear you need (some restrictions apply)
-or-

Replace swag with donation of $500 to charity (choose between Feeding America or Unbound)
Returning SeedInvest Investors of $20,000 or greater

Above swag package PLUS branded backpack
50% BabyQuip discount for life via a custom code (good for baby gear rentals and baby gear cleanings)
Dinner with Fran and other female founders
-or-Replace swag with donation of $200 to charity (choose between Feeding America or Unbound)

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.

Key Deal Facts

Led by Fran Maier, co-founder and first GM of Match.com and Founder of TRUSTe (now TrustArc), who brings over 25 years experience building trusted online brands

Families love BabyQuip, awarding it with World Class NPS scores over 90 (based on Q1 2021) and over 18,000 5 Star Reviews

Now a national brand for baby gear rentals with over 800 Quality Providers, covering 49 US States and 4 Canadian Provinces

Formed strategic partnerships with Guesty, AvantStay, and hundreds of affiliate partnerships, as well as host referral agreement with VRBO

Successfully bounced back from the pandemic and has experienced growth. 2021 YTD (thru September) Gross Merchandise Value of $4.3M is over 2X 2020 ($1.8M) and over 1.5X 2019 ($2.8M) - GMV unaudited, not including refunds

Use of Proceeds

If minimum amount is raised:
50% - Team & Organizational Development (Business Development team, Recruiting Lead, Tech Team, Product management)
27% - Grow More Aggressively; Form Partnerships and Build Brand
10% - Support Trust and Safety Program particularly Liability Insurance
7% - Improve Tech Platform, including mobile apps
5% - Test New Service Expansions (Kids & Family, Long Term Rentals for new families)

If maximum amount is raised:
25% - Grow More Aggressively; Form Partnerships and Build Brand
25% - Test New Service Expansions (Kids & Family, Long Term Rentals for new families)
50% - Expand More Aggressively Internationally
Amount Raised : $3,178,945
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Valuation

Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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