Dear Startup Investor:
Restaurants, stores and airlines have loyalty programs. Heck, even your local supermarkets have them. And why not?
Reward programs are booming.
Retailers of all stripes are getting people more involved through sites like Facebook, Twitter, YouTube and Instagram.
But left behind is the $40 billion movie industry.
That shouldn’t be happening. People love to talk about the movies.
It’s an industry begging for increased social engagement.
And now, finally, it’s getting it. From a very promising startup called Social Rewards.
Its platform is designed to help movie studios, theaters and various vendors like restaurants and casinos increase profits.
The company impresses on several fronts…
Technology
Suppose you watch a movie trailer and then share the trailer with your friend. Social Rewards can track whether your friend sees the movie and then reward you with loyalty points.
The company’s neat technology earned it (and its customer, Caesars Palace) the “Best Use of Engagement Technique” award at the 2013 GSUMMIT in San Francisco.
Product. The platform works on your computer or smartphone.
Theatres can advertise the company’s platform on the big screen while its kiosks in theater lobbies can offer the kids selfies…
And studios can promote their films before they hit the silver screen…
Revenues. Revenues reached $1.4 million as of July 2014. They have shown stunning growth.
The platform has also signed up 650,000 users so far.
Customer acquisition. Its 300 customers include Starplex Cinemas, Galaxy Theatres, Caesars Entertainment, MGM Resorts International, The Venetian / The Palazzo and Palms Las Vegas.
Since January 2012, Social Rewards has given users $1 million worth of redemptions.
Investors. Social Rewards’ current round is attracting some of our favorite angels. Hugely successful investors such as Brad Feld, Scott and Cyan Banister, and our old friend Manny Fernandez have all made reservations in the syndicate you’d be joining.
And you’d be investing alongside these well-known angels (whose portfolios contain dozens of startup winners – including Facebook, Uber, Google and more). You’ll be getting the same terms they are. Which leads me to my last point…
Leading the syndicate is Shark Tank’s Barbara Corcoran. This is an opportunity to invest alongside Barbara and her firm, Barbara Corcoran Venture Partners.
The Deal
Social Rewards is raising $800,000 as a convertible debt note.
Its valuation is capped at $7.5 million. So even if Social Rewards is valuated at $10 million at the next equity round, your shares will be converted based on $7.5 million. And, even if the valuation is lower than $7.5 million, you’ll still get a 10% discount.
You can invest by making a reservation in Barbara Corcoran’s syndicate fund for as little as $1,000.
But, I must warn you, you should do it soon. Only 99 investors can join the syndicate. There are only 44 slots left.
So, if you’d like to invest alongside Barbara Corcoran in this promising startup, click here right now to get started.
Once you’re registered, go here and click the invest button.
You will then be able to reserve your spot in the round. Before funding your investment online, you’ll need to confirm your accredited investor status. The easiest way to do this is to have Angel List contact your CPA, broker or lawyer. More information can be found here.
Alternatively you can get a letter from them and provide a copy to Angel List. It’s a small inconvenience for the chance to add a great young company to your portfolio.
Deal Summary:
Type: Convertible Debt
Interest rate: 0%
Minimum investment: $1,000
Amount being raised: $800,000
Valuation cap: $7.5 million
Discount (on next round of financing): 10%
Good investing,
Andy Gordon
Startup Investor Portfolio
