• Oliveconcepts Public

Highlights

Company Highlights

  • 300K registered users generating 4.4 million screen views per month. 200K users added since mobile app launch in May 2018.
  • 4,800 daily-active-users and 47,000 monthly-active-users in February, up over 45% month-over-month.
  • Match algorithm is 2.5x more accurate than generic rating systems (based on management estimate). Over 400 data points per user.
  • Of users that have linked Facebook, 30% have friends on the platform.
  • 1,700 paid premium subscribers as of January. Acquisition cost for paid subscribers (6-month average) down 20% month-over-month, bringing lifetime value of paid subscribers to customer acquisition cost of paid subscribers ratio to 1.43.

Fundraise Highlights

  • Total Amount Raised: US $139,600
  • Total Round Size: US $850,000
  • Raise Description:  Seed
  • Minimum Investment:  US $500 per investor
  • Security Type:  Crowd Note
  • Valuation Cap:  US $3,000,000
  • Offering Type:   Side by Side Offering

Executive Summary

Taste provides personalized recommendations from like-minded people all around the world—use it to find your next favorite movie, band, restaurant, book, and much more.

More than 1 billion users rely on review sites like Yelp and IMDB to get recommendations, generating over a billion dollars in advertising revenue every year. Oddly, these platforms do not offer a truly personalized experience. Why should two people with drastically different tastes see the same ratings and reviews? 

Taste uses predictive algorithms to deliver personalized reviews across products and services. By rating what you like and dislike, the app generates a personal “Match%” for every item. Not only will you save time finding what to watch (and eventually what to read and where to go), building a taste profile is also surprisingly addictive.

The Match% is computed from the ratings of people who are the most similar to you in taste. This peer-to-peer method will allow us to service a wide range of categories with the same user experience and algorithm. It also means we will be able to suggest what book you will enjoy based on the music you love and the restaurants you frequent—it’s helping you get recommendations from like-minded people all around the world.

  • 300,000 registered users.
  • Already one of the top search results on Google and both app stores.
  • Upcoming categories include music, books, podcasts, games, apps, food & drink, travel, events, anime & comics, fashion, gadgets, articles, and even recipes.
  • Personalized results that come from humans, not a machine.
  • App lets you compare tastes with friends to find what to watch together or a restaurant you will all love.

By consolidating reviews across categories and making them personalized, you would only need a single Taste profile across the web. Our long-term vision is to replace all rating and review platforms with one app and turn “Match%” into the new standard for product discovery.

Product & Service Team Information

The Taste App delivers personalized reviews and recommendations by connecting people with similar tastes. The product is available in both app stores and as a webapp.

Product Highlights

  • Match% is 2.5x more accurate in predicting user preference when measured against generic rating systems (based on management estimation).
  • Taste users rate and save 30x more than they do on category leaders, such as IMDB (based on management estimation), creating a network effect with higher data density.
  • 50% of users retain the Taste App after 90 days—that’s 2x the industry average of 22%.
  • Taste profiles are naturally social. 30% of users already have friends on the platform (based on management calculation). Cost-per-acquisition for app installs is $0.23.

Competitive Advantages

Humanistic AI. Our algorithm connects like-minded users, so the experience is natural and humanistic. The result feels like you’re asking a good friend rather than a machine computation of cut-and-dry attributes.

Category Agnostic. We use the same set of algorithms and databases to handle items across categories making scaling cost-effective. This ability to scale and collect data creates a high entry barrier for competitors that are category-specific.

Not Creepy. Taste users are incentivized to rate, save, and dismiss items to get better recommendations. This leads to an increased amount of opted-in data that helps us serve more relevant sponsored content. We will achieve high ARPU from users’ actual product preferences, rather than crawling their photos, personal messages, and browsing history.

Business Model

Advertising. For every recommended item, there’s a seller ready to spend their marketing budget to make the sale. Advertising among review platforms is already a fast-growing billion-dollar business.

Freemium. Taste is designed to generate revenue directly from consumers. Through our freemium model (unlocking advanced filters and features), we generate revenue by selling recommendations as a B2C SaaS.

Upcoming Features

Category Expansion. With movies and TV shows already launched, we will be releasing music, books, podcasts, games, and app recommendations in 2019. Also in development: food & drinks, travel & hotels, anime & comics, concerts & events, fashion & brands, beer, liquor, & wine, recipes, articles & video content, gadgets & products.

Single API / Single Profile. A single profile that predicts what book you will like based on the music you listen to and the restaurants you frequent. Our single API helps track preferences, bookmarks, and wishlists while you are browsing the web or in another app.

Merge Profiles. Merge Taste profiles with friends and your significant other to decide what to watch, what to do, and where to eat. Send recommendations to a friend and keep a joint “to-do-list” to keep track of your combined tastes.

Compare & Explore. Check compatibility with a date.

Team Q&A

The Team Q&Ais based on due diligence activities conducted by VetFunder Funding Portal, LLC. The verbal and/or written responses transcribed below may have been modified to address grammatical, typographical, or factual errors, or by special request of the company to protect confidential information.

Q&A

Terms

Fundraising Description

Round Type:Speed
Round Size:US $850,000
Raised to Date:US $850,000
US $35,100 (under reg CF only)
Minimum Investment:US $500
Target Minimum:US $455,000

Key Terms

Security Type:Crowd Note
Conversion Discount:20.0%
Valuation Cap:US $3,000,000
Interest Rate:6.0%
Note Term:24 Month

Additional Terms

Investment Proxy Agreement

All non-Major Purchasers will be subject to an Investment Proxy Agreement (“IPA”). The IPA will authorize an investment Manager to act as representative for each non-Major Purchaser and take certain actions for their benefit and on their behalf. Please see a copy of the IPA included with Company’s offering materials for additional details.

Custody of Shares

Investors who invest $50,000 or less will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.

Closing conditions:

While Taste has set an overall target minimum of US $455,000 for the round, Taste must raise at least US $25,000 of that amount through the Regulation CF portion of their raise before being able to conduct a close on any investments below $20,000. For further information please refer to Taste’s Form C.

Transfer restrictions:

Securities issued through Regulation CF have a one year restriction on transfer from the date of purchase (except to certain qualified parties as specified under Section 4(a)(6) of the Securities Act of 1933), after which they become freely transferable. While securities issued through Regulation D are similarly considered “restricted securities” and investors must hold their securities indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

Use of Proceeds (Avada Fusion Bldr Charts)

Add Chart Here

Investor Perks

It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

Financial Info

Operations

Taste Labs, Inc. (“the Company”) was incorporated on January 8, 2018 under the laws of the State of Delaware, and is headquartered in New York, New York. The Company provides personalized recommendations through its subscription‐based app.

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all adjustments considered necessary for a fair presentation have been included. All such adjustments are normal and recurring in nature. The Company’s fiscal year‐end is December 31.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

The Company has incurred losses from inception of approximately $126,612 which, among other factors, raises substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon management’s plans to raise additional capital from the issuance of debt or the sale of stock, its ability to commence profitable sales of its flagship product, and its ability to generate positive operational cash flow. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.

Liquidity and Capital Resources

The proceeds from the Offering are essential to our operations. We plan to use the proceeds as set forth above under “Use of Proceeds”, which is an indispensable element of our business strategy. The Offering proceeds will have a beneficial effect on our liquidity, as we have approximately $14,000 in cash on hand as of 3/13/19 which will be augmented by the Offering proceeds and used to execute our business strategy.

The Company currently does not have any additional outside sources of capital other than the proceeds from the Combined Offerings.

Capital Expenditures and Other Obligations

The Company does not intend to make any material capital expenditures in the future.

Trends and Uncertainties

After reviewing the above discussion of the steps the Company intends to take, potential Purchasers should consider whether achievement of each step within the estimated time frame is realistic in their judgment. Potential Purchasers should also assess the consequences to the Company of any delays in taking these steps and whether the Company will need additional financing to accomplish them.

The financial statements are an important part of this Form C and should be reviewed in their entirety. The financial statements of the Company are attached hereto as Exhibit B.

Market Landscape

Macro Environment

Research shows that ~90% of users rely on online reviews to make purchase decisions. Millennials’ trust for online reviews has even exceeded word-of-mouth. As the global trend continues to move towards content overload and subscription businesses, good product recommendations are becoming more valuable than ever. Through our freemium model, we’ve shown that users are willing pay for better recommendations.

Personalization Tech

Recommendation tech is already a common added feature on content and e-commerce sites. A reliable recommendation engine requires data density, scientific expertise, and a lot of processing power—which can be hard to obtain. The ones who can afford it (e.g. Netflix) are limited to making recommendations for what they have in stock. As a result, users are creating different profiles on multiple sites and the data is not being properly utilized.

Review Sites & Apps

The generic review and recommendation platform industry is mature and growing. Yelp expects $942M in revenue for 2018 and TripAdvisor saw $1.6B in revenue for 2017, with the majority of revenue coming from advertising and lead-generation. Other category-specific platforms like IMDB, Rotten Tomatoes, and Goodreads are housed under larger corporations such as Amazon and Comcast. Average revenue per MAU across the industry ranges from $3-10. Our goal is to transition 5-10% of generic review users onto our personalized platforms over the next 5 years.

Personalized Platforms

Other players in the field include REX, Likewise, and Itcher. Early attempts of comparable businesses e.g. Hunch and MightyTV resulted in exits to eBay and Spotify.

Company Timeline

Timeline Vertical

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Timeline Vertical

Timeline Vertical

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Timeline Vertical

Timeline Vertical

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

File Cabinet

Media & Press

OPEN TO SUGGESTIONS. I WAS THINKING SOME SORT OF TIMELINE, ARTICLES ETC WHICH CAN BE CLICKED ON AND TAKEN TO AN OUTSIDE ARTICLE.

Updates

This could potentially be a clean, title and very small blog post timeline. It needs to look clean.

Risks & Disclosures

Industry consolidation may result in increased competition, which could result in a loss of customers or a reduction in revenue. Some of our competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale. In addition, new entrants not currently considered to be competitors may enter our market through acquisitions, partnerships or strategic relationships. We expect these trends to continue as companies attempt to strengthen or maintain their market positions. The potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. The companies resulting from combinations or that expand or vertically integrate their business to include the market that we address may create more compelling service offerings and may offer greater pricing flexibility than we can or may engage in business practices that make it more difficult for us to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a substantial loss of our customers or a reduction in our revenue.

The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The content recommendation market is an emerging industry where new competitors are entering the market frequently. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.

The Company’s business model is capital intensive and in the short term in particular relies significantly on the successful acquisition of users through paid marketing strategies. The amount of capital the Company is attempting to raise in this Offering is not enough to sustain the Company’s current business plan. In order to achieve the Company’s near and long-term goals, the Company will need to procure funds in addition to the amount raised in the Offering. There is no guarantee the Company will be able to raise such funds on acceptable terms or at all. If the Company are not able to raise sufficient capital in the future, it will not be able to execute its business plan, its continued operations will be in jeopardy and it may be forced to cease operations and sell or otherwise transfer all or substantially all of its remaining assets, which could cause a Purchaser to lose all or a portion of his or her investment.

The Company does not currently hold any intellectual property and they may not be able to obtain such intellectual property. Their ability to obtain protection for their intellectual property (whether through patent, trademark, copyright, or other IP right) is uncertain due to a number of factors, including that the Company may not have been the first to make the inventions. The Company have not conducted any formal analysis of the “prior art” in their technology, and the existence of any such prior art would bring the novelty of their technologies into question and could cause the pending patent applications to be rejected. Further, changes in U.S. and foreign intellectual property law may also impact their ability to successfully prosecute their IP applications. For example, the United States Congress and other foreign legislative bodies may amend their respective IP laws in a manner that makes obtaining IP more difficult or costly. Courts may also render decisions that alter the application of IP laws and detrimentally affect their ability to obtain such protection. Even if the Company is able to successfully register IP, this intellectual property may not provide meaningful protection or commercial advantage. Such IP may not be broad enough to prevent others from developing technologies that are similar or that achieve similar results to theirs. It is also possible that the intellectual property rights of others will bar the Company from licensing their technology and bar them or their customer licensees from exploiting any patents that issue from our pending applications. Finally, in addition to those who may claim priority, any patents that issue from our applications may also be challenged by their competitors on the basis that they are otherwise invalid or unenforceable.

The Company has a limited operating history upon which you can evaluate its performance: Since the Company’s inception in January 2018, it has been designing and developing its product. While sales efforts have begun, the Company requires additional capital to continue developing its product. Assuming the Company is able to raise sufficient capital, there are still numerous risks that may prevent or delay the start of monetization. Accordingly, the Company has no history upon which an evaluation of its prospects and future performance can be made. Its proposed operations are subject to all business risks associated with new enterprises. The likelihood of its creation of a viable business must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with the inception of a business, operation in a competitive industry, and the continued development of advertising, promotions, and a corresponding client base. The management team anticipates that the operating expenses may increase for the near future. There can be no assurances that the Company will ever operate profitably. You should consider the Company’s business, operations and prospects in light of the risks, expenses and challenges faced as an early-stage company.

Through our operations, we collect and store certain personal information that our customers provide to purchase products or services, enroll in promotional programs, register on our website, or otherwise communicate and interact with us. We may share information about such persons with vendors that assist with certain aspects of our business. Security could be compromised and confidential customer or business information misappropriated. Loss of customer or business information could disrupt our operations, damage our reputation, and expose us to claims from customers, financial institutions, payment card associations and other persons, any of which could have an adverse effect on our business, financial condition and results of operations. In addition, compliance with tougher privacy and information security laws and standards may result in significant expense due to increased investment in technology and the development of new operational processes.

The Company’s cash position is relatively weak. The Company currently has only $14,000 in cash balances as of 3/13/19. This equates to roughly 1.5 months of runway. The Company believes that it is able to continue extracting cash from revenue generation to extend its runway. The Company could be harmed if it is unable to meet its cash demands, and the Company may not be able to continue operations if they are not able to raise additional funds.

The company has seen significant churn in its mobile product to date, in part as a result of their customer acquisition model. If this model is not adjusted or developed the company will expect to see continually high levels of churn.

The ongoing testing and development of the company’s marketing strategy, products and services mean that its projections and operational metrics are difficult to attribute clearly to sustainable user and growth trends. It may prove difficult for the Company to dramatically increase the number of customers that it serves or to establish itself as a well-known brand in the competitive content recommendation space. Additionally, the product may be in a market where customers will not have brand loyalty.

The company does not currently have any corporate partnerships and while pilots for B2B revenue sources are in the works, the company has thus far not demonstrated the ability to monetize the platform via corporate sources. It has limited operating capital and for the foreseeable future will be dependent upon its ability to finance operations from the sale of equity or other financing alternatives. There can be no assurance that the Company will be able to successfully raise operating capital. The failure to successfully raise operating capital, and the failure to effectively monetize its products, could result in bankruptcy or other event which would have a material adverse effect on the Company and the value of its shares. The Company has limited assets and financial resources, so such adverse event could put investors’ dollars at significant risk.

The Company has engaged in Related Party Transactions. During the period of January 08, 2018 (inception) through December 31, 2018, two stockholders of the Company advanced funds for operations. These advances are non‐interest bearing. At December 31, 2018, the amount of advances outstanding is $53,699.

The Company is currently not registered as a foreign corporation authorized to do business in New York State. The Business Corporation Law provides that a foreign corporation may not do business in New York until it is authorized to do so by the New York State Department of State. SeedInvest has not conducted any analysis to determine whether such registration is required, but failing to properly register may lead to monetary penalization, inability to initiate a lawsuit, and difficulties with licensing. There is no guarantee that the company will register to avoid possible penalization.

General Risks and Disclosures

Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events through continuing disclosure that you can use to evaluate the status of your investment.

Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company’s employees, including its management. You should carefully review any disclosure regarding the company’s use of proceeds.

Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC (“SI Advisors”). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. (“SI Selections Fund”). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.

Discussion

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