I’m very excited to announce that we have opened MySwimPro for public investment. This means you can invest in MySwimPro and own a slice of the company to benefit from our rapid growth. This is our second Open Public Offering in the company’s history. In 2017 we raised over $130k in a pre-seed round from 137 investors around the world. Today we are seeking capital to scale our existing product offering and launch a new app for triathlon!
- Minimum Investment: $500 USD
- Close Date: April 3, 2019
- Link: https://wefunder.com/myswimpro
10 Reasons To Invest In MySwimPro
1. Make An Impact!
The impact we’ve had in helping people improve their performance and health is incredible. Join us in helping millions of swimmers around the world lead happier and healthier lives. Our team is dedicated to creating a digital community that empowers aquatic prowess across the globe. We believe that with structured guidance, social motivation, coaching, data and feedback, we can empower people like never before to achieve their dreams. By investing in MySwimPro, you will have a direct impact on not only our company, but also the world.
MySwimPro helps people reach their goals! That’s my Co-Founder Michael Allon after losing 100lbs training with MySwimPro. You can read more about his incredible story here. Members of our global community have lost weight, recovered from a knee replacement or shoulder injury, and even earned personal best times at international swim competitions. This is what motivates us to grow our platform and help more people around the world. Today, you have the opportunity to join our mission, and make a true impact in people’s lives.
2. Shape The Future of Swimming and Triathlon
I truly believe that the apps we’re working on will redefine the next generation of our sport and we are just getting started. As early adopters and creators of technology, we’re on the cusp of innovations that will shape the future, and you can have a direct impact on that. The sport of swimming and triathlon are prime for disruption and we’ve already started to transform the way technology helps people in these industries.
As an investor, you will have the opportunity to communicate, speak with, and even advise the team that you are investing in. You’re investing in more than just our product and market, you’re investing in our team and vision. As an early-stage investor, you are literally shaping the future of our market. We launched the world’s first swimming app for the Apple Watch and have a suite of apps that are defining a leading experience for the industry!
3. Awesome Investor Perks
In addition to an ownership stake in the company, investors are granted perks at the different investment levels below:
- $500 USD – Our minimum investment level starts at $500 USD. At this level you will officially become an investor in the business and play a part in helping millions of people around the world lead happier and healthier lives.
- $1,000 USD – Investors will receive a MySwimPro Branded Apparel Kit that includes an Under Armour Athletic 1/4 Zip Pull-Over, an official MySwimPro T-Shirt, and an MSP Silicon Swim Cap.
- $2,500 USD – Investors will receive all lower investment level perks in addition to the Official MySwimPro Triathlon Racing Kit that includes a Triathlon Jersey, MySwimPro Towel, and an Open Water Swim Buoy.
- $5,000 USD – Investors will receive all lower investment level perks in addition to lifetime access to the MySwimPro ELITE membership, along with complimentary future app software memberships.
- $25,000 USD – Investors will make a huge impact in helping people lead happier and healthier lives through swimming. You will receive all lower investment level perks in addition to Pro-Rata Investment rights. Pro-rata investment rights give an investor the right to participate in a subsequent round of funding to maintain their level of percentage ownership.
4. Join A World-Class Team
One of Silicon Valley’s most successful early stage investors, Paul Graham notes that the most important qualities of successful founders are determination, flexibility, and imagination. We’ve recruited an industry leading team that’s passionate about solving the challenges of our market.
As former collegiate athletes, we’re determined, competitive, and creative. As a technical team, we have experience building and scaling apps that are natively coded in iOS and Android.
5. A Rare Investment Opportunity
Investing in startups was historically reserved for just the top 0.1% of the U.S income earners. Today with Regulation Crowdfunding, these qualifications are no longer a barrier. It’s rare to invest alongside professional investors, and through Wefunder, you have that unique opportunity to invest alongside institutional investors and benefit just like they do.
Watch this interview with the Managing Director of Invest Detroit Ventures, Martin Dober on the growth of MySwimPro and the opportunity to invest alongside institutional venture capitalists like Invest Detroit Ventures. Our first investor was the Regents of University of Michigan in 2016 through the Desai Accelerator program. We’ve had additional funding from the Michigan Economic Development Corporation, Innovation Fund of America and other local grants.
“I have been very impressed by MySwimPro’s traction and the milestones they’ve been able to cross in a very short period of time. Fares, and the team’s founders posses high integrity, great motivation and intelligence. They’ve demonstrated the ability to create value in an untapped market with a product that delivers recurring, high margin revenue while collecting massive data. With the right resources, MySwimPro will continue to build upon their early traction, helping millions of people around the world lead healthier lives.”
– Mitch Thrower, 22x Ironman, Chairman of Events.com and MySwimPro Advisor
6. Invest In Award Winning Apps
MySwimPro is the category leader in fitness training on mobile and wearable devices. Apple named MySwimPro as the Best Watch App of 2016 and was named as the App of the Day in 2018.
We’ve redefined personal coaching on a wearable device and our technology has been used by community members around the world! Today we have mobile apps for iPhone and Android in addition to wearable companion apps for Garmin, Apple Watch, Fitbit, and Wear OS by Google.
7. Impressive Traction
In the world of business and startups, traction is king. As a prospective investor, you can mitigate some of the risk by conducting your own due diligence before making an investment decision. MySwimPro has been able to scale all our Key Performance Indicators (KPIs) consistently since we launched our subscription offering in 2016.
Looking at our historical subscribers data you can see we averaged an over 12% per month growth rate for the last 24+ months helping us scale our revenue in 2018 by roughly 400% compared to the year prior. Our business was profitable in 2018! If we project into the future at an 8% monthly growth rate in 2019 and 6% monthly growth rate in 2020 we’ll reach over 30,000 paying subscribers equating to over $3 Million USD in Annual Recurring Revenue. Keep in mind this is just the MySwimPro product offering and does not include any additional apps which we plan to roll out this year and beyond.
In addition to consistent subscriber and revenue growth, we’ve been able to partner with global brands to strength our market leadership and bring on new subscribers. Since our pre-seed equity crowdfunding campaign in 2017, we’ve secured partnerships with CASIO, The Global Swim Series, STRAVA, the FINA World Aquatic Convention and Masters Swimming Canada. We’ll continue to grow external business relationships in 2019 and beyond and are excited to scale our community through our outstanding partners.
8. Proven Business Model
We’re building on a proven business model that has demonstrated significant growth and revenue in adjacent markets including running, biking, personal training, yoga, and nutrition. The freemium subscription model has captivated the health and fitness category for the last decade.
This category is consistently one of the fastest growing markets for Apple and Google in their respective App Stores by app creation, distribution, and revenue. When you invest in MySwimPro, you’re backing a proven business concept that’s allowed dozens (not an exaggeration) of fitness apps scale to millions of dollars in annualized revenue. As a recent example in February 2019, Calm Meditation app raised $88 Million valuing the company at $1 Billion!
9. Financial Return
In 2012, Thomson Reuters launched the Thomson Reuters Venture Capital Research Index which seeks to replicate the performance of the venture capital industry. The index shows that venture capital has returned 19.7% per year since 1996 versus just 7.5% and 5.9% respectively for public equities and bonds.
In 2012, Professor Robert Wiltbank released findings from the largest data set on individual angel investments that has ever been collected and found that U.S. angel investors returned 2.6x their money on average. If we assume that the average time to exit an angel investment is five years, 2.6x equates to 21.1% annualized returns which is slightly higher than overall venture returns. Also, there are few asset classes that offer the homerun potential of venture investments.
What is My Potential Return?
This Open Public Offering allows you to invest for future equity in the company via a SAFE. A SAFE (Simple Agreement For Future Equity) is used most frequently in the pre-seed and seed level companies where it doesn’t make sense to place a valuation on the company at this point in time. It essentially delays valuing the company until the next round of financing where it will have more traction to base that off of. It’s not a loan and does not accrue interest. However, like convertible debt, your investment would convert into equity upon a qualified financing.
- In order to trigger conversion of an investor’s shares, we need to raise an equity-financing of $1M or more to be a qualifying round. As an investor, you would then be awarded preferred shares on the terms set by this future round (in the constrains of our $10 Million Valuation Cap).
- For Example: If you invest $10K in this crowdfunding round, and if in 2 years we raise $2M at a $20M Valuation, your investment would convert into preferred shares at the $10M valuation cap that we have set at this round. The new investors would be investing at a $20M Valuation. These new investors will also have the right to buy you out (this does not apply to “Major Investors” – $25k or more).
- Only “Major Investors” have the right to make follow on investments in future rounds of financing.
- Additionally, I (as the CEO) will have proxy to voting power for all non-Major Investors ($25k or less). This is done to manage potentially having 500 people on the Cap Table.
- To continue this example, let’s say we’re acquired for $100M in 5 years from now. You would roughly 7-8x your money accounting for the dilution you would have received from that $2M round of financing and other conversions that would happen from prior financing.
- Summarizing, your $10k investment would be worth $70-80k at a $100M liquidity event. Also keep in mind the capital gains taxes that would be owed on this increase in share value.
- A 5-10x return would be an amazing outcome. A par outcome would entail a liquidity event where you would return your money back or some portion of it. This is higher risk than public investing, so losing all your money is a real possibility as well.
Again, I recommend that you review the Form C, particularly the risk factors. This information is all viewable on our Wefunder campaign page at wefunder.com/myswimpro.
10. Change The World
We are a global community! The most exciting part of my day is hearing the stories of our community members from around the world reaching their goals. We started World Swim Day to empower humanity to be more active in the water. This international holiday saw participation from swimmers in over 100 different countries. You can learn more about #WorldSwimDay here.
We’d like to invite you to join our community, and help millions of swimmers around the world lead happier and healthier lives through swimming. This is bigger than you or me. The opportunity is in our hands to make a difference. What do you think? Let’s put a ding in the universe together!
Q: What is the difference between this form of equity crowdfunding and traditional crowdfunding?
– Crowdfunding is a method of raising capital through the collective effort of friends, family, customers. Unlike traditional crowdfunding, with equity crowdfunding you are not buying a product or donating. Instead, you are investing in the business.
Q: What is Wefunder and why is MySwimPro using this platform to raise money?
– Wefunder is like ‘kickstarter for investing’. You are investing in the company with the hope of seeing a financial return. With Wefunder, MySwimPro successfully raised $130k from 137 Investors in 2017, and we’re using the same platform again.
Q: What happens to my money after I invest it?
– All funds raised will be invested directly in the business. See ‘Use of Funds’ slide (14). Specifically, investment will support hiring additional team members and investing in the business’s customer acquisition strategy.
Q: When will I see a return on my investment?
– A return on investment will only occur from a liquidity event (like an acquisition) or an Initial Public Offering. A liquidity event (exit) more likely and in a best-case scenario an investor could see a return similar to the companies on the ‘Industry Acquisitions’ slide (Appendix 1).
Q: Can I withdraw my investment out of the company at anytime?
– It’s safest to assume you cannot resell your investment to another investor. First, there is not yet a liquid secondary market like the New York Stock Exchange for private companies. Regulation Crowdfunding also specifically prohibits the resale of securities for one year, except to the issuer, an accredited investor, a family member, or their trust.
Read: Full Investor Slide Deck
Investing in MySwimPro takes just a few minutes and we accept international investment. You can invest at the link below.