Invest in a Business Where 500 Customers Can Generate $15m in Revenue

#vanlife isn't for everyone, but soon it will be for anyone. Plus WHOOP on the Pod!

Heyyyo,

As of writing this Bitcoin is at $52,100. Peter Schiff is having all sorts of fits shilling Gold right now and Davey Day Trader has acknowledged not buying a single Satoshi (sats), but admits the speculation is a lucrative one. Did you know 15% of recent private jet travel is related to Bitcoin growth 🤯

Also, just before I hit send, Robinhood announced it’s adding the ability to deposit and withdraw crypto… A tax nightmare, but still a step towards rewarding its faithful.

Speaking of investing apps, I like to say, M1 is the investing app for adults w/o investing ADHD — and they sponsor this fine newsletter, so please give them a try!

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For my newbs; every week I breakdown a startup pitch with the added hook that you don’t have to be a rich guy to invest (if you don't know what that means, click here).

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Side Note: I’ve always yoyo’d with weight and just overall fitness. I like to blame my job and general cluster-fuck of a lifestyle. But, truth be told, I just fall victim to bad slumps — like my golf game, my life is streaky (fun fact: I’ve shot even par without making a single par 6 times). One of the best ways to avoid slumps is realizing you’re in one… I have done that over the past few years with WHOOP (that odd little wristband you see lots of fitness buffs, pro athletes and tech bros wearing). Behind the app and gadget is a BOMB story about empathetic design and marketing genius.

Here’s my convo with its founder, Will Ahmed 👉 https://apple.co/3u6qe7f

Scott


Company Bio

Kibbo is a subscription service combining co-living + van-life by creating a housing product that delivers freedom and community with all (most) the comforts of home. Using a van as your mobile bedroom and access to a network of clubhouses across the West Coast, Kibbo enables its community of users to change locations whenever they want, connect with interesting people, go on wild adventures and still have space to work and be productive. 

I’m not gonna bullshit you, I will not be living in a van down by the river anytime soon. Buttttt, a Casey Jones version of myself really wants to think I could be all about it. That said, millions of people already do this (hint: it’s that neighbor with the big RV blocking your view). This is not a new market, Kibbo is more of a market facelift, with a touch of tech to help connect a certain lifestyle with younger, more mobile demos.


Meet the Founder

Watch my full interview with Kibbo founder, here.

Colin O'Donnell is Kibbo’s Founder & CEO. Prior to this, Colin was the founder of Control Group/Intersection which sold to Alphabet/Sidewalk Labs in 2016. Colin is also a Board Member at Kaboom.org and a contributing writer at Techcrunch.

Basically, Colin has spent his entire life building, studying and talking about cities, people’s habitation and solving complex problems related to urban planning and co-habitation.


Traction

  • 500+ paid users on the wait list

  • Recreational vehicle sales are at record highs; 90% YoY growth in shipments

  • Over $600k already raised from leading venture and angels investors

I cannot underscore this enough. The business model is a subscription model that could generate $30,000+ per user annually. So, 500 users = is $15m in rev potentially… let that marinate. With a million (literally) add-ons and upgrades, flex models, price tiers for vehicle or types of clubhouse access.

This is SoHo for van-dwellers. Very much on trend.


Market Opportunity

Kibbo sits at the nexus of two lifestyle trends popular with millennial yuppies: (1) van life, in which people convert a van into a mobile home and live on the road, and (2) co-living, in which grown adults revert to their college dormitory days and live in shared dwellings with other young professionals.

But for all the trend pieces about co-living and all the #vanlife restoration videos on TikTok, it’s unclear if the Kibbo lifestyle has mainstream appeal. 

Kibbo claims Covid has helped the company realize its vision. Workers are no longer tethered to their physical offices, giving them the freedom to embrace Kibbo life. But working from home is one thing. Living as a nomad, in a van even smaller than a San Francisco starter apartment, is something else entirely.

It’s difficult to conduct a direct competitive analysis since Kibbo offers something so unique. There are plenty of camper van startups, such as Outdoorsy, which has raised $75 million for its van rental marketplace, and Camper Cartel, which provide a luxury van life experience. And the co-living industry, which features popular startups Common Living, Starcity and Bungalow, is poised to make a comeback once the pandemic is over.


Terms & Takeaway

Invest in Kibbo here 👉 https://bit.ly/3jEPTip

Security Type: Crowd Safe
Valuation Cap: $15,000,000
Discount: 20%
Investment Goal: $1,070,000
Raised (as of publishing): $440,100
Minimum Investment: $250

Here's what I like: Let’s start with the math. $15m with a 20% discount is a $12m value cap on a company that, if converted, can hit $15m in revenue with it’s existing wait list. That’s not profit mind you, but assuming minimal attrition, that revenue should* be recurring… If this offer was in 12-18 months from now, I would jump.

The post-covid question still lingers for me.

But, I love club models when they work. Recurring revenue, massive community, TONS of personalization (cross selling), predictable inventory, super flexible.

WHEN THEY WORK.

Take for example Country Clubs — they’ve been left for dead 5 times since 2008. Only to return with 10x membership because it turns out people really like being apart of a community of other people that identify with their aspirations.

Here's what I don't love: I don’t know the demo well enough to project adoption at scale. Geography is a concern, as are family situations. Yes, vans have heaters and flex subscriptions for monthly vs annual will exist… I just don’t know how well that works when school is back in session… a LOT of unknowns.

Who should invest and why: Just because Kibbo is niche doesn’t mean it won’t be successful, though. Many companies succeed by offering a specialized product or service that caters to a small subset of the population and charging them a premium for it. Those companies are just inherently smaller. So while Kibbo has market potential, don’t expect it to turn into The Next Big Thing. (And that’s okay.)

If you like Burning Man, please invest. If you don't get it, please pass. If you like high margin, “premium” products that do not require millions of customers to achieve profitability — Kibbo is worth a look.

It also helps that they filled half the round in two weeks.

That said, exit scenarios are tough to predict… is it a rollup? AirBnB goes mobile? Personally, I can see the company running like a co-op of sorts, users are owners and owners are users; splitting profits along the way.

As always, startup investing is super high risk, anything can happen. EVEN THIS!

Happy belated birthday to a beautiful genius, Chris Farley!

Invest in Kibbo here 👉 https://bit.ly/3jEPTip

Questions? DM me on Twitter @kitun


Disclaimer: It goes without saying, but this information should not be constituted as financial advice, my investing opinions are my own and all diligence is the responsibility of each individual investor.