Invest in the Fastest Growing Ad Sector; Out-of-Home Digital Is About To Test Facebook

Mooooch! Anthony Scaramucci on the Pod talking Trump, $GME & Bitcoin!

Heyyyo,

Hopefully y’all got out of $GME and $AMC before the balloon popped. I made out OK on GameStop…AMC is a different story. Let’s just say I deserve a lifetime supply of popcorn for my patience (and position) 😭.

If there’s any big takeaways from last week, it’s the fact that hedge funders will be looking over their shoulders for a while, and retail investors had better understand who they are in the market and rally accordingly. I for one expected nothing less from Robinhood — after all, I’m fully aware that if the product isn’t clear, I’m the product.

Next time, place highly volatile bets with those closest to the house.

Speaking of which… a lot of people learned a valuable lesson on the difference between investing and trading; this is why I “HODL” stonks with M1!

Shoutout to our sponsors at M1 Finance: the finance super app that makes money management easier, smarter, and more automated than ever 👉 sign-up now and get $30 when going to M1finance.com/kitun.

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: Mooooch! was on my podcast this week and I learned a ton about him. We talked about everything; from why he and Skybridge have such conviction on Bitcoin to what it was like working inside the Trump Administration 😳.

I also learned why the word “ought” sucks. Listen to learn why!

Here’s my convo with Anthony Scaramucci 👉 https://spoti.fi/36HvQKW

Follow me on Twitter @kitun.

Scott


Company Bio

Nickelytics makes simple and measurable out-of-home advertising solutions that are as easy to book as ads on Facebook.

How’s that for simple and clear? Nickelytics is exactly what it says it is. A modern platform for buying ads on cars, billboards and digital displays with actual reporting… Historically, buying out-of-home [OOH] ads has been a pain in the ass, with murky (at best) reporting. Nickelytics started as an OOH ad product until it realized its booking/reporting platform was next level; they pivoted and now are staring down a gazillion dollar industry at just the right time.


Meet the Founder

Watch my full interview with Nickelytics founder and CEO Judah Longgrear, here.

Judah Longgrear is Nickelytics’s founder & CEO. Prior to this, Judah was the founder and CEO of The Nickel Ride (turned into Nickelytics), an eco-friendly on-demand ride share service paid for by advertisers. This business grew to operate in 5 cities with 60 advertisers and provided over 100K free rides in southwest Florida. Before that, he led business development efforts at Salesforce, Netapp, and Gartner, focused on sales strategy and partnerships.

Judah is a young founder. He has a lot to learn, but he has fresh legs (as they say in the NBA). And, he’ll need them. This market is HUGE and about to get very competitive as people return to the world and OOH digital becomes the top performing ad class in history. Judah reminds me of myself. I’m 29, sitting in a boardroom at Tribune Tower trying to sell a company I’ve just barely started. No idea about the shit show that was about to ensue — but excited nonetheless. There was nothing I wasn’t ready to take on; fearless and indestructible. Make no mistake, like myself, Judah is about to get banged up… But I’m confident he will rise to the occasion. That’s what I like about him. He leads with a purity and vulnerability that I admire. He’s unafraid and shoots like misses are just practice with a clank!


Traction

  • 300% Q4 growth in 2020, on track for $1.5M ARR in 2021

  • Over $200K in revenue in the past 30 days

  • Currently partnered with over 10+ agencies reaching 1000's of brands

  • $1.2M pre-seed capital raised from top tier angel investors

  • Backed by Techstars & Endeavor

This company is really early. But it is backed by reputable accelerators and has not had any issue with funding to date — which speaks to the mission and market (and team). Very Chicago of me, but I really like the focus on revenue. After all, advertising is a very very very margin-driven business and more than anything else, media/adtech founders need to learn how to surf in rough waters early and often. Nickelytics made headways during a f***ing pandemic, with ads served outside, lol. How’s that for giving it the old college try?!?!


Market Opportunity

Fun facts:

  • In the past year, AdTech and Retargeting has grown 55% to a total market size of $60B; growth is projected at 88% in 2021 to be 41% of all total advertising sales.

  • The U.S. is the largest advertising market in the world, with ad spending amounting to $242.5B in 2020

  • The global international advertising market is projected to reach $769B by 2024

  • The top 200 advertisers collectively spent a record $163B on advertising in 2018.

Nickelytics’s competitive advantage is its expertise in the underutilized mediums like mobility assets (cars & shit). Creating and utilizing this emerging asset class to offer effective OOH mediums to a new audience, at a fraction of the cost of traditional billboards — while OG competitors like Clear Channel focus on big brands.

These cost-mechanics also make it viable for Nickelytics to expand globally in fast-growing markets like Central America, Europe, and Asia, ($67B TAM), while its competitors stay focused on North America.

It’s not all sunshine and rainbows for Nickelytics, though. There’s plenty of existing competition — antiquated as they might be — and anyone with a digital ad network (Facebook, SnapChat, TikTok, MySpace, etc.) will be racing to grab a piece of the pie; to say nothing of those already disrupting OOH, like AdQuick (backed by investor and Reddit co-founder Alexis Ohanian).

Basically, when SHTF sleeping giants will rise.


Terms & Takeaway

Invest in Nickelytics here 👉 https://bit.ly/3pMeS5Z

Security Type: Crowd Safe
Valuation Cap: $6,500,000
Investment Goal: $1,070,000
Raised (as of publishing): $193,789
Minimum Investment: $100

Here's what I like: I’m 💯 in on out-of-home advertising in late 2021, 2022, 2023, and maybe even 2026. Post-Covid is going to be like 2020 Miami. Full-on Minority Report.

Buying OOH ads sucks, it always has and ROI is a complete guessing game. This exact business being a billion dollar business is not an if, but a when… The founder is young but hungry and unafraid of competition. As early investing goes, this one gives me all the warm and fuzzies.

Here's what I don't love: Facebook is playing for keeps. iOS is about to deal Facebook a real shitty hand and with its crypto dreams fading, Facebook has to make a move to capitalize on a new trend; and what better way than to copy those doing it better? I have very little worry when it comes to existing OOH leaders, like most traditional media brands the real estate investments are worth more than the core business.

AdQuick is legit, but there’s plenty of room for several players… I sweat when I think of social networks taking a FourSquare approach to advertising once 85% of the world goes outside for the first time in a year! It’ll be a bloodbath. Winner take all goes to the best inside sales team with access to capital and a youthful enthusiasm.

Sorry, this is all I can think of 👇

Who should invest and why: $6.5m value cap is very fair, almost too fair. If they can sign up half of what’s projected they will explode in August (assuming we 86 COVID). At that time, Nickelytics will be raising a Series A at $15m. The struggle is exit scenarios… If an OG isn’t stupid, they’d buy them for the tech and team - but they’re usually stupid. Facebook isn't likely to acquire, nor is AdQuick; unless. Unless, Nickelytics successfully activates the new asset class, sells into a meaningful amount of SMBs and begins to expand globally with urgency… If that, then acquisition is nearly assured — activity in this space will be fast and swift once companies scramble to adapt to people actually living their lives again.

So, this is the ultimate angel investment. Young founder, (re)emerging market, and a once in a generation cultural event providing tailwinds. If you’re afraid of risk, stay away! If you like to talk to your friends about shit that hasn’t happened yet… like Tom Brady winning the Super Bowl… I’d throw in. Also, if you just invested $1,000 in $NAKD, GTFO… to the moon!

As always, startup investing is super high risk, anything can happen. So, don't invest money you can’t afford to pump and dump... 🍿💸

Invest in Nickelytics here 👉 https://bit.ly/3pMeS5Z

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.