Global platform turning every phone into an engaging personal tour guide. Certified Covid-safe.
Business overview
| Location | Prague 10, Czechia |
|---|---|
| Social media | |
| Website | smart-guide.org |
| Sectors | Travel, Leisure & Sport Digital Mixed B2B/B2C |
| Company number | CZ07254890 |
| Incorporation date | 2 Jul 2018 |
Business highlights
- Disrupting huge outdated guide market at the right moment (Covid)
- 270K+ users, 400+ destinations, £150K+ revenues generated
- 700% growth in 2020 despite Covid-19, Seedstars regional winner
- Solid exit options to Expedia, Booking, TripAdvisor, AirBnb...
Key features
Learn more about convertible campaigns.
Idea
Introduction
The SmartGuide app turns every phone into a personal tour guide. It guides you using audio, geolocation and Augmented Reality like a live guide, far from the crowds, safe from Covid-19.
The global B2B2C platform allows tourist destinations, tour operators and storytellers to digitize tour guides at a pace orders of magnitude faster and cheaper using Content Management System. Partners improve visitor experience, reduce costs vs. traditional guides, earn extra revenues from selling guides and reopen earlier yet safely after Covid.
B2B partners not only pay for guide-as-a-service but also promote their guide to their visitors which brings free traffic on the platform. SmartGuide keeps such users to guide them in 400 more destinations.
The pandemic started a transformation of travel towards the digital sphere, contactless solutions and individual travel. SmartGuide technology enables this transition.
We are building the future of safe, sustainable and more authentic travel.
Join us!
Substantial accomplishments to date
✅ Over 270,000 users, mostly affluent English-speaking independent travellers
✅ Over 400 destinations covered in English (half are in Europe). Some destinations in up to 6 different languages.
✅ Used as the official guide app by over 40 partners including the city of Prague, Harvard, several UNESCO sites, Singapore Heritage Board, the entire country of Kyrgyzstan or Deutsche Bahn (German national railways). Very strong deal pipeline.
✅ Working with 3 governments on Covid-response programs
✅ As the perfect solution to restore safe travelling, SmartGuide revenues grew 7x in 2020 despite the pandemic. Over 20 paying partners from 7 countries, >£150,000 revenues
✅ Many successful implementations and happy clients provide references - see pitch appendix
✅ Assembled A-team with Harvard and McKinsey alums and great in-house engineers
✅ Introduced a self-service Content Management System that makes it possible to create an engaging audio guided tour in just 4 hours. Our team will be happy to let you try it.
✅ Selected the best regional seed stage startup by SeedStars, TTG Travel Startup of the year
✅ Received the Seal of Excellence in Covid-19 response from the European Commission with recommendation for public funding
✅ Graduated from Singapore Tourism Board Accelerator for travel startups, showcased as a best case example (160 applied)
✅ Featured by Forbes and 30+ other media publications
Monetisation strategy
Initially, we focus on B2B deals - tourist attractions, destinations, tour operators that pay us on average £3-10k one-off to set up the guide and £200-4k monthly in maintenance and revenue share from sold guides. This is 98% of current SmartGuide revenues. There are about 100k relevant B2B customers for us globally.
Over time as the number of end users on the platform grows, so will the user monetisation through premium upsell and 10% affiliate commissions on booking of travel services. As a guide, we are uniquely positioned to facilitate booking of tickets, and activities. This is a rapidly growing market expected to reach £2tn by 2025.
Finally, when we reach a critical mass, we will sell smart advertising space to reputable travel businesses (e.g. a museum, restaurant). We have already verified this revenue stream in Prague where we have a number of local businesses pay £200-£300 a month to be promoted on the platform.
Use of proceeds
SmartGuide has raised £590k in seed capital to date to build the product and prove the product market fit.
Our goal with this financing round is to achieve >£50k monthly revenues to position for a Series A investment in 12 months to further scale-up once the pandemic is over. Several top VCs have already confirmed serious interest to participate in that round.
Funds raised in this campaign will be used primarily to scale up business development internationally and to increase technology leadership (Personalisation engine, Content Management System). The minimum campaign amount (Target Scenario) will support our current product development team (4 FTEs) and growing bus. dev. team (from 2 to 4 FTEs) focused on Europe for 12 months. We hope to raise significantly more than the Target threshold (Stretch Scenario) which will be used for faster global scaling (USA, Latin America, Southeast Asia) and more capacity for product development (customer research, design, UX, analytics, web app).
Still unsure? Try SmartGuide with premium subscription for free (https://smart-guide.org/?_branch_match_id=81008...) until February and get unlimited lifetime subscription if you invest.
Key Information
Convertible key terms
This investment round is being raised by way of a convertible equity investment structure, in this case an "advanced subscription agreement".
The key terms that apply to the Company’s advanced subscription agreement are set out below. See also attached Key Terms document for further details.
Discount – conversion at a 25% discount to the valuation set by a Trigger Event.
Valuation cap of £7,900,000.
Conversion is triggered by ("Trigger Events"):
- An Equity Fundraise – defined as the Company raising investment capital of at least £750,000 from one transaction or a series of transactions, in exchange for the company issuing equity;
- A Change of Control of the company (transfer of more than 50% of the equity of the Company); or
- An IPO – being a listing of the company’s shares on a recognised stock market or secondary market.
Longstop Date is 18 months from the date of the advance subscription agreement.
If conversion has not been triggered by the Longstop Date, the instrument will convert on the longstop date at the Default Valuation, which is the lower of:
- the lowest fully diluted pre-money valuation in connection with any equity issued issued after the date of this Agreement; and
- a fully diluted pre-money valuation of £5,000,000.
The convertible would also convert to equity at the Default Valuation in the event of winding up or liquidation of the company.
Quota structure
The company is currently a quota company. On conversion, unless the Company converts to a Company limited by shares, investors will receive units of quota that correspond to their relevant percentage holding of the Company.
Outstanding debt
Please note the business has the following outstanding debt:
500,000CZK (17,232 GBP) bridge loan from 2 current investors, 9% interest per annum. Will be repaid from current receivables upon collection.
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