Nickelytics launches capital raise

Nickelytics, a Tampa company focused on the mobile outdoor advertising industry, wants to raise $1.07 million through a crowdsourced funding campaign.

The company is offering Crowd Safe Units of SAFE, or Simple Agreement for Future Equity, an investment contract under which individuals make investments for the chance to earn a return in the form of equity in the company or a cash payout if the company is acquired, goes public, or sells all of its assets. Nickelytics is working with Republic, a private investing platform that created the Crowd SAFE.

Nickelytics began operations in 2017 as The Nickel Ride, a free ride-share model. In 2019, the company rebranded and focused on advertising technology solutions. The company puts ads on vehicles and has technology that tracks and analyzes viewership.

Nickelytics will use proceeds of the capital raise  for product development, team and operating capital, and sales, marketing and business development, according to an offering document.

Judah Longgrear

“The majority of funds raised in this round will be used to develop our platform further. It will be leveraged to diversify our portfolio of partners and their out-of-home assets. The value of these funds will also help us build momentum and demand for our double-sided marketplace,” Judah Longgrear, co-founder and CEO, told the St. Pete Catalyst.

The company had $214,370 in revenue for the year ended Dec. 31, 2019. It had an operating loss of $903,034 for 2019. But it also received nearly $1.3 million in other income when a shareholder forgave a loan as well as equity contributions, resulting in net income of $371,565 in 2019.

Nickelytics currently has eight employees. It is a member of Tampa Bay Wave and took part earlier this year in the Techstars Smart Mobility Accelerator.

Nickelytics is actively pursuing both traditional and crowdsourced funding options, Longgrear said.

“Our seed round will likely be split between a mix of private round and the equity crowdfunding on Republic,” he said. “We love the Republic platform because we see an opportunity beyond simply raising capital. The platform brings us the opportunity for significant growth and exposure to Nickelytics. This exposure will help build a community of opportunities and advocacy for our growing brand.”

Republican accepts fewer than 2 percent of the company’s that apply to be on the platform, which equates to a 95 percent success rate for their startups. It directly connects Nickelytics to Republic’s network of more than 800,000 investors, Longgrear said.

Each Crowd SAFE unit is being sold for $1 a unit. The company’s minimum sale is $25,000 units. The campaign launched Tuesday night, and as of Thursday it had already sold $85,350 worth of units, according to Republic. See the campaign site here.

The company has been featured on the Catalyst‘s Startup Report: