Transcript

00:00 Next up is a way for everyone to cool down in the summer heat. Hey sharks. My name is bonnie malaskin I am from lakewood new jersey and I'm seeking 300 thousand dollars in exchange for five percent of my company wow swim play global warming am I right sharks. It's an epidemic that is sweeping our planet. The global surface temperature is increasing by over 1.6 degrees fahrenheit across the board and it's only going to get hotter what if I told you that. I had the solution introducing swimply maybe. I haven't found the solution for global warming just yet. But I did find an amazing way for all of us to get together and make the world just a little bit. Cooler.

00:52 Swimply is the first of its kind online marketplace for pool sharing where anyone can book their own private pool by the hour whenever they want from people who own a pool but don't use it too often so say you're like my good friend. Jesse. Jesse is like most americans and can't afford his own private pool. All he has to do is visit our website or app find a pool lock it in and just like that jesse's booked himself. The perfect pool side day and pool owners can now monetize their pool's downtime. Even make a profit simply is quite literally throwing the biggest pool party. The world has ever known and you're all invited which of you will be the first to jump in. I'm not getting in with that. Guy is this really for real. It's for real he's happy. Basically. You're like airbnb for pools exactly so is the app alive on the app. So how many downloads you have how many users how much revenue how many pools do you have and who in the world thought. This was a good idea. I'm me uh so um. The story behind simply is actually a personal solution for me.My next-door neighbor built a pool for our grandkids and um. They didn't show up as much as maybe their grandmother supposed and the pool was always empty. I sort of asked her if it would be okay if my family used their pool very consciously aware of the amount of money she recently put into it. She asked me if it would be okay if my family helped her out. We worked out a deal. We helped her pay 25 of her expenses and kate and exchange. My family used their pool before long. Our entire block was using a pool and I wanted to bring up as many people as possible.

02:11 I thought it was crazy when you walked in here with this but now that. I listened to the story of how it occurred. It's crazy. What's happened so tell us so. I put together my business and I launched a small website. I went on google earth. I found 80 people that had pools. I knocked on 80 of them good for you for doing that 76 said no. But we got our first year so we got our first four yeses and our four pools quickly escalated to 32. Um I raised 30 grand to launch an mvp. I I spent the whole 30 grand on the website just hiring a developer and a designer so wait how much bar mitzvah money did you burn initially 10 grand okay but in this library's 30 grand to make the site not crash. So I launched a swim fleet and immediately we did around 900 hours worth of reservations. Luna my worries are going to spontaneously complain faster how much faster you can talk. You said 900 hours 900 hours. We're both so we get our first hundred pools then the website. I didn't really have the funds to keep the the operation going. I spent that summer using that beta to just um raise.960 grand um 960 grams 960. Yeah wow wow how much of the company did you have to sell today. I raised it at a six million dollar evaluation. A full maintenance partnership reached out to us that has stores all over the country what have you booked in hours year to date. In march 2019. I raised 960 grand. The first thing we had to do was develop a proper website that would scale so. This is your third time trying to develop a proper website but go ahead. This is really the first. The first two times are really uh yeah but they still count that was still 40 grand go ahead okay. We try to build this so this app and this website in three months to get it out there. In time. For summer. Today there were there were malfunctions. We got the product out there would you take a minute. I should have to take a breath okay go ahead so this year today we booked individual.

03:48 1600 hours can you walk us through the financial model shout out how much do you make what is the pool owner charge walk us through sure. So at the moment we let our hosts charge whatever they like and then their host set limits. So some will have a five percent limit. Some have a 25 limit and then they can set additional fees for every person after a certain amount and how do you get paid from that we have a double-sided a business model. We take 15 commission from the host and we charge the swimmer. An additional 10 service fee so 25 total 25 total and how much have you made year to date. We did around 215 thousand dollars that was not to use that's gross that's gross marketplace revenue. Our net is around 20 of that so you've made 42 000 net revenue. Yes. This is incredible you raised a million dollars for this idea is that why you price the stock so very high because based on your revenue it makes no sense. So. It's a game of scale and it's a game of promise and it's game of vision right and that's exactly what we're doing right. Let me tell you. My thoughts okay okay.

04:47 I fly a lot and in the summer months when you fly over you will see pool after pool after pool and they're empty all these people own pools and there's nobody ever in them. So I think that in some ways you're really on to something but I just don't know if. I want to invest in this even though. I think there's a need so I'm sorry. I'm out when people show up where did they go to the bathroom when it comes to bathrooms. Hosts have two options well. They're the two options for renting have a third option right. Now 50 of our pools do offer the way to use a side door but and what's the second option for best. The second option is not offering one but if you don't offer one aren't people going to pee in the pool. I think jesse's peeing in the pool right now. But I don't think you've given a sense of what someone's willing to pay to use that pool so there's right so. I guess now is a good time and if I couple the second part of that question do your customers typically come back and reuse the pool once a week or is it a one-time event okay. Last year. The average hour booked was forty five dollars an hour. This year the average was ninety dollars an hour and how many people booked it for a hundred bucks. An hour like is there five people coming over three people two people so last year. The average amount of people per booking was around seven this year. The average amount of people per booking is 12.

05:55 I mean. I think the whole idea is really nuts maybe. I'm not listening you're what we call a fast talker in the business you think yeah yeah. I never met anyone faster um but I just don't get it so for all of those reasons. I'm out okay. I can see where this is of value. You know to to get 12 friends together and set up a party at someone else's pool and it only cost me three or four hundred bucks for a sunday fun day. I can see that not being bad the the challenge though is how many times can you do that how many kids can you get to know about this to throw parties together that comes down to how often do people do this right. So last year. When the average price of the pool were 50 an hour 70 of our bookings were families. 70 were families in the beta okay what about 2019. In 2019 we had an issue. This year. We inserted swiftly chat which allowed people to facilitate pool parties and stuff like that. But the problem was that we did run into technical issues when it came to notifying people that when you requested a pool from somebody a person would approve it. You wouldn't find out about it for four hours.

06:51 That's a problem three hundred thousand for five percent that computes a six million valuation. You're basically making 20 grand this year around that yeah yeah. That that's kind of crazy. I know okay and maybe upset me and excite. You is the fact that we had 675 thousand dollars worth of bookings that went through the platform. Oh let me modify them. We only capitalized on 150. I could take kyna out of that sentence. It's just plain crazy okay if the valuation's nuts no I'm not our projections for next year right we're breaking given. This doesn't accept you our projections for the year afterwards is we're profiting 15 million dollars and that's just the u.s is that your gross or the overall our profits your profit our profits our gross. By 2022 will be 289 million dollars in marketplace revenue look.It's great to be excited right. It's great to be committed. Every great. Entrepreneur has to be but self-awareness has to be a great trade as well not lying to yourself. What we're talking about here is that we took a product. This year. We had three months to build as mentioned. There were 675 thousand dollars worth of business that went through the platform. Only 150. A little less than 20 actually was able to proceed and that is all again not anecdotal. This is product issues and it's something that that doesn't mean scale that doesn't mean it scales what. I'm saying is that there's potential. There were issues that we just where you're pricing your price. We are a tech company. Your potential and your reality are in two different universes. I'm out okay are you sure come on hear me out. I'm 23. He's out he's 20 years old. I threw my first business when I was in eighth grade. I get it you're you're a hustler right. I get it.

08:22 The projections is about bothering you let me just tell you something. This is you know what projections are worth yes right. They're worth nothing nothing focus on who's the only shark look I when you came in here. I thought it was really crazy. I think that you can help a lot of them. Hey robert 289 million. In two years. The growth is never three years. It's not linear. It's just crazy. It's just how hard startups grow. It is all about scale. It is all about growth. How many companies go from zero to 289 million in three years. Zero none. It's not zero and we have six hundred seventy five thousand dollars of proof of concept on eighty percent of our pools. The twenty percent of our pools that are optimized that manage attract 675 thousand dollars before insurance and I'm the only person doing this with two customer service representatives. This is something that we can really blow up these guys okay I am 22. To figure this out and operate the business that's not an excuse. I'm not not not excuse at all. I'm saying. I'm learning every single day. Oh my god hey burn. I'm out okay thank you guys thank you very much hey hope you don't freeze getting out of there. I don't regret bringing up our projections. They are ambitious that is what I'm trying to do. That is the vision that I'm um executing on and if those that vision did scare them or that wasn't something that they'd be on board for. Maybe. It wasn't a good match you.