Invest now in…
“THE Real Estate Inspection App”
Future Equity – SAFE Agreement
Over $500,000 has been raised from private investors to help Blue222 build “THE Real Estate Inspection App.” Now we have $2 million in investment commitments from a fund in Michigan. So, if you’d like to invest, you need to hurry. This round will be closing soon!
Airbnb created an app that makes it easy to connect people with a place to stay. Uber and Lyft created apps that make it easy for people to get a ride. Now Blue222 has built the only app that makes it easy for banks, real estate companies, and anyone else involved in real estate transactions to bid, hire, and schedule inspections of all types (appraisals, environmental inspections, property condition assessments, building inspections, and more). The Blue222 app is the first of its kind, and it works anywhere on the planet – servicing a $127 billion global market.
Why should you invest?
♦ Sharing Economy and Real Estate Tech are two of the fastest growing investment segments in the world.
♦ Blue222 users already cover the entire U.S.
♦ $127 billion global industry.
♦ Founders previously built a leading VC-backed national environmental inspection firm.
♦ Team with 20+ years industry experience.
♦ Extremely automated and scalable.
Show me the money!
One of the best ways to predict where the world is headed is to keep an eye on the largest VC investments. These investments not only follow the trends, they CREATE the trends.
As you can see from this article (https://pitchbook.com/news/articles/softbank-doubles-down-on-real-estate-tech-as-vc-interest-in-the-space-climbs) real estate technology is accelerating very quickly. This article discusses two investments by SoftBank’s $100 billion Vision Fund. Each investment was $400 million into new high-tech residential real estate platforms (Opendoor and Compass). Real estate tech investing started accelerating in 2014 and has continued to rise every year.
Finding more efficient ways to make real estate deals happen is a wave that is rising fast and will continue for a long time. Blue222 is on that wave!
Show me more money!
Another recent investment that caught our attention was a $185 million investment into a “sharing economy” company (https://www.businessinsider.com/alphabet-trucking-investment-convoy-2018-9). The investment came from Capital G (Google’s investment arm).
The company that received the investment is called Convoy. They’re “Uberizing” the business of long-haul trucking. The business is dominated by independent contractors, and it’s very inefficient. The industry is ripe for modern efficiencies of technology. If Google is investing that much money, it’s a pretty safe bet that the “sharing economy” is still a hot place to be!
Real Estate Tech + Sharing Economy (Uberizing) = Blue222
So, as you can see from these articles, we’re in the right place at the right time. Blue222 is a real estate tech company that is “Uberizing” the business of real estate inspections (such as appraisals, environmental inspections, home inspections, and building inspections).
We are SO MUCH MORE than just a bidding app. As more and more people use the Blue222 system, the network effect becomes huge. Banks can use Blue222 to more efficiently manage their vendors. International real estate firms can find vendors wherever they need them. Small, one person real estate inspectors can connect to international work that they would never have found without Blue222. Appraisal management companies can use Blue222 to manage their entire business. Engineering and environmental consulting firms can create national and international businesses overnight.
As we build out APIs (software connections that talk to other systems), we will integrate with other software applications, make their workflows more efficient, and grow even more quickly. For example, if we allow the companies above (Opendoor and Compass) to connect to Blue222, they can offer their customers the ability to obtain fast and efficient appraisals and home inspections.
Finally, as we build artificial intelligence into the system, Blue222 will help these same customers learn and adapt automatically to their customer needs.
This is where Blue222 becomes extremely valuable to the entire real estate world!
How does it work?
Did you know that almost all investment returns are now private?
If you don’t invest early, you don’t make any money. If you’re going to invest in a tech company like Uber, you MUST invest while the company is still private or long before the company is sold.
A few years ago, Andreessen Horowitz, one of the world’s leading venture capital (VC) firms, produced a study and noted that “ALMOST ALL THE RETURNS ARE NOW PRIVATE.” The chart above shows that you used to be able to invest in a company like Apple or Amazon after they completed an initial public offering (IPO) and actually make money. These days, it just doesn’t work out that way. Why?
Venture capital and private equity are waiting longer to IPO.
Venture capital and private equity firms have lots of cash. Since they have lots of cash, they are squeezing every bit of upside out of their investments as they can. They keep a company private as long as possible, providing all the investment capital needed for the companies to grow. Then, when the company completes their IPO, the VCs and private equity firms cash out all of their profits and move on.
Where does that leave the individual investor?
These days, when fast growth tech companies sell or become a public company, allowing individuals to invest, the profits already have been squeezed out. Recent IPOs like Uber are a great example. Uber’s IPO stock price was $45 per share and immediately dropped to $40. On the day that this sentence was written, it trades at $30.93 per share. So, if you invested post-IPO, you have LOST over 30% of your investment.
Guess how much the early angel investors in Uber made? They returned 18,500 times their investment!
How can the individual invest?
These days, the big VC firms and private equity firms still have things pretty locked up. However, that is slowly but surely changing. The 2012 Jobs Act included SEC changes that allow companies to raise early capital publicly and allow individuals to get in BEFORE the VCs and private equity firms. Eventually, as investors become more familiar and comfortable with these mechanisms, many companies will avoid VC and private equity investments altogether.
When a company, like Blue222, has a world-changing concept, a huge market (the market for real estate inspections worldwide is around $127 billion), a great management team, and the knowledge to utilize the SEC changes, you should jump at the chance to invest.
Now is the time!
Blue222 has raised all of our early capital from individual investors by utilizing the new SEC laws for public capital raising. However, we have caught the eye of a private equity firm that is investing $2 million and eventually up to $10 million.
We’re slowly but surely finalizing the first $2 million, but you still have the opportunity now to invest as little as $1,000 (accredited investors only). After the Michigan firm invests, individual investors may be locked out, and, if not, the valuation most certainly will be much higher.
Invest now, so you can get in on the private equity returns before it’s too late!
“This is genius!”
– quote from a representative of one of the largest real estate firms in the world after seeing a Blue222 demo
The Next Startup to Become a Billion-Dollar Company Probably Isn’t in Silicon Valley
We’ve been saying this for a while, and the rest of the world is beginning to agree. This recent Entrepreneur magazine article (https://www.entrepreneur.com/article/335932) sums up the way the world is moving with fast growth companies.
Silicon Valley is aware of this, and they’re looking for ideas all over the country and the world.
The Experts Are Predicting Blue222 Success!
Two recent articles paint a very clear picture of success for Blue222 – showing that we’re on the right track in many ways.
♦ a two-sided market for commercial real estate (CRE) services, and
♦ allowing small early investors to get involved before a sale or IPO of the company.
Two-Sided Market for CRE
Connell McGill of the Forbes Real Estate Council posted an article titled “Unlocking The Two-Sided Market For Commercial Real Estate Services.” In this article, he discusses the two-sided market created by Uber. He states that “The two-sided market is genius in its simplicity. Companies like this exist to dynamically match a labor pool with those who need their services. Built on the back of another major technological revolution, the smartphone, companies were able to use data and transparency to transform how the world gets around.”
In this article, he specifically talks about two-sided markets for building services such as boiler repair. Using an Uber-style system in this market would allow building owners to quickly engage services for repairs and document every action in the same way that Uber tracks many details of each ride.
He goes on to say that real estate technology is not there yet but headed that direction. Blue222 IS that direction. Our system is built to “Uberize” real estate transactions such as appraisals, environmental inspections, and building inspections. As we grow, we quickly will expand into all services that surround the real estate world, commercial and residential (including boiler repair).
Allowing Small Early Investors Before Sale or IPO
Crowdfund Insider is a publication that tracks the growth of all types of crowdfunding – worldwide. Equity crowdfunding only recently became legal, and it’s growing at a rapid pace. Europe has been especially successful in its implementation.
Crowdfund Insider recently posted an article titled “Unicorn Beyond Meat IPO’ed Raising $240 Million But OurCrowd Investors Had Chance to Invest Before NASDAQ Listing.” OurCrowd is a very successful Israel-based crowdfunding platform. They allowed early investors in a company called Beyond Meat Inc. to invest very small amounts, early in the game. Beyond Meat Inc. (NASDAQ:BYND) just completed an initial public offering (IPO) raising approximately $240 million on a valuation of $1.5 billion at $25/share. Once listed on NASDAQ, Beyond Meat jumped far beyond its initial pricing quickly rising in value topping $3.8 billion at over $66/share. The early crowdfund investors did VERY well!
This is EXACTLY what we’re shooting for with our early investors. We’ve raised enough capital to get a nice start with Blue222, and now we’re bringing in a larger investor from Michigan. They’re starting with $2 million and then investing up to $10 million so Blue222 can become THE two-sided market for real estate services. After that, we’ll move toward a sale of the company, IPO, or other liquidity vehicles for our shareholders.
Hurry to Get In on this Round!
Originally, we had planned to utilize the new equity crowdfunding laws to allow lots of small investors to invest and profit from Blue222. After things began to move forward with a $2 million investment from our Michigan partners, we thought that smaller investors would be cut off. However, it appears that opportunities still will be available; but, the valuation prices will get higher and higher.
We’ll be following the playbook of a really cool company called Knightscope. Knightscope is building robotic security guards. They started the company by equity crowdfunding $20 million. They allow anyone to invest, large or small. They continue to run “rolling rounds,” which are back-to-back capital raises at increasing valuations. Now they have raised over $40 million from over 6,000 investors.
Here’s their investment page: https://www.startengine.com/knightscope
What’s their next step? They’re planning an IPO, allowing their investors to cash out in a public stock market. So, lots of small investors are making all of the profits versus a small handful of venture capital firms.
What’s Our Plan?
We have, to date, raised capital on a much smaller scale than Knightscope, and we probably won’t need $40 million. However, we should be able raise all the capital we need and allow lots of investors (large or small) to profit from our growth.
Here’s the plan that we are working to make happen:
1. Complete our current round at the $6 million valuation.
2. Finalize $2 million in investments form the Paystr Jumpstart funds, our Michigan partners, at a $7 million valuation.
3. Continue our Regulation D 506(c) accredited investor capital raise, but also set up a Regulation CF crowdfund on StartEngine, the same equity crowdfunding portal used by Knightscope. Raise the maximum $1,070,000 from any number of investors (accredited or non-accredited) at an $8 million valuation.
4. Continue “rolling rounds” to raise any amount of capital we need from any size investors, just like Knightscope, utilizing Regulation CF crowdfunding or even a Regulation A+ filing, which allows a raise of up to $50 million.
5. Sell the company to the already interested private equity firm (or other firm) for a target $200 million. Or, allow our investors to sell their shares through a buyback, StartEngine Secondary, or a Direct Public Offering.
Need More Info
If you need more info you can connect with Blue222 CEO, Alan Grosheider:
Email – email@example.com
LinkedIn – https://www.linkedin.com/in/alangrosheider/
Schedule a call – https://calendly.com/agrosheider