4URSPACE

Early Stage

Collaboration & Marketplace App to organize tenant space build-outs and renovations

Analytics

Raised to Date: Raised: $0

Aggregate Commitments $

Platform

SeedInvest

Start Date

11/16/2020

Close Date

01/24/2021

Min. Goal

$25,000

Max. Goal

$1,000,000

Min. Investment

$1,000

Security Type

Convertible Note

Funding Type

RegCF / RegD 506(c)

Series

Pre-Seed

Valuation Cap

$5,000,000

Discount Rate

20%

Rolling Commitments $

Status
Not Funded
Reporting Date

01/24/2021

Days Remaining
Not Funded
% of Min. Goal

0%

% of Max. Goal

0%

Likelihood of Max
Not Funded
Avg. Daily Raise

$0

Momentum
Not Funded
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Location

New York, New York

Industry

Business Services, Software, & Applications

Tech Sector

Proptech

Distribution Model

B2B

Margin

High

Capital Intensity

Low

Business Type

Growth

4URSPACE, with a valuation cap of $5 million, is raising funds on SeedInvest. It is a SaaS platform that allows teams that are building out and renovating commercial spaces to communicate and collaborate across multiple projects. The marketplace solution of 4URSPACE connects clients with the vendors for all the projects. Stefano Sanchini founded 4URSPACE in 2011 and has raised over $200,000 since its inception. The current round of crowdfunding has a minimum goal of $25,000 and a maximum goal of $1,000,000, and the funds will be used for customer acquisition, product development, new market expansion, and operating expenses. 4URSPACE has over 6,000 registered users, with more than 20,000 projects created on their platform.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$58,847

$71,234

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-134,388

$-86,436

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$1,862

$65,449

Accounts Receivable

$0

$0

Total Assets

$1,862

$65,449

Short-Term Debt

$42,413

$14,762

Long-Term Debt

$194,263

$165,980

Total Liabilities

$236,676

$180,742

Financials as of: 11/16/2020
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

The commercial property build-out and renovation industry is difficult. High costs, demanding oversight, and time-consuming work all boils down to an activity that many firms might see as a necessary evil. Even so, over 23,000 businesses operate in this market. And commercial renters regularly reinvent the physical spaces they are in in order to keep their brands fresh in the eyes of consumers. 

One company dedicated to making the lives of property managers/owners and their contractors easier is 4URSPACE. Through its mobile app, 4URSPACE allows managers and owners to set up individual projects. They are able to keep track of each project and perform a number of oversight activities on what all is being done to them. They are able to communicate and collaborate across multiple projects at a time, assign tasks, store and send files and messages, engage in video and live chat, and more. 

There’s also the company’s marketplace to consider. This ecosystem provides more than 500 different categories of servicers to choose from, including architecture and design firms as well as permit expediting services. They may also contact other vendors that would be relevant to the build-out and renovation of commercial spaces. 

Since launching, 4URSPACE has done well to grow its user base. As of this writing, they have more than 6,600 registered users on their platform. These individuals have collectively created more than 20,900 projects on the system. The company also has two enterprise customers: Swarovski and LVMH. 4URSPACE is trying to move both of these companies onto paid plans system-wide. It’s also worth noting a study 4URSPACE performed on Swarovski. In it, the company found that the travel needs of the individuals using the platform at Swarovski dropped by about 65%. This, management estimates, will save that company far more every year than they are likely to pay for the service. 

In order to monetize the platform, management has come out with a series of pricing schemes it intends to adopt. The first of these is for its marketplace. There is a free version, but there is also a higher-tiered premium one that costs $99 per month. There’s also a tenant subscription priced at $9.90 per month for each location. This covers projects involving ongoing changes and renovations work. On top of this, the company intends to charge between $49.90 and $99.90 per month for build-out projects. Add-ons are also planned. One example is $4.95 per month for data archiving, plus there’s an optional $200 per camera if customers want to use one that belongs to the company. For the lower-tiered build-out plan, streaming will be an extra $20 per month for each camera, while for the higher-tiered plan this will be free. 

4URSPACE’s current SeedInvest raise has been rated Deal To Watch by the KingsCrowd investment team.

Price

4URSPACE is attempting to raise capital at a $5 million valuation. In order to participate, investors must contribute at least $1,000 to the transaction. In exchange, investors will receive a note that bears an annual interest rate of 6% and that will convert into ownership in the firm. This conversion will be subject to a 20% discount to the company’s future valuation. Given the company’s traction and the opportunity it appears to offer, this pricing is quite attractive. As a result, 4URSPACE’s price score is above average.

Market

The market opportunity for 4URSPACE is difficult to quantify, especially given recent events. According to one source, the US market for commercial property remodeling is worth about 11.3% less than it was in 2019. This decrease is due to the COVID-19 pandemic, and it’s uncertain when the pain will subside. At some point it will, but for now it creates some degree of uncertainty for any business tied to commercial spaces. Even with this decline, though, the market in the US is worth about $35.8 billion. Globally, the picture is far larger. According to one source we found, the global remodeling market was worth about $4.31 trillion last year. With an annualized growth rate of 3.9% per annum, this is expected to climb to $4.76 trillion by 2026. This broader market opportunity is significant in size. 

Although there will be a slight slowdown in the US market in the near future, commercial property remodeling should make a full recovery. And that bodes well for the market opportunity available to 4URSPACE. Thus, the company’s market score is above average. 

Team

One area where 4URSPACE truly excels is its team. Take the company’s Founder and CEO, Stefano Sanchini, as an example. Previously, Sanchini worked as a Senior Project Manager for Prada Corp. While there, he was responsible for the roll-out of new corporate stores throughout the USA, Mexico, Canada, and South America. He was also responsible for the maintenance and repair work to be completed on 90 corporate locations for the brand. Sanchini’s past experience also includes being the Director of Store Planning for MaxMara USA. There, he was responsible for the roll-out of 38 new stores, plus 20 new shops located inside department stores. 

The other key individual at 4URSPACE is Ori Klein, the company’s CTO. At present, Klein also serves as the CTO of Ollie. That company specializes in providing fully-furnished, professionally-designed studios and suites for urban renters. He is also presently the CTO of Tranzon, and he is the President of Locust Systems. The latter focuses on providing customized business solutions that could best be described as consultant-like in nature. In the past, Klein was also the CTO of Buyside, a real-time buyer marketplace for real estate. All of these experiences are most certainly relevant to the activities being embarked on by 4URSPACE. 

Due to both Sanchini’s and Klein’s strong industry experience, 4URSPACE’s team score is very high as well as its highest across all five metrics.

Differentiators

Communications platforms are a dime-a-dozen these days. Having said that, the number of them dedicated primarily or entirely to the commercial real estate market are few. Procore is one discussed by management. There are a lot of similarities between the two platforms, but there are big disparities as well. One of these is the fact that while 4URSPACE allows group and video chats between all members of a team, Procore only allows emails to take place. Even bigger is that Procore has no marketplace for vendors, suppliers, and other professionals that users can connect with. More general competitors, like Microsoft Teams and Slack, also lack the marketplace aspect. They are also for just about any company and therefore lack the purpose-built functionality that 4URSPACE offers. The specificity of the platform is a strong differentiator for 4URSPACE. Although there is some risk of a competitor creating a similar product, the deep industry knowledge possessed by the team mitigates this risk. Therefore, the differentiators score for 4URSPACE is high.

Performance

Performance is a tricky thing. If looking through the lens of revenue and profits alone, 4URSPACE would receive a low rating on our scale. After all, from 2018 through 2019, revenue dropped, falling from $71,234 to $58,847. Over that same timeframe, the company’s net loss grew from $86,436 to $134,388. Its operating cash outflows also expanded, rising from $61,465 to $118,454. But it is important to keep in mind that this is only one aspect of performance. The company’s traction elsewhere, like users, has been impressive. The fact that management is also pushing for expansion with its two enterprise partners is encouraging. As is the fact that for Swarovski they were able to prove that the reduction in travel will result in real cost savings for the business. Due to these factors, 4URSPACE scored strongly in performance. 

Bearish Outlook

At this point in time, there are some bearish factors to keep in mind regarding 4URSPACE. The company is currently operating in a weak environment for build-outs and renovations. In addition, its declining revenue from 2018 through 2019 — as well as its mounting losses and cash outflows — is discouraging. The industry is also growing at a rather slow pace in the long run. Beyond all of that, though, there aren’t very many negatives investors need to worry over. 

Bullish Outlook

While the bearish considerations are worth worrying over, the bullish ones seem to eclipse them. For instance, the firm’s management team looks robust and thoroughly experienced in the industry. The broader market it operates in globally is significant in size. The company clearly has a well-differentiated product. And it has been able to prove that for at least one enterprise-level client the service can save significant money. Its registered user count is nothing to ignore either. Throw in the business’s low valuation and it’s difficult not to like what is seen here.

Executive Summary

Taking everything and putting it together, 4URSPACE has been rated a Deal To Watch. This high-level designation is warranted because the bullish factors appear to outweigh the bearish ones. This does not mean that 4URSPACE is without risk. All startups are risky. But it does mean that we view the risk/reward tradeoff in a rather favorable light. 

For questions regarding the KingsCrowd staff pick or ratings for this company, please reach out to support@kingscrowd.com

Analysis written by Daniel Jones.

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4URSPACE on SeedInvest
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Platform: SeedInvest
Security Type: Convertible Note
Valuation: $5,000,000

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