Blue Wire

Blue Wire

Growth Stage

Building a podcaster network

Building a podcaster network

Overview

Raised this Round: Raised: $218,190

Total Commitments ($USD)

Platform

Wefunder

Start Date

09/07/2023

Close Date

01/12/2024

Min. Goal
$200,000
Max. Goal
$1,235,000
Min. Investment

$100

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Valuation Cap

$25,000,000

Discount

0%

Year Founded

2023

Industry

Media, Entertainment & Publishing

Tech Sector

MediaTech

Distribution Model

B2B

Margin

Low

Capital Intensity

Low

Location

Wilmington, Delaware

Business Type

Growth

Blue Wire, with a valuation cap of $25M, is raising funds on Wefunder. The company is a top 20 global podcast company, helping podcasters make more money and providing a method for brands to reach consumers who are no longer consuming media in traditional forms. They have a network of 300 podcasts with 130M annual downloads and 500 hosts and creators. Over the past two years, Blue Wire has grown by 68% in revenue and is on track for a projected $8.4M in revenue in 2023. Kevin Jones founded Blue Wire in 2018. The current crowdfunding campaign has a minimum investment of $100 with specific investor perks at $1K, $5K, and $250K levels. The campaign proceeds will be used for efficient revenue growth via team and software expansion.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$9,197,313

$5,119,513

COGS

$7,274,902

$3,155,052

Tax

$0

$0

 

 

Net Income

$-4,926,024

$-4,588,202

Summary Balance Sheet

FY 2022 FY 2021

Cash

$1,655,741

$3,149,838

Accounts Receivable

$1,401,970

$1,123,920

Total Assets

$3,212,117

$4,430,111

Short-Term Debt

$3,977,640

$1,567,208

Long-Term Debt

$4,777,518

$3,486,062

Total Liabilities

$8,755,158

$5,053,270

Financials as of: 09/07/2023
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Synopsis

The podcast industry is booming, with the US podcast market estimated at $7.7 billion in 2023. However, many podcasters struggle to monetize their content and navigate the industry's business side. This is where Blue Wire comes in.

Blue Wire is a top 20 global podcast company providing a comprehensive podcaster solution. They offer a content creation and production platform, and they handle advertising partnerships to help podcasters monetize their content. Blue Wire's diverse network of creators covers various topics, from sports to pop culture. Their mission is to empower podcasters by handling the business side, allowing creators to focus on what they do best: creating engaging content.

Over the past two years, Blue Wire has grown by 79.7% in revenue and is on track for a projected $8.4 million in revenue in 2023. They have a network of 300 podcasts with 130M annual downloads and 500 hosts and creators. With the funds raised in this round, Blue Wire plans to expand its team and software further to facilitate efficient revenue growth.

Next Section: Price

Price

Blue Wire is raising funds on Wefunder with a valuation cap of $25 million. Blue Wire's revenue multiple is relatively low at 2.72, indicating that investors are getting a reasonable valuation for the company's current revenue. This growth trajectory positions the company for continued success in the evolving podcast market. However, it must be noted that the company is projecting a down year in revenue of $8.4 million. 

Blue Wire's valuation seems reasonable considering its revenue growth over the company's life and position in the podcast market. The company's focus on monetization and advertising partnerships and its strong network of creators provide a solid foundation for future success.

Next Section: Market

Market

The podcast market is a rapidly growing sector within the media and entertainment industry. According to Grand View Research, global podcasting is expected to grow at a compound annual growth rate (CAGR) of 27.5% through 2027. The US represents a significant portion of this global market and is expected to be worth $7.7 billion in 2023, providing a vast addressable market for companies like Blue Wire.

Increased consumption of audio content on mobile devices, advancements in content creation and distribution technologies, and the growing popularity of home entertainment are key factors driving the growth of the podcast market. As a top 20 global podcast company, Blue Wire is well-positioned to capitalize on these trends by offering a comprehensive solution for podcasters, including content creation, production, and monetization tools.

However, the podcast market is highly competitive, with major players like Spotify and Apple Podcasts dominating the industry. These companies have a significant advantage due to their established user base, content library, and advertising partnerships. Despite this, Blue Wire's focus on independent podcasts and providing a platform for content creators to grow and succeed could potentially differentiate it from these larger competitors.

With high market potential, a growing industry, and a unique approach to supporting independent content creators, Blue Wire is poised to take advantage of the expanding podcast market.

Next Section: Team

Team

Blue Wire is led by founder and CEO Kevin Jones. With a background in the media and entertainment industry, Jones has relevant experience in the podcasting space. He has successfully built Blue Wire into a top 20 global podcast company, an impressive feat.

With a team of 21 employees, Blue Wire has a dedicated group of individuals with complementary skills working to support podcasters and drive the company's growth. 

Next Section: Differentiation

Differentiation

Blue Wire differentiates itself by providing a network for independent podcasts and a platform that supports podcasters in various genres, including sports and pop culture. This diverse network of creators allows Blue Wire to cater to various audiences and interests. Additionally, Blue Wire boasts a substantial network, with 300 podcasts, 130 million annual downloads, and 500 hosts and creators.

The podcast industry is highly competitive, with established players like Spotify and Apple Podcasts dominating the market. Blue Wire faces the challenge of standing out among the numerous competitors in this space. However, the company has demonstrated growth, with a 79.65% increase in revenue over the past two years and a projected revenue of $8.4 million in 2023.

Next Section: Performance

Performance

Blue Wire has demonstrated strong performance and growth in the podcast industry. The company generated $9.2 million in annual revenue in the most recent fiscal year, representing a growth rate of 79.65% since the last round of funding. However, the company is projecting a down year of revenue in 2023 of $8.4 million.

Blue Wire's revenue primarily comes from advertising, leveraging its network of 300 podcasts with 130 million annual downloads and 500 hosts and creators. The company has established partnerships with major companies such as Coors Light, Amazon, and DoorDash, which signifies its ability to attract reputable advertisers. Additionally, Blue Wire has secured a significant studio partnership with Wynn Resorts, further expanding its reach and potential revenue streams.

Financially, Blue Wire ended its most recent fiscal year with cash and cash equivalents of $1.7 million. The company has raised $12.2 million in prior funding rounds, indicating investor confidence in its business model and growth potential.

While Blue Wire has achieved strong revenue growth and established partnerships, it is important to note that the podcast industry is extremely competitive. The company faces competition from other podcast networks and platforms, making it crucial for Blue Wire to continue innovating and expanding its network to maintain its position in the market.

Next Section: Risk

Risk

While Blue Wire operates in a highly competitive market, it has established itself as a top 20 global podcast company. However, the company faces significant competition from well-established players like Spotify and Apple Podcasts. These competitors have large user bases and strong brand recognition, which could make it challenging for Blue Wire to attract and retain podcasters and advertisers. The podcast industry is constantly evolving, and new competitors could enter the market, further increasing competition.

Another risk factor for Blue Wire is its financials. Although the company has experienced revenue growth over the past two years, it has incurred significant losses. Blue Wire had a net loss of $4.9 million in the most recent fiscal year. This indicates that the company may have challenges in achieving profitability in the near term. Furthermore, Blue Wire has a very high monthly burn rate of $410,502, which could put pressure on its cash reserves and require additional funding to sustain operations.

Blue Wire relies heavily on advertising as its primary revenue model. Any adverse changes in the advertising industry, such as shifts in consumer behavior or economic downturns, could impact the company's revenue generation. Moreover, the success of Blue Wire's business model is contingent on its ability to attract both podcasters and advertisers. If the company cannot maintain and grow its network of podcasters or secure advertising partnerships, it could adversely affect its revenue and growth prospects.

Next Section: Bullish Outlook

Bullish Outlook

Blue Wire is well-positioned to capitalize on the growing popularity and profitability of the podcasting industry. As one of the top 20 global podcast companies, Blue Wire has built a strong network of independent podcasters, offering them a comprehensive solution for content creation, production, and monetization. 

The company's revenue growth has been impressive, although it is projected for a down year with $8.4 million in revenue for 2023. Over the past two years, Blue Wire has achieved a revenue growth rate of 79.65%, showcasing its ability to monetize its podcasting network successfully. This revenue growth is expected to continue as the demand for podcast content and advertising partnerships rises.

Blue Wire's unique value proposition lies in its ability to handle the business side of podcasting, allowing creators to focus on content creation. By providing advertising opportunities and partnerships, Blue Wire opens up new revenue streams for podcasters and helps them maximize their earning potential. This approach has resonated with podcasters, as evidenced by the company's network of 300 podcasts with 130 million annual downloads and 500 hosts and creators.

While the competitive landscape in the podcasting industry is highly competitive, Blue Wire has differentiated itself through its strong network, revenue growth, and comprehensive solution for podcasters. The barriers to entry in the industry may be low, but Blue Wire has already established itself as a key player and has the potential to solidify its position further.

 

Next Section: Bearish Outlook

Bearish Outlook

Blue Wire operates in a highly competitive industry, with established players like Spotify and Apple Podcasts dominating the podcast market. While Blue Wire positions itself as a top 20 global podcast company, it still faces significant challenges in gaining market share and competing with these industry giants. The barriers to entry in the podcast industry are relatively low, allowing new players to enter the market quickly. This further intensifies the competition and makes it difficult for Blue Wire to differentiate itself and capture a significant portion of the addressable market.

The company's financials also raise concerns. Although Blue Wire has shown revenue growth of 79.65% over the past two years, it still reported a net loss of $4.9 million in the most recent fiscal year. With a low margin level, the company's profitability prospects remain uncertain. Potential investors should carefully evaluate whether Blue Wire's valuation aligns with its financial performance and growth potential.

Additionally, while Blue Wire touts its network of 300 podcasts and 130 million annual downloads, it's important to note that the success and popularity of individual podcasts vary greatly. The company's revenue heavily relies on advertising, which could be impacted by the popularity and reach of the podcasts within its network. Any decline in the listenership or engagement of these podcasts could negatively affect Blue Wire's advertising revenue and overall financial performance.

Given the intense competition, financial challenges, and dependence on advertising revenue, investors should exercise caution when considering investing in Blue Wire. While the company has made strides in building a network and helping podcasters monetize their content, the road to sustainable profitability and market dominance remains uncertain.

Next Section: Executive Summary

Executive Summary

Blue Wire is a leading podcast company that offers a comprehensive platform for independent podcasters. The company provides the necessary tools for content creation, production, and advertising partnerships, allowing podcasters to focus on creating quality content while Blue Wire handles the business side of monetization. Blue Wire's diverse network of creators covers various topics, from sports to pop culture, making it a one-stop shop for podcast enthusiasts.

The company has secured partnerships with major brands such as Coors Light, Amazon, and DoorDash, which speaks to the company's credibility and potential for growth. Blue Wire is also in partnership with Wynn Resorts, further expanding its reach.

While the company's revenue for the most recent fiscal year-end was reported at $9.2 million, the company is expecting a down year with 2023 revenue of $8.3 million. The company is still in the pre-profit phase, with a net income reported at -$4,926,024.00 for the most recent fiscal year.

Blue Wire's current crowdfunding campaign on Wefunder, with a valuation cap of $25 million, aims to raise funds to fuel its growth further. The proceeds will be used to expand the team and software, which will help drive efficient revenue growth. Given the company's track record and growth potential in the booming podcast market, Blue Wire presents an interesting investment opportunity.

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Blue Wire on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $25,000,000

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