HelloSubs is raising funds on Republic through crowd SAFE at a valuation of $10 million with a 20% discount. HelloSubs has achieved $2.8 million in revenue over the last 12 months and is on track for a $6 million run rate by the end of 2023. This implies a revenue multiple of approximately 3.6, which is reasonable for a company in the growth stage, and very low compared to most scalable software companies raising online. 

Investors backing the company now could easily expect a 10x return on their investment.

HelloSubs operates in the education technology (EdTech) sector, specifically within the school management software market. The school management software market in the world is substantial, with a valuation of $3.05 billion. It's expected to grow at a healthy annual rate of 14.76%, demonstrating the high demand for innovative solutions in the education sector. HelloSubs is focusing on American schools, a market that we can estimate close to $1 billion in 2023.

HelloSubs' focus on addressing the substitute teacher shortage presents a unique niche within this broader market. The United States is predicted to be short of 100,000 permanent teachers in 2022, and teacher preparation program enrollment is declining. This situation presents an opportunity for HelloSubs to effectively solve a pressing problem, increasing its potential market acceptance.

Key school management software market drivers include adopting advanced technologies to manage administrative tasks and reduce human error. Modern software solutions like HelloSubs help increase efficiency, save time, and offer features such as attendance tracking, progress reports, and student activity logs. These features contribute to the overall appeal of such technologies in the education sector.

On the other hand, the market does present challenges. High software costs, data security concerns, lack of expertise, and limited customization options might hinder market growth. However, HelloSubs' focus on simplicity and user-friendliness will likely mitigate some of these challenges.

HelloSubs is led by solo founder and CEO Brett Isis, who has a strong background in the education industry. Before starting HelloSubs, Isis founded Teaching Nomad in 2011, which has grown to become a leading organization for teaching abroad. Teaching Nomad works with hundreds of schools across greater Asia and the Middle East, providing job opportunities, TEFL training, and document authentication services. Isis's experience in the education industry positions him well to understand the needs and challenges faced by schools and teachers.

Joining Isis is the company's CTO, Derek Burgman, who has an impressive track record as a serial entrepreneur. Burgman has founded five companies and has served as a CTO six times. His experience and technology and software development expertise are valuable assets to HelloSubs as they build and scale their platform. Still, he did not report any exit from the company he founded and seemed to stay only two years with each startup on average. His dedication to helloSubs will be critical to the company's success.

HelloSubs addresses the substitute teacher shortage by offering a modern, on-demand labor marketplace. The company's platform allows schools to efficiently manage jobs, schedules, payroll, and profiles all in one place.

HelloSub wants to disrupt traditional services like Kelly Services and ESS. These staffing agencies have higher fees and take longer to place substitute teachers than HelloSubs.

The company still faces competition from similar software solutions such as InstaSub, Frontline, ReadySub, and Swing Education. HelloSubs tries to differentiate itself through a few features, like paying substitute teachers weekly instead of monthly. HelloSubs also helps schools find new substitutes, while companies like InstaSubs offer to manage existing substitute teachers. Per Brett Isis's founder, HelloSubs is more efficient - the company generated $10 per dollar raised, while Swing generated less than $1 per dollar submitted. 

While there is competition in the substitute teachers niche software management niche, HelloSubs offers schools and teachers an excellent and differentiated value proposition.

HelloSubs has shown strong performance since its launch in January 2021. The company operates in three states - Colorado, Texas, and Pennsylvania - and serves six major cities. The company has experienced impressive growth, with a 19% month-over-month increase. Additionally, HelloSubs boasts an active pool of 273 substitute teachers and an average of 52 monthly active schools.

In terms of financials, HelloSubs generated $2.8 million in annual revenue, representing a remarkable growth rate of 136% compared to its 2021 results. The company even made $3.5 million in the last 12 months. With its current growth trajectory, HelloSubs is on pace to achieve a $6 million run rate by the end of 2023. 

HelloSubs has a meager burn rate. In 2022, the company only burned $3,839.42 every month on average.  If it can maintain this rate, the company should avoid bankruptcy risks and hopefully only raise capital for growth.

HelloSubs faces several risks that investors should consider before investing. One significant risk is the adoption risk associated with schools and their resistance to using new technologies and startups. The education system's heavy bureaucracy may slow the adoption of HelloSubs' platform, potentially limiting its growth and market penetration.

In addition, HelloSubs operates in a moderately competitive market, with several indirect and direct competitors such as InstaSub, Frontline, ReadySub, and Swing Education. This competition could impact HelloSubs' ability to attract and retain customers, potentially affecting its revenue growth and market share.

HelloSubs is addressing a critical issue in the education sector by providing a modern, on-demand labor marketplace to tackle the substitute teacher shortage. With its innovative software platform, HelloSubs allows schools to efficiently manage job assignments, schedules, payroll, and teacher profiles in one centralized location. This streamlined approach offers convenience and time-saving benefits for both schools and teachers.

The substitute teaching market is a significant and growing sector within the broader education industry. The company's platform has already gained traction, with a solid user base and a revenue growth rate of 136% over the past year.

HelloSubs is led by founder Brett Isis, who has demonstrated a strong understanding of the market and successfully built a scalable solution. With a valuation of $10 million and the backing of notable venture capital firm Goodwater Capital, HelloSubs is well-positioned to capitalize on its growth potential. The recent activity in the edtech M&A market suggests that investors could get a 10x return on their investment if HelloSubs were to grow the company efficiently. The company's revenue projections indicate a promising future, with a projected run rate of $6 million by the end of 2023.

HelloSubs operates in a competitive market, with established players like InstaSub, Frontline, ReadySub, and Swing Education offering similar services. These competitors have already established relationships with schools and have a head start regarding market share. HelloSubs will need to differentiate itself significantly to capture a meaningful portion of the market and overcome the barriers to entry in this industry.

The company also faces adoption risk as bureaucracy and reluctance to change can be present in many schools.

HelloSubs is an on-demand labor marketplace addressing the substitute teacher shortage in the United States. The platform allows schools to conveniently manage jobs, schedules, payroll, and profiles in one place. Since its launch in January 2021, HelloSubs has shown significant traction, with operations in three states and six major cities and a month-over-month growth rate of 19%. The platform currently has 273 active substitute teachers and an average of 52 monthly active schools.

The company's revenue has grown significantly, reaching $2.76 million with a 2022 annual revenue growth of 136%. HelloSubs is on track to achieve a $6 million run rate by the end of 2023.

HelloSubs faces moderate competition from platforms like InstaSub, Frontline, ReadySub, and Swing Education. However, the company's features and setup as a two-sided marketplace make it easy for schools to recruit new teachers.

CEO Brett Isis leads the company. Isis spent a decade leading his own international teacher placement company. His experience and desire to initially bootstrap led him to run a lean company. Indeed, HelloSubs is already profitable during school months.