hobbyDB

hobbyDB

Early Stage

Built and Owned by Collectors like you

Built and Owned by Collectors like you

Overview

Raised this Round: Raised: $107,110

Total Commitments ($USD)

Platform

Wefunder

Start Date

11/11/2020

Close Date

12/28/2020

Min. Goal
$20,000
Max. Goal
$260,000
Min. Investment

$100

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$0.67

Pre-Money Valuation

$11,000,000

Year Founded

2013

Industry

Arts & Crafts

Tech Sector

MarketplaceTech

Distribution Model

B2B/B2C

Margin

High

Capital Intensity

Low

Location

Superior, Colorado

Business Type

Growth

hobbyDB, with a pre-money valuation of $11 million, is raising funds on Wefunder. It is a free resource for the collecting community, built by collectors, for collectors. The database allows collectors to explore, track, and organize their collection. The price tracker on hobbyDB also keeps track of how much the collection is worth. hobbyDB was founded by Christian Braun and has raised more than $4.9 million since its inception. The current crowdfunding round has a minimum target of $20,000 and a maximum target of $260,000, and the funds will be used to build an app and finance the company’s operations. hobbyDB has 480,000 users with collections worth $911 million.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$430,582

$313,961

COGS

$127,571

$87,134

Tax

$70

$2,448

 

 

Net Income

$-650,788

$-723,631

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$103,068

$155,950

Accounts Receivable

$25,279

$0

Total Assets

$369,077

$428,277

Short-Term Debt

$146,874

$55,665

Long-Term Debt

$170,934

$112,978

Total Liabilities

$317,808

$168,643

Financials as of: 11/11/2020
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
hobbyDB 06/20/2024 Wefunder $18,798,145 $119,927 Equity - Preferred Funded RegCF
hobbyDB 04/29/2023 Wefunder $16,425,000 $87,957 Equity - Preferred Funded RegCF
hobbyDB 04/21/2022 Wefunder $14,505,811 $137,578 Equity - Preferred Funded RegCF
hobbyDB 12/27/2020 Wefunder $11,000,000 $107,110 Equity - Preferred Funded RegCF
hobbyDB 04/16/2020 Wefunder $17,600,000 $274,333 Equity - Preferred Funded RegCF
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Revenue History

Note: Revenue data points reflect the latest of either the most recent fiscal year's financials, or updated revenues directly from the founder, at each raise's close date.

Valuation History

Price per Share History

Note: Share prices shown in earlier rounds may not be indicative of any stock splits.

Employee History

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Synopsis

The coronavirus pandemic has hit some industries incredibly hard — forcing restaurants, small businesses, and a litany of others, to put operations on hold. The collectibles industry is not one of those industries. Since the outbreak of the COVID-19 pandemic, collectors have noted a massive jump in prices and the frequency of sales. Sports Collector Daily has estimated that sports cards are — almost across the board — 50% higher in price than they were this time last year. The market for Pokémon cards has also increased drastically in 2020, with eBay reporting a 60% increase in Pokémon card sales. 

The global collectibles market is estimated at $370 billion. hobbyDB is a company that aims to provide a database of (eventually) billions of collectible items. It provides the most up-to-date pricing information on each item, as well as operates as its own marketplace for buying and selling collectibles.

hobbyDB has active collaborations and partnerships with Funko, Mego Corporation, and Garbage Pail Kids — showing that the companies that create collectibles understand the potential value that hobbyDB brings to the space. Additionally, the company has as many as 480k active users utilizing their database already.   

hobbyDB’s current Wefunder raise has been rated a Neutral Deal by the KingsCrowd investment team.

Next Section: Price

Price

hobbyDB is raising at an $11 million valuation cap with no discount. The price per share is $.67. This valuation is rather high considering the development stage that hobbyDB is in. Thus, its price score is low.

Next Section: Market

Market

hobbyDB operates in the global collectibles market, which is an estimated $370 million market. It may not have any direct competition (that’s to say, there may not be any other companies out there that specifically are dedicated to collectibles), but hobbyDB must show that it’s able to oust eBay and Facebook (or even Craigslist) in the field of consumer marketplace in order to occupy a percentage of this market. Due to the small market value and the well-established competitors hobbyDB faces, the market for the company is its lowest across all five metrics.

Next Section: Team

Team

The executive team at hobbyDB is an impressive bunch. The company is led by founder and CEO Christian Braun. Braun has an extensive background with collectables, entirely financing his MBA by buying and selling collectibles. He also has history running similar businesses to hobbyDB, as he ran the world’s largest forum for collectors — showing his ability to build community (which will be very important, if hobbyDB is to be successful).

Braun is joined by Alexandra Lindsay, who built a large ancestry community which was then acquired by one of the major genealogy websites, and David Parker, who works on the software development side and has done so for 18 years.

The team, spearheaded by Christian Braun, has prior experience in the field of collecting, as well as experience in selling startups to larger companies. The executive team is one of the strongest assets that hobbyDB has. However, because Braun himself is not the individual with the successful past exit, hobbyDB’s team score is middle of the road.

 

Next Section: Differentiators

Differentiators

hobbyDB is a unique company that does not face much direct competition currently. If the company can grow their database of collectibles to the level it aims for (100 million individual collectibles by 2025), there will be nothing else like it on the market.

 From a buying and selling standpoint, one of the biggest worries for buyers is the potential to be scammed. hobbyDB offers complete scam protection, holding the money in escrow until the buyer has confirmed that the item they bought isn’t faked or inauthentic. Once the buyer has confirmed, the money is then paid out to the seller. 

This system makes scamming nigh impossible, and since no money is paid out if a report of fraud comes in, scammers are disincentivized from remaining on the platform. This allows customers to feel completely comfortable buying and selling goods, knowing that hobbyDB ensures that no payment ever goes to those who sell things fraudulently.

While hobbyDB does offer advantages over current options — such as eBay or Facebook Market — its strong suits could be easily replicated by another company. As a result, hobbyDB’s differentiators score is above average, but not particularly high.

Next Section: Performance

Performance

hobbyDB has raised $4 million from various investors, most notably television producer Adam Goldberg and capital market company Techstars. hobbyDB has partnerships with companies like Funko and Hard Rock International which account for profitable aspects of the business.

At present, hobbyDB has $123,000 of cash on hand. The average operational expenses on a monthly basis run up to $45,600. With a monthly revenue of $42,300, hobbyDB will be able to continue their operation for a long time. Due to strong early partnerships and encouraging early revenue, hobbyDB’s performance is its highest across all five metrics. 

Next Section: Other

Bearish Outlook

One of hobbyDB’s biggest issues going forward will be building the database that they hope to create — 100 million items catalogued by 2025. Since the company relies on volunteers (much like Wikipedia) to create this database, there is no guarantee that enough people volunteer up their own time to get hobbyDB even close to its goals.

If the database never manifests fully, hobbyDB will then be competing with the likes of eBay and Facebook Marketplace as consumer selling platforms. It’s unlikely that collectors and the general public will abandon the name recognition of those two giants for a relatively unknown commodity like hobbyDB. On top of that, just one failure in its scam protection plan could cause customers to lose trust – a major threat to the platform’s success. 

Then, of course, there is the issue of profitability. hobbyDB has operated at a net loss for the entirety of its existence. Though that’s not uncommon for startups investors should consider that the business is still in the early phases of development. There is certainly no guarantee the business turns profitable anytime soon.

Next Section: Bullish Outlook

Bullish Outlook

The market of collectibles buyers and sellers is vast. If hobbyDB creates the definitive database for all different types of collectibles, it would attract collectors from around the world. Its existing partnerships and capital raised show that some companies and investors see the value in this product. If hobbyDB can continue to grow these partnerships and leverage these investors, it will be able to grow and scale much faster.

Next Section: Executive Summary

Executive Summary

hobbyDB is attempting to create the definitive database that would make collecting a breeze. Its executive leadership and existing partnerships are two aspects of the company that show the potential for upside.

However, hobbyDB’s Wikipedia-like growth strategy leaves many questions about how likely it is to succeed. Even if the company succeeds in cataloguing millions of items, it will still take years to get to that point. The company hasn’t been profitable at any point in its existence, and since its growth strategy is so slow, there’s no reason to assume that hobbyDB will turn a profit any time soon. Due to all these factors, hobbyDB is a Neutral Deal. 

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

Analysis written by Ethan Thomas.

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hobbyDB on Wefunder
Platform: Wefunder
Security Type: Equity - Preferred
Valuation: $11,000,000
Price per Share: $0.67

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