I Got It

Early Stage

ENHANCING THE FAN EXPERIENCE BY TAKING HOME A PIECE OF THE ACTION

Analytics

Raised to Date: Raised: $705,000

Aggregate Commitments $

Platform

Wefunder

Start Date

11/19/2020

Close Date

04/23/2021

Min. Goal

$50,000

Max. Goal

$5,000,000

Min. Investment

$200

Security Type

Equity - Common

Funding Type

RegCF

Series

Seed

Price Per Share

$200.00

Pre-Money Valuation

$1,520,000

Rolling Commitments $

Status
Funded
Reporting Date

04/30/2021

Days Remaining
Funded
% of Min. Goal

1,410%

% of Max. Goal

14%

Likelihood of Max
Funded
Avg. Daily Raise

$4,548

# of Investors

139

Momentum
Funded
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Location

Bridgewater, New Jersey

Industry

Media, Entertainment & Publishing

Tech Sector

CommerceTech

Distribution Model

B2B2C

Margin

Medium

Capital Intensity

Low

Business Type

Growth

I Got It, with a pre-money valuation of $1.52 million, is raising funds on Wefunder. It is a mobile app that allows fans to bid real-time on experiences and merchandise of the sports teams they are watching live or remote. The company aims to engage fans, help them capture the moment, and enhance the monetization of souvenirs and memorabilia. Nicole Johnson founded I Got It in October 2020. The proceeds of the current crowdfunding round, with a minimum raise of $50,000 and a maximum raise of $1,070,000, will be used to pay sponsorship fees for transactions with new sports franchises and pay expenses related to operations. I Got It has launched with the New Orleans Saints and has signed deals with the Cleveland Cavaliers, among others.

Summary Profit and Loss Statement

Most Recent Year Prior Year

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$0

$0

Summary Balance Sheet

Most Recent Year Prior Year

Cash

$760

$0

Accounts Receivable

$0

$0

Total Assets

$760

$0

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 11/19/2020
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
I Got It 04/26/2022 Wefunder $59,155,000 $0 Equity - Common Not Funded RegCF
I Got It 04/23/2021 Wefunder $1,520,000 $705,000 Equity - Common Funded RegCF
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Ratings KingsCrowd Startup Rating Methodology Article

Analyst Report Analyst Report Methodology Article

Synopsis

Sports are a major business that encompass many different industries. One popular, but rather small, niche of the sports industry is game-used and signed memorabilia. This hot market is attractive to many fans because it allows them to collect and showcase a unique piece of history involving a favorite team or athlete. Though many online and offline locations exist that allow fans to buy a piece of game history, one company that wants to work directly with the major sports teams to create a more intimate and direct experience is I Got It.

Through its mobile app, I Got It allows users to buy certified game-used and even signed memorabilia from events. All purchases are done via auction, which can even take place at the same time as the live event that the object will come from. The objective is, in part, to create more engagement between fans and the teams/athletes they love. The greatest engagement, though, does not occur through the company’s own app. Instead, it actually takes place through the app of the sports teams themselves. That is why, in addition to promoting its own app, I Got It allows its auction technology to integrate with the apps of the sports teams it partners up with. A third option for teams is to go the white label route. With that, the auctions take place outside of the teams’ core app. Instead, it takes place in one owned by the team that is distinct from their core app.

The business model for I Got It is intriguing. What the company does is partner with the teams by paying them a substantial “rights fee.” In the case of the New Orleans Pelicans, the fee was $100,000 to cover multiple years. In exchange, I Got It receives 20% of retail profits, plus support covering marketing and social media. It also receives a $15,000 ticket bank. The deal with the New Orleans Saints, meanwhile, involves a payment by I Got It in the amount of $200,000. This entitles them to at least 400 auctions per year, with between 25% and 50% of the revenue associated with the auctions going to the firm. Its Premier Lacrosse League deal is slated to bring it $35,000 in sponsorship investment. At this time, the company also has a partnership with the Cleveland Cavaliers. It also boasts that it’s in advanced discussions with five other professional teams at this time. 

In one test, conducted between July and August 2020, I Got It hosted 300 auctions spread over 2 weeks and 20 games. During this time, the company saw 6,253 app downloads, 2,169 unique bidders, and 4,164 bids placed on its platform. The average price for a game-used item was $346.98, and the average team-signed item sold for $842.29. Game-worn jerseys did sell for as much as $650, and signed, game-used helmets sold for up to $1,500. In general, signed merchandise sold for around 200% of typical unsigned retail prices. 

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

Price

For investors thinking that a firm like I Got It would be demanding a high valuation, think again. The company is asking for a low pre-money valuation of just $1.52 million. That amount is extremely low for the startup investing ecosystem. As a result, I Got It received an extremely high price score.

Market

The market opportunity for sports as a whole is surprisingly large. The global sports market was worth an estimated $488.5 billion back in 2018 according to one of our sources. With a 5.9% annualized growth rate forecasted for it, it’s expected for the market to expand to $614.1 billion by 2022. Another market investors should look at, though, is the global collectibles market. There is certainly some crossover between collectibles and sports, since that’s where memorabilia fits in. However, the global collectibles market includes many categories outside of sports. That is why it may not be surprising to find out that this market opportunity is worth around $370 billion today. 

Drilling down, we eventually found our sweet spot: the sports memorabilia market. In the US, this market is worth around $5.4 billion. Globally, the figure looks to be much larger. The licensed sports memorabilia market is estimated to be worth about $12 billion. The autographed market, meanwhile, is worth around $2 billion. It’s these two niches that we feel best encompass the market that I Got It is trying to capture. Due to the small size of these niches, the market score for I Got It is middle of the road.

Team

At this point in time, there are two key members working on the I Got It team that warrant discussion. The first is its co-founder, Nicole Johnson. In addition to running I Got It, Johnson serves as a Marketing Manager for Renaissance Global Services. That business operates as a project management consulting firm servicing companies across industries. Her experience in marketing should prove valuable in growing a firm that operates in a fandom-oriented space. Add in the managerial experience she has obtained there, and she sounds like a solid pick to lead the business. In the past, she held other interesting jobs. Her last role was as the owner and CEO of Gerda’s Cupcake Agency. And prior to that, she was an Account Executive at Hofstetter & Partners / Agency 212. Her role immediately before that was as an Agency Account Manager at Kinzel Advertising Agency. 

The other key person at I Got It is Joseph De Perio. His current role at the company is as Chairman of its Board. At present, he is employed as a co-founder at SportBLX. In the past, he was a Senior Portfolio Manager at Clinton Group, and before that he served as the VP of Millennium Partners. His experience at SportBLX relates to the sporting industry, but only loosely since its operations are still early-stage. His greatest benefit to I Got It will be from his oversight of financial firms and how that could translate to advising the company on value-accretive financing and other transactions. 

Overall, the team at I Got It looks quite solid. Due to the experience of these top individuals, the company received an above average team score.

Differentiators

What makes I Got It a really unique company is how it mixes its technology with its business model. Most firms that focus on sports memorabilia do so by buying and selling it themselves. Another way to get into the market is to act like eBay, which basically means to focus on serving as a portal for other sellers. I Got It, instead, works to secure contracts directly with the sports teams. This cuts to the chase and gives the business a known quantity of auctions it will hold annually. Additionally, I Got It’s business model leaves no doubt that the merchandise is legitimate. The downside to this arrangement is the large cash payment that I Got It has to pay for these deals. But so long as it can recuperate this and then some from its auctions, the business model should work. It is also worth noting that I Got It has successfully patented its technology, providing defensibility to business. Due to the unique nature of the firm and its patent, I Got It scored strongly on its differentiators rating. 

Performance

Though I Got It is a unique business, its performance to-date is discouraging. Yes, management ran a test of its platform and that test looks to have been successful. However, through October 1st 2020, the business has yet to generate anything in the way of revenue. It also had virtually nothing in the way of assets or other signs of operations. Cash on hand is around $80,000. But considering that just two of its deals will require it to pay out $300,000, it needs to close this round of financing in order to move forward. Due to the absence of significant traction, I Got It’s performance score is its lowest across all five metrics.

Bearish Outlook

There are a few things that are bearish about I Got It that investors should consider. For starters, its limited traction — which is best illustrated by its absence of revenue — is an issue. Product/market fit has not yet been proven and adds significant risks. The company’s market is also quite small, so even if it does grow nicely, the upside is likely limited. Only by expanding into other collectibles and/or sports memorabilia might this picture change some. Add in the risk associated with paying out sizable sums of cash in exchange for the right to auction off memorabilia, and it’s unclear how well this business model will work out.

Bullish Outlook

Bearish concerns notwithstanding, there are some bullish factors that investors would be wise to know. The super low pre-money valuation requested by management is the most obvious. If the company does find success, investors in this round will certainly reap the rewards. Add in the fact that I Got It’s contracts with partners will give it guaranteed activity, and it’s hard not to like the risk/reward opportunity we’re seeing. Management looks to be solid and the company’s test from July through August showed some promise. All of this together definitely makes this a firm worth considering.

Executive Summary

Taking all of the data we have right now, I Got It is an interesting prospect for sports-oriented investors. The company’s unique business model is a double-edged sword that may or may not play out. But with the low valuation and attractive management team, it’s hard to say this is a bad prospect. These positives are outweighed some by a small, niche market and the absence of significant traction at this time. Thus, I Got It is a Neutral Deal at this time. 

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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I Got It on Wefunder
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Platform: Wefunder
Security Type: Equity - Common
Valuation: $1,520,000
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