Lighthouse

Lighthouse

Growth Stage

Unlock the path to homeownership

Unlock the path to homeownership

Overview

Raised this Round: Raised: $88,743

Total Commitments ($USD)

Platform

StartEngine

Start Date

01/02/2024

Close Date

04/02/2024

Min. Goal
$14,999
Max. Goal
$1,234,996
Min. Investment

$398

Security Type

Equity - Common

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.30

Pre-Money Valuation

$22,897,337

Year Founded

2019

Industry

Real Estate & Construction

Tech Sector

Proptech

Distribution Model

B2B

Margin

Medium

Capital Intensity

Low

Location

San Francisco, California

Business Type

Growth

Lighthouse, with a valuation of $22.9 million, is raising funds on StartEngine. It is a rental marketplace unlocking the path to home ownership. Lighthouse empowers renters to save for home ownership with its unique cash back system that provides cash back on rent. The company acquired UMoveFree in January 2023 and had 10% year-over-year growth as a combined business. Alan Chang and Matt See founded Lighthouse in September 2019. The current crowdfunding campaign has a minimum target of $14,999.40 and a maximum target of $1.23 million. The campaign proceeds will be used for working capital, research and development, and marketing.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$213,846

$183,130

COGS

$105,699

$86,951

Tax

$0

$821

 

 

Net Income

$-3,707,037

$-1,369,866

Summary Balance Sheet

FY 2022 FY 2021

Cash

$1,225,325

$823,765

Accounts Receivable

$98,928

$48,904

Total Assets

$1,618,123

$5,441,775

Short-Term Debt

$63,281

$70,367

Long-Term Debt

$0

$0

Total Liabilities

$63,281

$70,367

Financials as of: 01/02/2024
Create a free account today to gain access to KingsCrowd analytics.

Upgrade to gain access

Pay Monthly
Annually (Save 17%)

Edge

$25 /month
billed annually
Free portfolio tracking, data-driven ratings, AI analysis and reports
Plan Includes:
Everything in Free, plus
Company specific KingsCrowd ratings and analyst reports
Deal explorer and side-by-side comparison
Startup exit and failure tracking
Startup market filters and historical industry data
Advanced company search ( with ratings)
Get Edge Annual
Already a member? Log in here.

Ratings KingsCrowd Startup Rating Methodology Article

Blurred Ratings Bars Blurred Ratings Bars

Analyst Report Analyst Report Methodology Article

Synopsis

Homeownership is a significant milestone and a dream for many individuals. However, the path to homeownership can be challenging, especially for those in the rental market. Saving for a down payment, managing credit, and navigating the real estate market are hurdles prospective homeowners face. Lighthouse aims to empower renters and simplify the journey to homeownership.

Lighthouse is a rental marketplace that offers a unique cash-back system on rent, providing a practical and efficient way for renters to save for homeownership. The company operates in four major metropolitan areas in Texas and plans nationwide expansion. Lighthouse acquired UMoveFree in January 2023, leading to a 10% year-over-year growth for the combined business.

Next Section: Price

Price

Lighthouse is raising funds on StartEngine at a valuation of $22.9 million.

The company operates in the US home rental services market, with an addressable market size of $9 billion. Lighthouse has achieved impressive traction, generating $6.6 million in revenue in 2023, primarily driven by its acquisition of UMoveFree, a major player in the multi-family leasing market. The company has strong financial backing, having raised $4.14 million in prior funding rounds from notable investors such as DCM, Graph, Oceans, and Next Coast.

Therefore, Lighthouse's valuation seems fair to investors.

Next Section: Market

Market

Lighthouse operates within the US home rental services market, which is experiencing substantial growth. This growth is driven by several factors, including high real estate prices, making homeownership unaffordable for many, increasing demand for rental homes, and decreasing housing space due to increasing urban population density.

Population growth in metropolitan areas, fueled by economic activities such as manufacturing, trade, and employment, has led to increased migration across countries worldwide. This migration has driven demand for rental homes in these cities. In 2022, demand for rental apartments in and around US cities grew by 11% compared to the previous year. Furthermore, a mortgage company Freddie Mac survey revealed that consumers now prefer renting to buying a house.

The size of the US home rental services market is valued at $6.36 billion, and with an annual growth rate of 11%, it presents significant opportunities for companies like Lighthouse. Lighthouse's unique cashback system, which helps renters save for homeownership, could be a key differentiator that allows the company to capture a share of this growing market.

However, the market is extremely competitive, with established players such as Zillow, Craigslist, Realtor, Trulia, and Redfin already offering similar services. Therefore, Lighthouse must leverage its unique offerings and ensure continuous innovation to stand out in this competitive landscape and achieve sustainable growth.

Next Section: Team

Team

Lighthouse is led by CEO and co-founder Matt See. See is an investor turned operator with a background as an associate at Dodge & Cox, a long-only fund based in San Francisco. He brings his expertise in economics and finance, having received a B.S. of Economics degree from the Wharton School at the University of Pennsylvania. See splits his time between Dallas and San Francisco, overseeing the operations and growth of Lighthouse.

Co-founder and Director Alan Chang brings a wealth of experience to the team. He was the first employee for Airbnb Asia, where he led market expansion in the region and managed Airbnb's business in Northeast Asia. Chang also played a key role in launching Experiences and was part of the Airbnb Social Impact team. Prior to his work at Airbnb, Chang co-founded Chickenow, a national quick-service restaurant chain, where he was responsible for real estate and operations. His diverse business development, operations, and real estate background adds valuable expertise to Lighthouse.

Next Section: Differentiation

Differentiation

Lighthouse is differentiating itself in the highly competitive US home rental services market through its unique cash-back system. By offering renters the opportunity to save for home ownership through cash back on rent, Lighthouse provides an innovative solution that sets it apart from established competitors such as Zillow, Craigslist, Realtor, Trulia, and Redfin.

The company's acquisition of UMoveFree in January 2023 has contributed significantly to its revenue, with a reported $6.6 million in 2023. With a presence in multiple Texas markets and plans for expansion into new states like Chicago, Denver, Atlanta, Nashville, and Orlando, Lighthouse is positioning itself for further growth and market penetration.

Lighthouse's strong financial backing from top venture capital firms, including DCM, Graph, Oceans, and Next Coast, demonstrates investor confidence in the company's business model and growth potential. Its network of 1.1 million Facebook group members, SEO growth of 800 clicks a day, 15,000 monthly active sign-ups, and 200,000 monthly visitors highlight its increasing brand visibility and user engagement.

While Lighthouse operates in a highly competitive market, its unique cash-back system and focus on addressing the affordable housing challenge differentiates it from other rental marketplaces. Its high-quality differentiation level in both price and quality positions Lighthouse as a strong player in the industry, with the potential to attract and retain customers looking for innovative solutions to save for home ownership.

Overall, Lighthouse's innovative approach, strong financial performance, and plans for expansion make it a compelling player in the US home rental services market. As the company continues to grow and refine its offerings, it has the potential to disrupt the industry and provide a valuable pathway to homeownership for renters.

Next Section: Performance

Performance

Lighthouse has made significant progress in establishing its presence in the multi-family leasing market, generating $6.6 million in revenue in 2023. The acquisition of UMoveFree has been a major contributor to Lighthouse's revenue. This acquisition has allowed Lighthouse to navigate the $9 billion multi-family leasing market, which has seen limited innovation in recent decades.

Lighthouse operates in multiple Texas markets, including DFW, Austin, Houston, and San Antonio. The company has plans to expand into new states such as Chicago, Denver, Atlanta, Nashville, and Orlando. This expansion strategy indicates Lighthouse's ambition to grow its market share and reach a wider customer base.

Lighthouse has successfully raised funding from various investors, including top venture capital firms such as DCM, Graph, Oceans, and Next Coast. The company has also built a strong online presence with a 1.1 million Facebook group members network and significant SEO growth, with 800 clicks per day as of September 2023. These metrics demonstrate Lighthouse's ability to attract and engage users.

Lighthouse offers a unique solution in the rental marketplace by empowering renters to save for home ownership through its cashback system on rent. This innovative approach sets Lighthouse apart from its competitors and has contributed to its growth. With the acquisition of UMoveFree, Lighthouse has achieved a 10% year-over-year growth as a combined business.

Next Section: Risk

Risk

Investing in Lighthouse carries several risks as the company aims to disrupt the rental marketplace and unlock the path to homeownership.

Lighthouse operates in an extremely competitive market, with direct competitors such as Zillow, Craigslist, Realtor, Trulia, and Redfin. These companies have established brands, large user bases, and significant resources, which could make it challenging for Lighthouse to differentiate itself and attract a significant market share. Additionally, these competitors may respond to Lighthouse's business model and cashback system, further intensifying competition.

The company is still in the early stages of its development and has not yet achieved profitability. It has a negative net income and a high monthly burn rate, indicating a reliance on external funding to sustain its operations. This financial risk can concern potential investors, as Lighthouse may require additional capital to support its growth and expansion plans.

Lighthouse's business model relies on partnerships with landlords and property owners to offer its cashback system. The company currently does not have any partnerships in place, which poses a risk to its ability to scale its operations and attract a significant number of users. Building and maintaining these partnerships will require time and resources.

Furthermore, Lighthouse faces challenges in scaling its sales and distribution. While the company has achieved 10% year-over-year revenue growth after acquiring UMoveFree, expanding its services nationwide and gaining market acceptance will require significant efforts and resources. The company needs to develop effective marketing strategies and overcome the barriers to entry in the rental marketplace industry.

Next Section: Bullish Outlook

Bullish Outlook

Lighthouse is well-positioned to disrupt the rental market and empower renters on their path to homeownership. The company's unique cash-back system sets it apart from traditional rental marketplaces, providing renters a tangible opportunity to save for their future homes. With a revenue of $6.6 million as of 2023, Lighthouse has demonstrated its ability to generate meaningful revenue through its innovative business model.

The recent acquisition of UMoveFree further strengthens Lighthouse's position in the market, allowing the combined business to achieve 10% year-over-year growth. This acquisition expands Lighthouse's reach and customer base, providing more opportunities for renters to benefit from the cash-back system. With a focus on four major metros in Texas, Lighthouse has established a strong presence in a highly competitive market.

The market potential for Lighthouse is significant, given the US home rental services market size. By offering a solution that addresses the affordable housing challenge, Lighthouse has the opportunity to capture a substantial share of this market. The company's ambition to extend its services nationwide reflects its confidence in its business model and growth potential.

While Lighthouse faces competition in the rental marketplace industry, its unique cash-back system and focus on empowering renters give it a competitive edge. The barriers to entry in this industry are relatively low, allowing Lighthouse to seize opportunities and differentiate itself from competitors.

Next Section: Bearish Outlook

Bearish Outlook

Lighthouse operates in a highly competitive real estate market, with direct competitors such as Zillow, Craigslist, Realtor, Trulia, and Redfin. These established players have significant market share, brand recognition, and resources, giving them a competitive advantage over Lighthouse.

Furthermore, Lighthouse's business model, which focuses on providing cash back on rent to help renters save for home ownership, may not be sustainable in the long term. While it may attract some renters initially, cash-back incentives are a short-term benefit that may not be enough to retain customers or drive long-term growth. Additionally, offering cash back on rent can put significant financial strain on Lighthouse, as it reduces its revenue and profitability.

Next Section: Executive Summary

Executive Summary

Lighthouse Financial Technologies, Inc. is a real estate platform that aims to facilitate the path to homeownership by offering a unique cashback system on rent. The company operates in the rental marketplace, servicing four major Texas metros. Lighthouse's primary product offering empowers renters to save for homeownership, a unique proposition in the market. The company acquired UMoveFree in January 2023, contributing to its 10% year-over-year growth as a combined business.

Despite the highly competitive landscape, with competitors such as Zillow, Craiglist, Realto, Trulia, and Redfin, Lighthouse has managed to carve out a niche. The company reported a revenue of $213,846 in the most recent fiscal year, a growth rate of 16.7%. Additionally, Lighthouse has a network of 1.1 million Facebook group members, 15,000 monthly active sign-ups, and 200,000 monthly visitors, indicating significant traction in its growth journey.

Lighthouse operates in the growing US home rental services market, driven by high real estate prices that make homeownership unaffordable and an increase in urban population density.

In conclusion, while Lighthouse operates in a highly competitive market with low entry barriers, its unique product offering and established presence in the Texas market position it well for future growth. However, potential investors should be aware of the risks associated with the company's pre-profit status and the competitive landscape.

Disclaimer

The AI-enhanced analyst reports ("AI reports") provided by KingsCrowd are experimental in nature and may exhibit certain limitations and uncertainties. These reports are generated in part or in whole by artificial intelligence algorithms, which have the potential to hallucinate (e.g. generate fictitious information), interpret data incorrectly, omit information, or reference sources of data that may contain inaccuracies.

While we strive to provide reliable and accurate information, it is essential to understand that the AI reports should not be solely relied upon as the basis for making investment decisions. We strongly advise all users to exercise caution, conduct thorough due diligence, and verify data and facts independently before making any investment decisions.

The AI reports are intended to serve as one of the tools in your investment research process, offering additional insights and perspectives, and exposing more of our dataset to customers by transforming that data into natural language. They should be used in conjunction with other sources of information and professional judgment. KingsCrowd does not assume any liability for the accuracy, completeness, or reliability of the AI reports or any investment decisions made based on them.

Investing in startups and early-stage companies involves inherent risks, and it is essential to consult with qualified professionals and seek independent financial advice before making any investment decisions.

By accessing and using the AI reports, you acknowledge and accept the experimental nature of this feature and agree to use it at your own risk.

Please note that this disclaimer may be subject to updates and revisions as we continue to enhance our AI algorithms and improve the accuracy and reliability of the generated reports.

Founders: enhance your startup's credibility on KingsCrowd. Create an account to claim this raise page.
Add to portfolio
Lighthouse on StartEngine 2024
Platform: StartEngine
Security Type: Equity - Common
Valuation: $22,897,337
Price per Share: $1.30

Follow company

Follow Lighthouse on StartEngine 2024

Buy Lighthouse's Deal Report

Warning: according to the close date for this deal, Lighthouse may no longer be accepting investments.

Lighthouse Deal Report

Get KingsCrowd’s comprehensive report on Lighthouse including:

  • How our proprietary algorithm rates their current capital raise (1-5 stars)
  • Detailed price, market, team, differentiators, performance, and risk ratings
  • Whether Lighthouse is undervalued or overvalued
  • Scores on the founding team and key personnel's background and expertise
  • Our deep-dive analyst report reviewing the deal's investment potential and bullish vs. bearish outlook

Buy the Lighthouse deal report for only $10!

Email address:
Looking to buy more than one deal report? Get unlimited reports by upgrading to Edge