Outerly is raising funds on Wefunder with a valuation of $6 million. While the company has developed the beta version of a social app for outdoor recreation, the valuation seems a bit high, given its current stage of development. Outerly has over 400 beta participants and a waitlist of over 28,000 signups and email subscribers, demonstrating market interest. However, the company does not have meaningful revenue to date. While the app has the potential to address an unmet need in outdoor recreation by connecting people based on their interests, the valuation of $6 million appears slightly overvalued, given the current traction and financials of the company.

Investors should consider the risks associated with investing in Outerly at its current valuation. The company must demonstrate significant revenue growth and a clear path to profitability to justify its valuation and provide a return on investment for shareholders.

Outerly is a player in the U.S. social networking app market. According to Grand View Research, this market is estimated to be worth $5.49 billion and is growing at an annual rate of 22%. Though the market is growing, networking over outdoor activities is one small slice.

The focus on outdoor activities and fostering real-world connections does offer Outerly a specific niche within this market. The growth of health and wellness trends and the desire for real-world social connections are market drivers. 

Overall, the obtainable market for Outerly is a tiny sliver of the $5.49 billion social networking apps market, but Outerly plays to critical trends driving this market growth. A 22% compound annual growth rate leaves a lot of room for market capture in the future. 

Outerly is led by founder and CEO Kay Rodriguez. Rodriguez has a strong background in the outdoors and recreation industry, having spent time in business development at National Geographic. Rodriguez also appears to have successfully exited a previous company, Jetfarer. There is little public information as to the acquisition. 

As the sole member of the team, Rodriguez is responsible for driving the vision and growth of Outerly. She has demonstrated the ability to attract over 400 beta participants and build a waitlist of over 28,000 signups and email subscribers. Despite her success thus far, investing in such a small team is incredibly risky. With industry experience and an exit under her belt, Rodriguez is a capable founder who needs to build a team to continue to scale successfully.

Outerly aims to address an unmet need in outdoor recreation by providing a social app that connects people based on their shared interests and activities. While there are established competitors in the market, such as AllTrails, Strava, and Meetup, Outerly differentiates itself by focusing specifically on connecting outdoor enthusiasts. The app offers features like an activities database, events page, affinity discussion groups, and curated itineraries to facilitate social connections and make outdoor recreation safer and more enjoyable.

One of the critical differentiators for Outerly is its approach to connecting people based on the activities they want to try. This sets Outerly apart from general social networking platforms like Facebook Groups, which do not specifically cater to outdoor enthusiasts. Similarly, AllTrails is an app with guides to outdoor activities but lacks a social networking component. 

Outerly offers a freemium model where users can pay to upgrade for more features and content, similar to competitors' business models. It does not compete heavily on price. 

Overall, Outerly offers a niche solution to a pain point in the outdoor recreation. A few competitors exist, but most do not entirely overlap with Outerly. 

Outerly, an outdoor social networking app has made significant progress since its inception despite remaining in beta. The company has developed a unique platform to connect outdoor enthusiasts based on their shared interests and activities. With over 400 beta participants and a waitlist of over 28,000 signups and email subscribers, Outerly has demonstrated strong user interest and demand for its services.

Outerly has also achieved a significant milestone by acquiring its first B2B contract with a DC pilot, with the potential to scale nationwide. This partnership showcases the company's ability to attract business clients and expand its reach in the market. Furthermore, Outerly is beta testing its web and mobile apps in Washington, DC, with a full launch planned for September 2023. This progress indicates the company is on track to bring its platform to a broader audience.

Overall, Outerly's progress in acquiring beta participants, building a waitlist, securing a B2B contract, and preparing for a full launch demonstrates the company's growth potential. The product is still in beta and has yet to prove market demand outside early adopters.

While Outerly has a compelling value proposition in the outdoor social networking space, there are several risks that prospective investors should consider. First, Outerly is still in beta. Beta participants and a waitlist of signups may not necessarily translate into active users or revenue. This could impact the company's ability to generate meaningful revenue and achieve sustainable growth.

Furthermore, the founder appears to be the only employee at the company. While Rodriguez has a fantastic background to lead a company like Outerly to success, her being the sole employee is a considerable risk that investors must consider. Finally, at $6 million, the company is slightly overvalued for still being in beta.

Outerly is positioned to capitalize on the growing demand for outdoor recreation and the need for social connections in this space. The company has developed a unique social app that caters to outdoor enthusiasts, addressing the unmet need to connect with others who share similar interests and activities. With over 400 beta participants and a waitlist of over 28,000 signups and email subscribers, Outerly has already demonstrated strong user interest and potential for growth.

The app's features, including an activities database, events page, affinity discussion groups, and curated itineraries, provide users with a comprehensive platform to connect, plan, and engage in outdoor activities. This targeted approach sets Outerly apart from existing social networking apps.

Additionally, Outerly's revenue model, which focuses on recurring revenue, is well-suited for long-term sustainability and growth. With a high margin level and market potential, Outerly has the opportunity to generate significant revenue as it continues to attract users and expand its offerings.

Finally, the company's founder, Kay Rodriguez, has extensive experience in the industry, including time spent at National Geographic, and has one exit already under her belt. She knows how to scale and run a company. 

 

Outerly's financials are concerning. The company generated only $60,935.18 in annual revenue, representing a significant decline of 50% compared to the previous fiscal year. The product remains in beta, and beta users are often more enthusiastic about product adoption than the general public. The value of this app relies heavily on adoption, given the social element. 

The company's valuation of $6 million also appears to be slightly inflated, given its current financial performance and development stage. Outerly's revenue multiple of 98.47 is significantly higher than industry averages. Investors should consider the company's revenue growth potential before making investment decisions.

Lastly, Outerly's team consists only of Rodriguez. To grow the company and mitigate risk, she must hire out for several positions as the app goes live.

Outerly is a social app aimed at the outdoor recreation market. The platform connects users based on shared interests in outdoor activities, making it easier for people to find companions for their adventures. The app's features include an activities database, events page, discussion groups, and weekly curated itineraries. With over 400 beta participants and a waitlist of over 28,000 signups and email subscribers, Outerly is well-positioned to tap into the growing trend of health and wellness and the desire for real-world connections.

However, Outerly's revenue has declined by 50% in the most recent fiscal year, and the company has yet to profit. The current valuation of $6 million seems high, considering the company's stage and financial performance.

On the flip side, the competitive landscape is sparse, with platforms like AllTrails, Strava, and Meetup offering similar services that do not entirely overlap. Outerly's success will depend on its ability to differentiate itself from these established players and attract a loyal user base.

Finally, Rodriguez appears to be a capable founder, with an exit under her belt and extensive time in the industry. As the company scales out of beta, it will be crucial for her to build a strong team.