Sircles

Sircles

Early Stage

The Social Recommendations App Designed To Destroy Yelp!

The Social Recommendations App Designed To Destroy Yelp!

Overview

Raised to Date: Raised: $1,369,953

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/03/2023

Close Date

04/28/2024

Min. Goal
$100,000
Max. Goal
$5,000,000
Min. Investment

$250

Security Type

SAFE

Series

Series A

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$26,000,000

Valuation Cap

$30,000,000

Discount

10%

Rolling Commitments ($USD)

Status

Active

Reporting Date

02/29/2024

Days Remaining

59

% of Min. Goal

1,370%

% of Max. Goal

27%

Likelihood of Max
unlikely
Avg. Daily Raise

$15,568

# of Investors

1,204

Momentum
cool.svg
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Year Founded

2019

Industry

Consumer Products, Goods & Services

Tech Sector

CommerceTech

Distribution Model

B2C

Margin

Medium

Capital Intensity

Low

Location

Sacramento, California

Business Type

High Growth

Sircles, with a valuation of $30 million, is raising funds on Wefunder. It is a social recommendation app that combines Yelp and Facebook, minus the negativity. Sircles’ unique features and safeguards allow it to stand out, capture a network effect, and reward good behavior. The app has about 25,000 beta testers and has over 650 positive ratings in app stores, with an average of 4.7 stars. John Worthington, Todd Fiore, and Daniel Hinkle founded Sircles in December 2019. The current crowdfunding campaign has a minimum target of $100,000 and a maximum target of $618,000. The campaign proceeds will be used for product development, influencer, grassroots, and social media marketing, and legal and administrative costs.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$0

$0

COGS

$0

$0

Tax

$0

$0

 

 

Net Income

$-1,265,533

$-1,380,763

Summary Balance Sheet

FY 2022 FY 2021

Cash

$877,813

$818,919

Accounts Receivable

$0

$0

Total Assets

$1,756,033

$1,352,852

Short-Term Debt

$87,812

$90,264

Long-Term Debt

$4,332,475

$2,767,544

Total Liabilities

$4,420,287

$2,857,808

Financials as of: 12/03/2023
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Raise History

Offering Name Close Date Platform Valuation/Cap Total Raised Security Type Status Reg Type
Sircles 04/28/2024 Wefunder $30,000,000 $1,369,953 SAFE Active RegCF
Sircles 04/14/2022 Wefunder $23,000,000 $2,701,066 SAFE Funded RegCF
Sircles 11/12/2020 Wefunder $11,000,000 $1,070,000 SAFE Funded RegCF
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Analyst Report

Synopsis

In the age of information overload, consumers are increasingly seeking authentic and positive recommendations for services and products. Sircles is poised to meet this demand with its innovative social recommendation app, Sircles. The app is designed to be a confluence of the best features of Yelp and Facebook, with a critical twist: it's engineered to filter out negativity, promoting only positive interactions. This unique approach aims to create an online community free of the bullying, shaming, and toxic reviews that plague many social platforms.

Sircles is currently in its pre-revenue phase, yet it has managed to attract approximately 25,000 beta testers who have given the app glowing reviews, averaging 4.8 stars across app stores. This positive reception is a testament to the platform's potential to capture a network effect, where each new user enhances the value of the service for all others. The app's safeguards and features are strategically designed not only to stand out in the crowded social media landscape but also to reward good behavior among its users.

The company's mission is encapsulated in its bold tagline: "The Social Recommendations App Designed To Destroy Yelp!" This reflects Sircles' ambition to disrupt the current market for customer feedback software by offering a more positive and user-friendly alternative. With a valuation cap set at $30 million, Sircles is raising funds on Wefunder to fuel product development, influencer and grassroots marketing and to cover legal and administrative expenses.

Backed by the Maeson Group and participating in the Amazon AWS Activate accelerator program, Sircles is well-positioned for growth. 

Next Section: Price

Price

Sircles is currently in its early stages and pre-revenue. The company is raising funds with a valuation cap of $30 million through a SAFE (Simple Agreement for Future Equity) with a 10% discount. 

While Sircles has yet to generate revenue, the company has shown promising traction with approximately 25,000 beta testers and high app store ratings. However, as a pre-revenue company with no current revenue multiples or price-to-sales data, the $30 million valuation cap is speculative and based on future growth expectations rather than current financial performance.

The 10% discount offered to investors through the SAFE slightly reduces valuation for early investors, acknowledging the higher risk associated with investing in a pre-revenue startup. However, investors should consider the high growth potential of the US Customer Feedback Software market when evaluating the investment opportunity. With a well-executed go-to-market strategy and continued user adoption, Sircles could position itself to capitalize on this market, justifying the high valuation cap in the long term.

Investors should also note that Sircles has raised over $4.5 million in previous funding rounds and has a relatively low capital intensity level. This suggests that the company has been able to attract investment interest and manage its financial resources effectively to date. The funds raised in this current round are earmarked for product development and marketing efforts, which are critical for user acquisition and business scaling.

Next Section: Market

Market

Sircles operates within the customer feedback software market, a sector that has seen significant growth in recent years. As businesses increasingly prioritize customer experience and engagement, the demand for platforms to facilitate and manage this feedback effectively is rising. However, the US customer feedback software market, in which Sircles operates, is valued at just $489.19 million and projected to grow at a compound annual growth rate of 12.7%. This market size is very small for a startup and should be considered when making an investment decision. 

Despite the presence of established competitors, Sircles' unique approach to facilitating positive interactions and promoting good behavior sets it apart. By combining elements of popular platforms like Yelp and Facebook, while simultaneously eliminating negative aspects, Sircles has the potential to appeal to a broad spectrum of users seeking a more positive online social and review experience.

However, as the company is still in the pre-revenue stage, it will be crucial for it to establish a strong business model and monetization strategy to capitalize on its potential and ensure its long-term sustainability in this competitive market.

Next Section: Team

Team

Sircles was founded by a team of three individuals: CEO John Worthington, CIO Todd Fiore, and COO Danny Hinkle. Each founder brings eight years of relevant industry experience to the company. 

John Worthington, as the CEO, provides leadership and strategic direction to Sircles. Todd Fiore, the CIO, contributes his expertise in information technology and management. Danny Hinkle, the COO, brings his prior marketing expertise to continue expanding the reach of Sircles. 

While the team at Sircles is relatively small, with a total of 11 members, their dedication and expertise in their respective roles contribute to the company's growth and success. 

Next Section: Differentiation

Differentiation

Sircles aims to differentiate itself in the crowded market of customer feedback software by providing a social recommendation app that combines the positive aspects of Yelp and Facebook while eliminating negativity. The app has garnered attention from approximately 25,000 beta testers and has received over 650 positive ratings in app stores, boasting an average rating of 4.8 stars.

The unique selling point of Sircles lies in its ability to create a safe and positive environment for users to share recommendations, engage in group activities, and explore various entertainment options. Unlike traditional social media platforms, Sircles actively discourages negativity, bullying, and toxic reviews. By focusing on promoting positive interactions, Sircles aims to provide a fun and safe space for users to connect and discover great places and entertainment options.

While Sircles faces competition in the customer feedback software market, its emphasis on creating a positive and inclusive community sets it apart from its competitors. The app's unique features and safeguards contribute to capturing a network effect and rewarding good behavior. 

Next Section: Performance

Performance

Despite being in a pre-revenue stage, Sircles has managed to attract approximately 25,000 beta testers, which demonstrates considerable traction for a product still in development.

The app's reception among users has been highly positive, with over 650 ratings in app stores and an impressive average rating of 4.8 stars. This level of user engagement and satisfaction strongly indicates the app's potential for widespread adoption and success upon full release. Furthermore, the high growth in users since the last round of funding underscores the app's appeal and the effective user acquisition strategies employed by the company.

Financially, Sircles Media Inc. has raised a total of $4.53 million in prior funding rounds, which has likely been instrumental in supporting product development and user growth initiatives. The company's cash and cash equivalents stood at $877,813 at the end of the most recent fiscal year, providing a buffer for continued operations and growth efforts. However, with a monthly burn rate of $105,461, careful financial management will be crucial as the company works towards generating revenue.

Next Section: Risk

Risk

Sircles, being a pre-revenue company, presents substantial risks associated with its early stage of development. The first and foremost risk is its market acceptance and potential to transition from a working beta to a fully functional and monetizable platform. Although the app has garnered positive ratings from its 25,000 beta testers, there is no guarantee this success will translate to the broader market.

As Sircles has positioned itself as a competitor to established platforms like Yelp and Facebook, it must overcome significant challenges to attract a critical mass of users necessary for a social platform to thrive. The network effect is vital for social recommendation apps, and achieving this can often require substantial marketing investment and strategic partnerships, which Sircles currently lacks.

Financially, the company reported a negative net income of $1,265,533 for the most recent fiscal year and a monthly burn rate of $105,461.08. These figures indicate a substantial rate of cash consumption relative to its cash reserves, which could necessitate additional funding rounds in the near future and could potentially dilute current investments.

Investors should also note that the company has a sizeable short-term debt of $87,812 and a long-term debt of $4,332,475. If the company cannot meet its debt obligations or refinance these debts, it could face significant financial strain.

Next Section: Bullish Outlook

Bullish Outlook

Sircles has developed a unique social recommendation app that combines the best features of Yelp and Facebook while eliminating the negativity commonly found on these platforms. With its focus on creating a positive and safe environment, Sircles has captured the attention of approximately 25,000 beta testers who have provided over 650 positive ratings with an average of 4.7 stars in app stores.

The market potential for Sircles is high, given the growing demand for customer feedback software in the US. By providing a platform that promotes positive interactions and rewards good behavior, Sircles has the potential to disrupt the current market dominated by Yelp and other similar platforms.

With a valuation of $30 million, Sircles has attracted investment from Maeson Group, a notable venture capital investor. The company has also received support from the Amazon AWS Activate accelerator program, which demonstrates the recognition and potential of Sircles in the industry.

In conclusion, Sircles' unique position as a social recommendation app that prioritizes positivity and safety, combined with its growing user base and high ratings, indicates strong potential for success. With the right resources and strategic execution, Sircles has the opportunity to disrupt the customer feedback software market and establish itself as a leading platform in the industry.

Next Section: Bearish Outlook

Bearish Outlook

While Sircles presents itself as a unique social recommendation app that combines the features of Yelp and Facebook, its valuation of $30 million seems inflated given its current stage and revenue growth. With no revenue reported in the most recent fiscal year, Sircles has yet to demonstrate its ability to generate meaningful revenue and achieve profitability.

Furthermore, the competitive landscape is quite competitive, with established players such as Yelp and Facebook already dominating the market. Sircles will face significant challenges in acquiring and retaining users, especially considering the low barriers to entry in this space.

The company's business model, centered around promoting positive interactions and removing negativity, may limit its potential reach and appeal. While there may be a niche market for a platform focused on positive experiences, it remains to be seen if Sircles can attract a large enough user base to achieve sustainable growth.

Next Section: Executive Summary

Executive Summary

Sircles is a social recommendation app that aims to combine the features of Yelp and Facebook while eliminating negativity. The platform is designed to foster positive interactions devoid of bullying, shaming, or toxic reviews. With a unique approach to social media, Sircles aims to provide a safe, enjoyable space for users to share and explore recommendations for places and entertainment.

Despite being in the pre-revenue stage, Sircles has already attracted approximately 25,000 beta testers and received over 650 positive ratings in app stores, with an average of 4.8 stars. This indicates a promising start and potential for user adoption. However, the company operates in a moderately competitive market with low entry barriers, which may pose challenges in terms of customer acquisition and retention.

Sircles has previously raised $4,525,475 and is currently seeking additional funding through a crowdfunding campaign on Wefunder. The funds raised will be used for product development, influencer, grassroots, social media marketing, and legal and administrative costs. The company has a high burn rate of $105,461.08 per month, which is a significant concern given its pre-revenue status.

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Sircles on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $30,000,000

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