Motoroso is a new destination for automotive and motorcycle inspiration. Users can do a quick visual search, explore builds, and click right in the image to expose products, videos, articles and how-to’s. Their interactive platform makes it easy to get inspired, and soon they will build a product marketplace where users can purchase products from sellers they trust, and find the best installation shop to help with the project.
|Name: Motoroso||Minimum Raise: $50K|
|CEO: Alex Littlewood||Maximum Raise: $1M|
|Company Founded: 2013||Structure of Raise: Future Equity (SAFE)|
|Location: Santa Clara, CA||Valuation: $5M Valuation Cap, 20% discount|
|Crowdfunding Portal: Wefunder||Minimum Investment: $300|
|Crowdfunding Link: https://wefunder.com/motoroso|
Risks and Reservations
|Techstars alumni||Solo founder|
|Active target market in automotive enthusiasts||No proprietary technology|
|Partnership with Ford||Limited barriers to entry in the space|
|20% MOM (month over month) traffic growth’||Business and monetization model hasn’t been established|
The 40 million Americans who love cars & motorcycles currently spend hours scouring through old-school forums, hunting for the parts they want—across 10,000+ websites.
Motoroso created a website with an interactive image interface for planning and sharing custom builds.
To grow “Motoroso for Professionals” to help service providers and shops do what they do better. They will also launch a marketplace that will enable customers to explore, buy and review products.
Motoroso has three business models. The first is a subscription platform for service providers to attract new customers. The second model is product marketplace where consumers can go from finding an idea to being able to purchase it. Motoroso will take a commission on the sales purchased through their platform. The third model is an advertising platform that pushes relevant content to the right users.
- Official Partner of the Detroit Auto Show
- Partnered with Ford at SEMA ’15 & ‘16
- Over 350 Official Brand Profiles
- Over 60,000 Images uploaded and tagged
*Source: Company provided on crowdfunding campaign website
Senior Management Team
CEO Alex Littlewood brings a decade of startup experience with specialties in Social Media and marketing. Alex is a self-proclaimed car guy and having a project you’re truly passionate about is always a plus. As a Techstars alumni, he has a solid support structure to lean on. Alex is currently the only founder and sole team member. Being a solo founder always raises some concerns especially with a tech company. Development in these situations is often reliant out outside contractors without an equity interest.
Industry: Automotive, focused exclusively on enthusiasts
Market Size: $80B
Motoroso is entering an interesting market as car enthusiasts are very passionate and active but carry the non tech-savvy stigma. Currently, social engagement in this industry is very spread out across multiple channels and it will be a difficult road to consolidate a user base. The industry definitely appears to have a need for this type of solution but future traction will rely heavily on gaining large scale industry partnerships which they have already started.
Revenue most recent fiscal year: $17,270 (2015)
Previous Funds Raised:
- $50,000 – convertible note, May 2014
- $20,000 – Techstars accelerator, June 2015
- $100,000 – convertible note, June 2015
- $50,000 – convertible note, June 2016
Use of Funds
- Expand functionality of ‘for professionals’ platform feature
- Build a sales and marketing team
- Build out product database and market place functionality
As the sector hasn’t truly seen a qualified solution from others in this space, comparing Motoroso to previous exits and acquisitions is difficult. I believe there are a lot of major companies that would significantly benefit from the success of a company like Motoroso. Motoroso can potentially influence plenty of customers into making purchases of aftermarket auto parts. I could see this as an interesting acquisition candidate for a company like O’Reilly Auto Parts as a way to drive future revenue growth.
Recent Acquisitions in the Field
|Company Acquired||Acquired By||Amount|
|July 31, 2015||Polyvore||Yahoo||$230M|
|Sept. 5, 2012||Source Interlink||Car Domain||$50M|
|April 9, 2012||$1.01B|
Expert Opinion Summary
Motoroso has put together an intriguing offering at a $5M valuation cap with a 20% discount. Given the traction and limited revenue, I would be more confident if the valuation cap was $4M with the 20% discount, but the current offering is certainly worth consideration. With Alex being a solo founder that certainly raises concerns without having additional team members that have an equity interest. Alex proved himself to Techstars, which rarely accepts solo founders, but I would like to see a plan for growing the team. Scaling a project is challenging with the support of a team and doing it alone can easily become overwhelming. The fact that Motoroso was able to secure a partnership with Ford instills confidence that good things are still to come for this startup.
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