GiftCrowd makes the otherwise tedious process of gifting as a group hassle-free and straightforward.
of a $200,000 goal
Why you may want to invest in us...
- GiftCrowd is early to market with a much coveted solution in a $9 billion annual market
- GiftCrowd has developed a one-of-its-kind, patent pending teacher gifting solution (a $5 billion annual market)
- GiftCrowd is on a mission to disrupt and change the way people around the world give gifts
Founder & CEO
Eshed is an entrepreneur who has invented, built and launched over a dozen products while building, growing, and leading teams of engineers and product managers. These products resulted with over $300 million of sales to-date. He holds a BSc in Computer Science and Economics from the Tel Aviv University and an MBA from the Technion. Prior to GiftCrowd, he founded App2Go (acquired by MailBit) and SendM, a mobile group messaging solution that was launched by mobile carriers around the world.
Invest in the future of group gifting
GiftCrowd provides an easy way to purchase gifts as a group – anyone can start a gift and invite others to join, every gift participant can include a personal greeting in addition to their contribution. On the target date, the gift recipient is notified of their gift, can see the greetings they received and can choose how to redeem their gift balance into more than 100 types of gift card.
Eshed Doni, the founder and CEO of GiftCrowd, and the father of four children, launched this company after going through years of pain and frustration with how complex the gifting process is today. After doing some market research, he quickly learned that this was more of a systemic issue that many people deal with and he realized there was a clear need to a problem that many people find frustrating. And there was also no other real solution in the market.
GiftCrowd started with an online gift MVP concept and iterated throughout time to make test its proposition. One day, someone reached out from a local school asking if he had a solution to test the concept of teacher gifting since the process was too complicated. Little did GiftCrowd know that teacher gifting itself is a $5 billion annual market.
Gifting Market Breakdown
The overall gifting market is around $130 billion annually (composed mainly of gift cards)
Of this market, $9 billion is spent every year on group gifts
From the group gift pool, $5 billion is spent every year on teacher gifts
The average American family participates in between 7-10 group gifts per year, and that is in addition to other traditional gifting occassions. The combination of a common need (ie, complex gifting process) that has not been addressed, current industry trends, and a huge $130 billion annual gifting market positions GiftCrowd in a unique place to disrupting gifting.
GiftCrowd’s current best customers are parents with kids between 6-16 years old. These individuals tend to not have enough time in their days, which is why GiftCrowd is a valuable tool for them to use for gifting. Other use cases for GiftCrowd include professionals at work who wish to give a gift to colleagues for one of various events, such as a birthday, promotion, farewell, get well, bridal shower, or even baby shower.
GiftCrowd Simplifies Group Gifting for All
GiftCrowd is unique on a number of fronts. The first is that it currently only has two small competitors which are not entirely focused on group gifting but rather gift cards. Unlike the current players, GiftCrowd does not charge any fees to its users and may never do so because it adds a friction point to the experience and is not good business.
GiftCrowd is also providing a comprehensive gifting experience that is more focused on the transaction and the collecting of money for gifts. The reason for this is because GiftCrowd has learned through its market research that users want to know that someone will take this headache away and solve this problem and selection of gifts. To this end, GiftCrowd is providing a comprehensive experience focused on the notion of the gift and how the recipient is being treated by the group which is gifting.
Making the gifting experience as painless as possible is the goal at GiftCrowd, which is why users don’t need to sign up to use the service.
GiftCrowd Did Not Invent a Need, It’s Simply Providing a Tool to Meet that Need
GiftCrowd is currently focused on reaching more schools because teacher gifting is a very useful from a conversion standpoint but also from a penetration strategy. As such, the company plans to continue its expansion across the education market by building relationships at the grassroots and administrative levels.
The process of process of using GiftCrowd is also one of its greatest strengths: it’s simple to use and convenient for everyone involved in the gifting process.
1. Anyone can go and create a gift on GiftCrowd
2. User decides to whom and when to send the gift, and then invite others to join the gift occasion
3. Every gift participant can add their contribution using credit/debit card along with personal greeting – takes about 20 seconds
4. On the delivery day, user sends out the gift and the recipient sees all the participants and their respective messages
For teachers, GiftCrowd goes one step further: Since the parents are the ones who are giving gifts in some cases to teachers, GiftCrowd provides them with an easy way to do so without the hassle of traditional methods. To this end, GiftCrowd is aligned on the notion that it did not invent a need, but rather is simply providing a tool to meet a major, growing need.
GiftCrowd is on a Mission to Disrupt Gifting Worldwide
GiftCrowd is currently growing volume wise at 32% (yoy) and intends to raise capital to accelerate this growth via an injection into marketing. Although the business is currently self sufficient, living off its own revenues, spreading the word for adoption has been a challenge and wants to use marketing to drive this adoption. Moreover, GiftCrowd recognizes that it must accelerate growth through increased marketing and spend if it is to ultimately disrupt the global gifting industry.
Through a combination of social media marketing, influencers, schools, partnerships, and deeper involvement with parent associations across the nation, GiftCrowd is confident that its marketing investment will go a long way to penetrating the market and increaing its market share across catgegories of the industry, namely teacher, family, and corporate gifting.
How GiftCrowd Makes Money
GiftCrowd currently has three revenue streams that are driving forward its growth:
1. Whenever a recipient redeems their gift amount through any gift card vendors, GiftCrowd has an agreement in place for getting a discount on the amount and keeping the margin. This is how GiftCrowd is able to operate without charging fees, and this approach can account for up to 20% of total revenues.
2. GiftCrowd has a huge advantage in that it knows where the gift recipient will want to redeem their funds using the gift card. As such, GiftCrowd capitalize on this knowledge through affiliate agreements with brand partners through which gift recipients are oriented to promotions on the vendor site. Ultimately, GiftCrowd earns a commission from the overall amount of purchase that stemmed from the initial GiftCrowd gift.
3. Although not yet active at capacity, GiftCrowd is seeking to develop agreements with brick-and-mortar retailers that would allow gift recipients to pick up their gifts at a nearby, physical location and also receive a personalized card. This approach is currently in development with plans of full release in the coming quarters.
Use of proceeds
80% of the raise will be spent on marketing/sales including hiring dedicated sales people
20% of the raise will be spent on product development
- Optimize low-maintenance solution that has generated over half a million dollars using a modest investment of $90K
- Sustaining very high retention rate
- Driving word of mouth virality with users recommending GiftCrowd to their friends and colleagues and schools referring other schools
Total Revenue Generated: $505,000
Current Monthly Recurring Revenue (MRR): $30,000
MRR Growth Rate (MoM): 24%
Users, Customers, or Followers: 8,000
Users, Customers, or Followers Growth Rate: 5%
Customer Acquisition Cost (CAC): $2
Conversion Rate: 100%
Previous Funding: $90,000