Guusto Gifts

Successfully Funded!

$41,417
completed of $25,000 166%
12
investors
Campaign Closed
Overview

Guusto is the first company in Canada raising capital under the new Start-up Crowdfunding Rules

Guusto is a mobile gifting app that lets you send food and drinks. We’ve taken the idea of picking up the tab at lunch for a client or grabbing a beer for friend, and allow you to do it from anywhere.

Guusto gifts are instant, thoughtful products (like a bottle of wine), stored and redeemed through your phone at ANY of the 1000+ partner restaurant locations across Canada (The Keg, Cactus Club, Moxie’s).

To really make someone’s day, we donate one day of clean drinking water through the One Drop Foundation for every gift sent.

The Idea
Busy people need easy ways to strengthen relationships (attract clients, reward employees, thank colleagues, congratulate friends). Giving little thoughtful gifts can be time consuming and expensive. Gift cards are annoying to carry around and often get misplaced. 

 

Product & Services
We are disrupting the gift card market. The Guusto iOS or Android app lets you send food and drinks. Gift recipients don't need the app, they receive a link via email or text that can be opened using any web browser. To redeem, they simply present their phone to the server at the restaurant who keys in the gift card code to the existing POS software.

 

Revenue Model
When a gift is sent, we process the customer credit card and hold the funds. When the recipient selects the venue and views the gift code, we purchase a gift card for a specific venue at a 3-10% discount, thus earning the spread. 

While we provide easy ways for users to track gifts and send reminders, a portion still go unclaimed (5-10%). We can report this breakage as revenue after a 2-year period where the gift is not claimed. In addition, the average 1-month time lag between sending and redeeming provides significant positive cashflow for the business as it grows.

We’re also launching a web portal that allows bulk gift senders (eg. customer rewards programs, employee incentive programs, etc...) to purchase gift links that expire if not claimed. While this will reduce the breakage revenue, we charge $0.50 per gift link to provide this service.

Finally, there will be opportunities in the future to promote restaurant and beverage brands through ad placements or specific product gifting (eg. send your friend a Smirnoff Ice).

 

Market
We are targeting young professionals (25-35 years of age) that manage client and sales relationships (real estate, mortgage brokers, insurance brokers, financial advisors, and sales professionals). These people need multiple touch points with clients and colleagues every year. We are also targeting businesses that purchase gift cards for customer loyalty and services.

There is a massive market opportunity! Digital gift cards are growing 200% annually and currently only account for 7% of the $100+ Billion gift card market. We are well positioned to capitalize on the trend towards mobile digital gifting.

 

Exit Strategy
We plan to grow company income to a place where we could pay dividends. Also, as the digital gift card market matures over the coming years, we will be a well-positioned acquisition target for the large gift card processors to accelerate their digital solutions. 

 

Investment Highlights

* Available under the Start-up Crowdfunding Exemption
** Available under the Accredited Investor Exemption

 

Start-up Crowdfunding Offering:

  • Available to all investors resident in British Columbia, Manitoba, New Brunswick, Nova Scotia, Quebec, or Saskatchewan
  • Investors resident in BC are eligible for a 30% tax credit
  • $500 minimum investment; $1,500 maximum investment
  • 3.2% equity; $1.55 million post-money valuation
  • $50,000 maximum capital raise
  • $0.16 per Common Share

 

Accredited Investor Offering:

  • Available to all investors resident in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Quebec, or Saskatchewan
  • Investors resident in BC are eligible for a 30% tax credit
  • $5,000 minimum investment; $50,000 maximum investment
  • 3.2% equity; $1.55 million post-money valuation
  • $50,000 maximum capital raise
  • $0.16 per Common Share
*Visit Investor Concierge - Regulation to learn more about your eligibility under these exemptions
Meet the Team
Joe Facciolo
Co-Founder
Updates

FrontFundr

October 01, 2015

5 Tips for a Successful Crowdfunding Campaign

September marked a major milestone for Canadian start-ups and investors. Canada’s first deal to use the start-up crowdfunding exemption closed through FrontFundr. To say the deal was a success would be an understatement—Guusto, the company raising funds, closed at 200% of their target.

Since Guusto closed, we’ve received a lot of questions from other entrepreneurs looking for tips on how to achieve similar success. With that in mind, Guusto compiled their top five tips to keep in mind for entrepreneurs considering launching an equity crowdfunding campaign. 
 

  1. Get legal advice
    Be proactive in getting your legal framework prepared for an increased number of shareholders. Having your offering documents prepared and ready to go will save you time and energy, and will ensure you don’t accidentally break any rules along the way. Once the ball gets rolling with new investors, you’ll be prepared and will easily be able to manage your shareholders. This is a process FrontFundr can help with—we help draft documents to keep legal fees low.
     
  2. Launch with traction
    Having a few investor profiles listed when you launch your campaign can go a long way. A small number of investors committed at launch will ensure your tracker isn’t at $0 out of the gate. Since you only have 90 days to close, some upfront investors will not only help move to your goal faster, but it also validates proof of concept for those who don’t know as much about your company.
     
  3. Set a realistic target
    There’s no harm in exceeding your target, however, it is detrimental if you don’t. If your minimum amount isn’t reached within 90 days, your campaign doesn’t close and your potential investors’ capital is returned. So set a realistic goal and hope for oversubscription. Beyond achieving your goal, oversubscription also helps create momentum. People get excited and investors become interested when they hear you’ve exceeded your goals. At the end of Guusto’s campaign, they closed at 200% of their target, and investors and news outlets were buzzing.
     
  4. Create a video
    People invest in people, which means they need to believe in the team. An easy way to allow your investors to get to know you and your team is by creating and sharing a video on your profile. Guusto created a Q&A with their founder, which went a long way in creating more meaningful connections with investors.
     
  5. Engage your existing customers
    One of the most exciting elements of crowdfinancing and the new start-up exemption is the ability to engage your customers as your investors. The fact that regular people are allowed to invest as low as $500 opens doors to non-traditional investors and allows you to connect with your users. These people already have an understanding of your business, which makes them more likely to invest.


For start-ups interested in launching a crowdfinancing campaign, it’s important to begin preparations early. From legal counsel to relationship building with investors, the amount of traction your campaign gains will hinge on your preparedness. Whether a business is listed in Prospect Lounge for potential future investment, or is listed as a live deal in Pitch Place, FrontFundr helps create a solid campaign foundation for start-ups. We help early-stage companies build traction with investors and the public and establish key relationships, all before you even begin your raise. To get started with a listing in Prospect Lounge, contact Ross Mackay.

FrontFundr

September 24, 2015

First deal closes using start-up exemption

VANCOUVER, BC (September 25, 2015) – This week marked a milestone in Canada, with the close of the country’s first ever deal to leverage the new start-up crowdfunding exemption. Guusto raised $50,000 from 18 investors via FrontFundr—a financial technology platform that utilizes a diverse range of fundraising methods, including the new start-up crowdfunding exemption, in order to connect startups with hard to access capital.

The start-up crowdfunding exemption, which was introduced last May, allows regular people to invest up to $1,500 in private companies in exchange for equity. Guusto is the first Canadian company to use the new exemption where regular investors could invest as little as $500.

“The start-up crowdfunding exemption gives regular people with limited investment capital the opportunity to invest in businesses they care about, and presents a low barrier to entry into investing,” says Peter-Paul Van Hoeken, CEO of FrontFundr. “At the same time, FrontFundr is an exempt market dealer that leverages numerous fundraising techniques, helping private companies secure investment from accredited investors as well.” This opens the investor pool, casting a wider net and helping start-ups secure the capital they need to grow. 

“The money raised from this equity crowdfunding campaign will go toward expanding our customer base over the next six months with the goal of breaking into the U.S. market by the first quarter of 2016,” says Skai Dalziel, co-founder of Guusto. “It also means we have a variety of investors who care about our company. The seasoned investors have experience helping other tech businesses succeed, and the regular investors are typically people who use and love our product.”

FrontFundr’s approach to raising funds is unique in that it brings together both regular investors and the professional investors, and it’s working. The Guusto deal was the first of its kind, and it came in 200% over the funding goal. “It’s exciting to see new channels opening for investors and entrepreneurs seeking investment, and it’s no surprise,” says Vancouver-based lawyer, Michael Reid.

In total, six provinces have opened up opportunities for new ventures to raise capital from the public with the introduction of the start-up crowdfunding exemption. Now, the Ontario securities regulator is contemplating new rules around investment crowdfunding as well. These types of exemptions present exciting new opportunities for both investors and entrepreneurs across Canada. Twenty-one more companies are listed in FrontFundr’s Prospect Lounge, hoping to be the next to close a deal like Guusto’s.

FrontFundr is a registered exempt market dealer (EMD) and conducts stringent due diligence on all business investment deals presented to its investor community, and ensures both investors and entrepreneurs understand the risks and rewards associated with entering into a transaction. Visit FrontFundr.com to browse live investment opportunities.

For more information or media requests, contact Jeannine Bartz at jeannine@frontfundr.com or 604-306-0207. 

FrontFundr

August 20, 2015

Guusto's Joe Facciolo on Raising Capital

Can Equity Crowdfunding Change the Fundraising Landscape in Canada?

"Raising capital sucks.

Fundraising is an inevitable task that plagues most startup founders, especially those in Canada who are once, twice removed from the silly money that resides in and around Silicon Valley.

As water cooler conversations in the tech community often center around the progress of your current “raise," the topic regularly turns to stories of how investors south of the border move quickly, with the notion that startups boasting a solid business idea, a prototype and a semblance of being able to execute should get a shot at finding product market fit or die quickly..."

Read the full article on TechVibes written by Joe Facciolo here.

 

FrontFundr

July 23, 2015

Guusto Featured in Vancity Buzz

Vancouver company's crowdfunding equity deal first in Canada.

"We're excited to be blazing the trail for Equity Crowdfunding in Canada. Owning a piece of a tech startup company like Guusto is no longer just for the wealthy angel investors, now anyone can get involved!" - Skai Dalziel,  Co-Founder at Guusto 

 

Vancitybuzz - July 23rd, 2015

For as little as $500, you could buy a percentage of a Vancouver-based company, thanks to new legislation passed just last month.

On May 14, six Canadian provinces, including B.C., announced they would allow newer companies to raise up to $250,000 per capital raise twice a year using a crowdfunding portal. Read the full article on Vancity Buzz here

FrontFundr

June 17, 2015

First start-up equity crowdfunding deal in Canada

Guusto Gifts will utilize new crowdfunding legislation to allow equity investments as low as $500

VANCOUVER, BC (June 18, 2015) – For the first time ever in Canada, non-accredited investors—or regular investors—are able to invest in a private company in exchange for equity. As of today, any British Columbian resident can invest as little as $500 and up to $1,500 into Guusto, a Vancouver-based gift-giving platform, in exchange for a percentage of ownership. This investment solution is made possible via a newly launched crowdfunding platform, FrontFundr, which is leveraging new regulations put in place just last month.

 

FrontFundr is an online platform that enables early-stage private companies, such as Guusto, to raise money from a broad investor community. Previously, most Canadians were locked out from investing in young companies due to absence of an accessible marketplace and regulatory restrictions. However, on May 14, 2015, six Canadian provinces including BC announced that they would allow young companies to raise up to $250,000 per capital raise twice a year using a funding portal. As a registered exempt market dealer firm, FrontFundr is the first such portal to utilize last month’s newly passed legislation, and Guusto is the first company that will leverage the new investment solution to raise capital.

 

“We’re very excited for the opportunity to raise funds from regular Canadians who genuinely believe in our product and want to share in this journey,” says Skai Dalziel, co-founder of Guusto. “We’re looking to bring together a group of brand champions who believe in our business and will further the growth of the company.”

 

In traditional investment models entrepreneurs are limited to approaching family and friends, angels and venture capital firms in hopes of finding much needed capital. This process of getting access to informal networks of a relatively small investor group requires a heavy investment of time and money.  What’s more, it taps only a fraction of the world’s willing investors. Crowdfinancing platforms like FrontFundr are disrupting private-sector investing and bridging that gap.

 

“We’re giving regular people a chance to sit in the pitch seat and be an ancillary dragon choosing which investments they want to make,” says Peter-Paul Van Hoeken, CEO at FrontFundr. “We’re providing ordinary people with access to carefully screened investment opportunities, and entrepreneurs with access to more capital to support their growth.”

 

Guusto is seeking to raise a total of $50,000 from regular investors under the new crowdfunding rules. A further $250,000 will be raised from Accredited Investors through other funding exemptions on FrontFundr.


###
 

Guusto is a mobile gifting app that lets you send food and drinks. We’ve taken the idea of picking up the tab at lunch for a client or grabbing a beer for friend, and allow you to do it from anywhere. Unlike plastic gift cards, Guusto gifts are instant, thoughtful products (like a bottle of wine), stored and redeemed through your phone at ANY of the 1300+ partner restaurant locations across Canada (e.g. The Keg, Cactus Club, Moxie’s). And to really make someone’s day, we donate one day of clean drinking water through the One Drop Foundation for every gift sent. Visit Guusto.com to learn more and get the app.

 

FrontFundr is a registered exempt market dealer that performs due diligence on each investment opportunity in an effort to enable both investors and entrepreneurs to understand the risks and rewards associated with entering into a transaction. Visit FrontFundr.com to browse live investment opportunities.

 

For more information or media requests, contact Jeannine Bartz at jeannine@frontfundr.com or 604-306-0207.

 

Investors
12 total, 3 anonymous
Deanna Bell
Stijn Timmermans
Simon Lewis
Steve Sabey
Mike Reid
Documents
Guusto - Form 1 - Start-up Crowdfunding - Offering Document
General Risks
By accessing this site you agree to be bound by FrontFundr’s Terms and Conditions and Privacy Policy. FrontFundr distributes exempt market securities to qualified individuals as defined by National Instrument 45-106, Prospectus and Registration Exemptions and crowdfunding exemptions including Multilateral Instrument 45-108 Crowdfunding and Multilateral CSA Notice 45-316 Start-up Crowdfunding Registration and Prospectus Exemptions.
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The risks highlighted above are not conclusive. Risk disclosures specific for each offering are reviewed by SMV and are presented within an issuer’s profile page on the platform and within the offering memorandum or other offering documents for the issuance. Offering documents and the risks associated with the securities of an issuer contained therein should be reviewed thoroughly by an investor or an investor’s professional advisors before making an investment.
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