7 in 10 Americans are struggling financially. These Americans wake up every day questioning how they're going to pay their bills or if they'll ever be able to retire... Yofii has built software to help the 127 million Americans who struggle with credit card debt, Get Out of Debt! Americans will pay over $100 billion dollars in interest and fees to credit card companies in 2019 on $860 billion dollars in credit card debt! Our mission is to make financial freedom accessible. We believe we can accomplish our mission by building smart yet simple software for everyday people.
Current Status
We are BETA ready and are finalizing a few mobile optimizations before we launch to our closed mobile BETA. We have 300 potential BETA testers and will be launching a small BETA at the end of April to 50 users. We have an e-mail list of over 6,000 people, over 7,000 followers on our social media sites, and focusing on growing our e-mail list through organic content.
Market
A report by the Center for Financial Services Innovation shows 7 in 10 Americans are struggling financially while 3 of those 7 Americans believe they will never get out of debt. Our customers are everyday people, who do not understand personal finance. There are 185.2 million Americans between the ages of 21 and 65 in the United States. Following CSFI's findings, there are over 120 million Americans struggling with credit card debt.
Credit card debt is not exclusive to the United States. Our research shows credit card debt is prevalent in most of South America and many parts of Africa. We believe there is an opportunity in Europe, but the data on these markets isn't as readily available as data in the United States.
We estimate the Total Addressable Market to be $16.5 Billion dollars in annual recurring revenue with a total user base of 185.2 million people in the United States. We cannot confidently predict the international market opportunity but do believe we can double our market opportunity through international expansion. As we continue to grow, we will provide additional features including Advanced Budgeting and Financial Goal Planning which will provide us with further monetization opportunities. Our current concept for Advanced Budgeting is not available within the market, and we will be the only company providing a product with our level of functionality.
The market size of our MVP is estimated to be 127 million Americans.
Problem or Opportunity
7 in 10 Americans are struggling financially while 3 in 7 of those Americans believe they will never get out of debt. In 2019, Americans will pay over $100 billion dollars in interest and fees to credit card companies. Americans currently owe over $860 billion dollars in credit card debt! There is only one company providing software to help people define credit card debt payment strategies. The current competitor offers a dated interface with a subscription that is 10X the cost of our Pro License.
Most people pay their credit card debt by prioritizing their bills in accordance with: the color of the card, their experience with the bank/creditor, current balance, and/or benefits provided by the credit product.
The appropriate way to define a payment plan is to analyze the interest rates, fees, and/or available offers. Americans aren't building debt plans to Get Out of Debt. Americans are randomly paying off their credit card debt hoping they will one day get out of debt.
Solution (product or service)
We have developed software that will automatically calculate the best strategy to help users get out of credit card debt. Yofii can balance both debt repayment strategies (Snowball Strategy and Avalanche Strategy) and propose the best payment plan without user input. Yofii will actively calculate the best way for users to get out of debt no matter their financial situation. Our competitor asks users to choose one of the two debt repayment strategies.
Competitors
We estimate less than 5% of the market has been captured by competitors of our MVP, V2.0, and V3.0 product offerings.
The only direct competitor for our MVP is Mvelopes who advertises they've helped over 500,000 people. This number isn't representative of active users and is likely a representation of the number of people who have used their paid products at any point in time. Mvelopes has acquired less than 1% of the 127 Million Americans with credit card debt.
The competitors for our V2.0 and V3.0 products have larger market shares, but collectively (including Mvelopes) have acquired less than 5% of the US Market. Albert and Qapital do not disclose their user counts, but Qapital used to have a counter on their website which showed over 1 million users.
The one application that dominates the budgeting market is Mint with over 10 million users according to a 2016 report. Mint is owned by Intuit and hasn't expanded its product offering past budgeting. We do not consider Mint a long-term competitor as they are specifically focused on budgeting and haven't shown an interest in expanding. Mint does have the resources to expand, but it appears Intuit is focused on using Mint to promote business development to their business applications.
We believe our competitors are focused on their existing offerings and would be a great potential acquirer of Yofii.
Advantages or differentiators
Our algorithm approaches debt repayment in a way that is only possible with software. A portion of our funds will be allocated towards our patent filing to secure the IP for our algorithm. Mvelopes requires users to select how they want to pay off their debt and does not provide a solution that can automatically calculate debt payment plans for users.
Qapital and Albert are focused on providing their users with banking products and services. They are both great applications, but neither provide debt solutions. Both of these applications are focused on providing savings, investment, and budgeting solutions to users. We view Albert as a larger threat than Qapital when we consider their functionality and features.
- Albert requires users to speak to a financial advisor for questions over text messages. In the United States, debt is a taboo topic, so we do not believe Albert will be able to successfully add a debt repayment solution to their existing platform without developing or purchasing software to do so.
- Qapital is focused on building the future of banking.
Finance
We will provide a Free Version and Pro Version of Yofii. Our Free Version will monetize through advertising and our Pro Version for our MVP will be $5 per month per user. Please see our Business Model for further information.
Our financial models project we can acquire 11 Million active monthly users within 5-years. In 5-years our target is to have approximately 7 Million active monthly users and 4 Million Paid users. When we accomplish this milestone our estimated annual revenue will be $589 Million dollars with a projected gross profit margin of 86.9%. Our 5-year projection does not include further monetization through Yofii branded banking and/or loan products.
As we add more functionality to Yofii, we plan to increase our subscription by $1 for every major feature release. The only competitor of our MVP charges $59 for their "Debt Center" which provides debt analysis and planning functionality.
Business model
We plan to operate on a Freemium Model.
We will provide a Free Version which monetizes through advertising revenue. Our projected Average Revenue Per User will be between $30 to $50. Some of our approved advertisers pay as little as $0.10 per conversion some advertisers pay as much as $250 per conversion. We do not want to eliminate our Free Version as that will provide us with a healthy funnel for user conversion to our Pro Version.
We will provide a Pro Version which will include a subscription starting at $5 per month and also monetize through Advertising Revenue abiding by the same Average Revenue Per User of our Free Version.
We will acquire customers through creative and innovative marketing/advertising campaigns.
- A majority of our customer base lives outside the major markets. We plan on running creative giveaways where we incentive users to download our application, refer users, and perform other positive actions within Yofii or against our brand. We will gladly share more details with any investor who is interested in investing in Yofii.
- A majority of our customer base are minorities including Middle Americans, Hispanic, and African Americans. We will focus on speaking to these customers on the platforms they visit/engage most. For example, Our CEO, Bryan Uribe, is Hispanic and speaks Spanish fluently. Bryan is adamant about being present on Spanish platforms including Radio, News, and Television shows. Our CEO would also like to be present on urban radio, country radio, and many platforms that are often overlooked by typical tech CEOs.
We are working with our lawyer to file for a provisional patent while we wait to file our patent application. A provisional patent will provide us with sufficient protection from competitors while we secure our patent.
We share the same risks as all start-up's. We can run out of money before we can see sufficient success. Our team understands this always looks to find the most effective way to use our available funds by being scrappy yet aggressive.
We do not believe Americans will get out of debt without a solution that can help people improve or augment their financial literacy.
Legislation can change which can affect our access to the financial data we need to operate our algorithm. Our current Data Aggregator works with 13 of the 15 largest banks in the United States. In partnering with our Data Aggregator, we are in automatic compliance with PSD2.
