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HomeZada

Personal finance fintech platform for homeowners

USA, California
Market: Real estate, Insurance, Financial services
Stage of the project: Operating business

Date of last change: 20.02.2020
Min investment
$  250.000
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Total required
$ 5.000.000
Rating
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Idea

All in one suite of apps, content and data for homeowners to manage, maintain, protect and improve their largest financial asset and biggest expense, their home. In addition, an acquisition and retention platform for mortgage, insurance, and real estate companies to improve their digital customer engagement for increased repeat business at lower acquisition costs.

Current Status

HomeZada has proven product and market fit with over 45k users that were acquired through B2C digital marketing. Users are in all 50 states, 20 international countries, and represent all generations of homeowners. HomeZada has also proven a B2B2C channel to market with recent partners as a top 10 insurance company, a top 5 mortgage bank and enterprise opportunities with the top 2 real estate brokers in the US with access to tens of millions of homeowners.

Market

The total addressable market is $25B in the United States. This includes targeting personal finance subscription revenues from 130M homeowners, capturing a share of real estate marketing for 5M homes that are sold each year and the millions of advertisers who sell financial, insurance, home improvement, and other home related products and services. The market opportunity doubles with international countries that have well established home and real estate markets.

Problem or Opportunity

Homeowners are unorganized and spending too much money when owning their home. They are under-insured, not prepared for disasters, have too many unexpected repair costs, over budget on remodel projects, and lack financial visibility in home value, equity and total cost of ownership. Mortgage, insurance and real estate companies have a transactional model with homeowners, thus they have very poor renewal and repeat business rates. Cost of acquiring new customers are extremely high while customer retention strategies are non-existent.

Solution (product or service)

HomeZada provides unorganized homeowners an all-in-one personal finance software app that empowers them to be financially savvy about managing, maintaining, protecting and improving their home. HomeZada provides financial companies a customer marketing and loyalty solution to retain customers, acquire repeat business at lower acquisition costs and build long term relationships with their homeowner customers.

Competitors

Homeowners today cobble together paper and generic software apps to attempt to consolidate data about their home form disparate sources. Mortgage, insurance, and real estate companies use ineffective direct mail and generic, non-personalized nurture campaigns to stay in touch with former customers.

Advantages or differentiators

HomeZada has first mover advantage in creating a personal finance fintech platform that is focused on the entire journey of homeownership. It is the only platform that caters to the consumer, protects the privacy of their data, and incorporates enterprise partners to build long term loyalty. In addition, an advertising platform creates tremendous opportunities to connect homeowners to all products and services they need to manage their home. A unique data set is created as the business scales up that can be further monetized with many "home" related industries.

Finance

Our B2C model is a freemium subscription model. We havet two paid subscriptions options with one for $59 a year and the other at $99 a year. With our B2B2C partners, these are enterprise sales agreements that get negotiated based on volume and multi-year discounts. Future ad revenue will come from a mix of CPM, CPC, and cost per lead. The financial plan shows the business scaling to $50M in revenue in 5 years.

Business model

HomeZada has proven the scalable unit economics of a B2C freemium subscription model of $59.00, a very high conversion rate of 11%, and a renewal rate of 75%. HomeZada also has B2B2C revenues where enterprise partners become the customer who pay for their homeowner clients to use a co-branded version of HomeZada. Future revenue models include advertising, lead generation revenues, and aggregate data monetization.

Money will be spent on

60% of investment proceeds will be spent on customer acquisition with a focus on more enterprise B2B2C partners in mortgage, insurance, and real estate and some on B2C acquisition in order to always stay current on consumer engagement. 30% will be spent on continued enhancements to the platform with 10% on general and administrative (G&A) costs.

Offer for investor

A Series A Round of preferred stock with an opportunity to lead the round or co-invest with others.

Team or Management

Risks

One risk is the length of the sales cycle with enterprise opportunities in the mortgage and insurance industries. These companies face regulatory and compliance issues when interfacing with their consumer customers that lengthens the decision making process.

Incubation/Acceleration programs accomplishment

Plug n Play Insurtech Program

Won the competition and other awards

Top Female Founder in Fintech in 2020 Quesnay Competition sponsored by Wells Fargo.
Top Insurtech at 2019 NAIC (National Association of Insurance Commissioners) Conference
2nd Place Finish with Sacramento Kings Capitalize Startup Competition

Photos

Photo 1 - Personal finance fintech platform for homeowners
Photo 2 - Personal finance fintech platform for homeowners
Photo 3 - Personal finance fintech platform for homeowners
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Photo 5 - Personal finance fintech platform for homeowners

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video