Restaurant subscription service will quickly start a $2 million crowdfunding campaign
Raleigh – Offline, which offers a restaurant subscription service designed to connect restaurants with people looking for new places to eat, is off to an appetizing start and investors are hungry for the stocks being offered through a crowdfunding campaign. Nearly 400 people had signed up as of Wednesday afternoon – just hours after the campaign kicked off.
The startup, which is based in Raleigh and already has some prominent investors, chose crowdfunding site Wefunder as a marketplace for its $2 million fundraising effort. By 2 p.m., the entrepreneurs had raised nearly $1.4 million. As of early Thursday, the total was $1.418 million.
It promotes itself offline as: “A monthly subscription that reimagines the discovery of the restaurant.”
“The secret to Offline’s success is simple: We understand how to motivate people,” says the startup.
“Our product is the perfect blend of organization, focus and urgency that drives people to try a new place in their city every month.”
The new capital will be used to expand to additional markets beyond the first two: Raleigh, where it launched last year, and Charlotte earlier this year.
“A large part of the value of equity crowdfunding is the exposure and excitement it generates for us as a company. Offline is the first company in North Carolina to ever launch an equity crowdfunding round while generating $1 million in annual recurring revenue, and we have an opportunity here to stand up to many more New potential clients, partners, and community members,” CEO and Co-Founder David Shanner tells potential investors at the funding site.
Mark Easley, Triangle investor and supporter of crowdfunding sites, sees a lot of potential in the Offline project.
“I was an early investor in Offline, and I believe David and his team have done a fantastic job developing the company’s business model and strategy,” Easley told WRAL TechWire. “They are now entering a growth phase to expand offline to more new cities.”
Easley, who helped pioneer the launch of crowdfunding in North Carolina, salutes Offline’s results.
“Today is the opening day of the public funding campaign, and Offline has already raised over $1,300,000 from supporters and the offline community,” Easley says. “I think this makes Offline the most successful crowdfunding campaign to date in North Carolina. Anyone can invest in Offline for as little as $100.”
Backers in the $1 million institutional round include high-profile Triangle-based fund Tweener as well as Todd Pendo, CEO of fast-growing Unicorn startup Pendo.
In his presentation to crowdfunding proponents, Shaner made the following points about the new venture:
📈 Last 12 months $350,000 ➡️ $1M Recurring Annual Revenue, 85% Gross Margin
💰 7000+ paid subscribers with 95% retention rate
🥘 Over 100 restaurants with a 97% retention rate
🌆 Second Market (Charlotte, NC) returned 100% of launch cost on day one
💸 Investors: Former CEO of ANGI (IPO), CEO of GDC (9-figure exit), CEO Pendo (valuation of $1 billion), Tweener Fund
🏆 An efficient team has converted $1 million of invested capital into a subscription revenue operating rate of $1 million per year