Jinglz, a Killer App Investing Opportunity
By Michael Markowski, February 28, 2018
Jinglz has an app and proprietary technology which has “change the world potential”. Its smartphone app verifies that a video has been watched by a viewer in its entirety. The company recently filed a patent on an application which relays the viewer’s facial expressions back to the publisher of the video. Therefore, Jinglz has a “killer app”. Previous companies who are recent examples of having killer smartphone apps include Snapchat, UBER, and Airbnb. As of June 2017, a $10,000 investment in the seed rounds of the three from 2009 through 2012 was valued for $24,000,000, $125,000,000 and $200,000,000 respectively.
Merriam-Webster Dictionary’s definition of Killer App:
“a computer application of such great value or popularity that it assures the success of the technology with which it is associated; broadly: a feature or component that in itself makes something worth having or using”
The term Killer App was not in dictionaries prior to 1988. The first known instance that the term Killer App was in print was in a September 1987 issue of PC Week. The definition of “killer app” came up during Bill Gates’s questioning by lawyers in the United States v. Microsoft Corp. antitrust case. Bill Gates had produced and sent an email in which he described Internet Explorer as a killer app. Gates testified that the term meant “a popular application”, and did not connote an application that would fuel sales of a larger product or one that would supplant its competition which was the definition of a killer app in the Microsoft Computer Dictionary.
Jinglz app is KILLER for three very simple reasons:
- Users of app make money. The soon-to-be six billion worldwide consumers with smartphones can MAKE MONEY from downloading the Jinglz app. They can watch one or more 30-second videos to generate cash when they have idle time or are waiting in line, etc. Jinglz app among the very few of more than a million apps which makes a consumer money.
- Advertisers continue to spend more to get less. The television and video advertising industry is at a crossroads. The advertisers continue to spend more and the viewers continue to watch less. The $83.6 billion digital video and TV advertising industry is ripe for disruption. According to the following publishers at least 85% of the time:
- “Online video ads are skipped” – Tube Mogul
- “TV Advertising skipped by viewers” – The Guardian
- “Facebook videos play with no sound” – DIGIDAY
- Attention spans continue to shorten. The need for professionals and consumers to keep up with the technological advances has never been greater. The only solution is viewer verification for the continuing education and instructional videos.
Jinglz, Airbnb. UBER and Snapchat have another thing in common. They all have or will provide “the average Joe” with opportunities to invest in their seed rounds at valuations of less than $20 million.
Unlike other non-digital disruptors, including the social media companies which have provided massive upside to large and pedigreed investors, apps are routinely overlooked by professional investors and venture capitalists. Opportunities become available to unconnected investors at ridiculously low valuations for a couple of reasons:
- It does not cost much to develop and sustain an app. Since very few seek meaningful amounts of capital, they are not taken seriously and thus remain off of the radar screens of professional investors.
- Savvy investors, by their very nature, are very skeptical that an app startup can disrupt a large and well-entrenched industry. After perfecting its business model, UBER enjoyed a successful launch of its app in San Francisco in June of 2010. Four months later in October 2010, UBER raised $1.25 million from 30 investors at a $5.0 million post-money valuation. A private high school made $24 million from its $15,000 seed round investment in Snapchat (after the app had been developed and was operational). Airbnb is the best example. Since it was founded in 2008, the same year of the crash, it was able to survive only because its founders ate the cereal from the company’s leftover promotional cereal boxes for months. This link is about a guy who passed on investing in Airbnb. He has kept a cereal box on his desk to be a constant reminder for him to not pass on the next good deal that he saw. Click the link to read a fascinating article about a guy who invested $20,000: “How A Box Of Cereal And Acting Like A Cockroach Helped Airbnb Become A Billion-Dollar Business”. He was the only investor who participated in Airbnb’s $300,000 seed round offering.
Jinglz business model is very combustive. Jinglz reserves a portion of the revenue that it receives from advertisers for its viewer sweepstakes pools. The faster the growth of Jinglz advertising revenue, the bigger the pools become. For each of the maximum of up to 24 ads per day that a viewer that is allowed to watch they are automatically entered into a cash sweepstakes drawing. The app is very addictive. Anytime or anywhere a person waits in a line or even just waits, there is the potential for them to watch multiple ads. The app is more engaging than Snapchat or any other existing smartphone app.
The downloader of the Jinglz app is required to provide their gender, year of birth and zip code. This requirement provides an advertiser with the demographic information they most covet. The zip code enables Jinglz to attract even the smallest of Facebook’s 5,000,000 advertisers who advertise locally.
Jinglz 12 month beta test covering approximately 10,000 Android and Apple smartphone users revealed the following:
|Age Groups||% Of Users|
The mobile advertising industry is the fastest growing of all advertising segments. Mobile advertising accounts for a majority of Facebook’s revenue. See “Mobile made up 87% of Facebook’s latest advertising revenue boost”, July 27, 2017.
Jinglz has the best customer acquisition metrics of any company at any stage that I have analyzed during my 41 years in the capital markets. The company has a modest cost of $1 to acquire a new viewer. It has identified a pool of 4,000,000 Facebook users who meet the specifications for its ideal app user. It takes less than a couple of days from the time Jinglz spends $1 till it acquires the download. Once the new viewer has watched a total of 10 video ads, which could easily happen the same day the viewer downloads the app, Jinglz completely recoups its cost to acquire that viewer. Each of Jinglz’s habitual viewers who watch ten ads per day will generate $365 per annum. To say that Jinglz model is highly scalable and profitable would be an understatement.
Jinglz has all of the attributes that could enable its valuation to go to a valuation of a billion or more by the end of 2018. The company would be a logical acquisition for Facebook, Google, Microsoft, Verizon and AT&T. Due to the company’s app and technology being extremely disruptive to the status quo of the global advertising industry, it could easily become recognized by the media as a unicorn company. Should that happen it would likely be listed on SharesPost and NASDAQ’s Private Market at a billion dollar valuation (share price of $50 based on fully diluted post funding shares outstanding). Since Jinglz is an extreme digital disruptor, I highly recommend the video “Digital disruptor companies have the potential to get to $10 billion valuations quickly”.
Jinglz has a $1,070,000 Title III crowdfunding offering that has been available since November 2017 at a share price of $1 per share, a post financing valuation of $17 million. The funds are to be utilized for working capital and to further prepare for the scaling of the Jinglz app and business. More than $800,000 of the amount had been raised as of the date of this report. To make a minimum investment of $100 into Jinglz go to https://www.startengine.com/jinglz?Dynasty-Wealth-wfn-Jinglz=true .
Michael Markowski is the director of research for Dynasty Wealth which has provided consulting services to Jinglz. The terms and conditions of the agreement which includes cash and shares are available in Jinglz’s SEC filing as well as from Jinglz or Dynasty Wealth upon request. Dynasty Wealth specializes in finding and providing ongoing research coverage on highly scalable digital startups and early stage companies at share prices which have the potential to multiply by 100 to 1,000 times in five years. The 5-minute video below is about Jinglz and was produced by Dynasty Wealth.