Soldsie

$166,500 reserved of $100,000 FundersClub fund target

https://thefundersclub.com/soldsie/


Overview

Soldsie provides checkout commerce technology that enables consumers to buy and sell products through social comments, enabling global retailers to capitalize on social commerce by meeting the consumer where they are. Customers save their payment information and then simply comment on their favorite stores’ posts to activate a charge to their account. Merchants on social media platforms use Soldsie to capitalize on their channels; track and manage inventory and shipping, and experience increased user comments and views by turning their social network into a viral sales force.
Soldsie aims to be the preferred payment system of social media users, accepted by merchants across all major social media platforms. To this end, Soldsie will partner with credit cards to offer customer incentives for signing up, and grow to support currencies and mobile platforms in Europe, Asia and South America.
Soldsie takes 3% off the revenue of each merchant transaction, not including credit card transactional fees, which typically run 2-3%. There are no subscription or start-up fees for Soldsie, and Soldsie is free for consumers.
For a walk through of how Soldsie works, Click here
How it works for a customer on Facebook:

  • 1) Go to the facebook page of a retailer you like
  • 2) See a picture of a product you want
  • 3) Write "Sold" in the comments.
  • 4) You will be charged and the item will be shipped to you. It is liked one-click ordering for facebook. (The first time you use a Soldsie merchant, Soldsie will ask you for your payment and shipping info, after that, you will not need to enter it again)

How it works for a retailer on Facebook:

  • 1) Sign up for Soldsie
  • 2) Post pictures of your products on your Facebook page
  • 3) Tell your fans they can write "Sold" and they can buy your items
  • 4) Start selling through your facebook page immediately. Note that by your fans buying your products by writing "Sold", this will be shared on their friends' newsfeeds, allowing more potentially customers to come across your products.



Past Investment Details & Testimonials

Soldsie raised $270K from Dave McClure (AOL and Interactive One Executive Director), Justin Kitch (Homestead.com Founder; EIR at Redpoint), and Christian Springub (Jimdo.com Founder) in its first fundraising round, in Q2'12. Soldsie’s founders are graduates of NewMe and 500 Startups. Of the $270K raised in Q2 2012, $50K was raised on a convertible note with a $1MM cap from 500 Startups, and $220K was raised on a convertible note with a $3MM cap. Soldsie's current seed round (Q4 2012) is being raised at an $8MM cap.
Christian Springub (Jimdo.com Founder) “I was impressed with the vision and the strong will to execute it of the founding team Chris and Arrel. This in mix with the huge potential of the completely new market Soldsie operates in is the best investment opportunity I've seen.”


Competitive Landscape

The worldwide e-commerce market is expected to reach $963 billion by 2013, largely riding on traditional online commerce technology solutions. While global retailers recognize social commerce’s potential as the means to reach more highly targeted consumers more efficiently, this promise has been hindered by fragmented providers and systems that fail to leverage social infrastructure. Meanwhile, consumers will increasingly demand retail solutions that cater to their mobile and social activities and commercial transactions.
Soldsie is the first company helping merchants sell through comments on Facebook. The current major players in third-party e-commerce (e.g., Shopify, BigCommerce, Payvement) are focused on creating a different product - the shopping cart tab. These may become competitors if they were the shift the direction of their companies. There are also platform risks from Facebook - but we face the same challenges as any app developer. We maintain close and regular communications with the Facebook commerce staff in order to anticipate any issues for Soldsie. Additionally, we will begin working with other platforms soon to mitigate platform risk.


Plan for Use of Funds


  • Expanding staff: product manager, merchant acquisition sales team, engineers, marketing
  • PR and Marketing: Industry conferences, Press engagement
  • Admin: office space, office equipment, etc