App to Help Black Barbershops Looks to Equity Crowdfunding to Grow
The barbershop has built ladders of opportunity in black communities for generations. Skilled barbers build a steady stream of income, an...
Time spent waiting in your local shop can completely ruin your mood or interfere with your plans. In addition, finding a barber who you trust and feel comfortable with can be a daunting task. Millions of people moving to new cities or going off to college are faced with this problem every year.
Every month, barbers can lose 8-10 hours of productivity scheduling appointments via calls and texts. Over-bookings and no-shows also negatively impact a barber's business. Traditional marketing and relationship management has been a manual process for barbers. Software to improve their efficiency has not been widely adopted.
theCut is modernizing the barbershop experience. By seamlessly bringing both barbers and clients together, we’ve reduced many of the issues present in the barbershop today.
Barbers create their profile by adding their services, location, and hours of operation. Then, they complete it by uploading pictures of haircuts they’ve done and set up their banking info.
Clients are able to search and discover talented and trusted barbers. They can then book, pay, and tip through the app at their convenience.
Barbers receive appointments requests and then can manage all their appointments in one place.
After completing an appointment, clients can review the barber and shoutout a job well done.
Barber adding services to his profile:
Barber uploading his past haircuts to profile:
Client discovering and booking an appointment:
The release of our android app made a HUGE difference.
In the year 2040, the U.S. Census forecasts that people of color will become the majority in the United States. The growth of potential customers is accelerating and showing no signs of slowing down. As the population grows, there is going to be an equal need of quality barbers to keep everyone well groomed.
There are over 21 million minorities, including blacks & hispanics, who visit barbershops at least once a month spending $25 on average including tip.
Men have also increasingly spent more on grooming products in recent years, topping $20 billion in 2016
Traditionally, barbershops have been community commerce centers, where you could get the latest cd's, movies, and fashion pieces. As our marketplace evolves, we’ll be able to tap into long time barbershop related industries such as sneakers, fashion, and entertainment.
Many of our competitors have built quality booking software to power both independent professionals and local businesses. However, at theCut, we’re building a technology company to completely modernize the barbershop experience. We have larger ambitions that extend beyond appointments; we are looking to improve all facets of men’s style and grooming.
Barbershops are one of the last traditionally cash industries. Cashless consumer trends and the inherent risks of carrying large sums of cash create an opportunity to offer a different business model.
Wholesale pricing and increased access for our users will revolutionize how products are sold in the men’s grooming industry by providing direct access to thousands of engaged customers. Recent trends in men’s grooming point to a more conscious and attentive consumer base.
Barbershops have been synonymous with fashion and entertainment. As our business evolves, we’ll be able to offer our customers complimentary content, services, and products.
Our customers love us! We're converting barbers of all ages and backgrounds.
Investing in theCut is investing in yourself. We want to democratize wealth and ownership by giving the opportunity to the very people who have made the community so valuable.
With your investment, we'll be able to develop a more robust product and build our brand through marketing and partnerships.
The funds raise will help us reach our goals through the end of the year!
Investing in this crowdfunding opportunity through Republic allows you to be an angel investor in theCut under the provisions of Title III of the Jumpstart Our Business Startups Act of 2012 (known as the “JOBS Act”) and Regulation Crowdfunding. The financial instrument for your investment is a Crowd Safe. With a Crowd Safe, your investment automatically converts into stock when theCut undergoes a liquidity event - in other words, when we are acquired or have an IPO.
The valuation cap specifies the maximum valuation under which your investment will convert into shares. theCut's valuation cap for this round is $4 million. If the company is acquired for less than the valuation cap amount, the discount provision gives you a discount to the valuation. The discount provision for this round is 20%.
(Kush on the Left, Obi on the Right, Pepper the robot in the middle)
Obi, a recent JMU grad, was forced to spend his first 2 months at a new job, in a new state, post his haircut expiration for fear of trusting a new and untested barber. Kush Patel, interning in California had no choice but to cut his head bald after a random walk-in experience with the wrong pair of clippers. He then goes on strike and grows his hair out past shoulder length in protest. Friends from high school, with shared experiences we realized there was a huge problem here. It wasn’t that there were no talented barbers near us, what lacked was the convenient ability to find the barber who best met our specific needs. This moment and countless hours spent waiting aimlessly in barbershops is what led to the ah-ha moment behind theCut. We built our first prototype, then launched the beta version the following year and we’ve been grinding away ever since.
My team and I all have similar experiences. Similar stories can be told by anyone who’s ever moved to a new city, went off to college, or is left barber-less due to vacations or unexpected emergency. Barbers have tales of their own, reflecting no-shows, late clients, and schedule mismanagement that have led to less than enjoyable experiences. We’re passionate and dedicated to solving a real problem. We’re giving clients back their time and empowering barbers to take control of their business.
Everyone loves the feeling that comes along with a fresh cut; the confidence, the swag, the fresh look on life symbolized by a clean shapeup. At theCut, we believe that if you look good, you’ll feel better. We want the entire community to rock their best cut and live their best life. We hope that you guys share our vision and help us cut the next generation.
The smallest investment amount that theCut is accepting.
theCut needs to reach their minimum funding goal before
the deadline. If they don’t, all investments will be refunded.
The Crowd SAFE is an agreement for future equity in the startup,
meaning that it can convert to equity in the future.
The Crowd SAFE is an agreement for future equity in the startup, meaning that it can convert to equity in the future.
$50,000 – $350,000
theCut needs to raise
before the deadline. The maximum amount theCut is willing
to raise is $350K.
It just makes sense! The app interface is sound and the use-case is very real. I believe a lot of guys will appreciate knowing what they're about to get into with a new barber by being able to see past hair cuts and being able to avoid wait times!
I believe in the brand, the business model, and most importantly the team!
I invested because I understand the value that theCut can bring to customers and barbers.
theCut is a mobile platform connecting barbers and clients. We provide clients with the convenience of 24/7 booking and mobile payments, while providing barbers a business tool to optimize their schedule.
Even though there are other apps proving a similar service, there isn’t a platform built mobile-first and specifically for barbers. Our ambitions span beyond simply appointment booking, we plan to touch all facets of the mens grooming industry. By targeting barbers, we’re building a brand they can identify with that brings them more clientele. Our technology is also more intuitive and more effective in managing their business.
We know that the platform we’ve built can also be used by salons and female stylists. Today, we have stylists using the app to manage their business. However, we want to dominate the mens grooming space in its entirety. By building a platform specifically targeting barbershops, we’re able to drive new clients specifically looking for barbers vs other stylists.
In terms of female grooming there are nuances and behavioral trends that would lend itself to a more robust platform taking away from the simplicity that we offer.
We’re building a platform to assist all barbers in their day to day activities. We don’t require barbers to be licensed to use the platform. Many student barbers use our platform to start their businesses.
theCut currently uses Braintree Payments to manage our payments processing. As barbers and clients provide us with their payment information Braintree securely stores that information on their end so we don’t maintain any sensitive personal data on our systems. The email addresses and phone numbers we collect will be protected by us at theCut and not shared without your permission.
All clients need to download either our iOS or Android app. With the app, clients have the ability to pay, tip, and message their barber all within the app. Clients can also save photos for references or ideas.
theCut is available nationwide and in all U.S. territories. We have more than 9,000 barbers signed up in 48 of the 50 states. Although we’re available nationwide, we may not have a barber in your area. If not, tell your local barber to join the movement and help us build a great community of barbers.
Our early marketing strategy has focused primarily on social media, industry trade-shows & expos and word-of-mouth. With additional funding, we will invest in content marketing development as well as paid advertising on additional marketing channels.
Today, theCut makes money when a client pays their barber through the app. We charge the client a small convenience fee and the barber a typical processing fee. The introduction of our marketplace will be our next key revenue driver. As we roll out additional products and services, we’ll have additional revenue channels.
Approximately 50% of funds raised will go towards paid marketing campaigns and funding our trips to barber battles and expos around the nation. 30% will go towards product development focusing on our most requested features, and the remaining 20% is spent on general business development activities.
Yes we do! We raised funds from local angel investors in our network and people who really believe in our mission.
Potentials acquirers for theCut come from two different industries. As we build out our marketplace and grow a community of users we become attractive to large Consumer Package Goods companies in our industry such as Proctor & Gamble and Unilever. As we increase the transaction and scheduling volume processed through theCut we become targets to companies offering payments and scheduling services like Square, Mindbody, & Google.
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