Introduction
For singles looking to form a genuine connection and couples looking to maintain theirs, 3rdDegree is the ice-breaking game that facilitates new levels of open communication. It's a connection-building app that takes honesty and vulnerability to create high quality conversations. It encourages face to face communication to build a connection by two people getting to ask we all want to ask but don’t think or simply know how to ask.
Deal Highlights
3rdDegree bridges the gap between initial introductions on dating apps and deeper connections that last by creating meaningful conversations and helps couples stay connected by strengthening their relationship. Partnering with dating apps and relationship-building services, using a Freemium revenue model, 3rdDegree seeks to add value to these apps by:
- increasing user acquisition and retention
- increasing engagement of users
- lifting sales by upselling our services to existing users
- helping singles to build real connections and couples to reconnect
Our target audience is singles on dating apps and married and unmarried couples ages 20-44 in the US, for a total market size of 91.3M
Problem
The COVID-19 pandemic has shaken us up as a culture. For singles, the loneliness and isolation seems even more severe as meeting someone and connecting is even more challenging. Couples with pre-existing conditions are now crumbling under the weight of frustrations resulting from covid time together.
The pandemic emphasized the need for a connection with someone. Divorce rates increased 34% between March and June this year versus last year as couples have struggled to stay connected but simply don’t know how to start conversations beyond the mundane[1].
The online dating has thrived during the pandemic with singles busy matching...but they aren’t connecting. 50% of relationships formed on dating apps don’t make it past 1-2 dates because dating apps fail to help singles while on an actual date to form a connection with their person. So how do you make the connection and maintain it?
Solution
For singles looking to form a genuine connection and couples looking to maintain theirs, 3rdDegree is the connection-building app that takes honesty and vulnerability to create high-quality conversations. It encourages face to face communication to build a connection by two people getting to ask the questions we all want to ask but don’t think or simply know how to ask.
Through game-like quizzes that score you based on your effort to open up, you’ll have fun finding out new tidbits about your person. With questions that foster a deeper connection to help reveal the true essence of a person, singles can see if they truly are a good match beyond surface level. With couples, the delight of unexpected discoveries of one another motivates them to dig deeper.
Business Model
3rdDegree launched publicly on September 19, 2020 in the Apple and Google app stores. Dating apps use a freemium revenue model and 3rdDegree will do the same. Our goal is to have 100k active subscribing users by June 2022 which would put us at $1.5M annual recurring revenue for that fiscal year and a projection of $5M for 2023.
Market
Our goal is to partner with dating apps and relationship-building services. Our target audience is singles and married and unmarried couples ages 20-44 in the US, giving us a total market size 91.3M. Looking at market potential, in 2019, dating apps raked in $912M and couples spent an average of $697 on dates. With our market size of singles on dating apps and couples, that’s a $22.2B industry.
The other competition either promotes conversation via text or is simply another ‘screen time’ activity that further limits face to face time. What makes 3rdDegree unique is that it’s for singles AND couples. It focuses on compatibility, face to face communication and relationship improvement. It also adds the gaming aspect to encourage people to open up in order to win.
Progress
- Registered trademark of word and logo, copyright registration of: bundling of questions, categories & their descriptions, original code, algorithms, and design
- App build completed and live in both Apple and Google app stores
- A Kiwitech portfolio company
- Previous raise of $160k
- Launched publicly on 9/19/20 and as of 11/7, we have 561 registered users.
Media mentions
- LinkedIn - KiwiTech Announces Strategic Partnership with Conversation Building Platform 3rdDegree
- Venture Nashville - Venture Notes - October 19, 2020
Team
Shauna Holland has an Associate’s in Paralegal Studies and 15 years of experience in the legal field. She has also owned her own photography business for the last 9 years. Through analyzing and tweaking her business every year, Shauna implemented cost-effective methods and scaled her work, enabling her to operate efficiently while still maximizing profits. She has essentially turned a fun hobby into a supplemental income of $40k+ a year in her spare time, with zero outside investment...while working full-time at a law firm. She also has 7 years experience in the online dating world and met her husband and co-founder on Tinder.
Tony Holland has a Bachelor’s in Nursing with a focus in psychology. In every job he has had in the past 24 years, Tony has quickly excelled to managerial positions - from large retail stores to restaurants and to nurse manager, running the only comprehensive stroke center in the Southeast.
Christie Roach is a Certified Public Accountant and has owned her own accounting firm for the last 15 years, with small businesses as her main clientele.
Testimonials
Advisors and Investors
Use of Proceeds
If the offering's maximum amount of $550,000 is raised:
| Use | Value | % of Proceeds |
|---|---|---|
| Company Operations | $33,310 | 6.1% |
| Marketing | $258,250 | 47.0% |
| Employee Salaries | $161,490 | 29.4% |
| Legal | $20,000 | 3.6% |
| Tech/App Upgrades | $50,000 | 9.1% |
| Intermediary fees | $26,950 | 4.9% |
Terms
This is an offering of Membership Units, under registration exemption 4(a)(6), in 3rdDegree, LLC, doing business as 3rdDegree App. This offering must raise at least $10,000 by January 29, 2021 at 11:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. 3rdDegree App may issue additional securities to raise up to $550,000, the offering’s maximum.
If the offering is successful at raising the maximum amount, then the company’s implied valuation after the offering (sometimes called its post-money valuation) will be:
Pitch Deck
Financials
3rdDegree App’s official name is 3rdDegree, LLC, so that’s the name that appears in the statements below.
These financial statements have been reviewed by an independent Certified Public Accountant.
SEC Filings
The Offering Statement is a formal description of the company and this transaction. It’s filed with the SEC to comply with the requirements of exemption 4(a)(6) of the Securities Act of 1933.
We’re also required to share links to each of the SEC filings related to this offering with investors.
Understand the Risks
Be sure to understand the risks of this type of investment. No regulatory body (not the SEC, not any state regulator) has passed upon the merits of or given its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials or information posted herein. That’s typical for Regulation CF offerings like this one.
Neither Netcapital nor any of its directors, officers, employees, representatives, affiliates, or agents shall have any liability whatsoever arising from any error or incompleteness of fact or opinion in, or lack of care in the preparation or publication of, the materials and communication herein or the terms or valuation of any securities offering.
The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
More Info
Updates
- Jan 30, 2021Primary offering finalized, selling units
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