Hubsai, Inc. ← Netcapital

Introduction

In addition to single-family homeowners, Hubsai also provides seamless home automation for multi-location property owners and multifamily property owners managing numerous buildings and units.

Deal Highlights

Revenue for the US smart home market is projected to reach over $41B by 2023. The smart home vendor landscape, however, remains fragmented and unsecure with no clear choice for non-technical homeowners wanting to automate their homes.
Hubsai is not only well-positioned to provide this choice for consumers via direct sales and installer/reseller channels, but also plans to roll out a smart home services delivery platform for telecoms and ISPs that can rapidly scale and grow the community of Hubsai users.
With customer privacy as our priority, Hubsai stores homeowners’ information on the local Hubsai Hub rather than on a public cloud. Unlike other smart home automation platforms, we are designed to provide a worry-free, positive experience for homeowners transitioning to smart home technology.

Problem

Solution

Business Model

Hubsai has set up 3 distinct sales channels to rapidly grow the business:

Direct consumer sales
Distributor sales (resellers, builders, and installers)
Direct multifamily sales.

We are targeting to have our first 1,000 installs completed by the end of Q2 2021. Hubsai makes a modest margin on the devices sold plus a fee per installation. Recurring revenue is based on a SaaS monthly subscription model. Customers pay a monthly subscription ranging from $9.99 per month for a Starter Kit install to $39.99 per month for SMB/Multi-location customers.

Market

Progress

We have installed Hubsai at a number of successful consumer, multifamily, and SMB beta sites. The Hubsai app is available for download from the App Store and Google Play. We have packaged and are ready to bring to market 3 product solutions for consumers, multifamily property owners, and SMBs:

Team

Mike Ghodoosian

Founder and CEO

Mike drives the strategic vision of Hubsai, in addition to the company’s product roadmap, and partnerships, which include strategic relationships with Assa Abloy (the Yale and August lock brands), Amcrest, and Fibaro. Before Hubsai, Mike founded and led several startups, including MGH, an AI and IoT-industrial automation startup, and Universal Responses, a B2B survey data management platform. As Director of Global Accounts at Siemens, Mike was responsible for the Microsoft, Intel, HP, and SunMicro accounts with frequent C-level interactions. He holds a degree in Mechanical Engineering, and an MBA from Notre Dame de Namur University.

Fernando Narvaez

Chief Financial Officer

Highly accomplished senior executive that brings a wealth of finance and corporate management knowledge and over 15 years of International P&L management, strategy development and a proven track record of driving revenue and managing relationships with current and potential investors.

Prior experience includes roles in Fortune 500 companies such as Oracle Corporation where he oversaw the Finance portion of North America Cloud business. Fernando has also been involved with Startups Growth, raising funds from institutional investors and Merger & Acquisitions transactions.

Testimonials

A testimonial emailed to us by a recently installed customer
“Your existing cameras and motion sensors already proved very useful last night. At 2:30AM I was awakened by a call from BAY Alarm, who told me that one of their motion sensors (independent from the Hubsai equipment) signalled an alarm. I quickly opened the Hubsai app, looked at all four cameras and the Hubsai motion sensors, saw that all was well, and was able to tell Bay Alarm that they could cancel the notification to the police. I then monitored the cameras for another 20 minutes, saw that there was no one in the building, and went back to sleep. Your product is great, and saved us a costly police visit (which Berkeley charges for if a false alarm).”

Joel

a Bay Area SMB customer

Hubsai currently has a 4.7 rating on the App Store. Here are a few of the reviews posted:

2 Months with the Hubsai app and loving it!
“My family was skeptical at first about setting up a smart home. But when one of my daughters came home after dark one night and could turn on entry lights and unlock the front door before getting out of the car, she was sold. She ordered more smart lights for her own room which we could easily add to our Hubsai environment and app. It’s easy to use, well designed, and adding or moving devices is a piece of cake! ”

Vitoria R.

7/27/20

A must have in today’s home
“I have used apps with similar purpose and functions before but Hubsai really brings all together for a non tech-savvy guy like me. It’s easy and quick to use. It’s versatile and in my humble opinion, it’s a cut above the other apps I have used before. I admit I have not yet utilized all its functions and capabilities but I’m on my way there.”

Hamid KR

7/26/20

Well polished for nascent home automation
“App is well polished. I like that there is the ability to easily integrate with popular devices out there. Love the option to see the garage and control it cause I always forget if my garage is closed when I leave and that alone saves so much time and money having to loop back to check.”

SR-LMUE

7/24/20

Recommend to all
“Recently I got this app. It’s super user-friendly, and it’s nice to have everything in one place where I can be rest assured about the safety and electricity of my home. I would recommend this to people who want everything in one place and a few easy touches to control your house and its safety.”

Shawn Shagh

7/12/20

Fantastic solution for a single home
“I don’t often write reviewers unless I’m unhappy about something. However, I couldn’t resist writing a positive review for Hubsai. Amazing platform that connects all home devices. Finally I can go to one platform to have it all. Very intuitive, connects seamlessly, and easy to use. Love this!”

SeanD4467

6/28/20

Advisors and Investors

Use of Proceeds

If the offering's maximum amount of $1,069,999 is raised:

Use	Value	% of Proceeds
Compensation for managers	$224,699	21.0%
Working Capital	$106,999	10.0%
Salespeople	$342,399	32.0%
Marketing	$128,399	12.0%
R&D	$215,073	20.1%
Intermediary fees	$52,430	4.9%

Terms

This is an offering of Common Stock, under registration exemption 4(a)(6), in Hubsai, Inc.. This offering must raise at least $10,000 by May 1, 2021 at 12:59am ET. If this offering doesn’t reach its target, then your money will be refunded. Hubsai, Inc. may issue additional securities to raise up to $1,069,999, 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:

17,773,590 shares

$0.78 per share

$13,863,400implied valuation

Pitch Deck

Financials

These financial statements have been reviewed by an independent Certified Public Accountant.

CPA review letter

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.

Latest Offering Statement

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

Apr 20, 2023
Hubsai, Inc. has completed a transformation of...
Hubsai, Inc. has completed a transformation of its Authentication server into the Google Cloud and has realigned its business with a sharp focus on Hospitality. To that end Hubsai, Inc. has designed a new dashboard that will work with its original IoT Smart device solution for hospitality. The main reason for the realignment has taken place because of COVID in the last few years. Hubsai continues to enhance and improve its position n the market. Hubsai has added more people to its team to align for the new pivot/realignment. The information is available on its website www.hubsai.com. The new focus should help make major strides in hospitality in 2023 which is based on having a market fit for its platform. The current plan calls for the new Hubsai platform dependency to work with a “Property Management Software” (also known as PMS) and to that point the major focus is now on Oracle’s “Opera Cloud” for hospitality. Hubsai will now compete with companies such as Operto (Canada).
Read more
Aug 6, 2021
Filed Form C-U
May 1, 2021
Primary offering finalized, selling 34,828 shares
Sold 34,828 shares at $0.78 for a total of $27,165.84
Mar 2, 2021
Hubsai completes full scalability with...
Hubsai completes full scalability with Over-the-Air(OTA) functionality for software updates

SAN RAMON, Calif., March 1, 2021 – Today, Hubsai Inc., a Smart Home Automation company specializing in residential homes, apartments, and multi-family units, announced it has gone live with its new Over-the-Air (OTA) scalable solution which can easily support up to 1 million homes for software updates and full integration of its smart home platform.

Hubsai utilizes the latest fully scalable OTA software to upgrade its software in the field. New users will also benefit from this technology as it reduces set up time as well, but the main benefit is lower operating costs since OTA updates will take minimal time. This is a major achievement for cost savings in our backend part of the infrastructure said “Mike Ghodoosian, CEO of Hubsai”.
Feb 10, 2021
Filed Form C/A
Jan 22, 2021
Filed Form C/A
Jan 19, 2021
Hubsai Introduces the First AI-Based Smart Home...
Hubsai Introduces the First AI-Based Smart Home Platform Integration with Apple Watch 6®

SAN RAMON, Calif., Jan. 19, 2021 /PRNewswire/ – Today, Hubsai Inc., a Smart Home Automation company specializing in residential homes, apartments, and multi-family units, announced it is now live with a full integration of its smart home platform with Apple Watch 6.

Hubsai utilizes Apple Watch voice command technology to make home automation easy and hands-free. Users can tell their Apple Watch what they want to do and the Hubsai Mobile app will execute the request. Read more… https://lnkd.in/gQPia9T
Be one of the first to learn about Apple Watch6 integration with Hubsai platform!
Dec 16, 2020
Filed Form C/A
Nov 24, 2020
Primary offering of 1,371,794 shares at $0.78
Nov 24, 2020
Filed Form C

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