Introduction
When the COVID-19 pandemic hit, our Into The Box President, Chris, spent four months renovating an old shuttle bus into an off-grid tiny home. While equipping his bus with solar panels, Chris envisioned a commercially-available, self-contained product with off-grid technology. With a background in real estate, Chris quickly saw how an off-grid living unit could be used as a short term rental — to showcase how traveling in an environmentally-sustainable way doesn’t mean giving up modern comforts, and even facilitates a more authentic, individualized travel experience. Expanding upon this vision, Into The Box was born.
As the climate crisis intensifies and our utility grids are slow to transition to 100% renewable energy, ITB sees an opportunity to immediately lessen reliance on our utility grids by creating functional, ready-to-deploy 20’ and 40’ “Boxes” that have multiple use cases, all while eliminating industrial waste from our operations through upcycling shipping containers.
Our planned lines of business using our Box product, in order of rollout, include:
- Short terms rentals (STRs)
- Accessory dwelling units (ADUs)
- Emergency services
- Speciality student housing
Disclaimer: The images are conceptual renderings of ITB’s ADU line and are proposed for illustrative purposes only. The images aren’t necessarily representative of the scale, height, density or design that would be approved now or in the future.
ITB Product
In addition to the global need to transform our power grids, the U.S. is currently experiencing a housing crisis. We are seeing record home prices, spiking rents, increasing homelessness, and inflation (Source: Bloomberg). People across the country are being priced out of their communities as gentrification continues to impact city neighborhoods. And after the harrowing impacts of the pandemic on nursing homes across the country, older adults in the Baby Boomer generation are searching for new alternatives to semi-independent living.
Into The Box’s ADU product line is informed by the U.S. housing crisis and the positive developments in ADU upzoning created by governments at all levels looking to improve housing options.
USE CASES
Short Term Business Model
Disclaimer: The images are conceptual renderings and are proposed for illustrative purposes only. The images aren't necessarily representative of the scale, height, density or design that would be approved now or in the future.
Into The Box has chosen short term rentals as our initial revenue stream due to its booming market opportunity. The COVID-19 pandemic has also influenced the public’s traveling preferences and the desire to avoid crowded locations.
There is a proven public desire for alternative vacation experiences. According to AirDNA, “With fewer people traveling in 2020, guests are looking to make up for lost vacations, and unique Airbnb stays are the perfect way to satiate that need for a unique experience millions are craving.” Airbnb guests in 2021 shattered records with their number of Airbnb stays across the globe, and an increasing number of those guests booked the most unique Airbnb vacation rentals available.
These unique stays are often tiny homes, and "Cargotechture," or the use of shipping containers repurposed as homes and travel accommodations, has skyrocketed over recent years. In fact, the global container house market is expected to reach $64.5 billion by 2025.
There is also a growing desire for environmentally-sustainable vacation experiences, especially among younger generations.
The stats:
- Booking.com's Destination Gen Z project found that over half of those surveyed consider the environmental impact that traveling has on their destinations when deciding where to go. In the report, 56% of young travelers said they'd want to stay in green or eco-friendly accommodations.
- A recent Skift.com study showed that the majority of Gen Z travelers are willing to pay a premium rate for travel services that demonstrate environmental responsibility.
ITB’s off-grid shipping container STRs will allow us to drop Boxes in locations without disturbing nature or the local ecosystem. Our Box locations are planned strategically, to be dropped within 200 miles of 10 million people or more for easy accessibility. ITB wants to encourage more sustainable travel habits that allow STR vacationers to bypass plane travel and stimulate small town economies in and around the U.S. State and National Parks.
Since the pandemic, remote/rural locations have increased in popularity. In fact, 61% of families are more likely to visit a rural or “outdoorsy” destination than an urban one (Source: VRBO). And according to Airbnb, interest in remote locations has continued to grow.
The rise in bookings in remote areas since the pandemic has increased economic success for hosts. In rural areas of the U.S., hosts earned over $200 million in June 2020, an increase of more than 25 percent over what hosts in these areas earned in June 2019.
Disclaimer: The images are conceptual renderings and are proposed for illustrative purposes only. The images aren't necessarily representative of the scale, height, density or design that would be approved now or in the future.
Overall Business Model
- Our 2 step Box process will allow us to outsource the building of the basic Box unit, while retaining artistic control over the theme and finishings.
- ITB is seeking partnerships with well-known interior designers to design our ADU and STR Box lines, to tap into designer followings and provide a more unique experience over our ADU and STR competitors.
- ITB’s ADU and STR Boxes plan to feature exclusive designs and include renewable energy and apartment-style amenities. We anticipate these factors will increase demand, and our off-grid technology will allow us to charge less than our ADU and STR competition.
- For instance, ITB projects our ADU Boxes will be sold for $75,000, over 50% cheaper than the average ADU on the market today due to our proprietary fully off-grid design & modularity of buildout process. We believe this competitive pricing will give ITB an edge over current ADU competitors.
- ITB’s ADU systems will be adaptable to comply with local government regulations regarding septic.
- ITB plans to roll out our ADU line in late 2023.
- Once these first two income streams are stabilized, ITB plans to foray into humanitarian aid. The ITB team has an extensive network in the international development space, and plans to work through relevant NGOs to gain access to emergency aid contracts.
Competition
Market Opportunity
Success to Date
- Negotiated used shipping container supply agreement with MobileMod.
- Currently building the first STR Box in Joshua Tree, CA.
- Successfully created self-contained, prototype off-grid system utilizing solar power and alternative waste management.
- Interviewed by the New York Times regarding sustainable lodging.
- Article published by PBS' digital publication, Next Avenue, regarding our vision for ADUs and transitional housing for older adults.
- Selected as quarterfinalists for Pepperdine's 2022 Most Fundable Companies
- Featured on BiggerPockets, a leading real estate investment platform, and their Money and Real Estate Podcasts.
- Established partnership with popular off-grid Instagram influencer, Whitney Wildflower.
Team
Testing The Waters Materials
Use of Proceeds
If the offering's maximum amount of $749,999 is raised:
Use | Value | % of Proceeds |
---|---|---|
Compensation for managers | $125,000 | 16.7% |
Payroll (non-managers) | $135,000 | 18.0% |
Container Buildout | $248,000 | 33.1% |
Container Transport | $24,000 | 3.2% |
Ground Lease Agreements | $24,500 | 3.3% |
Warehouse Facility Lease | $50,000 | 6.7% |
Marketing | $30,000 | 4.0% |
Admin/Office | $19,032 | 2.5% |
Travel | $15,000 | 2.0% |
Legal/Professional Fees | $22,500 | 3.0% |
Facility Improvements | $20,217 | 2.7% |
Intermediary fees | $36,750 | 4.9% |
Terms
This is an offering of Netcapital Class B, under registration exemption 4(a)(6), in Into The Box Inc.. This offering must raise at least $10,000 by July 15, 2022 at 10:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. Into The Box may issue additional securities to raise up to $749,999, 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:
Financials
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
- Jul 16, 2022Primary offering finalized, sellingshares
- Jul 15, 2022This is it! With only 4 hours left in our...
- Jun 27, 2022In case you missed it earlier this month, check...
- May 31, 2022We are happy to announce pricing for our 1...
- May 27, 2022Join Co-Founders Chris and Maya on Wednesday,...
- May 16, 2022Exciting news! The PBS story featuring Into The...
- May 13, 2022Upon conducting additional market research and...
- Mar 9, 2022Are you subscribed to ITB's newsletter? We send...
- Mar 1, 2022In our first week live, Into The Box made...
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