Early Bird Discount
Investors who participate in the offering on or before June 3rd, 2024 will receive a 20% early bird discount and be able to invest at a purchase price of $1.60 per share, which equates to a $6,400,000 pre-money valuation; and investors who participate in the offering after June 3rd, 2024 will invest at a purchase price of $2.00 per share, which equates to a $8,000,000 pre-money valuation.
Introduction
The Founder of Kazark, Drue Hontz, was driven by frustration with the polarization and bias of the current media landscape. It is difficult to understand how different events are related, who is accountable, and what the real issues are, leaving us feeling confused & unable to make a difference.
The solution: creating a multidimensional contextual search technology that maps how information is connected. This patented technology is the foundation of the Kazark news app and is highly scalable to many different verticals.
Kazark is creating a world where news broadens perspectives rather than reinforcing biases by consolidating diverse news sources into one user-friendly interface.
The need for comprehensive access to information has never been greater, and we believe Kazark stands as the solution.
Unique Selling Proposition
Problem
Half of Americans in a recent survey indicated they believe national news organizations intend to mislead, misinform or persuade the public to adopt a particular point of view through their reporting. The survey, released by Gallup and the Knight Foundation, goes beyond others that have shown a low level of trust in the media to the startling point where many believe there is an intent to deceive. In 1983 there were 50 companies who owned news organizations - today there are only 6, limiting access to diverse perspectives.
In today's increasingly fragmented and polarized information environment, the relentless surge of social media and the multitude of media platforms have significantly complicated the task of gaining a clear and comprehensive grasp of world events. This barrage of information has led us to confusion and a growing distrust in media.
The Kazark Solution
By "connecting the dots" across various global news sources, Kazark adds comprehensive context, making it quicker and simpler for individuals to gain a clearer understanding of the world's issues. This marks a significant shift, as for the first time in a long while, people may have the opportunity to:
- Rapidly acquire a thorough comprehension of intricate matters.
- Grasp the current global happenings.
- Experience a renewed clarity in news reporting.
- Analyze news narratives from diverse viewpoints, encompassing both sides of the argument and spanning the political spectrum.
- Track the evolution of an issue over time and identify the key players involved.
- Engage directly with the individuals and organizations actively influencing the topics that matter to you.
Success To Date
- 11 patents issued in 4 countries: U.S., Japan, Russia, and China
- Backend search methodology & algorithm built & tested
- Unique (patent pending) user interface designed, tested, & built
- Executive management team in place; previous experience working on multiple projects together
- Scalable software development team fully in place; previous experience working on multiple projects together
Business Model
Kazark's business model can be described through several key aspects.
How We Plan to Make Money:
- Consumer News Consumption Platform with Interstitial Ads
- NGO Partners Donations
- Enterprise Platform Services (SaaS)
Potential Revenue Streams:
- Cause Marketing Ads: Kazark plans to implement topic-specific cause marketing ads. This approach aligns advertisers with relevant news topics, potentially increasing ad engagement and effectiveness.
- Social Impact and Community Building: Part of Kazark’s model involves connecting news stories to relevant nonprofits and NGOs, adding depth to the platform and engaging users who are interested in social impact. Kazark plans to be a part of the $2B/year non-profit donation industry. We are working with NGO’s to drive more traffic to the $46B annual spend in the U.S (2021).
- Freemium and Premium Services: The platform operates on a freemium model, offering basic services for free with the option for users to subscribe to additional premium features. This could include access to content behind paywalls.
- Enterprise Platform Services (SaaS): In the future, Kazark aims to expand its revenue streams by offering its engine as an enterprise platform, providing both B2B and B2C applications. This indicates a move towards software as a service (SaaS) model, catering to businesses and individual consumers.
- Intellectual Property and Innovation: Kazark holds 11 in-force patents in various countries, reflecting its focus on innovation and unique technology in the news aggregation and comparison space. This intellectual property forms a critical part of its business model, offering a competitive advantage.
Market
Team
Use of Proceeds
If the offering's maximum amount of $1,000,000 is raised:
| Use | Value | % of Proceeds |
|---|---|---|
| Compensation for managers | $50,000 | 5.0% |
| Software Development | $450,000 | 45.0% |
| Marketing | $250,000 | 25.0% |
| Legal/Patents | $110,000 | 11.0% |
| Hosting | $91,000 | 9.1% |
| Intermediary fees | $49,000 | 4.9% |
Terms
This number includes all funds raised by the Company in this round on Netcapital. This is an offering of Common Stock, under registration exemption 4(a)(6), in Kazark, Inc.. This offering must reach its target of at least $10,000 by its offering deadline of April 1, 2025 at 11:59pm ET. If this offering does not reach its target by the offering deadline, then your money will be refunded.
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.
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