“The founders of SNAPSHYFT are a smart, thoughtful and powerful team. They understand their customer's needs deeply, having been there and done that. They are both willing to work hard to make it happen - e.g. always talking with their users — ensuring customers and workers are happy. They are a most organised team, consistently putting in the hard work to help their business grow to the next level. I am looking forward to seeing them grow and succeed on a national scale.”
The SNAPSHYFT Labor Marketplace is a Staffing-as-a-Service software and mobile app connecting food service and food manufacturing businesses with fully vetted & experienced professionals, on-demand.
We help fill shifts fast — combining the best attributes of the gig-economy and HR Tech marrying fully screened & experienced workers to short-term work opportunities in food production & packaging, food service, hospitality, and dietary services; achieving unheard of results in the process — like our 94%+ successful shift fulfillment rate. This is a BIG DEAL because businesses cannot staff or train that which they do not have (i.e. available qualified workers). The massive yet highly fragmented $140 Billion temp/contract industry is ripe for disruption for myriad reasons, including the undeniable fact existing third-party services don't deliver what the businesses require. These incumbents are being displaced in the future of work.
- Backed by 500 Startups, SaaS Growth Ventures, Gravity Ventures, gener8tor, and Alumni Ventures, among others
- 97% customer retention rate
- 94% Successful Fulfillment Rate — 3X the industry average
- Q1 2020 gross revenue +240% over Q1 2019
- Over $600,000 in gross revenue since launch, growing 29% Month-over-Month
- Notable customers include Indianapolis Motor Speedway, Tijuana Flats, Le Peep, Huse Culinary, Westin Hotels and Resorts, Wyndham Hotels, and more.
“We are truly excited about our investment in SNAPSHYFT for four main reasons:
(1) Founders Stephanie and Thor count with deep industry experience;
(2) The market they're servicing is huge and SNAPSHYFT can leverage the network effects of double-sided marketplaces;
(3) The opportunity to co-invest alongside other top-tier early investors in the form of 500 Startups and others; and
(4) To date, Stephanie and Thor have demonstrated disciplined capital efficiency and smart capital allocation to grow the business.”
“I'm very excited to be an investor SNAPSHYFT. I had the opportunity to meet Thor and Stephanie as they were going through 500 Startups, one of the top tier accelerators in the country. I'm confident that the team is tackling a gigantic market opportunity, and I'm very impressed by the progress they've made thus far.”
“SNAPSHYFT's advantage comes from a founding team that has a firm grasp on how to use an additional dollar of capital to create a multiple of investor wealth. The SNAPSHYFT platform fills a growing need in the service economy and across the Midwest we have seen firsthand how customers depend on it to run their businesses successfully.”
“As an investor, the thing that really intrigued me about SNAPSHYFT is that it is an execution on-demand platform that allows workers to select their shifts and take control over their life; while allowing businesses to create work opportunities and in seconds. Sounds simple; however, the complexity of this coordination is what sets SNAPSHYFT apart and what will ultimately lead them to be a “must have” application for everyone in this industry, as the “gig economy” and “flexible quality of lifestyle” continue to grow in importance in our society.”
“I met Thor last year at an event hosted by gener8tor, an accelerator that SNAPSHYFT was a cohort member of. After hearing the company’s pitch, I immediately knew this was a promising company that I wanted to explore. Thor’s passion for the business and years of experience in staffing and F&B, coupled with a great team and strong value proposition are a recipe for success that has been displayed in their continuous growth. What struck me as especially interesting, and where I believe SNAPSHYFT excels beyond traditional gig-economy apps is that the burden of demand in the labor market is offset by clients who join the platform. This labor demand/supply mismatch has been a struggle for other gig apps, and in the case of SNAPSHYFT, the clients are able to bring demand from their own businesses, allowing for a greater degree of focus for SNAPSHYFT to bring workers on-board as opposed to individual consumers. As the gig-economy becomes more and more popularized, SNAPSHYFT’s business model is in a prime position to capitalize on the market trend.”
“SNAPSHYFT is one of the most exciting and well-positioned early-stage companies coming out of the US Midwest region and the Gravity Ventures Team is excited to be a part of the future of the organization. Thor, Steph, and Tony are each uniquely experienced with the problems SNAPSHYFT is solving and together bring a comprehensive leadership mind that has enabled the organization to stay lean, rapidly execute, and now start to scale in exciting ways all at the same time. The need for well-organized access to vetted talent on-demand in the industries and sectors SNAPSHYFT serves is well documented yet somehow today remains unfulfilled; the SNAPSHYFT Team and product are purpose-built to capitalize on the opportunity. As macro trends and technology have driven efficiency in short- and long-term hiring in tech jobs, SNAPSHYFT can do for food, beverage, and hospitality workers. Some might view gig-economy companies as 'Uber-for' businesses, and I would actually agree... in that view then the FBH industry is significantly larger, more worker friendly, and more community driven than ridesharing which makes SNAPSHYFT an even stronger bet relatively speaking.”
Millions of shifts go un-worked every year. Food manufacturing, food service, and hospitality operations struggle to stay fully staffed due to high turnover, low retention, absenteeism, and severe replacement gaps.
This costs the industry $105 Billion in lost revenue every year!
Across the board these businesses have not been able to reliably adjust their staffing levels on-the-fly. This is driven by absenteeism (compounded by COVID-19), fluctuations in seasonal trends, surges in demand, and a dearth of readily available talent. Often many operations have to adjust their staffing needs due to fluctuations in seasonal trends and large local events driving extra foot traffic and cannot offer consistent shifts to employees.
- Turnover between 70 - 150% annually
- Average employee retention of less than 2 months (manager retention is just a shade over 4 months)
- Employee replacement takes 28+ days
- Often many operations have to adjust their staffing needs due to fluctuations in seasonal trends and large local events driving extra foot traffic and cannot offer consistent hours to employees
- Highly saturated market with over 1 million F&B/hospitality operations
- Fickle customers — 97% of US consumers rank the perceived “customer experience” as the deciding factor on whether they patronize a business or not.
2/3 of F&B workers do not receive full time hours - therefore, professionals in this industry are looking for ways to fill gaps in their income by:
- Juggling multiple jobs (which makes them even less reliable as they often have conflicting schedules)
- No easy way to consistently secure one-off shifts (this is time consuming and unreliable, often workers have to wait 2 weeks to get paid)
- Over 50% are underbanked (meaning they utilize prepaid debit cards or cash-only)
- Simply going without (many will apply for state funding such as SNAP to offset their personal financial shortfalls - which in turn impacts everyone)
For our Customers:
- Fill Shifts Fast: No more recruitment. We make it easy for them to post their needs and fill shifts quickly.
- Real Time: We help them maintain proper staffing levels based on real-time needs.
- Plan ahead: easy staffing to cover vacations, events, or seasonal business.
- Reduce Turnover: We let employers reward their core team with full time hours — reducing turnover and increasing both moral and productivity.
- Hassle-Free: We handle all of the backend — taking the stress of managing the paperwork of contingent workers off of employers plates.
- Plug and Play: We do all of the above by providing fast, 24/7 support and by filling shifts with qualified workers already in the industry.
For Our Community of Professionals:
- Extra Income: An easy way to generate additional income — Pros earned over 50% MORE per hour compared to the national industry rate — and this is excluding any earned tips!
- Near-Instant Payouts: Work a shift and get paid that same day (in as little as 30 minutes).
- Change of Scenery: Providing an environmental change of pace, and by extension a reduction in burnout from their regular place of employment.
- Upskilling: Workers can level up their overall experience and skill set
- General Empowerment: Workers choose which shifts they want to work. Workers are in full control of where, when, and what types of shifts to commit to (experience required).
Because of all this — we have success rates that are 3x Industry Average
“SNAPSHYFT brings the quality of workers we need, ready to work, taking the pressure off of us. The quality of the workers and the quality of the support is top notch. Our guests no longer see that we are understaffed because we’re using a resource that solves the problem reliably. Sales are actually up double digits and that’s because we can put more product out for our guests to enjoy.”
The F&B and hospitality market we are targeting is substantial. And looking at the staffing industry as a whole, it is highly fragmented. and the majority of the staffing industry revenue is derived from contract/temp services.
SNAPSHYFT generates revenue through customer membership plans and customer usage fees on a per transaction basis. It is 100% free for the workers to use the platform.
In order to provide transparency to both sides of our marketplace, and contrary to how the industry typically charges, we do not take a percentage of the hourly rate. We allow the businesses to determine the rate they wish to pay, and the professionals that work a shift receive 100% of these rates PLUS any earned tips. We simply apply a flat service fee, our “Booking Fee” to each worked shift — which is paid by the businesses. In fact since launch, worker payouts are 50% higher than the National industry rate, which is quite remarkable. Not only that, they are compensated near-instantly typically receiving funds within 30 minutes after shift conclusion.
SNAPSHYFT has built-in value creators combined with a predictable sales engine and economies of scale — driven by overall consistency and reliability. As of year-end, SNAPSHYFT is trusted by over 400+ unique venues and over 30,000 essential workers.
One metric that cannot be stressed enough— SNAPSHYFT has achieved a success rate that is 3X the industry average at over 92% in 2019. WIth full-year customer retention at 97% — the second half of 2019 actually saw 100% customer retention. As we continue to prove out our revenue model, we will see retention and usage rates continue to increase, improving upon our industry-leading fulfillment.
Looking at 2019 and 2020:
SNAPSHYFT has raised $700,000 backed by 500 Startups, gener8tor, Gravity Ventures, Atland Ventures, Alumni Ventures, SaaS Growth Ventures, and several angels.
- SoGal Top Finalist: Global Pitch Competition 2019-2020
- Selected TOP 15 Startup of the Year 2019
- TechCrunch TOP PICK: Social Impact 2019
- The Pitch Podcast: Episode #81
- Powderkeg TOP RATED Emerging Culture 2019
- Indiana Innovation Award 2018
- New Startup of the Year: Top Finalist 2018, MIRA Awards
- Tech Service of the Year: Top Finalist 2018, MIRA Awards
- Indy Startup Challenge: Winner 2017
We have established partnerships with:
- Visit Indy
- Choose Chicago
- BottomsUp Beer
- Indiana Restaurant & Lodging Association
- Indiana Economic Development Corporation (IEDC), which has provided
SNAPSHYFT with $450,000 in tax credits and training grants for hiring locally. As well, SNAPSHYFT is a Qualified Indiana Business (QIB) which means investors can receive a 20% tax credit for investing in our startup. Non-Indiana investors benefit as well, as they can sell these tax credits back to IN investors.
SNAPSHYFT was built by a co-founding team that has lived the struggles of their clients and user base. They’ve witnessed the industry achieve record high turnover, record low retention, and record losses due to being hyper competitive, and, some might say, oversaturated. The founding team is a two-piece jigsaw puzzle — with a healthy symbiosis of corporate experience, technical breadth, and the personality suitable for establishing a market leader in a highly fragmented industry.
15+ years in hospitality/F&B plus 13+ years in staffing/recruiting, most recently leading N+FOB’s growth from $24M to over $100M in annual revenue. Prior to SNAPSHYFT, Thor operated his own successful staffing firm working with Matson, BTB Logistics, LDi, among others.
20+ years in operations, finance, accounting and HR experience working at non-profits and Fortune 500 companies including Novellus and Source Interlink Companies. She also worked in operations & management at high-end resorts and country clubs, and casinos.
20+ years engineering, 16+ years at Cummins, deploying HR systems across the globe. Tony has in-depth knowledge of recruiting, HRMS and payroll systems & processes, and led a team of 300 in the development of desktop, mobile and embedded software.
Use of Proceeds
If the offering's maximum amount of $1,070,000 is raised:
|Use||Value||% of Proceeds|
|Sales and Marketing||$475,500||44.4%|
This is an offering of Common Stock, under registration exemption 4(a)(6), in Avail Productivity Systems, Inc., d/b/a SNAPSHYFT, doing business as SnapShyft. This offering must raise at least $10,000 by October 9, 2020 at 11:59pm ET. If this offering doesn’t reach its target, then your money will be refunded. SnapShyft may issue additional securities to raise up to $1,070,000, 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:
SnapShyft’s official name is Avail Productivity Systems, Inc., d/b/a SNAPSHYFT, so that’s the name that appears in the statements below.
These financial statements have been reviewed by an independent Certified Public Accountant.
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.
- Jul 15, 2020SaaS Talk Show - Episode 10 Startup Edition:...
SaaS Talk Show - Episode 10 Startup Edition: Interview with Thor Wood, CEO of SNAPSHYFT® Labor MarketplaceWatch
- Jul 14, 2020Startup Competitors podcast— SNAPSHYFT® Labor...
Startup Competitors podcast— SNAPSHYFT® Labor Marketplace: Building a Two-Sided Marketplace for the Hospitality Industry
A conversation covering building and launching a two-sided marketplace, customer acquisition, raising funds, and the SnapShyft story before, during, and after COVID.Listen
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