Snapgo, a Perth-founded app, is set to launch an equity crowdfunding campaign through Birchal.
Designed as a digital solution for businesses dealing with the impact from Covid, the app uses unique map-based technology. This allows users to browse over 200 business categories whilst displaying available buying opportunities in their location – making it a ‘one-stop shop’ for both consumers and small business advertisers alike.
Co-founder Steve Brechany says the Snapgo flame was ignited after losing a dear friend to a suicide that was business related.
This made him determined to assist small businesses in Australia. After all, 95% of all Australian businesses are small businesses, and they employ about 50% of the population.
“I am setting focus towards the immediate $4+ billion dollars of potential revenue available to Snapgo nationallySteve Brechany
The engineering team designed Snapgo to align with 70% of consumers and their cognitive buying process. Therefore, they see Snapgo as a “one-stop shop” for both consumers and small business advertisers.
The application provides members with year-round advertising with no sales commission or lead costs – different to many competitors.
For example, Groupon, Scoupon and Entertainment books charge high commissions and often this can result in low margins. In terms of leads, hipages and Jim’s Group charge for leads and these aren’t always exclusive too.
Then Covid came..
Snapgo was valued by $3 million by early investors when the company was registered in January 2020.
However, not long after that, Covid occurred, impacting Snapgo. As they deal with small business, many of their members had to close their doors – such as hairdressers in March – which was devastating.
“Unfortunately, lots of our subscribers were no longer in business when we came back. We had to get rid of staff and reassess when we could launch the App to consumers as we couldn’t see anyone for four months.”Steve Brechany
However, after August, fortunes for the startup turned around; staff were hired and trained and more businesses became members. Steve believes they are through the troubled times and have a clear direction.
“Focus on supporting all small businesses and providing them unlimited growth potential in their advertising. The App was built around their needs and wants.”
Over the past year, there has been a successful local trial. This has been well received by users with 200 businesses being featured on the app during the first year of trading. The startup is now ready to expand its operations nationally before embarking overseas.
The equity crowdfunding campaign will facilitate the purchase of fully-paid shares at $1 AUD per share to raise of maximum of $1.3 million.
Additionally, the startup has announced that all individuals who invest $2,000 or more can nominate a small business owner to receive a complimentary Snapgo subscription.
This provides the small business with 12 months online advertising support.
When asked about his thoughts about starting Snapgo in Perth, Steve told Startup News that he believed the wild west has many advantages.
“Many startups are normally in the East coast and this helped us stay under the radar and keep our competitors from seeing what we were building. Our product is now tried and tested and we are now ready to branch out across Australia.”Steve Brechany
“We know that there are so many small businesses and sole traders who need help now more than ever and everybody wants value for money and an affordable way of advertising their business.”
Despite the uncertainty, the business has increased by over 500% in four months – proving their asset is in high demand.
In summary, Snapgo member Sharon Fowler of Nail Fowler had this to say regarding the app:
“Better than yellow pages, better than Google”Sharon Fowler, Nail Fowler