Blue is a startup that has an app to make it easier to connect with people while at events, schools, malls or just about anywhere. For the most part, the company wants to upend the traditional business card market. And interestingly, the company has also setup a crowdfunding campaign on Republic to invest in Blue.
Let’s face it, for many people it’s not easy to meet others. What do you say? How do you break the ice? The irony is that we may just look at our smartphones to avoid making interactions. Instead, we will connect with others virtually.
But even when we meet someone new, it can be tough to maintain the connection. Exchanging a business card may not be enough.
So yes, this does look like an opportunity for innovation, right? Definitely. And as for Blue, it has developed an app – available for Apple’s (NASDAQ:AAPL) appstore and Alphabet’s (NASDAQ:GOOGL, NASDAQ:GOOG) Play – that has two parts. First, you can use Bluetooth technology to connect with anyone within 150 feet – and exchange social media information (Blue calls this “ambient networking”). Of course, you have the ability to control your profile. The exchange is done seamlessly.
Next, Blue has a smart card that is based on NFC technology. You can swipe this on a smartphone and the social information will be exchanged. There is also no need for the other person to have the Blue app installed. Although, the smart card costs $34.99.
Growth and Business Model
For those considering whether to invest in Blue, it’s encouraging that the company has been showing some momentum. Consider that there are over 50,000 users on the Blue Network, where more than 10,000 people interact ever day.
What’s more, Blue has been showing progress with monetization. For example, the company has generated roughly $400,000 in revenues during the past six months. This is been through different channels like online ads, affiliate marketing, partnerships with various brands and white label arrangements.
And yes, the market opportunity is large. Keep in mind that there are more than 10 billion business cards printed every year. Or just look at the college market, where more than 200 million students attend campuses every year across the globe – and many of them are looking for new friends.
Invest in Blue?
Blue has already raised several rounds of capital. One was for $600,000 from friends and family (more than two dozen investors). Then there was a $1.1 million investment from Tim Draper, who is a top venture capitalist in Silicon Valley. He has backed breakout companies like Skype, Tesla (NASDAQ:TSLA), Twitch, and Robinhood.
As for the crowdfunding round on Republic, Blue has raised more than $617,000 from some 2,200 investors. The current valuation is $14.75 million. Note that the investment structure is known as a SAFE (Simple Agreement for Future Equity). This means you do not receive equity in Blue until there is a trigger event, such as an IPO or acquisition.
The investment also comes with several perks. For example, if you invest $1,000, then you will get a free Blue Smart Card, a mention on the website and a T-Shirt that says “I Invested Into Blue.”
However, when it comes to any early-stage investments, there are considerable risks. Many of these types of companies simply fail within the first few years.
And regarding Blue, there are some notable challenges. After all, the company faces potential competition from mega operators like Snap (NYSE:SNAP) and Facebook (NASDAQ:FB). Then there are the difficulties of getting enough scale.
In other words, before making an investment, it’s important to do your own due diligence.
Tom Taulli (@ttaulli) is an advisor and author of various books and online courses about technology, including Artificial Intelligence Basics, The Robotic Process Automation Handbook and Learn Python Super Fast. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s. As of this writing, he did not hold a position in any of the aforementioned securities.
