Event Hollow is an online marketplace for couples to plan and finance their weddings. The goal is to take the stress out of the process. Oh, and something else: You can now invest in Event Hollow stock. Keep in mind that the company has set up a crowdfunding campaign on Republic.
The founders include Jen Edmon, David Stone-Resneck and Robert Sweeney, who started the company back in 2015. Note that the team has planned more than 600 weddings during the past ten years.
How It Works
A wedding can certainly be costly. It’s not uncommon for the budget to be twice what was initially expected. Some of the reasons for this include the fragmentation of the industry, the wide differences in quality and the general lack of transparency with pricing. For example, couples need to read through an average of 67 contracts for a wedding!
Well, as for Event Hollow, it has built a platform that helps streamline the process. Soon-to-be brides and grooms can browse different pricing packages — and different tiers of service — for wedding vendors. For example, in the second service tier, Event Hollow features four floral packages that range in price from $2,500 to $4,500. Its four tier-two photography packages range in price from $2,000 to $7,500. You can then customize each package you pick, such as with events, albums, the hiring of a photographer and so on.
With this approach, there is no need to work through complex and verbose contracts. In fact, there is only one contract to sign. You can also get an estimate that does not require a commitment with any vendor.
Then once you have the package you want, you select the wedding planner. Event Hollow makes this easy with a search of profiles of professionals that are local. The company has also vetted each one.
And after everything is set up, you have the option of financing the costs. You can even pay via PayPal (NASDAQ:PYPL).
The Business Model
OK then, as for whether to invest in Event Hollow, what is the business model? How does the company make money? It’s fairly straight forward, actually: Event Hollow takes a 20% cut of the overall transaction. On average, this comes to about $2,400 per wedding.
Currently, the company is focused on the San Francisco market. But in the next year, there are plans to expand into other regions of California and revenues are forecast to reach $1.8 million. For year two, there will be moves into other states, with revenues estimated at $7.2 million. And for year three, the projection is for a hefty $42.7 million.
Consider that the market opportunity is enormous. About 2.2 million couples get married each year for cumulative spending of $100 billion.
Should You Invest in Event Hollow?
Event Hollow has been bootstrapped, with some capital from friends and family. But the company is raising a seed round, which is 65% committed. Some of the investors include X Factor Ventures, Shatter Fund, FoundersPad, Sway Ventures, KiwiTech, You; and Aikon.
Regarding the crowdfunding campaign, more than $26,000 has been raised from over 100 investors. Investors receive a simple agreement for future equity (SAFE) instrument, which means that they do not receive equity until there is a trigger event. This would be something like an acquisition or IPO.
The funding also has perks that are based on the amount invested. For example, if you agree to $5,000, you get an Event Hollow Patagonia jacket, your name on the website, a Shinola moleskin notebook and a tee shirt.
With the infusion of capital, Event Hollow plans to enhance its artificial intelligence and machine learning capabilities as well as to advertise on Facebook (NASDAQ:FB), Pinterest (NYSE:PINS) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL). These initiatives will certainly be essential for the growth ramp.
And finally, as is the case with any early stage investment, there are considerable risks. Keep in mind that the wedding space is highly competitive and it can be challenging to acquire customers. Thus, before making an investment, make sure to do your own research and analysis.
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.