Commercialization Strategy for the Startup Idea
□ B2C Business Model
The service will provide at least 200 locations per city, with the free version focusing on popular spots and limited information. This will be similar to a portal search engine, lowering the entry barrier for initial users and providing basic information for city exploration. By eliminating the sign-up process, we will convert users into subscribers through in-app payments, offering hidden locations and more information to maximize the city's appeal.
To improve service quality, we will analyze user feedback and continuously update the data to provide the same level of experience for global expansion, minimizing user churn.
□ B2B Business Model
Currently, we offer key locations for free and are collecting data, but we plan to expand by adding features for small businesses. We will build a mobile-web integrated platform for business owners to enhance accessibility in the web environment, and develop a web version alongside version 2. Key features will include business information uploads, event promotion pop-ups, and inter-business event promotions. Companies will evaluate promotional effectiveness based on core values and margin rates. Additionally, by forming strategic partnerships with "Necessary" category establishments like print shops, laundromats, and 24-hour pharmacies, we aim to provide marketing benefits and explore additional revenue through long-term partnerships with small businesses.
□ B2G Business Model
To address the lack of regional festival schedules and location information and insufficient infrastructure for foreign visitors, we will pursue marketing contracts with local governments. By utilizing festival posters and providing detailed maps for foreigners, we aim to enhance the accessibility and attractiveness of festivals and contribute to local economic activation.
We will produce content that emphasizes the uniqueness of service areas and strengthen trust relationships with public institutions to collaborate with local communities. Additionally, we will participate in government-supported tourism projects to secure budgets and use these funds to improve service quality, strengthen marketing, and reduce costs.
□ Comprehensive Strategy
SPOT is building a sustainable business model through B2C, B2B, and B2G models to enhance user experience, collaborate with local communities, and achieve global expansion. The B2C model lowers user entry barriers with a subscription-based service after free registration, offering hidden location information to maximize the appeal of cities. The B2B model offers a data-driven marketing solution for small businesses and creates a cooperative structure through strategic partnerships with "Necessary" category establishments. The B2G model promotes the influx of foreign tourists through partnerships with local festivals and municipalities, utilizing government support to enhance service quality and efficiency. These strategies aim to enhance user satisfaction, activate local economies, and secure global competitiveness.
□ Market Entry Status
Currently, we have secured a database of various stores in Seoul and are maintaining smooth communication with store owners. After internal evaluations, we concluded that the prototype did not strongly appeal to users, leading to the decision to launch version 2. We analyzed that the sign-up process for foreign tourists' short visits was a limiting factor in user growth. Through field research and interviews, we confirmed that the pain points are clear, but the solution needs improvement. We are currently developing version 2 to address these issues. In addition to the stores provided in version 1, we plan to add over 500 more stores, all of which will be carefully selected by the founders to differentiate our service from others.
Market Expansion Plan
Revenue Performance
The currently launched version 1 of the product and service has not generated substantial revenue. However, we have established a separate revenue pipeline to achieve the company’s revenue and export performance.
□ Service Performance and Goals
Since the service launch in December 2023, the fact that users can access the service without signing up has been positively received, leading to a shift in performance measurement from subscriber numbers to search rates and Monthly Active Users (MAU). The current MAU stands at 200-300, with a target of over 5,000 by the launch of version 2 in March of next year. With the use of an exclusive database and interactive platform, we believe this target is achievable with appropriate marketing support.
□ Version 2 and Service Expansion
Version 2 will focus on enhancing user experience and will offer sophisticated personalized recommendation services for paid subscribers to increase satisfaction and loyalty. We plan to improve the margin rate by integrating low-fee payment services like StepPay and Payple. Based on success in the Seoul tourism market, we will expand to other major domestic cities and international tourist destinations (Busan, Gwangju, Daegu, Incheon / Bangkok, Singapore, Kuala Lumpur, and other Southeast Asia regions).
□ B2B Model
Currently, with data from 700 stores, we expect to have a total of 2,100 stores once we expand the service area. If 10% of these stores spend an average marketing cost of 100,000 KRW, approximately 21 million KRW in revenue is anticipated. We aim to provide small businesses with various marketing solutions, including store promotions and discount information, to activate local commerce and strengthen the community ecosystem. (Validation of revenue potential through the B2B model)
□ B2G Model
Through more than 8 government-supported projects and local event promotions annually, we expect to generate approximately 240 million KRW in revenue. By providing multilingual guide maps and real-time information at local festivals and tourism events, we will support the success of these events and strengthen trust with local governments. (More than 5 government-supported projects selected annually)
□ Growth Plan
SPOT plans to expand services starting from Seoul to other major domestic tourist destinations such as Busan and Jeju, as well as Southeast Asia. Through this, we aim to achieve annual growth of 2-3 times, promoting regional economic activation and enhancing competitiveness in the global tourism market, while establishing a sustainable business model.
Need for Fundraising and Fundraising Plan
Sophie, CEO, and Min Won Hong, the internal auditor, have experience successfully executing business survival strategies during the COVID-19 pandemic at the pre-unicorn company, MyMusicTaste. Min Won Hong led the application process for the pre-unicorn status and resolved financial difficulties, gaining expertise in crisis management, cash flow, and runway management.
TeamSpot operates two main revenue pipelines. The first is a service targeting entertainment companies and artists aiming to enter the Russian market, based on expertise in event planning, which constitutes the majority of the company’s revenue and is generated through overseas service exports. Min Won Hong maintains financial stability through currency risk management and FX trading.
The second revenue pipeline involves B2B services such as support for establishing foreign-invested companies, connecting accounting and legal networks, administrative outsourcing, and B2C services providing life and legal consulting for foreigners. These services are offered at reasonable prices to companies wishing to enter the Korean market, consistently generating revenue.
Currently, the co-founders are pursuing angel investment and seed funding in the range of 300-500 million KRW to secure funds for technology development and marketing expenses. Due to the CEO being a foreign national, fundraising through the Technology Guarantee Fund and Credit Guarantee Fund is limited. Therefore, the issuance of common stock is considered first, with the issuance of preferred stock being reviewed if necessary. Over the past 10 months, TeamSpot has been operating stably with a fixed monthly cost of approximately 930,000 KRW, focusing on data acquisition and network building. In the event of an exit, the company prefers an agreement that guarantees corporate autonomy.
Exit Goal and Plan
Given the current market conditions, an IPO is realistically unfeasible and does not align with the company’s strategic direction. The company aims to pursue an exit through strategic M&A under the most favorable conditions, maintaining average returns upon the expiration of the investment institutions' partnership periods. The goal is to maximize investor portfolio returns through share transactions or buybacks from the CEO. This strategy is based on mutual understanding among the co-founders, rooted in responsibility and trust toward investors.
The M&A strategy starts negotiations at least 1.5 years before the runway is close to running out and aims to complete the process within one year of the runway. This will prevent the acquiring company from being in a position of advantage during negotiations. The company is considering the possibility of an acquisition by a domestic AI learning company and believes it has the potential to provide key value that will enhance the competitiveness of data-driven companies such as Naver.
Through Version 2, the company plans to maximize MAU (Monthly Active Users) by the end of 2025. During the seed and Series A stages, revenue generation through the sales structure and strict cost control will be implemented. The company aims to break even by the time of the Series B investment review in 2026 and plans to close additional funding at the Series B stage. Afterward, the company will secure funds through government support projects (B2G) and proceed with an exit based on the defense of the co-founders' equity and maximizing early investor profits.