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BlueHollar

The Realtor's Home Repair Marketplace

Type of Security

Revenue Share

Percentage Revenue

5%

Minimum Investment

$100

Days Left

33

Founded Dec 2014

Grandview, MO

Technology

Highlights

Home improvement app connecting professional realtors with licensed contractors.

  • $426,128 total revenue in first year and a half operating in Kansas City alone
  • Earns 10-25% of the transaction based on a rules-based algorithm
  • Poised for growth and expansion to other cities
Less than 20% FundedCommitted $1,850

Target

$25,000 - $100,000

Minimum Investment

$100

About BlueHollar

BlueHollar is a home improvement marketplace connecting professional realtors with licensed contractors to efficiently manage repair work at scale.

BlueHollar is an app where realtors post the improvements they need done, and contractors compete to get the job. For realtors, BlueHollar simplifies an arduous, unprofitable part of the business of selling houses and helps home-sellers succeed.

Real estate professionals and contractors love BlueHollar. The company has generated nearly $500,000 revenue in its first year and a half of operating in the Kansas City area alone.

Founded by experienced industry professionals, BlueHollar has distinguished itself from the home-improvement pack through its pragmatic, customer-centric approach to technology and its focus on serving professional realtors.

"Utilizing BlueHollar has really been a dream come true. I always struggled to find the right contractors for each of my clients needs. It was such a nightmare to try to schedule and manage! What a blessing to find a company that was made just to help me with this. Not only that, but the contractors we’ve used through BlueHollar have been dependable, honest, and helpful. I even used BlueHollar when remodeling my own home. My clients have been so happy with BlueHollar and their realtor is even happier!"
-Steve Courtney, realtor and principal of the Courtney Home Team

Why You Should Invest

BlueHollar is proven: in our first year and a half, we’ve completed 271 jobs for $426,128.00 total revenue. The overwhelming majority of our customers become return customers, with an average of 5.5 invoices each – and counting.

We’re poised to grow: we’ve made detailed plans for marketing, sales, and developing the technology needed to support operations at 10x the current scale, and ultimately to bring our service nationwide.

Investors who join us now will be positioned take advantage of our solid performance and to experience our next phase of growth alongside of us.

Revenue Share Calculator

Want to see some possible return scenarios?*

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*The calculations are mathematical based on user inputs and may not reflect actual results. Use of this calculator does not constitute investment advice. We are providing this tool to help you evaluate potential revenue sharing scenarios and payback periods. Any determination is your sole responsibility.

How We Intend to Make Money

BlueHollar earns a share of each transaction that takes place on its platform. The percentage is taken from the contractors’ fees. The rate of the charge for each job is determined through a rules-based algorithm that takes into account the category and scope of the project, and ranges between 10-25% of the contractor’s fee.

Clients on the purchasing side of the platform pay no fee to use the service.

Why We are Raising Capital, and What We’ll Do with It

BlueHollar is raising money to fuel growth:

1) We're contracting with a professional sales vendor that will on-board realtors (buyers) and contractors (sellers) to the marketplace at scale.
• After a thorough bidding process, we have selected a contract sales team and trained them in the details of our product, processes, and goals. This vendor charges $25,000 per quarter for a sales manager and two full-time sales associates.
• The data shows that the cost of customer acquisition under this model is $28, with a lifetime value for the customer of $8,000 or more.


2) Developing the technology needed to scale.
• We have bid out every individual technical requirement in detail, inluding front end development and the creation of online marketing materials. We have discovered that our need is approximately $25,000 to build an effective platform that can handle the volume of business the sales team will generate in the next twelve months.

Team

Kalen Barker

CEO, VP of Product

Kalen is a fifth generation Master Plumber by trade. With an overwhelming interest in technology and business from his youth, Kalen often came up with designs for new products and services to improve his industry, but never pursued them over his plumbing career until founding BlueHollar. Kalen is an avid reader and loves books about about business case studies, leadership, psychology, and classic literature, devouring about ten books a month.Read More

Orange County, California

Bryant Callahan

CTO

Bryant builds things driven by data and founded on good design.

It is in his nature to ask why, to learn, and then create from that learning process. His drive to create led him from photography into web design and he founded Salvage Creative Industries in 2012.

That same drive to create forced him to learn how to ask better questions, to understand and replicate how people interacted with the digital spaces that he was creating. In 2014, he co-founded BlueHollar, a company built not on features but benefit.

Along the way, his responsibilities expanded to accommodate a more holistic understanding of web design, moving beyond the confines of the front end and into the world of programming, where he found full control over the way new data was implemented.Read More

Greenfield, Indiana

Rockhurst University

Weston Bergmann

Advisor

Entrepreneurship has monopolized Wes's life since he was very young. Wes is absolutely obsessed with early-stage ventures. He has positioned himself as one of the foremost experts on early-stage ventures in the country. If you're given an opportunity to work with him, you take it.

Wes owns part of over 70 in-business startups spread throughout the KC metropolitan through his business incubator Betablox. That's more than any one in the city's history. He has recently expanded Betablox to Tulsa OK.

Read More

Leawood, KS

Arizona State University

Articles and Press

“The Next Big Kansas City Entrepreneurship Success Story”

- Read more

Documents

Official filing on SEC.gov

Form C

Company documents

Financials

Company documents

Investor Presentation

overview and terms

Fundraising Description

Type of Security

Percentage Revenue

Revenue Share

5%

Target Minimum Raise Amount

Target Maximum Raise Amount

$25,000

$100,000

Minimum Investment

Cap

$100

2X

FAQ

None.

Since we are in business and are post revenue, our salaries come from project profits. Money invested will go towards product building for scale, marketing, and related expenses.

ASK A QUESTION

Alan Jacobson

5 months ago

Hi, this looks like potentially an excellent opportunity. Congratulations on your success so far. I have a few questions and will likely invest: 1. With a growing company with great potential like yours I worry a little about "net" revenue shares. How will you decide what revenue to roll back into continued growth and what to let fall into net and pay to investors? I don't see any time limit on payback time. 2. Is anyone else that you know of doing what you are doing? 3. Have you had any push-back on the 10-25% commission from contractors? 4. What will likely be the first place you expand - how will you decide? Sorry for the many questions - thanks very much in advance.

Kalen Barker

CEO

5 months ago

Hi Alan, thank you for your questions and kind words!

1. Investors get paid out of total or top line revenue until you are paid back twice your investment. There is not a limit on payback time. However our growth is expected to be quick and substantial, though not guaranteed to be.
2. After scanning the market for some time, we are not aware of anyone else doing what we are doing.
3. There has not been pushback from contractors on our commissions. The reason for that is simple, it is common for contractors to be hired by other contractors at a 20% or so markup. So common in fact, we can't think of a single contractor in our system who has even questioned it.
4. We are expanding to Tulsa, OK next. It is a market similar to Kansas City and should work well to expand and complete testing of our version one platform. After substantial data is collected from KC and Tulsa we will use it to determine which major market in which to expand further.

We hope these answers are helpful. You can also find additional details in our investor presentation.

Thank you again so much Alan for your consideration!

Kalen Barker

Alan Jacobson

5 months ago

Hi Kalen, the fact that the payback would come from total instead of net revenue it great, but can you confirm because your Form C says it is coming from net (page 14). Also - and I apologize because this is probably obvious - but your 500K of revenue mentioned above is just your 20% (or so) commissions, so you actually booked something closer to 2.5 million worth of jobs? Thanks for your quick response!

Kalen Barker

CEO

5 months ago

Hi Alan, thanks for the additional questions. It's my pleasure to clear this up for you.

The revenue share defines Net Revenue as net of discounts and returns. In BlueHollar’s case, for example, 2016 held revenue at $275,469.60 less $886 of refunds, resulting in $274,583.60 in net revenue. If the Revenue Share had been outstanding in 2016, BlueHollar would have shared 5%*$274,583.60 with investors, or $13,729.18.

The idea is that there is no room for manipulation; the Revenue Pool is calculated formulaically and then paid to investors annually.

Also, the 500k is our total job sales which we have profited a percentage of. Our estimated total sales in the first fifteen months post investment are between 4-6 million dollars based on our current proven metrics.

I hope that helps. I'm happy to answer as many questions as you may have.

Kalen Barker

Bryce Hill

5 months ago

You guys need to have swift programmers and build apple store and google play.I did not see an app for you. I suggest Open source. great idea. My mom is older and in the Midwest. She has an hard time sourcing this sort of work it would great to have the ability to get competing bids as people like to take advantage of her age. You are on the right course. Think AirBnB for searching through and securing a bid. Already invested but like it but you need to do this. let me know if you need talent. OSCON is a great recruiting stage as well. Godspeed and good luck. "Some people live more in 20 years than others do in 80. It’s not the time that matters, it’s the person." Dr Who

Kalen Barker

CEO

5 months ago

Thank you so much Bryce for your input and investment! It would great to keep in touch. You can always email me directly at kalen@bluehollar.com

J. W.

3 months ago

Why did you decide to do a RevenueShare instead of offering equity? Am I understanding correctly that the most we'll ever get back is 2x our investment or is that just the cap on annual disbursements? If the former, are we basically kicked to the curb at that point and don't get to participate in your future growth? I'm also wondering why you're only asking for a small raise over a period of time that seems awful long considering your successful growth.

Kalen Barker

CEO

3 months ago

Hi J.W.,

We are meeting with equity investors in person and any large investment is negotiable. The 2x offering is simply a standard for growth fountain. Please contact me Kalen@bluehollar.com so I may have the opportunity to answer all of your questions in depth. Thank you for interest!

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