Appetizer makes it dead simple for small businesses to engage their customers with a useful mobile app. We've built a set of beautiful, category specific themes and an amazingly simple CMS that enables businesses to build loyalty with their existing customers. By leveraging the information from the Social Graph, we can build out the boring part of app instantly. The small businesses can then focus on bringing back customers through deals, specials, rewards and events.
With templates and plugins customized for the needs of each business category we've dramatically increased ease of use, ease of assembly and the functionality of the app. More importantly, the product sells itself. We use APIs to automatically grab the majority of our potential customers Facebook pages. We automatically build custom apps based on the information in the social graph before contacting them. We then present the Mobile App to prospective customers with the app 90% done.
Our first two target customer segments are real estate agents and restaurants. Based on our initial tests using this approach combined with a voice message broadcast system, we expect a single sales rep to sell 5 units per day at $20 per month each. Our goal is to have $55k in recurring revenue from 2,700 customers and be cash flow positive within 9 months.
We’ve bootstrapped the initial product development and we are nearly complete with version 1.0 of the system which we expect to begin selling in early August. Our team has extensive experience, starting, scaling and selling recurring revenue businesses focus on small businesses.
We're raising a small $300k 8% convertible note with a 20% discount and a $3m cap. We’re targeting a handful of value added investors that understand this space and have worked with us before.