Social app for users to create and share polls with targeted audiences
Minimum Investment: $100
More than 3.2 million votes have been cast through the Bestest app since it formally launched in September 2018
More than 37,892 users as of June 19th, up from 289 in September 2018
51,840 polls have been created through the Bestest app since it formally launched in September 2018
Previously raised $750,000 from angel investors and the company founder to build and release its technology
Bestest is a social polling app that enables users to create polls and gather feedback in real-time from the general public, live-audiences, and private groups. It aims to speed up market research, group decision-making, and live audience voting by making it easy to poll others from a smartphone. Polls can utilize text, picture, and avatar voting options. Since its launch, the company has focused on user acquisition efforts with an increased focus on digital advertising and marketing. In the near future, the company plans to begin rolling out paid features to the app, such as sponsored polls and trend reports to begin generating revenue.
Since inception, Bestest has seen significant traction growth:
* Data below as of June 19th
Security Type: Crowd Note
Round Size: Min: $25,000 Max: $107,000
Valuation Cap: $8 million
Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into non-voting preferred units (Conversion Units) at a price based on the lower of (A) a 20% discount to the price per unit paid for Preferred Units by investors in the Qualified Equity Financing or (B) the price per unit based on a $8 million valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.
*You are investing in Crowd Notes in this offering. Perks are meant to be a thank you from the company for investing. The perks below, subject to Regulation CF investment limits, are not inclusive of lower dollar amount perks, except where otherwise noted.
$500: Earn “Champion” status on the Bestest app (where it will be reflected on your profile, polls, votes, and comments).
$1,000: Earn “Investar” status on the Bestest app. A new badge created solely for Bestest investors.
$2,500: Get free lifetime access to paid features and feature bundles on Bestest, and receive “Investar” status in the app.
$5,000: Join a design session with the team or have a 40-minute idea exchange with the Bestest CEO (both via remote conferencing), and receive “Investar” status in the app.
$10,000: Receive a custom research package, which includes a market scan/Bestest database search and summary of findings, 15 polls with 100 respondents each, use of enhanced polling features where available, analysis of results, and a conclusions and recommendations report, and receive “Investar” status in the app.
$15,000: Spend a day with the Bestest team in Westport, Connecticut. Tour the Bestest offices and enjoy 24 hours as a guest of the Bestest team. Includes transportation, meals, and overnight accommodation for one. And receive “Investar” status in the app.
$25,000: Receive a custom research package which includes a market scan/Bestest database search and summary of findings, 45 polls with 100 respondents each, use of enhanced polling features where available, analysis of results, and a conclusions and recommendations report, and receive “Investar” status in the app.
As of January 2019, about 45% of the world’s population uses social media, with more than 3.48 billion people around the world now using various social media platforms.i Increasingly, time spent on social media is being conducted through mobile devices. In 2019, the average U.S. adult will spend approximately 2 hours and 55 minutes on their smartphone per day. Approximately 21% of that time will be spent on social media (largely through mobile apps).ii As a result, social media advertising has undergone significant growth in the past year for companies such as Facebook,iii Twitter,iv and Snapchat.v In addition to being able to target large user bases, companies are also beginning to increase advertising spending through social media channels for its cost-effectiveness, ability to target specific population segments, and ability to provide measurable results.vi
Bestest is a social polling app that enables users to create polls and gather feedback in real-time from the general public, live-audiences, and private groups. Through the app, users can have their friends and followers help them decide on everyday topics such as what to wear, where to go for lunch, or which pair of sunglasses to buy at the store. The app allows users to create voting options utilizing text, pictures, or avatars. In addition to providing users with the ability to receive quick feedback and advice from targeted audiences, Bestest also represents an opportunity for businesses to access insight on user preferences. Polls can be posted to the Bestest main feed, which provides access to real-time information tracking from each voter to poll creators. Since its official launch in September 2018, more than 2.8 million votes have been made through the Bestest app, and there are currently more than 33,500 users on the platform. Since its launch, Bestest has focused on user acquisition and product development. Throughout the next three to six months, the company aims to begin generating revenue with the introduction of features such as in-app microtransactions and trend reports.
Bestest is a social polling app available on both iOS and Android. Users can create polls with voting options that can consist of text and uploaded pictures. Text polls can contain up to 20 voting options and be accompanied by a supporting image, article, video, or gif. Picture polls can contain up to four voting options.
Custom groups (i.e. private circles) can be created through the Bestest app by adding friends or followers. Some common examples of groups include colleagues, employees, customers, teammates, clubs, and organizations. Bestest enables sharing polls through links, social media, and scannable QR codes. One use-case is shopping; if a user is at the mall and unable to determine which pair of glasses to buy, they can take a picture of themselves wearing each pair and send a poll to their targeted group with each of the voting options. Groups can then vote, and the poll creator can view responses in real-time from each voter.
Users can also “poll the public” and share polls with all users on the Bestest app through the main feed. The main feed contains a running list of all public polls listed in the order in which they were created. All users can vote on the public polls and view how others have voted in real-time after they’ve submitted their own vote. Results are dynamically generated as bar graphs or circle graphs, depending on the type of poll. Users can see how other users voted by tapping on the percentage. Below the voting options of each poll is a comment section, where users can engage in conversation with other voters and write-in other voting choices.
While public polls can consist of anything, the polls provide a potentially appealing opportunity for businesses to receive market feedback. Businesses can list various products, color schemes, etc. and see which option the public prefers. For example, a company can enlist the help of users in choosing a new product name or see which future product would be most popular. The same company can share future polls exclusively with targeted private groups consisting of previous voters or with the public. On a user’s profile page, they can view their interaction with the app, such as polls created and votes cast, and can sort by most popular or most recent.
The Bestest app also has a separate page for “trending” polls. Trending polls, which are public polls that get the most votes in the main feed, are featured on the trending page in the app. Public polls must receive a minimum threshold of votes within 24 hours of being posted to qualify. Once a poll makes it to the trending page, it remains there until 24 hours after the poll was initially posted. Polls are displayed on the trending page in descending order by the number of votes cast.
There is also a search page that lets users look up other people and accounts on the app, or search the Bestest database for polls containing a specific keyword.
The Bestest app was designed to be user-friendly with an accessible and visually rich interface. Users are incentivized to create polls by receiving valuable feedback from the public and their peers. Conversely, users are incentivized to vote in polls by being able to voice their opinion and view how others have voted. Additionally, the app uses an ID badge system to reward good behavior and content; and discourage bad behavior and content. Badges are displayed next to a user’s name when they post a poll or comments on a discussion. Bestest currently uses four badges:
Bestest filed for a utility patent on their social media polling technology in May 2017. The company is still awaiting the outcome of that filing.
If the minimum amount is raised ($25,000), Bestest intends to use the majority of the funds on continued product development (60%, $15,000), with a focus on developing enterprise features in response to customer feedback and ones that may be monetized in the future. The remaining funds are planned to go towards:
If the maximum amount ($107,000) is raised, Bestest plans to use the majority of the funds (61.17%, $65,450) towards enhancing Bestest’s user acquisition, engagement, and retention capabilities through professional software, automation tools, and a key hire. The remaining funds are planned to go towards:
Investment in user acquisition, engagement, and retention efforts will primarily be through online advertising and promotional events as well as the addition of a staff member to oversee expanded user interaction efforts. Over the coming year, Bestest aims to continue increasing its expenditure on online advertising through channels such as Facebook, Instagram, Google, Twitter, and Apple. The company has previously invested in online advertisingand witnessed strong growth in user sign-ups, poll creation, and votes cast as a result. Bestest also plans to host several promotional events and do a second promotional road trip in 2019. During Bestest’s last road trip in 2018, the company visited university campuses across 25 states in the U.S. and worked to drive user sign-ups and increase company awareness among college students.
Since inception, the company has lowered its user acquisition cost through improving its digital media efforts, but without optimizing user retention, it has seen users subsequently leave the app. The company would like to allocate additional manpower and use professional tools, such as Leanplum, to further optimize the process and more easily engage, reactivate, and retain users.
The Company has already identified, trained, and worked with its target hire on a contract basis (during Bestest’s 12-week “Poll the Planet” Road Trip last fall). By hiring the same individual, Bestest hopes to mitigate the risk of investment in and eliminate the typical ramp-up period of a new hire.
Throughout the rest of 2019, Bestest is planning to introduce the following product features:
User Engagement and Retention
User Engagement and Retention
Launch Poll Sorting and Categorization
User Engagement and Retention
Establish Account Verification
Roll Out Direct Messaging
Add User Bios
Begin Pilot Program
Bestest anticipates using a portion of the total funds raised for general working capital as it looks to support its business growth.
Bestest is currently focused on user growth and building out its platform. It has not yet monetized any portion of the app. However, in the coming months and years, Bestest is planning to roll out several methods of generating revenue. Some of the proceeds from this raise will be used to build out several of these features. Potential future monetizing features include:
As of June 19th, 2019 (the most recent data available), 37,892 cumulative users had signed up on the platform, up from 289 in September 2018. Prior to the official app launch in September 2018, the platform had acquired 289 users from friends, family, investors, and a demo day in New York City. Between September 2018 and June 19th, 2019, Bestest added an average of 3,694 users to the platform every month.
*Data as of June 19th
As of June 19th, 2019, 3,275,958 votes had been cast on the Bestest app since inception. Between September 2018 and May 2019, monthly votes on the Bestest app grew at a compound monthly growth rate (CMGR) of 87.77%. Monthly votes underwent a sharp increase between November 2018 and January 2019 due to increased spending on marketing and advertising through social media channels (e.g. Facebook and Instagram). Monthly votes proceeded to decline or remain flat between February and April 2019 due to Bestest testing other acquisition, engagement, and retention tools (e.g. app store optimization, influencer marketing, and contests). These strategies were less expensive but, also proved to be less effective. In May 2019, Bestest returned to its earlier marketing and advertising practices through social media and growth in user activity resumed.
*Data as of June 19th
*Data as of June 19th
As of June 19th, 2019, 51,840 polls had been created through the Bestest app since inception. Between September 2018 and May 2019, monthly polls created through the Bestest app grew at a compound monthly growth rate (CMGR) of 64.32%. Monthly polls created underwent a similar trend as monthly votes cast due to testing of marketing and advertising strategies.
*Data as of June 19th
*Data as of June 19th
Since the app’s formal launch in September 2018, the median time spent on the app per user was 6.5 minutes per day. As of June 4, 2019, the Bestest app had an average rating 4.3 stars (out of 5) in both the iOS and Google Play app stores.
Bestest is currently pre-revenue and its only source of income since inception has been from interest income. Total interest income since inception has amounted to $1,967.
Through April 2019, Bestest has incurred $168,289 in total expenses year-to-date, a 3.08% increase compared to the same period in 2018. Expenses incurred through April 2019 consist of (as % of total expenses):
When compared to the same period in 2018, Bestest increased its marketing and advertising spending by 5.18X (from $6,148; before the app was launched) and decreased its product development expenses by 26.78% through April 2019. Marketing and advertising expenses increased due to the introduction of advertising online through channels such as Facebook, Instagram, Google, and Twitter. Product development expenses decreased due to a change in the third-party contractor developing the app. Other expenses (e.g. travel and rent) also grew by 93.62% largely due to travel related expenses. Even though no revenue was generated from business activities, COGS was still incurred in 2018 at Bestest due to platform hosting related expenses. However, beginning in 2019, Bestest started categorizing platform hosting relating expenses as operating expenses, leaving COGS at $0 thus far in 2019.
In 2018, Bestest incurred $535,545 in total expenses, a 179.01% increase from 2017. Expenses incurred in 2018 consisted of (as a % of total expenses):
Expenses in 2017 were relatively lower compared to 2018 because the company did not begin business operations until September of 2017. Product development was the largest expense category in 2018, as Bestest focused its resources on developing and improving its polling app in anticipation of its formal launch.
In 2017, Bestest incurred $191,630 in total expenses. The company began business operations in September of 2017, only incurring expenses for four months. Expenses incurred in 2017 consisted of (as a % of total expenses):
The majority of expenses incurred in 2017 were product development related since the Bestest app was in its initial stages of development.
Through April 2019, Bestest incurred a net loss of $168,289, an increase of 3.13% from the same period in 2018. In all of 2018, Bestest incurred a net loss of $533,864, widening its loss by 179.01% from 2017. Its total net loss increased in 2018 compared to 2017 primarily due to Bestest’s limited operating history in 2017 (four months) coupled with increased spending (as a percentage and total) on marketing and advertising. In 2017, Bestest incurred a net loss of $191,344. There was a sudden increase in monthly net loss in December 2017 and January 2018 due to cost overruns in the app development from a third-party developer. Bestest has since switched app development to a more efficient third-party developer.
Through May, Bestest has had an average monthly burn rate of $34,279 in 2019, an improvement of 21.04% from an average monthly burn rate of $43,415 in 2018. In addition to this equity crowdfunding raise, Bestest is also currently in the middle of a $2 million round with a post-money valuation of $9.6 million. Of the $2 million, $200,000 has already been collected. With the funds raised from this crowdfunding raise and the potential $2 million outside round, Bestest anticipates they will have approximately 15 months of runway.
As of June 10, 2019, Bestest had $50,840 in cash on hand.
The global research industry was worth about $76 billion in 2017, up by 6.29% from 2016. Within the research industry, traditional market research grew by just 1% between 2016 and 2017, whereas newer and emerging segments such as data analytics and AI-driven consumer research witnessed strong growth, accounting for $3 billion of the total industry size. Globally, the largest market for market research in 2017 was the U.S., accounting for 44% of the total market. Other key markets included the U.K., Germany, and France.vii One emerging segment in market research is research through social media. Utilizing social media for market research can provide companies with real-time insight into customer opinions, help them discover which audiences are interested in their products, identify current industry trends, and analyze emerging trends.viii
Social media platforms continue to grow globally in 2019. As of January 2019, about 45% of the world’s population were social media users, with more than 3.48 billion people around the world now using the various social platforms. There were 288 million new users in the past year, which represented a 9% year-over-year growth from 2018.ix In the past year, China and India saw the highest absolute country user growth with over 95 million and 60 million new social media users respectively,x while Western Sahara (364%) and Ethiopia (61%) exhibited the fastest year-over-year growth.xi Among internet users, 98% visited or used a social network or messaging service in the past month.xii
The average social media user now spends 2 hours and 16 minutes each day on social platforms, which equates to approximately 33% of their total internet time. Japanese users were on the low end, averaging only 36 minutes on social media each day. In the Philippines, internet users spend the most time on social media, averaging out to 4 hours and 12 minutes per day, a 6% year-over year increase.xiii
Annual social media advertising spending was estimated to reach about $98 billion in 2019, and spending is projected to grow at a compound annual growth rate (CAGR) of 17.6% to reach approximately $188 billion in 2023.xiv In a 2017 Chief Marketing Officer (CMO) Survey, social media spending as a percent of marketing budgets was approximately 9.8%. CMO predicted that by 2022 that figure would reach 18.5%.xv
According to a report by eMarketer, the average U.S. adult will spend 2 hours and 55 minutes per day on their smartphone in 2019, a nine-minute increase from 2018. Approximately 21% of that time on mobile phones will be spent on social media. Additionally, approximately 90% of time spent on smartphones is in mobile apps (such as social media).xvi
According to Sensor Tower, global mobile phone users spent $71.3 billion on apps and games in 2018, up by 22.7% from $58.1 billion in 2017. The total amount includes in-app purchases, subscriptions, and premium apps in the Apple App and Google Play stores. Approximately 65.2% of that revenue came from the Apple App store and the remaining 34.8% came from the Google Play store. First-time app installs surpassed 105.3 billion in 2018, up by 11.1% year-over-year.xvii
In 2018, $12.26 billion in capital was invested into the mobile app industry, up by 40.50% from 2017. Between 2009 and 2018, investment in the mobile app industry grew at a compound annual growth rate (CAGR) of 39.38%. In 2018, the median capital invested in a deal in the mobile app industry was $2 million, up by 166.67% from 2017. In 2018, the median post-money valuation of a deal in the mobile app industry was $16.77 million, up by 123.60% from 2017.xviii
In 2018, there was over $19.6 billion in capital invested in social media companies, up more than 360% year-over-year from 2017. Total annual investment peaked in 2016, when $66.90 billion was invested across 797 deals. Total deal count peaked in 2014, when there were 872 venture capital deals for social platform companies. From 2008 to February 2019, there has been over $172.4 billion invested across 6,731 deals in social platform companies.xix
Founded in 2004, Facebook is an online social media and social networking conglomerate. Its original social networking platform, Facebook, enables users to create polls for their friends or followers to see and vote. Users can create polls with several options and add images or GIF’s to each option. Additionally, users can set a custom length of time for their post to be active.xx The company also owns Instagram, a photo and video-sharing social networking service. Instagram enables its users to create polls on their “Stories.” Users can only create side-by-side polls with two options. Once a story with a poll is posted, a users’ followers can view and vote on the poll. Facebook generated $22.1 billion in net income in 2018 on $55.8 billion in revenue.xxi
Founded in 2015, Mammoth Media develops social media apps. It currently has two apps in its portfolio, Yarn, a chat-fiction storytelling app that utilizes text messaging, and Wishbone, a social networking app where users can generate polls based on side-by-side comparisons. Polls cover a variety of categories such as fashion, celebrities, and humor.xxii Users can create their own polls on Wishbone and send private messages to their friends. Every day, Wishbone releases its “Daily Dozen” and “Nightly Dozen”, where users can vote on 14 different pop-culture side-by-side questions, and view how their friends voted after completing.xxiii Users can submit their “Cards” (i.e. side-by-side polls) to Wishbone to be featured in the “Daily/Nightly Dozen”. Wishbone utilizes ads to generate revenue.xxiv Mammoth Media raised $13 million in a Series A round in January 2018.xxv
Released in 2016, Pollpop is a polling and voting app available on iOS and Android. Through the app, users can create polls exclusively for friends or for the public. Polls can use pictures as voting options and side-by-side comparisons (i.e. two pictures next to each other). When a poll is created, the creator can post the poll on the app to a list of friends or the public, or via link to other social media channels such as Whatsapp and Facebook. Poll creators can view responses in real-time and access respondent information such as gender, country, and age group for further insight. The app also enables users to have discussions and debates along with the voting.
Founded in 1999, SurveyMonkey is an online survey platform enabling individuals and companies to create custom surveys. The company provides users with over 100 survey templates and 2,500 pre-designed questions.xxvii Once surveys are created, users can send them out to their target audience through email, mobile devices, messages, online, and social media. Survey owners can view responses in real-time as they are entered and SurveyMonkey provides data analysis and visualization tools for further insight. Business pricing starts at $25 a month per user (minimum of three users) for the entry level package which gives customers access to SurveyMonkey’s base features, and goes up to custom quote pricing for large enterprises.xxviii Pricing for individuals starts at $32 a month for base features and unlimited surveys, but goes up to $99 a month for advanced features such as multilingual surveys, sentiment analysis, and white label surveys.xxix SurveyMonkey had a net loss of $154.7 million in 2018 on $254.3 million in revenue.xxx
Founded in 2006, Twitter is a social media company enabling users to post “tweets” (messages with 280 characters or less) to public or private audiences. In 2015, the company introduced the option to create and share polls on its platform.xxxi Users can create a poll with up to four options. A poll’s duration is set by default to one day; however, polls can range from a minimum of five minutes in duration to a maximum of seven days. Currently, only text polls can be created, and Twitter does not support polls utilizing pictures. When a user votes on a poll, the results are immediately displayed. User participation in a poll is not shown to others, and the only information displayed is the number of votes and corresponding percentage for each option.xxxii As of February 2019, Twitter had 126 million daily users. Twitter generated $1.21 billion in net income in 2018 on $3.04 billion in revenue.xxxiii
Prior to being named Chief Executive Officer in April 2019, Kelly served as the company’s Chief Growth Officer. As the Chief Growth Officer, she was responsible for developing product use cases, bringing the product to market, acquiring users, and liaising with investors and prospective investors. Kelly brings 20 years of digital media and startup experience to Bestest. In addition to Bestest, she has also worked in executive roles at The Ledgemoor Group and SES Media Group. She is the ghost-writer of Unlock Your Inner Entrepreneur (The Editing Company, 2012) and a graduate of Georgetown University. She started her first company at age 21.
Lalit was the founder of Bestest and served as CEO until April 2019. Since April 2019, he has been serving as Chairman of the company. As CEO, Lalit was responsible for creating and executing the company's long-term strategy to grow and maximize return on investment for all stakeholders. In addition to his current role at Bestest, Lalit also currently serves as the CEO of the Aerostar Group. He is a serial entrepreneur and has started more than six ventures. Previous experience includes serving as the CFO of RFQLogic and working for PwC. He holds an undergraduate degree from Chandigarh College of Architecture (CCA) and an MBA from the University of Buffalo.
Previously, Bestest raised $750,000 in a Pre-Seed round between September 2017 and November 2018. Common units were issued in the round at a price per share of $0.038462, valuing the company at $5.25 million post-money. Previous investors included angel investors and the company founder.
In addition to this equity crowdfunding campaign, Bestest is also currently raising $2 million from both existing and new investors at a pre-money valuation of $7.6 million. Per the company’s amended operating agreement, the company has the right to offer special terms to existing investors. As a result, several current existing investors are participating in this current $2 million round at the same price per share as the previous round. All outside investors will be investing in the company at a price per share of $0.05587. Thus far, $200,000 has been collected this round, all from previous investors.
An investment in the company is speculative, and as such is not suitable for anyone without a high tolerance for risk and a low need for liquidity. You should invest only if you are able to bear the risk of losing your entire investment. There can be no assurance that that investors will receive any return of capital or profit. Investors should have the financial ability and willingness to accept the risks (including, among other things, the risk of loss of their entire investment and the risks of lack of liquidity) that are characteristic of private placement investments. There will be no public market for the securities being offered, applicable securities laws will restrict any transfer of the securities, and the securities will not be transferable without the company’s consent.
The information provided herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice, a recommendation to purchase, or an offer to sell securities of the company. You should rely on the offering statement and documents attached as exhibits to the offering statement when making any investment decision. An investment in the company is not suitable for all investors.
The company’s industry is highly competitive, and the company may not be able to compete effectively against the other businesses in its industry. The company is subject to a number of significant risks that could result in a reduction in its value and the value of the company securities, potentially including, but not limited to:
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