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Jubel

Experiential travel planning & booking platform

158%

Investors

91

Time to Invest

Security Offered

Convertible Note

Minimum Investment: $100

  • As of October 2018, 29% of customers that had booked a trip through the service repurchased a Jubel trip within 12 months

  • Jubel grew its user base 107% year-over-year in 2017

  • Revenue increased 85% year-over-year in 2018 through September compared to the same time period in 2017

  • Part of Capital Innovators Accelerator’s Spring 2018 class

Perks

$1,000: 50% discount on all planning/curated guide fees for trips booked through 2019

$5,000: All planning/curated guide fees waived for trips booked through 2019

$25,000+: Jubel’s Head of Experiences will serve as your dedicated travel advisor with all planning/curated guide fees waived through 2020

*You are investing in Crowd Notes in this offering. Perks are meant to be a thank you from the company for investing. The perks above are NOT inclusive of lower dollar amount perks.

Terms

Security Type: Crowd Note

Round Size: Min: $25,000 Max: $107,000

Valuation Cap: $3,000,000

Conversion Provisions: In connection with an equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at the price per share of the new preferred stock sold in the equity financing, or a valuation cap of $3,000,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Overview

Opportunity

Consumer interest in experiential and adventure travel is on the rise due in part to consumers strong desire for new travel experiences.i  However, consumers that are interested in booking these types of trips themselves are presented with a high, and oftentimes overwhelming, number of choices. In the 45 days prior to booking a trip, American consumers make an average of 140 visits to travel sites. On these travel sites, they spend an average of 23 total hours researching their trip before booking.ii  To help address pain points and desires for new travel experiences, many consumers are seeking out more personalized travel recommendations. In fact, approximately 36% of them would be more likely to pay for the services of a travel brand that tailored its information and overall trip experience based on personal preferences or past behavior. Further, one in three travelers are interested in using digital assistants to research and/or book travel.iii

Founded in 2015, Jubel’s mission is to help eliminate the stress and time involved in planning and booking experiential travel by seamlessly customizing trips to their customer’s preferences and budgets. Backed by efficient trip planning software and a proprietary database of nearly 1,000 destinations, Jubel’s technology allows the company to quickly match clients with potentially ideal trips. The company’s algorithm and artificial intelligence will score hundreds of thousands of potential itineraries and select the best options according to indicated consumer preferences and provide their users with a platform where they can further customize and book their travel package.

Press

Product

Jubel offers customers a proprietary database of close to 1,000 destinations in over 100 countries which it uses to create its travel recommendations. Customers start by answering a travel preference survey that will influence the trips that Jubel recommends. In the survey, customers are first asked about their budget so Jubel can optimize all trips based on price. Customers then designate their interest in how they would like to spend their time while on their vacation. Jubel’s five options are: active nature, culturist, chilled nature, oceanist, and party purist. Customers also indicate their preference for natural scenery and their destination preference such as urban metropolis, small city, or an isolated area.

Users are also asked about specific activities they may be interested in, country/region preferences, lodging preferences, transportation options, pace of travel, amount of activities they would like to experience, and the culture-shock levels they are comfortable with. Finally, users have the option to describe their ideal travel experience in their own words.

After a customer submits their survey, Jubel taps into its proprietary database of destinations and their trip planning software helps determine the best trip for its users by scoring the compatibility with their specific survey answers. The company then sends a travel proposal to users for their review and approval.

Customers also have the option to choose a surprise trip in the survey. In this type of trip, users are given trip proposals that give a general idea of what to expect on the trip without revealing the destinations. Beginning at the airport and throughout their trip, travelers are prompted to open dated envelopes to reveal their next destinations. These envelopes contain all reservations as well as a Jubel Atlas with curated local recommendations on what to see, eat, drink, and do.

Once the user has reviewed and confirmed the selections, Jubel will collect an initial deposit and book flights, accommodations, transfers, and other experiences for the customer. After the payment has been processed, users will receive their Jubel Atlas which has an itinerary, travel tips, and curated local recommendations on where to eat/drink and what to see/do. Customers also have access to Jubel’s team of travel specialists 24 hours a day, seven days a week for any travel assistance before, during, or after their trip.

Use of Proceeds and Product Roadmap

Jubel is developing a do-it-yourself (DIY) travel platform that will build on its current technology to link the company’s proprietary database to a client-facing platform. Jubel anticipates spending the majority of the funds raised in this offering towards development for the DIY travel platform. Most of the remaining funds are expected to be used for marketing expenses to help drive revenue. Jubel intends to market their platform using their current digital channels like search engines and social media platforms to drive traffic to their website. The company has discretion to alter the use of the proceeds.

Jubel's Do-It-Yourself Platform

Jubel is in the process of creating a do-it-yourself planning and booking travel platform that is expected to launch in beta January 2019 with additional features to be rolled out continually. Users will be able to provide similar preference choices to Jubel’s current survey in order to be matched to their ideal trips. Customers will be able to choose their favorite trip from a pre-selected set of itineraries that match their stated preferences. Here, users can continue customizing their trip to their liking and take full advantage of Jubel’s already vetted and categorized destinations all over the world. They can extend their trip, eliminate destinations, and/or select new ones completely at their discretion while using Jubel’s knowledge to guide their decisions. They will also be able to select their desired transport method, accommodations, and activities. At this point, users will be able to share their trip with their travel group so they can approve or suggest changes to the itinerary. Once everyone in the group is satisfied, the travelers can book everything through Jubel’s platform.

This new do-it-yourself platform will have a collaborative nature to also help address the pain points of planning a trip with a group. Jubel expects a group-oriented travel platform will help drive organic referrals due to increased users on the platform. Jubel’s user-driven artificial intelligence features will work to capture data of customers’ edits, purchases, and reviews to help learn what drives customers’ decision making and satisfaction throughout the travel process. Jubel expects to use this data to create more accurate recommendations for future users.

Business Model

Jubel generates revenue from client service fees and supplier commissions.

  • Client Service Fees: The company charges clients a service fee for booking through the platform, which averages 18% on top of the retail cost of the trip. As of September 2018, the average trip cost on Jubel’s platform was $4,840.
  • Supplier Commissions: After providing users with their personalized trip, Jubel on average collects a 7% supplier commission fee directly or through affiliate booking platforms like Expedia, Viator, and Booking.com that they use to book the trips.

User Traction

User Growth

Jubel has experienced significant user growth since 2016. As of September 1, 2018, Jubel had 3,457 users, representing a 16% year-over-year increase from 2017. In 2017, the company had 2,958 users, and the number of users grew 107% year-over-year from 2016. A user is a lead that submitted a trip request, which means the lead used Jubel’s platform and began the sales process.

Repurchases and Referrals

Jubel users are also repurchasing trips from the site and recommending Jubel to other customers. Through the beginning of October 2018, approximately 29% of users that had previously booked a trip through Jubel, repurchased a trip within 12 months. In 2018, about 23% of total bookings came from referrals. In addition to referrals, over 96% of Jubel customers are likely to recommend the company as of September 2018 according to a Jubel customer feedback survey. This survey asked users how likely there were to recommend Jubel to a friend.

Historical Financials

Since inception, Jubel has generated $780,811 in sales revenue. Year-to-date as of September 2018, Jubel has produced $396,942 in revenue, an 85% increase from the same time period in 2017. The company has experienced a surge in revenue in Q3 2018 due to an improved sales process and lead nurturing strategy. In 2017, Jubel generated $291,616 in revenue which was a 216% year-over-year increase from $92,252 in 2016.

Year-to-date through September 2018, Jubel has incurred $478,105 in total expenses. Cost of goods sold was the largest expense in 2018, accounting for over two-thirds of total expenses, this includes all their customer’s trip costs and the creation of their curated local guides. In 2017, the company incurred $351,562 in total expenses for the year, up from $113,589 in 2016.

Year-to-date through September, Jubel has generated a net loss of $81,167 in 2018, $50,000 of which came from the Capital Innovators Accelerator’s fee for participation in the program. In 2017, Jubel generated a net loss of $59,951. In 2016, Jubel generated a net loss of $21,342.

Industry

Travel and tourism is one of the world’s largest economic sectors. The total contribution of travel and tourism to Gross Domestic Product (GDP) was over $8.27 trillion in 2017 and is expected to grow to more than $8.60 trillion in 2018. By 2028, this number is expected to rise to over $12.45 trillion. Travel and tourism such as accommodations, transportation, entertainment, and attractions directly contributed 31.1% to GDP in in 2017. Indirect impacts, including travel and tourism investment spending like hotel construction and government spending and tourism marketing and promotion contributed about 51.6% of the total travel and tourism GDP in 2017. The remaining contribution comes from the induced contribution, which includes the spending of those who are directly or indirectly employed by the travel and tourism industry. This segment represented about 17.3% of the total contribution of travel and tourism towards GDP in 2017.iv

Over the next few years, U.S. digital travel sales are expected to grow from $180.59 billion in 2016 to $219.69 billion in 2021. In particular, digital sales through mobile devices are expected to experience a significant amount of growth, while desktop/laptop sales are expected to decline slightly. In 2016, digital sales through mobile devices accounted for just over one-third of all travel sales and are expected to grow to roughly one-half of all travel sales by 2021. Mobile travel sales are forecasted to grow more than 67% from 2016 to 2021 to reach approximately $108.75 billion.v

Experiential travel, which is defined as a form of tourism where people focus on experiencing a country, city, or particular place by connecting to its history, people, and culture has garnered interest from multiple demographics.vi Approximately 57% of respondents to an American Express Travel survey indicated they seek to interact with locals when traveling. About 57% of respondents to this survey said that exploring a new destination was their most important travel goal for 2018.vii  The adventure tourism market is currently estimated at roughly $445 billion and is expected to grow to over $1.3 trillion by 2023.viii

According to CB Insights data, $5.3 billion was invested in travel tech in 2017 across 348 deals, setting a record high in terms of dollar amount invested. The year also represented the fifth consecutive year of growth in terms of the number of deals. Early stage deals, including Seed/Angel and Series A deals, represented about 60% of all 2017 deals.ix  

Competitors

Consumers have a wide number of companies to choose from to plan and book travel, ranging from full-service luxury travel agents offering expensive customized trips to spending considerable time searching the web themselves to plan and eventually book directly through platforms like Expedia, TripAdvisor, or Airbnb. These direct booking platforms mainly target customers who have already decided the destinations they will travel to and are ready to book accommodations, flights, and activities. Jubel, however, mainly targets customers who have decided to travel but need help in deciding what destinations to travel to and in creating a personalized itinerary of experiences and activities. Jubel also competes with companies that provide differing levels of customized travel planning including the following platforms:

Evaneos: The Paris-based startup is a booking platform for customized multi-day tours. Founded in 2009, Evaneos allows users to design their trips, estimate costs, and connect with local agents in each destination country. The company has partnerships with approximately 1,300 local agencies and offers around 8,000 customizable tours. Evaneos tries to provide similar guarantees as traditional tour operators by offering customers trip replacement or reimbursement services.x  Evaneos raised $80 million in September 2018, in a round led by Partech and Level Equity, which brought their total funding to $108 million.xi  

Inspirock: Founded in 2012, Inspirock is a mobile app that provides users with trip planning capabilities. Users are able to receive a day-by-day itinerary of various attractions in their vacation destination. On the application, users can take notes, save itineraries, and book hotels directly. The company earns commission if users book hotels, transportation, or tours through the app.xii  Based in the Bay Area, Inspirock raised $3 million in seed funding in June 2015 from investors like MakeMyTrip, one of India’s largest travel booking sites.xiii 

PickYourTrail: Founded in 2014, the India-based company PickYourTrail allows users to customize travel tour packages. The company has a matching algorithm and price comparison engine that allows travelers to build an itinerary based on their specified preferences. PickYourTrail also offers an online concierge that allows customers to seek travel advice while on their trip. The company has partnerships with Amadeus, Expedia, Malindo Air, and Viator, among others.xiv 

Noken: The New York-based startup aims to simplify the travel experience through a personalized guide via a mobile app. Founded in 2017, Noken’s users have access to a digital guide and a customer support team that can adjust travel plans based on weather, delays, or preference changes. The company charges a $5 per person per day service fee for offline GPS directions, local restaurant and shopping recommendations, daily routes, and location-based Spotify playlists.xv  Noken’s investors include Brooklyn Bridge Ventures, Rough Draft Ventures, and the Dorm Room Fund, among other firms.xvi

Team

Jose Pablo Toscano, CEO & Co-Founder: Jose Pablo founded Jubel in 2015 after previously working as an investor at J.P. Morgan where he built skills in data analysis, simulations, team building, and sales. In 2015, he traveled through several continents building the know-how to operate a company in the experiential travel industry. Jose graduated from Wharton in 2014 with a BS in Economics and concentrations in finance and management.

Nicolas S. BergengruenChief Marketing and Business Development Officer & Co-Founder: Nicolas founded Jubel in 2015 after previously working as a Supply and Growth Manager at Oasis, a travel tech startup. Throughout his career, Nicolas has developed skills in marketing and business development within the startup environment. He graduated from Villanova in 2013 with a BBA in Finance and International Business.

Robert Lyons, CTO: Robert has 18 years of software development experience and has developed the ability to pioneer platform technologies with architectural design and full-cycle execution. He has previously been the CTO and Co-Founder of two successful, data-driven technology startups. Robert received his PhD in Economics from UC Berkeley in 1999 and is an avid international traveler.

Jenny Schroder, Head of Experiences: Jenny joined Jubel in early 2017, after working for two years at Indagare Travel, a premium luxury travel agency in New York City. She has experience in trip planning, customer service, and sales within the travel industry. Jenny graduated from Barnard College of Columbia University in 2014 with degrees in Political Economics and Spanish and has visited over 50 countries.

Gerald Leenerts, Senior Front-End Engineer: Gerald has been building and designing websites based on customers’ needs for the last 13 years. Previously, he was a lead front-end architect for Life Time, which gave him the unique opportunity to effectively bring customer focus into their development culture. Gerald graduated from Missouri State University in 2010 with a Bachelor of Fine Arts in Computer Animation.

Discussion

Endnotes

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