I've been getting lots of questions on #saveDayre , but I hope you guys can understand that I may not be able to disclose too much at this point in time while the negotiations are still underway!
Instead, I thought it'll be better for me to share about how my conversations with the investors were like!
Initially many of the investors thought I was the one selling my app, so they bombarded me with a lot of questions and I had to explain, no no hold on, I'm not an employee of Netccentric, I'm only a user of the app trying to stop Netccentric from shutting it down.
Questions the investors asked me
Some of the questions included:
1. How many users does Dayre have? Active users?
2. What's the profile of Dayre users?
3. How much time do people spend on the app?
4. What's the revenue model of Dayre? How does it earn money?
5. What's the costs needed to run and sustain Dayre? What's the breakdown of this $150,000?
6. Who are Dayre's current clients?
7. What is the "user data" that Desmond is selling?
8. If we were to invest, how can we be sure that we can make returns on our $?
9. Why is Dayre being sold?
10. What has the current team done to monetize it? What were their challenges? If it is as valuable as you are telling me, then why are they selling it?
11. If we invest, how do you propose we turn it around?
12. Who will be the new team running the app when we buy it over?
(a huge thank you to @caramelcamellia who helped with the survey so I could get those data, and to @missgoob @joycesayshello @jazreeltan @themerrymaker @thankgodforpink @braintango @prisylala @jojobeans @briannawonggg @bertillawong etc for helping to contribute the business part of the survey. And of cos, to all of YOU DAYREANS who did it!!!!)
🙎 but by far the hardest question they asked me was:
Why should we pay such a high asking price for a loss-making entity, one which requires millions of dollars to pursue the Dayre dream?
What's more, one that the top sales people in Singapore's leading social media agency had apparently worked on for months and was unable to sell.
(all of that taken from Desmond's post - I had no such insider data)
The rough calculations that we did to see if the investors had enough funds to buy and then Dayre around included:
- Selling price ($X)
- Operating costs ($150k / year)
- $$ to hire and bring on a new team
- $$ to improve the Dayre app
- $$ to build the "critical mass" for growth
- $$ for marketing and acquiring new users abroad
It wasn't just $150k anymore to keep the app alive, cos that wouldn't bring them any ROI on their investment. Now we were talking about "millions of dollars".
I'd convinced them that Dayre was worth saving, but henceforth $X (the selling price to acquire Dayre) was crucial.
A few of you asked for a log of the investors I spoke to regarding the buyout. Here's my list:
(anyone recognise this stationery? 😂)
One CEO literally said "fuck off" when I told him how much the asking price ($X) was. I got stunned for a moment cos I wasn't expecting a legit CEO to say that lol but wow.
On average, each convo with a potential investor took about 20 - 45 minutes. If you look closer at the list, you'll see the number of rejections 😢 but also some positive ones who were still willing to explore and negotiate!
(if any brands wanna sponsor me stuff for my throat and voice now seriously i could use it HAHAHA)
Finding the RIGHT buyer(s)
While it was important to find buyers so that Dayre doesn't need to be shut down, I felt it was crucial to get the RIGHT buyer, and not just any buyer.
So some of the questions I asked them were:
1. What is your interest in buying put Dayre?
2. Have you ever personally used the app?
3. Dayre has been deemed to be a loss-making entity by its CEO statement. Operating costs required to sustain the app = $150,000 a year. How do you intend to manage this?
4. What ROI are you looking at for this investment? How do you intend to monetize the app?
(while I was desperate for buyers, I didn't want Dayre to simply be bought over by someone who would milk us like a cash cow!!!! 😡)
So...will Dayre be shut down???
I'm as anxious as all of you to find out, but I'm not the one making the decision.
However, what I can share is this.
1. Desmond has publicly said they need $150k to run it for one year. We've raised that $150k, thanks to all of you who signed the petition committing to buy Dayre Plus, to #saveDayre. There is absolutely NO reason for them to shut us down anymore, at least for another year, since we've raised that money, and Netccentric doesn't even need to fork out a single cent.
⚠⚠(pls do NOT buy Dayre Plus now until I give you the signal!!! I've still not gotten any guarantee from Desmond that we won't be shut down - yes I asked - so handing over your money now is pointless + have fun trying to deal with the refund after if it's really shut down)⚠⚠
2. There's multiple interested buyers now whom I've literally delivered to their doorstep and who are still keen on negotiating even though they're well aware of the asking price $X. I don't know if Netccentric even tried to find buyers before they made the grand decision and announcement to shut us down, but what I DO know is that I found multiple buyers who can take this "liability" (loss-making entity) off their books. All that's left is $X which I have no control over.
Like what @arthursseat & @higarethdavies mentioned, I do also feel that since they already made and announced the decision to cut it, then anything more than $1 is just...
I didn't really follow the divide over #saveDayre, but I stand with both sides on one thing:
🔥 The current Dayre team / owner does NOT deserve us.
The Dayre app deserves to be passed to a better team who will. 🔥
And if Dayre is still forcefully shut down at the end of this month, you can bet your life that I'm gonna fight it till the end. You needed money, we gave you money. There are no more excuses to be made.
So stand with me, my Dayre fam, because I will do whatever I can to take us out of this.
Use #saveDayre #imstaying to show the world we're stronger than they thought, and that we will NOT be evicted against our will.
And together, we will #saveDayre.
Left: numbers from Netccentric's pitch deck
Right: numbers from our community survey, which I used in my pitch deck to potential buyers
😎 look at how close the data sets are! You guys are awesome man 😎
Thursday, 15 Feb 2018
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