Startup investing is very unpredictable and risky. Every venture capitalist wants to discover the ‘next hottest thing.’ It may come as a surprise that three-quarters of venture-backed startups fail outright.
VC fund, Follow[the]Seed is different from traditional venture capitalists and uses it’s own proprietary algorithm, designed to identify successful habit-forming products, automating the investment process.
Once a critical mass of users develops an ‘irrational’ relationship with a product of service, users become ‘hooked.’ The algorithm was invented by mastermind Eliav Alaluf is a consumer behavioral expert, and one of the Israeli founding partners.
Follow[the]Seed’s model, called ‘Raving Fans®’ analyzes a certain set of triggers, metrics and KPI’s to determine ‘when’ users are irrational.
According to Follow[the]Seed, It aims to identify ‘irrational behavior’ like how incessantly someone checks their email, or patterns like scrolling through their photo-sharing app each time they pick up their cellphone.
RavingFans is a methodology that looks at 200 different data points to see if someone was able to create a product with “irrational” behavioral patterns, such as addiction, obsession and compulsiveness.
If 20-30% of the users are “Raving Fans” then the product has the potential to be a big success story. Follow[the]Seed believes that Jayride is the next Unicorn to come out of Australia.
Will Jayride become the next Unicorn?
Jayride is an airport shuttle business that helps people get to their destination without the stress – and, at the most affordable price. Today Jayride has announced that it has raised $1.5M AUD in funding, putting total funding to date at over $5M.
There booking system, helps 10,000’s passengers per month, book airport transfers at over 400 airports across America, Australia, New Zealand and the United Kingdom founded in 2012.
Jayride founders, Rod Bishop and Ross Lin, have managed to build the world’s largest marketplace of shared airport shuttles and private transfers in less than 5 years.
Bishop says, “Five years ago we went looking for an “API full of transport services” to plug into products we were making, and we were stunned to find not such API’s existed … so we set out to build them. We figured that, if we needed this serviced, other companies would too.”
“We’ve only just scratched the surface in the U.S. Every year 3.8B passengers travel by air, and over 20% of those are in the U.S. – that’s nearly 1 billion passengers, each needs two airport transfers. Today Jayride is helping hundreds of thousands of passengers – so we have a very long way to grow.”
The company is experiencing a 50% grow rate from bookings made last quarter showing signs of a global vision from day one.
Early signs of a possible ASX listing
Jayride is the leading technology player enabling partners to book airport transportation services, used by Amadeus, Expedia, Priceline Group, Flight Centre and countless others.
Partners can ‘plug in’ Jayride, and increase their revenue by selling transportation services.
VC Andrey Shirben, Follow[the]Seed Ventures Founding Partner says, “I’ve been following and helping these guys for quite a long time now and have invested in them in a very early stage. I can certainly see a potential for the company to list on the ASX and become one of Australia’s bigger success stories.”
Bishop adds, “I think the ASX is a very exciting place to grow a tech business in Australia. An exciting growth strategy for a marketplace that is scaling internationally is to grow by acquisition of local market players around the world. Being a publicly listed company enhances your ability to grow that way.”
Further adding, “Although we are already working in different countries across the globe, our plan is to completely dominate the U.S. market in 2017, before moving across to Europe and Asia.”
Jayride specializes in shared airport shuttles and private airport transfers. Due to customer demand, they’ve recently begun rolling out rideshare-class services around the world.
Sam Altman from YCombinator points out that it can take 10 years to build a successful company. Given that Jayride has achieved so much in 5 years, could Jayride be the next Unicorn?
This post is part of our contributor series. It is written and published independently of TNW.