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Seriously Simple Investing
Beanstox is focused on a large consumer market, providing automated wealth building designed primarily for the 100 million Americans who have no investment account. We call it Seriously Simple Investing®. Kevin O’Leary is well-known from Shark Tank and has a social media footprint of 5M+ users across his platforms, which we believe gives Beanstox a significant marketing advantage and potential for accelerated growth.
REASONS TO INVEST
The Problem
Investing is difficult for many people
At Beanstox, we believe the choices for personalized investing are limited for middle-income people as traditional financial service providers often have high minimums, such as $100,000, with annual fees as high as 1% of assets under management, which is $1,000/yr, while lower cost choices provide limited or no personalized management. Unfortunately, many adults are heading to a retirement of poverty - in fact, over 100 million households do not have an investment account and are not saving and investing for retirement.
*Data as of 2013.
Many Americans who are only saving but not investing are missing the power of compounding returns that could greatly improve their financial wealth and retirement savings over the course of their lifetime. Someone only saving $100/week over 40 years, but not investing and assuming no interest accrual, would save $208,000; however by investing the same $100/week for 40 years at an estimated annualized return of 8% (including reinvestment of dividends and excluding fees and taxes), invested in a properly diversified portfolio for the entire period and keeping the funds invested throughout the entire investment period, an investor could end up with over $1.5 million. Beanstox helps make the power of compounding returns accessible to all people.
*Simple saving assumes no interest rate accrual.
**Assumes an annualized market return of 8%, below the 30 and 40-year annualized market return for the S&P 500. Actual returns will vary greatly and depend on personal and market conditions. Past performance does not guarantee future result.
This chart does not reflect fees or costs associated with investing. It is not indicative of past performance or any client's experience using the Beanstox App.
The Solution
Make investing seriously simple
Our team at Beanstox developed an app that enables people to start investing in minutes. We realized that an effective solution must be serious, simple, and personalized to each client, designed to combine saving with automated investing to “use the power of compounding”. We also realized the benefits of providing people an investment approach similar to the way Kevin O’Leary invests for his family’s wealth.
Automated investing
Clients receive personalized portfolios and recommendations based on their individual investment goals and risk tolerance levels. Clients set the amount they want to add to each investment goal every week or month, which is then automatically invested.
Straightforward subscription model with a low minimum investment
Many clients appreciate our simple monthly subscription fee of $5*, with no hidden fees or surprising charges, allowing clients to start investing with as little as $100. Most clients (as of 3/31/21) start with over $500 and approximately 80% use the automated investment service, most choosing to add $200 or more per month.
*This membership fee covers costs associated with portfolio advisory services, custody, account maintenance and trade execution but additional services may incur additional fees, and the fee does not include fees and expenses charged by ETFs to their shareholders. Learn about fees here.
Recurring deposits
Set weekly or monthly recurring deposits for each goal, the client decides. Depending on how much you invest, the app will show you the potential return you can expect (based on the number of years you stay fully invested). Most clients, approximately 80%, use the automated recurring deposit feature provided by Beanstox.
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The Market
The robo-advisory market expected to soon manage over $16 trillion of assets
Market studies indicate that the worldwide robo-advisory market is expected to grow to $16 trillion of assets under management forecasted by 2025. Among the 100 million Americans with no investment account, we believe that about 30-40 million people in the U.S. will open a robo-advisory account in the next five years.
Our Traction
Kevin O'Leary’s impact of media coverage as Beanstox cofounder
Beanstox has grown since the $1.07 million crowdfunding completed a few months ago. We've grown to over 60,000 downloads, 30,000 user accounts; 13,000 approved accounts; and 1,400 clients subscribed at $5/month/client. User accounts grew 115% from 12/20 to 3/22 on limited marketing. We believe there is potential for significant growth, and that we are sufficiently differentiated from our peers.
Data as of 3/31/2022
Beanstox cofounder, Kevin O’Leary, is widely recognized as a savvy investor, and a brand trusted by many. He is known across America as an investor on the very popular show Shark Tank, as well as a contributor on CNBC and more. O’Leary, in media appearances and articles, helps build the Beanstox brand and generate thousands of downloads. His expected marketing impact includes exposure in traditional media, increased value in paid media, and broad growing exposure in social media with his following of over 3 million people across all his platforms.
What We Do
An easy to use app, for automated investing and wealth building
The Beanstox app is both simple to use and serious about investing. Our technology uses each client’s investment goals and risk tolerance levels to determine an appropriate personalized portfolio, built using diversification across selected ETFs (Exchange Traded Funds). Our investment approach reflects Kevin O’Leary’s investment principles: keep it simple, keep investing, keep portfolios diversified.
Beanstox has already established an automated wealth management platform, with business partners and required capabilities for technology, account opening, KYC/AML, banking data connections, brokerage and custody, investing, account management, reporting and more.
The Business Model
B2C subscription-based business model, with low operational costs
Beanstox uses a straightforward subscription model: $5/Month. The variable costs per user are ~$1/Month, including bank connection, securities trading, account maintenance and reporting costs. Fixed costs include our core team and marketing expenses. We could achieve break-even with 30,000 clients based on current costs.
How We Are Different
Instant marketability meets maximum accessibility
Kevin O’Leary’s reputation as an investing expert, widely featured in traditional media, gives our brand a clear advantage in the marketplace. Our brand begins with an established sense of trust among many consumers.
Our app features set us apart from our competitors: keep it simple yet serious; provide multi-goal investing; automate almost everything; provide serious info on personal finance; provide access to livestream education with Kevin O’Leary and expert guest speakers.
Some apps provide “round up” investing or enable users to invest their spare change, while other apps provide services for more affluent investors. Beanstox fits somewhere in the middle as a way for middle income Americans to start seriously investing a target amount, such as $100 each week or month, working their way toward financial freedom.
*Graph developed based on internal research
The Vision
Empowering millions to use automated wealth building and integrated mobile banking services to attain financial freedom
Beanstox’s vision is to become a leading personal financial platform for the millions of middle-income households considered “too small” by traditional wealth management service providers, and charged fees considered “expensive” by their traditional banks. Beanstox successfully launched automated wealth in March 2020, followed by a recent app redesign in February 2021, and increased its client base growth. Beanstox is also evaluating the potential to make investing and banking even easier by introducing Beanstox mobile banking (neobank model), with integrated cost-effective banking services, aiming to improve client service and accelerate growth. Neobanks are fintech companies providing digital banking services exclusively through mobile applications or websites. They do not have traditional physical branch locations, have reduced employee costs and some leverage the banking infrastructure provided by partner banks. The $27 billion neobank market has already experienced growth with an estimated 39 million users globally.
Our Team
On a mission to make financial freedom more accessible
Beanstox was cofounded by Chairman and brand ambassador, Kevin O’Leary, and CEO, Connor O’Brien. Kevin O'Leary has worked closely with the company’s core team since it’s development. The Beanstox team members have experience with investment management, digital marketing, customer service, compliance and more. With Kevin O’Leary giving Beanstox the unique edge of high impact marketing, we are focused on delivering a high-quality client experience. Our team now also includes professionals with experience in wealth management from major firms.
Why Invest
Now is your opportunity to become a part of our long-term growth
Beanstox is focused on helping millions of people grow their wealth over time and achieve financial freedom in a way that works for them. Our ability to achieve our goals will be accelerated by inviting like-minded people to become Beanstox clients and owners. As an Investor in Beanstox, become a part of our long-term growth plan.
ABOUT
HEADQUARTERS
75 State Street, Suite 100
Boston, MA 02109
WEBSITE
View Site
Beanstox is focused on a large consumer market, providing automated wealth building designed primarily for the 100 million Americans who have no investment account. We call it Seriously Simple Investing®. Kevin O’Leary is well-known from Shark Tank and has a social media footprint of 5M+ users across his platforms, which we believe gives Beanstox a significant marketing advantage and potential for accelerated growth.
TEAM
Kevin O'Leary
Chairman & Co-Owner
Connor O'Brien
CEO, President, Director & Co-Owner
Louise Anne Poirier
Chief Financial Officer & Chief Compliance Officer
Carrie Farnsworth
Adviser
TERMS
Beanstox
Overview
PRICE PER SHARE
$1.25
DEADLINE
Apr. 28, 2022 at 6:59 AM UTC
VALUATION
$26.98M
FUNDING GOAL
$10k - $3.93M
Breakdown
MIN INVESTMENT
$250
MAX INVESTMENT
$107,000
MIN NUMBER OF SHARES OFFERED
8,000
MAX NUMBER OF SHARES OFFERED
3,143,999
OFFERING TYPE
Equity
ASSET TYPE
Common Stock
SHARES OFFERED
Class B Non-Voting Common Stock
Maximum Number of Shares Offered subject to adjustment for bonus shares
*Maximum Number of Shares offered subject to adjustment for bonus shares. See Bonus info below.
Company Perks*
Early Bird
First 72 hours - Friends and Family - 20% bonus shares
Next 72 hours - Super Early Bird Bonus - 10% bonus shares
Next 7 days - Early Bird Bonus | 5% bonus shares
Volume
$5,000+ 5% bonus shares
$10,000+ 10% bonus shares
*All perks occur when the offering is completed.
The 10% StartEngine Owners' Bonus
Beanstox Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Class B Non-Voting Common Stock at $1.25/ share, you will receive and own 110 shares for $125. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
Irregular Use of Proceeds
The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Vendor payments.
ALL UPDATES
REWARDS
Owner’s Bonus
Owner’s Bonus Members earn 10% bonus shares on top of this and all eligible investments for an entire year. Not a member? Sign up at checkout ($275/year).
JOIN THE DISCUSSION
0/2500
HOW INVESTING WORKS
Cancel anytime before 48 hours before a rolling close or the offering end date.
WHY STARTENGINE?
REWARDS
We want you to succeed and get the most out of your money by offering rewards and memberships!
SECURE
Your info is your info. We take pride in keeping it that way!
DIVERSE INVESTMENTS
Invest in over 200 start-ups and collectibles!
FAQS
Crowdfunding
With Regulation A+, a non-accredited investor can only invest a maximum of 10% of their annual income or 10% of their net worth per year, whichever is greater. There are no restrictions for accredited investors.
With Regulation Crowdfunding, non-accredited investors with an annual income or net worth less than $124,000, are limited to invest a maximum of 5% of the greater of those two amounts. For those with an annual income and net worth greater than $124,000, he/she is limited to investing 10% of the greater of the two amounts.
At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.
Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.
StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market, or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.
For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.
For Regulation A+, StartEngine allows for a four-hour cancelation period. Once the four-hour window has passed, it is up to each company to set their own cancelation policy. You may find the company’s cancelation policy in the company’s offering circular.
Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.
Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to get sent back to the account associated with the investment.
Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.