Michelle HammondFollow on twitter www.startupsmart.com.au
Pre-launch start-up TheBestDay scores $1.1 million in funding
Young entrepreneur Whitney Komor has scored $1.1 million from OneVentures and Sydney Angels for her social planning start-up TheBestDay, which is still months away from launching.
TheBestDay, which was founded in 2011 and is based in Sydney, promises to “make plans happen” by enabling users to calculate “the best day” for their plan.
Komor, aged 24, developed the idea for TheBestDay after becoming frustrated by the process of organising activities with her friends.
After self-funding the development of a prototype web-based tool, Komor beta tested the website with a limited group of users and businesses, and undertook market research to determine whether there was a demand for TheBestDay concept.
Komor initially worked on TheBestDay on the side whilst working for Coca-Cola, and was featured in the StartupSmart 2012 Future Makers list, which recognises the most promising young Australian entrepreneurs.
While TheBestDay hasn’t launched yet, it has closed a $1.1 million funding round.
The deal, led by OneVentures, is a co-investment with members of Sydney Angels and the Sydney Angels Sidecar Fund. Their various stakes in the business are undisclosed.
The funds will be used to launch TheBestDay’s social planning tools, which aim to make it easier for a group to agree on a time and place for an activity.
Meanwhile, businesses will be able to promote plan suggestions to targeted users, potentially securing revenue from valuable group bookings.
TheBestDay plans to launch in the coming months, and several major Australian business partners are already on board.
“Initially I thought I would only raise a couple of hundred thousand,” Komor told StartupSmart.
“Then I thought I would raise a bigger funding round [further down the track]. I realised this is not a good idea because the time it takes to close a deal is such a long period
“All of a sudden, I had these two offers because I presented at Heads Over Heels.
“Michelle Deaker from OneVentures was sitting in the audience and came up to me afterwards and said, ‘I really like it; I really like the model. I think we could do half a million’.”
“That was Monday night. On Tuesday night, I presented to Sydney Angels and 18 hands went up in the audience. I was told the most hands they’d ever have up was four.”
Komor says there are major benefits to having a diverse group of investors backing the business.
“Our vision for TheBestDay is to be the global platform for making plans,” she says.
“The company will benefit from both the sophisticated, strategic support of OneVentures as well as access to the variety of networks and expertise of the [Sydney] Angels.
“It’s the best of both worlds.”
According to Sydney Angels syndicate lead Andrey Shirben, the deal attracted the largest number of interested members among the Sydney Angels network.
“[The deal] was done, start to finish, within a record-breaking 42 days,” Shirben said in a statement.
“The reason behind it is very simple – the team behind TheBestDay and particularly the founder, who’s a very impressive and ambitious entrepreneur with a solid vision.
“It’s our honour to back her.”
OneVenture partner Anne-Marie Birkill said in a statement the investment confirms OneVentures’ commitment to developing a diverse investment portfolio.
“[This includes] young, talented entrepreneurs with ideas that have a demonstrated need,” Birkill said.
“TheBestDay serves a high value market need and we see that it provides a variety of additional valuable revenue opportunities outside of its immediate business focus.
“We are pleased to welcome Whitney and TheBestDay team to our portfolio.”