tagSpace

PublicWholesale
Round Max: AUD$400,000Offer Live

tagSpace is a global pioneer in location-based Augmented Reality

Round Max: AUD$400,000Offer Live

tagSpace Wholesale

This offer is exclusively open to wholesale, sophisticated and accredited investors.

All investments will be held through the Equitise Nominee. The Equitise Nominee is a Bare Trust structure that holds securities on behalf of the investor. The Nominee is in place to handle administrative responsibilities on behalf of the company and to limit total shareholder numbers. Investors are entitled to the same rights as they would directly on the share register. More information can be found in the Investment Agreement, accessible at the final stage of investing.

The minimum investment for this offer is $5,000. In this seed round, TagSpace has already secured pre-commitments of $200,000 from Deutsche Telekom and Beresford Ventures, a US based VC firm.

The company has raised $2,000,000 in previous rounds, including investment from Techstars, Quake VC, Azafran Partners and Jelix Ventures.

  • Security Type
    : SAFE Note
  • Minimum Investment
    : $5,000
  • Pre-Money Valuation
    : $7,650,000

Company Overview

Launched in 2017, tagSpace is a global pioneer in location-based Augmented Reality (“AR”). Combining elements of the physical world with digital content, TagSpace’s AR helps people any time when a map does not; guiding them through large or unfamiliar spaces, whilst overlaying videos, images, 3D objects and advertisements at each location.

AR promises “entertainment everywhere” but is currently inaccessible to potential enterprise customers because they lack the in-house skills, budget and time to create AR-ready assets and apps.

The most famous examples of AR to date are low-end singular experiences, such as the widely popular Pokemon Go smartphone game.

tagSpace’s no-code platform allows enterprise clients to easily create their own branded, city-scale AR experiences which integrate into their own apps; to promote end-user engagement and conversion, plus drive new revenue streams. To date, this technology has found application in advertising, live events, tourism and smart cities. tagSpace also has plans to grow a B2C marketplace.

The global addressable market opportunity for augmented reality in tagSpace’s current B2B markets is $50bn, across Telcos, Mediacos, Smart Cities and Events industries. tagSpace anticipates significant growth in their addressable market size as the company develops a B2C offering.

Investment Highlights

  1. Advanced and Scalable Technology

    tagSpace’s patented and proprietary technology allows clients to quickly create their own location-based AR experiences and provide access via white-labelled apps. There are no location-based AR competitors which operate at the same scale.

  2. Diverse, Global Use Cases

    tagSpace already has validation in live events / festivals (e.g. Splendour in the Grass, Web Summit), tourist boards (e.g. Visit Victoria, Cologne), city experience operators (e.g. Secret Media), Smart City integration (Deloitte) and location-based advertising (e.g. Deutsch Telekom, N-TV) markets. Underpinning this, many telecommunications providers view TagSpace’s AR as both a core use case and viable business model for 5G technology.

  3. Multiple Routes for Monetisation

    tagSpace monetises its AR offering through a Premium SaaS model; charging enterprise clients for setting up experiences and a monthly licensing fee for maintenance. Additional revenue share and brand partnership opportunities are leveraged for location-based advertising. Finally, TagSpace plans to develop a B2C marketplace offering, allowing individuals to create and monetise their own AR experiences.

  4. Leading the Transition to 5G

    tagSpace was selected by Deutsche Telekom, out of a pool of 1,000 global startups, as a key partner for their 5G consumer rollout. This has led to additional discussions with eleven of the world’s largest telecommunication companies including T-Mobile, Orange, Optus and KDDI (Japan), for combining white-labelled tagSpace AR products (e.g. AR smart glasses) with their 5G-enabled plans.

  5. Experienced Team

    tagSpace’s founder, Paul Martin, is an experienced videogame technologies engineer and entrepreneur, who previously exited a commercial video games studio that generated $100mn in revenue. Paul is supported by a talented development team with a long history of leadership within the world's largest videogames companies and Head of Sales with over 10 years' experience within Telstra, Optus and Singtel.

Revenue Model

tagSpace currently charges enterprise clients according to their respective use case:

B2B Revenue Model

Applicable to live events, smart city integration and tourism operators

Pilot/ Set-up fee: $16,000 - $80,000

  • One-time / Annual Events
  • Pilot pricing

Ongoing SaaS: $3,000 - $16,000

  • 30% conversion from pilot projects
  • Content tools
  • Analytics
  • Support

Advertising and Partnerships

Applicable to purchases arising from engagement with augmented reality advertisements:

  • 20% commission on advertising and click-through revenues