Cloosiv

In 2018, consumers are expected to make $626 billion of payments via their mobile devices.

Cloosiv, a financial technology company, aims to capture this opportunity with its mobile payment platform for local businesses.

Financial technology, also known as “Fintech,” has become an exciting sector for investors, notably due to significant M&A activity — for example:

In September 2017, Hellman & Friedman acquired Nets, a payment processing company, for $5.3 billion…

In May 2018, PayPal acquired iZettle, a payment platform for small businesses, for $2.2 billion…

And in December 2017, Total System Services acquired Cayan, a payment technology company focused on small- and mid-sized businesses, for $1 billion.

With its platform, Cloosiv is targeting the more than 2 million small and local businesses in the U.S.

Today, more than 70% of Millennial consumers — those between the ages of approximately 22 and 38 — prefer to shop via their mobile phone.

To adapt to this trend, 84% of all retail and dining chains plan to offer a branded mobile app by 2020. Another 42% are building checkout experiences that enable customers to use their own devices to purchase items.

Starbucks, for example, processes 20% of its peak-hour transactions via its mobile app, which accounts for $2.2 billion in annual sales.

The problem is that the average cost to build, deploy, and maintain these mobile apps is roughly $75,000 — a cost many local merchants in the U.S. can’t afford.

Cloosiv is providing a solution to these businesses by helping them offer a mobile payment option to consumers.

Initially, the company is targeting the coffee market, an industry projected to grow to $28 billion in sales by 2021. Specifically, Cloosiv is targeting the 45,000 independent coffee shops in the U.S. If it can capture 25% of this market, that would equate to $6 million in annual recurring revenue.

Cloosiv’s solution benefits businesses and customers:

Businesses can provide customers with an in-store mobile payment option — without having to build their own branded solution…

And consumers only need to download a single app to pay for goods and services in their community, rather than downloading a new app for each merchant.

Cloosiv is accepted by companies across four different verticals: Retail, Restaurants, Services (such as gyms or salons), and “Quickserve” (such as fast casual restaurants).

The company’s ability to support all four of these types of merchants is what separates it from other mobile payment solutions.

Merchants interested in joining Cloosiv’s network can be up and running in 20 minutes. Companies pay a fixed-fee subscription to be featured on Cloosiv’s network, and pricing is determined by the merchant’s vertical, as well as the number of transactions processed per month.

In the future, Cloosiv aims to create additional revenue sources, including in-app advertising, marketing services, and data packaging.

Cloosiv has nearly 3,000 users and more than 40 merchants on its platform.

In 2017, Cloosiv was accepted into the VentureOut and XRC Labs Innovation Accelerator programs. VentureOut supports top tech companies with a specific focus on the Fintech sector. And XRC Labs is an accelerator focused on the retail and consumer goods industries.

This year, Cloosiv secured a partnership with Square (NYSE: SQ), a Fintech company offering credit card payment processing.

The company was recently accepted into the Oracle (NYSE: ORLC) Start-up Accelerator program. In addition, Cloosiv was selected to be a part of Money20/20’s start-up academy. This program’s advisory board includes Angela Strange, a partner at Andreessen Horowitz, and Sheel Mohnot, leader of the Fintech sector of 500 Startups.

Team Background

James Buckhardt - Chief Product Officer

James brings both mobile and web development experience to Cloosiv, specifically when it comes to developing mobile payment solutions.

Before serving as the company’s Chief Product Officer, he founded New Line Dev, a mobile app development company providing app creation and consulting services.

For nearly six years, he served as a lead iOS developer for AVAI Mobile Solutions, a mobile technology company. While there, he worked with notable clients including Disney, Oracle, and the Bonnaroo Music Festival.

James earned a Bachelor’s degree in Psychology from the University of Texas at Austin.

Tim Griffin - Founder & CEO

Prior to launching Cloosiv, Tim worked in the management consulting business for six years.

He assisted Fortune 500 retail companies with development and implementation of sale strategies to deliver mobile sales growth.

He formerly served as a consultant for North Highland, a global consulting firm that generates more than $350 million in annual revenue.

In addition, he served as a consultant for Boston Retail Partners.

Tim earned a Bachelor’s degree in English Literature from the University of Massachusetts.

Co-Investors