Focusmate

Increasing Productivity Through Virtual Co-Working

Company Information

Website:

https://www.focusmate.com/

Sector:

Collaboration & Project Management Software

Location:

New York, NY

Focusmate is building what it calls the “digital workplace of the future.”

The company has developed a system that optimizes productivity for remote workers by using the concept of "peer accountability."

Essentially, its solution enables two users anywhere in the world to act as "accountability partners." These partners sit “side by side” virtually while doing their work, helping to induce what psychologists call “flow” — long stretches of intense focus.

Focusmate is targeting several enormous industries, including the $1 trillion freelancer market and the $70 billion corporate training market.

Today, 75% of online workers work remotely at least one day per week. And according to company research, 38% of the average person’s workday is wasted by distractions.

To combat these distractions, consumers spend $46 billion annually on various productivity solutions, including task managers, business coaching, self-improvement, and ADHD medication.

But these solutions aren’t effective. Productivity tools don’t directly address a person’s inability to focus, medication can have adverse side effects, coaching is expensive, etc.

Focusmate’s platform drives productivity using the same brain-reward mechanisms as social media and online games, which represent 44% of all mobile app usage.

Research has shown that the most effective behavioral triggers are human- and social-based. These include triggers like accountability, social pressure, pre-commitment, and task specificity.

These triggers have been applied successfully in the fitness industry by Peloton, an exercise company recently valued at $4 billion. Peloton sells stationary bicycles and offers group fitness classes that participants join remotely. Behavioral triggers induce participants to boost motivation and accountability.

Focusmate is applying this model to the productivity industry.

Recently, this industry has experienced notable M&A activity. For example, in 2017, Atlassian acquired team productivity app Trello for $425 million. And that same year, Amazon acquired Do.com, a platform designed to make meetings more productive.

With Focusmate, users select the times they want to be productive and launch a video session. Before starting their 50-minute session, they greet their partner and declare their goal. Users then work quietly, and thanks to human accountability, they can accomplish their goals.

Focusmate recently completed a pilot program with approximately 5,000 users. 96% of those surveyed said Focusmate improved their productivity by “at least half.” Active users scheduled approximately 10 sessions per week, and 51% of them said they'd be willing to convert to a paid subscription.

Focusmate has already received $350,000 in funding from Venture Capital firms including CoVenture, Betaworks, and Towerview Ventures.

The company also received funding from Nir Eyal, an entrepreneur who MIT’s Technology Review declared “The Prophet of Habit-Forming Technology.” Eyal has previously invested in several work-productivity companies that achieved successful exits, including Worklife (acquired by Cisco), Refresh.io (acquired by LinkedIn), and ProductHunt (acquired by AngelList).

Focusmate is growing its number of daily active users by 20% month over month. And the company has been featured in Men’s Health, Small Business Trend, LifeHacker, and The Muse.

Although it is currently pre-revenue, Focusmate plans to monetize in 2019 through a “freemium” subscription model. The free basic version will offer 10 sessions per month, while the premium version will cost $20 per month and offer unlimited sessions and advanced features. Teams will also be able to subscribe for $10 per seat per month, enabling them to have unlimited sessions and a private channel.

Focusmate’s pilot program focused on the $1 trillion freelancer economy, which is projected to include half of the U.S. workforce by 2020.

In addition to this market, the company is targeting those who work remotely, and is preparing for an enterprise pilot with a global consulting firm in early 2019. Focusmate will also target the $70 billion corporate training industry, as well as the online education market. The company is in talks with a leading publisher to complete an education pilot next year.

With funds raised from this new round, Focusmate will continue doing product development and increase its marketing budget. The company’s marketing strategy will focus on social media, strategic partnerships, customer referrals, and optimizing search engine results.

Over the next 18 months, Focusmate will complete a full product launch of its beta platform, and begin generating recurring revenue. Long term, the company may explore creating a mobile app to help non-office users with activities such as morning chores and daily routines.

Team Background

Michael Galanos - Co-Founder & CTO

Michael has more than 20 years of experience as a software engineer, and built Focusmate’s first prototype.

He spent nearly three years as a senior software engineer with Intel and 14 years as a senior staff engineer with Motorola. While with Motorola, he was a key contributor to major products including cell phones like the “Razr” and tablets like the “Surface 3.”

Michael earned a Bachelor’s degree in Electrical Engineering from Southern Illinois University.

Taylor Jacobson - Co-Founder & CEO

Taylor has extensive experience in the areas of coaching and training, including time as an executive coach for clients at Yale, Cornell, and Harvard.

Prior to starting Focusmate, he served as a leader at Venwise, a group offering start-up executives the opportunity to collaborate and network.

He formerly served as a member of the Forbes Coaches Council, a network of leadership and professional development coaches and consultants.

Taylor previously founded A Penny A Day, a company focused on micro-philanthropy.

He was employee No. 6 at Teach For India, a non-profit organization that recruits college graduates to serve as full-time teachers in low-income schools.

For two years, he served as a consultant for Oliver Wyman, a global management consulting firm.

Taylor earned a Bachelor’s degree in Economics from Duke University.

Nir Eyal - Advisor

Nir is a writer, consultant, and teacher in the areas of psychology and business. The M.I.T. Technology Review called him “The Prophet of Habit-Forming Technology.”

He previously invested in several companies that achieved successful exits, including Worklife (acquired by Cisco), Refresh.io (acquired by LinkedIn), and ProductHunt (acquired by AngelList).

Nir earned a Bachelor’s degree in Political Science from Emory University and an MBA from Stanford.

Co-Investors

CoVenture

Company that invests in early-stage start-ups and builds software for the companies it invests in.

Betaworks

A venture capital company that invests in consumer-facing media businesses.

Towerview Ventures

Group that gives Duke alumni access to VC investing.

Raising
$1.07 million
Committed
$125.282K (12%)
Current Valuation
$5.5 million Cap / 20% Discount
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
SAFE
Finance History
  • $67.5K
    2017-04-05
    Unknown
  • $255.375K
    2018-05-15
    Unknown
Notable Investors
  • CoVenture
  • Betaworks
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