Spark xyz

Turn Technologies.

Turn builds solutions for the 1099 labor supply side of the gig economy.

Chicago, IL, USA

One Liner: Turn builds solutions for the 1099 labor supply side of the gig economy.

Problem: There are 3 universal labor challenges affecting on-demand platforms: ¥ Costly Worker Acquisition - No central source of verified, interested workers. ¥ Intermittent Worker Engagement - A single company can rarely keep a worker busy throughout the work week. ¥ Low Worker Retention - Downward wage pressure and lack of benefits makes workers look elsewhere. Turn’s current identity screening product and sourcing tool reduce acquisition costs. Future products will address engagement & retention.

About Us: Turn is a more effective way for on-demand platforms to secure and manage the labor supply side of their operations. In 2018, we built one of the most sophisticated identity mapping tools to facilitate a better, cheaper, and faster worker screening solution for on-demand platforms. In 2019, we commercialized the identity solution and secured our first 100+ platforms/employers including category leaders like Rinse, Papa, AxleHire, etc. In 2020, we launched our worker sourcing tool to vertically integrate worker acquisition as a single platform. Today, Turn is a B2B platform that helps employers source, screen, and retain 1099 workers.

Business Model: We are a B2B platform targeting employers who need to source, screen, and retain 1099 workers. The screening product is transactional in nature with 40% gross margins on an average $20 price per worker screened. Since launching 15 months ago, we can demonstrate an LTV/CAC ratio of 8x, less than 1% churn, and payback in 4.5 months. The worker sourcing product is a high margin subscription model driving an overall blended GM for the combined screening and sourcing business of around 70%.

Quote: Our annual, exclusive screening contracts provide us a guaranteed revenue path, access to a verified 1099 workforce, and the associated worker performance data to enrich profiles and improve our sourcing tool. There are inherent network effects at play with the Turn labor marketplace. As more companies utilize the screening tool, the workforce grows, and the sourcing tool becomes invaluable. As more companies rely on Turn for their supply side needs, we create a competitive moat.

Revenue To Date

$1.88M

MRR

N/A

Revenue YTD

$5.11M

Burn Rate

$80K

Business Strategy: We have a proven, repeatable sales model to accelerate 1099 worker growth & revenue. Our sales team is understaffed to capitalize on our proprietary CRM of 8k employers and 20k curated contacts. With investment and 18 months, we can become a major player with massive traction. Additional metrics for Q3 2020: ARPA per month - $897 Gross Margin - 40% LTV - $11,736 CAC - $1,473 Our metrics to-date primarily reflect the worker screening business. The worker sourcing business is launching now.

Networking: We are open to meeting up to grab a coffee, or just to chat. We would really enjoy your feedback and insight into our venture and would be happy to discuss anything that you are currently working on to see if we can be of service!

Valuation

$15M