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Prefix Inc.

PreFix is a tech-enabled service that eliminates the hassles of home ownership, saves homeowners up to 50% off home maintenance costs, and creates a data-driven “operating system” for the home.

Austin, TX, USA

One Liner

One Liner
PreFix is a tech-enabled service that eliminates the hassles of home ownership, saves homeowners up to 50% off home maintenance costs, and creates a data-driven “operating system” for the home.

What Problem We are Solving

Problem
The average homeowner spends $3000 and 30 hours a year on what is a fundamentally a broken process of unreturned calls, service windows, exploitive pricing and general confusion on what ongoing maintenance is needed. This is one of the biggest consumer problems there is.

About Us

About Us
PreFix is a tech-enabled service that eliminates the hassles of home ownership, saves homeowners up to 50% off home maintenance costs, and creates a data-driven “operating system” for the home. A fully trained, dedicated Home Manager fixes most things for a low copayment. Seasonal preventive maintenance on all appliances and systems is included, which pays for the cost of the service on its own. For only the most complex repairs we use our vetted contractors at low, negotiated rates with no mark up.

Venture Highlights

Highlights
1.  Grew 7x over pandemic to $3.4M+ in annualized revenue through own D2C playbook - and continue to accelerate. 
2.  Even as we accelerate rapidly we have maintained near perfect reviews and an NPS >80.
3.  Strategic partnerships with a major national insurer and large public utility get new cities we are launching to instant profitability and almost instantly double our revenue in the coming months.  These prepaid pilots alone will get us to Series B metrics.
4.  We have demonstrated gross profitability/unit economics across most of our territories.  
5. $4.5M Seed+ fully subscribed.  $300k remaining of $750K extension.  
6. Series A to start in 30 days with 50% already soft circled.  

Business Model

Business Model
For the average home we charge $40 month as recurring subscription revenue. There is no contract yet we have very low churn (~13% annualized). The extensive semi-annual preventive maintenance visits described above are included in that price. PreFix Members then get access to repairs performed by their Home Manager at $40/fix (or $40/hr. for those repairs that take longer than an hour - most don't). We have steadily added other services to show how we can monetize the trusted relationship with homeowners. We launched full service HVAC installations last fall, specialty carpentry/painting, and seasonal services like power washing and gutter cleaning. We will continue to expand margins through other services and in collaboration with our industry partners.

We also have highly consumable data for our industry partners across all the homes that we serve which includes things like cost-to-own and market share for all appliances and systems in the home as well data that can significantly reduce underwriting cost.

Competitive Advantage

Quote
The operational complexity that the company has tackled in creating this new category of “home management” creates a degree of defensibility against incumbents or new entrants that may try to copy the model. New entrants that have tried to “short cut” by creating apps/marketplace without any real investment in the broader business model have all failed. Should a competitor directly copy the model, this is likely not a winner-take-all market. 

Revenue

Revenue To Date
$3.71M
MRR
$282K
Revenue YTD
$1.63M
Burn Rate
$130K

Go-To Market Strategy

Business Strategy
There are two key components of PreFix’s go-to-market strategy 1) An efficient, hyperlocal, D2C playbook and 2) large strategic distribution partnerships. We now have strategic partnerships with a highly-regarded, national insurer that is launching us in other cities. 

We also have a partnership a large public utility who will do the same. They have millions of customers in Texas alone and can immediately get us a solid beachhead in any metro area where we launch. Launches with these partners in San Antonio, Houston, and Dallas will instantly double our revenue in the coming months as we raise our Series A. We then run our hyperlocal playbook alongside which has already gotten us to >$3M in annualized revenue. We are steadily adding other services to increase margins.

Competitive Analysis

Competitive Analysys
There are two incumbent models that are representative of most competition 1. Marketplaces (like Angie's List or Thumbtack) may lower search costs but really address none of the problems above. They use 1099 contractors and simply cannot control for quality and create trusted relationships with homeowners. 2. And Home Warranties (like American Home Shield), which are really just bad insurance at at odds with their customers’ best interests. They make their margins by also using 1099 contractors that are willing to be undercompensated, or denying claims by customers for various reasons.
Competitor Website
American Home Shield ahs.com
ANGI www.angi.com

Networking

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!

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Capital

Loading...
Name Amount
Amount Left $350,000.00
Amount Raised (This Round) $4,900,000.00
Amount Raise To Date $9.3M
Type of Raise SAFE

Valuation
$12.8M
Friends & Family
$200K
Preseed
$4.6M
Seed Bridge
$4.5M

TAM SAM SOM

TAM
$75T
SAM
$30B
SOM
$10B

Business Stage

Business Stage
Series A

Business Type

Business Types
Venture Capital Backed

Categories

Sustainability
IoT
Insurtech
Fintech
B2C
B2B2C
B2B
Technology
Real Estate

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Last Updated: 05/23/22

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