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Problem
We're in a "Friendship Recession"...
…thanks to fewer group activities,
technology, social media & COVID-19.
52% of Americans report feeling lonely—73% of millennials.
60% say they feel less connected to their co-workers than before the pandemic.
Rates of anxiety and depression have risen by 70% in the last 25 years.
Although the pandemic made things worse, technology and social media also have a part to play, as high usage can lead to loneliness, depression, and anxiety.
Solution
Bring artists & venues together to host unique events in their communities
- Just 10% of art graduates make a living from their art practice.
- Restaurants and bars need innovative ways to reach new customers.
- Restaurants and bars already compete on ‘Eatertainment’ options.
PaintNite.com makes it easy and compelling for local artists, restaurants, and bars to connect and run creative social events (e.g., our popular Paint Nites).
These events also have tangible benefits for communities:
- Creativity improves self-confidence and mental health
- Socializing makes us happier while providing a sense of belonging
Product
Creative events near you
Our flagship experience is the original Paint Nite, a fun paint and sip party where guests recreate a painting from our library with step-by-step guidance. But we have many other creative options, too, including…
The recent addition of flower arranging (supported by 1-800-Flowers.com)
Plant Nite (terrarium making)
Chunky knit blanket making
Virtual and on-demand events
Traction
Huge success pre-pandemic that's making a comeback
Key areas of the business
are on the rise!
Lifetime
- 10M tickets sold
- 100M+ in revenues
- 5,000 events per month (pre-pandemic)
- #2 on INC’S fastest growing US companies list (pre-pandemic)
In-person events up 300% in the last 8 months.
Plus, our host & venue applications continue to rise.
New revenue streams added during the pandemic:
- Virtual events (over $12m in revenue during the pandemic)
- Events on demand launched in August ‘22
Our customers are passionate about painting:
- 48% of monthly sales are Repeat purchases.
- Virtual & on-demand repeat rates are even higher than In Person
Diversified revenue includes corporate & private events
Business model
A highly scalable model that's extremely cash efficient
No upfront fees for local artists to join the platform.
We screen for the best candidates. They can start posting events and selling tickets with no out-of-pocket costs.
Local artists earn 70% of ticket revenue.
They handle all the local marketing, event supplies, and logistics.
PaintNite.com makes 30% of revenue + a 10% service fee at check out.
The platform provides the technology, payment processing, a robust library of projects, and access to wholesale supply pricing. Plus, it offers a vast support network of other hosts.
Additional sales channels.
PaintNite.com also sells gift passes/discounted vouchers with as high as 25% breakage.
- A single event typically earns the host ~$600 gross ($450 net of supplies), while the platform makes ~$260.
- The venue typically generates an incremental $625 on an otherwise slow night.
- Adding a single weekly PaintNite.com event generates an average of over $32k in additional revenue for a venue—free of charge.
- On average, gift passes/vouchers are purchased 32 days before event attendance.
- Regular ticket purchases are typically made 19 days before an event.
- The average payout for event hosts is seven days after the event.
Combined, the company nets an average of +28 days in its cash cycle.
Market
Social painting
is big business
People want to get out and do something other than drinking….And they’re willing to pay for it.
- Between 2016–2021, the US paint and sip industry grew by an average of 6.7% per year, reaching a revenue of $463.5 million in 2021. It’s predicted to grow at an average annual rate of 3.3% from 2021 to 2026. (IBIS World)
- As of 2020, the events industry was worth $890 billion—that number is expected to jump to $2.19 trillion in 2028. (Zippia)
- Women control over 80% of all consumer spending (Bankrate)—our customer base is 90% female.
- Demand for in-person events jumped from 63% in the first three months of 2021 to
96% in 2022. Nearly one-third of U.S. survey respondents say that spending on live events and experiences is an essential or high priority of theirs for 2023. (Tamara Mendelsohn, CMO for Eventbrite)
Vision and strategy
Be flexible, expand the network & keep it real
Low overhead
Unlike our franchise competitors, we remain ‘lightweight.’ When we open a new location, there are no leases to sign or licenses to apply for. We can expand into new areas and venues with a simple handshake deal and step away from places that aren’t working with no cost associated.
The best hosts
We work directly with passionate local artists who genuinely love our brand—not business people only interested in making a buck. This lets us, the platform, have real and heartfelt connections with our consumers.
A global community
We plug each of our artists into a larger community of creatives around the world, producing gravity for the brand and making the platform more compelling.
Customer feedback-led quality control
Hosts receive clear and transparent quality control based solely on our customers' feedback. We maintain a natural pressure to keep their event quality up, but in a way that doesn't create internal resentment for the platform.
Exit strategy
We now work more closely than ever with strategic investors as well as B2C craft suppliers. Just as we were pre-pandemic, we expect to be an acquisition target as our network, revenue numbers and annual supply consumption return to where they were.
Founders
Dan Hermann
- Grew the company profitably to $70M before stepping aside in 2017.
- Returned as CEO in 2021, focused on bringing the company back from the pandemic.
- BA from UW Madison.
- MBA from Babson College | 2009-2010 Ralph & Charlotte Sorenson Scholarship Award for Meritorious Achievement | 2010 Winner of The Babson Business Plan Competition.
