Michael Tavani is the pioneering Founder & CEO of Switchyards.
He leads a team of 28 FTEs and 80 PTEs who are building Switchyards into a category leader one location at a time.
A serial entrepreneur, Michael founded Scoutmob and several other startups before creating Switchyards.
He has successfully raised venture capital from top-tier firms like Cercano, Overline, Form Capital, and other angels.
Switchyards V x
Homegrown
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Past performance is not indicative of future results. Any forward-looking statements or forecasts are based on assumptions that may not be accurate and are subject to risks and uncertainties. All investments involve risk, including the potential loss of principal. Please consult your financial advisor before making any investment decisions.
Switchyards
Your 24/7 neighborhood work club
The business
Get to know Switchyards
Switchyards is the world’s first neighborhood work club. We're creating places to do our best thinking and most productive work.
Important things to know:
- with this raise, Homegrown will HELP SWITCHYARDS OPEN 3 NEW LOCATIONS
Target IRR is 21% (16.4% annualized) - $6.7M expected 2024 top-line REVENUE
- 24% 4-WALL eBITDA MARGIN
- new: Monthly payments will be fixed to provide Switchyards with a more predictable pay schedule
NEW: Each tranche has a seven month introductory period
Breakdown of Distributions
For each tranche, Homegrown and Switchyards agree to debit the payments shown in the distribution schedule instead of a % net revenue share.*
Distribution Schedule
Months
Payment
1 - 7
$920 per month
Introductory Period
8 - 34
$5,234 per month
35 - 46
$7,751 per month
Total Payback
(1.51x)
$240,766
*A total Business Net Revenue Share of 1% is imposed to ensure the legal structure of the deal is a Revenue Share Agreement. Switchyards can ask Homegrown to complete a reconciliation process at which point Homegrown would review Switchyards’ net revenue and adjust payments to match the 1% net revenue share.
See your returns
General Disclaimer
- Information Purposes Only: This calculator is provided for informational purposes only and should not be considered financial advice. Users should consult with a financial advisor before making any investment decisions.
Assumptions and Limitations
- Assumptions: The projections made by this calculator are based on the assumption that 1% of Switchyards' monthly net revenue will meet or exceed the monthly payments on the distribution schedule. Actual results may vary.
- Limitations: The calculator does not account for all variables that may affect investment outcomes, such as changes in market conditions, taxes, fees, or other unforeseen factors.
No Guarantee of Results
- No Guarantee: Past performance is not indicative of future results. The projected returns are hypothetical and do not guarantee any specific outcome or profit.
User Responsibility
- User Responsibility: Users are responsible for verifying the accuracy and applicability of the information provided by the calculator to their personal circumstances.
Liability
- Limitation of Liability: We are not liable for any losses or damages arising from the use of this calculator or reliance on its projections.
LOCATIONS
This raise will enable Switchyards to open 3 new locations in Georgia, Tennessee, and the Southeast.
Downtown
Chamblee
Cabbagetown
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Westside
Decatur
Buckhead
Eastwood
belmont
Virginia Highlands
Adair park
Oakhurst
old Fourth Ward
Midtown
Berry Hill
East Hill
Germantown
Roswell
Asheville
Avondale
Greenville (REAL)
Sylvan PArk (REAL)
Toco Hills
Charleston
Denver
Kansas City
Birmingham
SWITCHYARDS IN THEIR WORDS:
"People want an inspiring place outside of the home and outside of the office to work around other people.”
“My motivation every morning is to create something really special and pour all of my talents, energy, resources and bandwidth into Switchyards”
Switchyards
Michael Tavani
Chief Executive Officer
The Investment Opportunity
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Deal fundamentals
Opening three new locations with your help
Important things to know:
(projections are conservative)
(projections are conservative)
- Deal Size: $478K
- Investor Return: 1.509x
- Revenue Share: Homegrown will debit the payments shown in the distribution schedule on the following page instead of a net revenue share
- Projected IRR Range: 19-23% (21% expected, which equates to 16.4% annualized IRR)
- Projected Duration: 46 Months
- Minimum Check Size: $5,000
Why we're excited about Switchyards:
- Experienced management team with visionary leadership
- High-quality product with great customer loyalty & advocacy
- Consistent revenue growth, with a great degree of potential upside
- Strong track record from the first three deals
- Business model takes reservations and pre-sells memberships well before new clubs open which de-risks new location growth
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