Startup Spotlight: Presence

Startup Spotlight

CAGR:
25%

Total Market Size:
$192 Billion

Available Market
$3.84 billion

Obtainable Market:
$38.4 - $76.8 million

Industry:
Community Building App

Funding Needs:
Pre-Seed

Location:
Eastern Europe

Funding To Date:
Undisclosed

Available Market:
$388 Million

Total Market Size:
$4079.1 Million

Industry:
AI Video Editing

Funding Needs:
Series A

UVP:
Connects like minded people

Platform:
Andriod

Platform:
IOS

Monetisation:
Subscription

Market CAGR:
18%

User Base:
22 000+

Investment Grade:
B+

Intro To Presence

Presence is a networking and community platform designed to connect creatives and like-minded individuals both locally and globally. It facilitates the discovery of people nearby with shared interests and backgrounds, catering to a diverse user base including passionate enthusiasts and industry professionals. The app promotes local connections and global communities, aiming to foster meaningful encounters through AI-powered suggestions tailored to user preferences. Features include real-time distance display, community chats, and the ability to share media and social links on profiles .

Competitive Landscape and Strategic Insights:

The competitive landscape for community-building apps is diverse, with several key players dominating the market, each catering to different aspects of community engagement. Platforms like Meetup and Eventbrite focus on organizing in-person events and gatherings, fostering local community engagement around shared interests or activities.
Nextdoor stands out for its hyper-local approach, connecting neighbors within the same geographical area for support, information exchange, and local event organization.
On the other hand, Discord has carved a niche in the virtual community space, initially popular among gamers but now broadening its appeal to various interest groups with its voice, video, and text chat features. Facebook Groups remains a formidable player, leveraging the extensive reach of the Facebook platform to facilitate the creation and participation in communities based on diverse interests, causes, or activities.
Bumble BFF, an extension of the Bumble dating app, targets individuals seeking platonic relationships and friendships, emphasizing a more personal connection.

For Presence to successfully navigate this competitive landscape, it needs to identify and capitalize on unique differentiators that set it apart from these established platforms. This could include focusing on specific niche communities that are underserved by existing apps, offering unique features that enhance user engagement and interaction, or emphasizing privacy and security to appeal to users concerned about data protection. Additionally, strategic partnerships with organizations, influencers, or local businesses could help Presence expand its reach and provide added value to its users. By understanding the strengths and weaknesses of its competitors and continuously adapting to user needs and market trends, Presence can position itself as a valuable and distinctive player in the community-building app market.

Key Players in the Community-Building App Industry:
Meetup: A platform that facilitates the organization of in-person events and gatherings based on shared interests. It's a popular choice for local community engagement and hobby-based groups.
Nextdoor: A neighborhood-focused app that connects residents within the same geographical area, enabling them to share local news, organize events, and support each other.
Discord: Originally popular among gamers, Discord has evolved into a broader platform for creating and joining communities around various topics, with voice, video, and text chat features.
Facebook Groups: Part of the larger Facebook ecosystem, Groups allows users to create and participate in communities based on shared interests, causes, or activities.
Bumble BFF: An extension of the Bumble dating app, Bumble BFF focuses on helping users find friends and build platonic relationships in their local area or with similar interests.

For Presence, establishing a strong network and nurturing strategic partnerships are crucial for solidifying its market presence, expanding its user community, and maximizing its impact in the community-building app space. Here's a detailed and thoughtful examination of networking and strategic recommendations, drawing on industry best practices:
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1. Niche Focus: Presence can establish a unique market position by targeting specific niches or demographics that are currently underserved by existing platforms. This could involve creating communities centered around unique hobbies, professions, or lifestyle choices that resonate with particular user groups.

2. User Experience: In a market crowded with feature-heavy apps, Presence can distinguish itself with a simple and intuitive interface. By emphasizing ease of use and accessibility, Presence can attract users seeking a straightforward platform without the complexities of more elaborate apps.

3. Privacy and Security: As data privacy concerns continue to grow, Presence can position itself as a privacy-centric platform. By ensuring robust data protection measures and giving users control over their information, Presence can build trust and appeal to privacy-conscious users.

4. Localized Communities: Presence can focus on fostering local communities, encouraging users to connect with others in their vicinity for in-person interactions and mutual support. This approach can differentiate Presence from global platforms and cultivate a sense of belonging and community spirit.

5. Partnerships and Collaborations: Forming strategic partnerships with organizations, local businesses, and influencers can significantly boost Presence's reach and offer added value to its users. Collaborations with local bars, community centers, or cultural organizations can provide venues and opportunities for real-world community events and gatherings.

6. Content and Engagement: To keep the community active and retain users, Presence should regularly update the app with engaging content and interactive features. Incorporating elements like challenges, rewards, or community highlights can motivate user participation and foster a dynamic and vibrant community.

7. Feedback and Adaptation: Actively seeking user feedback and being open to adapting the app based on user needs and preferences are crucial for Presence's continued relevance. By responding to user input and evolving the platform accordingly, Presence can ensure it meets the evolving demands of its community.

By focusing on these strategic recommendations, Presence can navigate the competitive landscape of community-building apps effectively. By carving out a niche, prioritizing user experience, and leveraging partnerships, Presence has the potential to capture a share of the market and establish itself as a successful platform for fostering meaningful connections and communities.

Market Analysis for Presence:
The community-building app market is experiencing significant growth, driven by the increasing demand for digital platforms that foster social connections and community engagement. With the rise of remote work and the ongoing effects of the COVID-19 pandemic and its legacy of remote work, there's a heightened need for virtual spaces where individuals can connect, share interests, and support each other. Presence, with its focus on community building, is well-positioned to tap into this expanding market.

Key Trends and Growth Drivers:
1. Remote Work and Social Isolation: The shift towards remote work and the ongoing effects of social isolation have increased the demand for digital platforms that facilitate community building and social interaction.
2. Privacy Concerns: Users are becoming increasingly concerned about privacy and data security, driving interest in platforms like Presence that prioritize user privacy.
3. Niche Communities: There's a growing trend towards niche communities where users can connect with others who share specific interests or experiences. Presence can capitalize on this by offering tailored community spaces

Total Addressable Market (TAM):
‍The global social networking market, which includes community-building apps, was valued at approximately $192 billion in 2021 and is expected to reach around $939 billion by 2028, growing at a CAGR of around 25%.
Assuming that community-building apps represent a conservative estimate of 10% of this market, the TAM for community-building apps would be approximately $19.2 billion in 2021, expanding to around $93.9 billion by 2028.

Serviceable Available Market (SAM):
‍Presence's SAM is a subset of the TAM, focusing on users who prioritize privacy, simplicity, and meaningful interactions. Given the increasing concern for privacy and the demand for niche communities, let's estimate that Presence targets around 20% of the TAM. This would position Presence's SAM at approximately $3.84 billion in 2021, growing to around $18.78 billion by 2028.

‍Serviceable Obtainable Market (SOM):The SOM represents the portion of the SAM that Presence can realistically capture. Considering the competitive landscape and Presence's unique value proposition, let's assume an initial market penetration rate of 1-2%.This would result in an SOM of approximately $38.4 million to $76.8 million in 2021, expanding to around $187.8 million to $375.6 million by 2028.

Key Assumptions:
‍The global social networking market's growth rate and the proportion of community-building apps within this market are based on industry reports and trends.
The estimation of Presence's SAM at 20% of the TAM takes into account the increasing demand for privacy-focused and niche community platforms.
The SOM calculation assumes a conservative market penetration rate, considering the competitive nature of the market and Presence's current stage of growth.

Product-Market Fit:
‍Presence's emphasis on creating a platform that facilitates meaningful connections while respecting user privacy aligns well with growing consumer concerns about data security and the desire for more authentic social interactions. The app's minimalist design and focus on community building cater to a segment of users who are looking for alternatives to mainstream social media platforms, which are often criticized for their complexity and data privacy issues.

The trend towards digital wellbeing and the increasing interest in niche communities further support Presence's value proposition. Users are seeking platforms that offer a sense of belonging and connection without the noise and distractions of larger networks. Presence's approach to enabling users to connect with others who share similar interests or values resonates with this shift in user preferences.

Market Potential:
‍The potential market for Presence is substantial, given the widespread use of social networking apps and the growing demand for alternatives that prioritize user wellbeing and privacy.
As digital fatigue with traditional social media platforms grows, users are looking for new ways to connect online that offer a more fulfilling and less invasive experience.

To capitalize on this market potential, Presence could focus on the following strategies:
1. Niche Targeting: By catering to specific interests or demographics, Presence can attract dedicated user groups looking for a platform that aligns with their needs. This could include communities focused on hobbies, professional networking, or support groups.
2.Partnerships: Collaborating with organizations, influencers, or brands that align with Presence's values can help drive user acquisition and provide content that enriches the community experience.
3.User Engagement: Implementing features that encourage interaction, such as group activities, challenges, or events, can enhance user engagement and retention.
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4.Global Expansion: While starting in a specific region or with certain languages, there is potential for global expansion by adapting the platform to cater to diverse cultural and linguistic needs.

The market potential for a community-building app like Presence is significant, especially as users seek more meaningful and privacy-conscious alternatives to traditional social media platforms. By focusing on niche targeting, strategic partnerships, user engagement, and thoughtful monetization, Presence can capitalize on this opportunity and achieve sustainable growth.

This is our exploration of various monetization avenues, including traditional methods and innovative strategies that leverage Presence's unique positioning:

1. Subscription Model: A tiered subscription model can offer basic features for free while providing premium features, such as advanced analytics, exclusive content, or enhanced networking opportunities, to paid subscribers. This model can cater to individual users as well as organizations looking to build or manage their communities on Presence.

2. Event Partnerships and Ticket Sales: Presence can collaborate with event organizers and venues to promote local events, workshops, or meetups within the app. By facilitating ticket sales directly through the platform, Presence can earn a commission on each sale, providing a revenue stream while adding value to its users and partners.

3. Advertising and Sponsored Content: Implementing targeted advertising and sponsored content within the app can generate revenue while offering businesses and brands exposure to a engaged community. Carefully curated ads that align with the interests and values of Presence's user base can ensure that advertising feels relevant and non-intrusive.

4. Marketplace for Services and Products: Presence can create a marketplace within the app where users and businesses can offer services, products, or merchandise related to community building, personal development, or event planning. This could include digital goods, event supplies, or educational resources, with Presence taking a percentage of each transaction.

5. Affiliate Marketing: By partnering with companies that offer products or services relevant to its users, Presence can earn commissions through affiliate marketing. For example, recommending books, software, or tools for community leaders and earning a commission on sales generated through the app.

6. Corporate Partnerships and Brand Collaborations: Presence can collaborate with brands and corporations looking to engage with specific communities or demographics. This could involve sponsored challenges, branded communities, or custom content creation, providing companies with a unique way to connect with their target audience.

7. Data Insights and Analytics: While respecting user privacy, Presence can offer aggregated data insights and analytics to businesses, researchers, or marketers interested in understanding community trends, engagement patterns, or user behavior. This could provide valuable market intelligence while generating revenue for the platform.

Presence can create a diversified revenue model that supports its mission of fostering meaningful connections and vibrant communities while ensuring financial sustainability and growth.

Investment Grade: B+

Presence is a compelling investment opportunity with a clear value proposition in the expanding community-building app sector. Its success will hinge on effectively executing its growth strategies, maintaining a user-centric approach, and continuously innovating to stay ahead of market trends and competitors.

Ideal Investor Profile:

Community and Social Platform Expertise:
Bessemer Venture Partners: Known for investments in social platforms like Pinterest and Twitch.‍

Experience in Event and Experience Economy:
Sequoia Capital: With investments in event-based companies like Eventbrite and Airbnb.
Accel: Backers of companies like Eventbrite, focusing on event management and ticketing.

Strategic Partnerships

Collaborate with local event organizers, such as Live Nation or Eventbrite, to integrate Presence with their platforms, allowing users to discover and RSVP to events directly through the app.

Partnering with popular venues like The Fillmore or Red Rocks Amphitheatre can provide users with exclusive access or discounts to events, enhancing the app's value proposition.

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