Their Journey. Your Decision. - Going Public Episode 2

TL;DR

In this episode of "Going Public," two startups, Trebel and NGT Academy, launch their Regulation A offerings, providing an investment opportunity for viewers. Trebel offers free music streaming supported by brand sponsorships while NGT Academy provides IT training with zero upfront tuition.

Transcript

(animation music) - Today on "Going Public," our final two companies launched their Regulation A offerings to public investment. Trebel is on a mission to save music for the masses. - [Bob] It's on demand, it's offline, it's all of the best music in the world, but it's free for the consumer. - [Laura] While NGT Academy is training cyber security wa... Read More

Key Insights

• 🥶 Trebel's revenue model disrupts the subscription-based music streaming industry by offering free access to a large audience funded by brand sponsorships.
• 💗 NGT Academy aims to address the growing demand for IT professionals through its intensive training programs and income sharing agreement model, providing career opportunities without upfront tuition.
• 😀 Both companies face risks related to contracts, regulations, and security breaches, which could impact their operations.
• ⚖️ The success of these startups relies on their ability to scale and attract customers in competitive markets.
• 🫵 The Regulation A offerings provide an investment opportunity for viewers, but it is essential to understand the risks associated with speculative and illiquid investments.
• 🤪 "Going Public" operates with potential conflicts of interest, as Crush Capital, the show's operator, is compensated by the featured companies, and some mentors have a vested interest as well. Viewers should research and assess these potential conflicts before making investment decisions.

Questions & Answers

Q: How does Trebel generate revenue if the music is free for consumers?

Trebel's revenue model is based on brand sponsorships. Brands pay to advertise to Trebel's users and provide special offers. The app monetizes the preview and download experience through short ads.

Q: What are the risks associated with Trebel's business?

Trebel relies on third-party licenses for music and may face difficulty renewing these contracts or securing favorable terms. There is also a risk of security breaches as a technology-driven company. Additionally, Trebel operates at a loss, and its ability to continue as a going concern is uncertain.

Q: How does NGT Academy's income sharing agreement (ISA) model work?

NGT Academy offers zero upfront tuition fees to students through an income sharing agreement. Students only start paying a percentage of their income after they secure a job. The payment is capped at a certain amount and lasts for up to four years.

Q: What risks are associated with NGT Academy's revenue model?

The revenue model relies on bookings, which are commitments from customers to pay over time. The actual revenue generated can vary based on factors such as the student's ability to graduate and secure a job, as well as the salary range of the position. There is also competition in the IT training market, and NGT Academy does not have exclusivity or a patent on the ISA model.

Summary & Key Takeaways

• Trebel is a music app that offers on-demand, offline access to a vast library of free music, funded through brand sponsorships.

• NGT Academy focuses on training individuals in information technology and cybersecurity, providing a path to a career within six months or less without upfront tuition fees.

• Both companies have filed offering circulars with the SEC and are seeking capital from public investors.