The Pitch: We’ve built an online market for parking spots. Drivers can search for three things: spots in garages (we have agreements with hundreds of commercial garages); private spaces advertised by anyone with a driveway or garage; and on-street parking. In the first two cases, the seller pays us a 1 to 3 percent commission. With on-street parking, the person vacating the spot sells her information–where she’s parked and when she’s leaving. We will launch beta versions in New York City, Boston, and San Francisco later this summer.
Owners: Andrew Rollert, 33
Location: Cambridge, Mass.
2006 Revenue: 0
2007 Projected Revenue: $2.6 million
Investment Needed: $5 million for marketing and sales staff to help the company expand
Clients: Drivers in congested cities and advertisers who buy banner ads on SpotScout’s website
The idea is very clever. But the part of his business that has generated the most buzz–selling information about on-the-street spots–will never work. How would you like to pay for the right to use a spot, and maybe even drive there and wait, and then have some guy who’s never even heard of SpotScout pull in ahead of you? That doesn’t mean the business concept can’t work, but it needs to revolve around private parking spots and commercial garages. My suggestion would be to raise up to $1.5 million from angels now, and raise the rest from venture capitalists later.
Investment committee chair
Vegas Valley Angels