Keye

Setting the Scene

  • Subscriptions for premium tools and content are not cheap. ๐Ÿ’ณ

    • MasterClass costs $120/year.

    • Grammarly costs $180/year.

    • Crunchbase costs $600/year.

    • Donโ€™t even get us started on PitchBookโ€ฆ ๐Ÿ’ฐ

  • While some people create dozens of email addresses for free 1-week trials, many consumers, freelancers, and businesses spend thousands per year on productivity tools.

  • This weekโ€™s company provides access to premium tools through a single affordable subscription.

In a Sentence

Keye offers access to tools and content through a single subscription.

  • Access: Users are given monthly credits to unlock one-day access to paywalled platforms.

  • Tools and content: Keye offers products across several workflows, including data (Crunchbase), information (TechCrunch, Fortune), productivity (Grammarly, Loom), and learning (MasterClass, Perlego, Codecademy).

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Bulleted Version:

  • Similar to how ClassPass offers users access to various fitness classes and studios through a single subscription, Keye provides access to a range of business tools through a single subscription. ๐Ÿƒโ€โ™€๏ธ

The Basics

  • Headquarters: NYC
  • Employee Count: 2 FTEs & 3 independent contractors
  • Funding amount: $300k
  • Business model: Tiered subscriptions ($19/mo or $79/mo), revenue share with platforms
  • Early traction: 35 content partners in its first year, 10k users, 4.3 sessions per week, 45-60% profit margin

Due Dilligence

WHAT WE LIKE

  • ๐Ÿ‘ฉโ€๐Ÿ’ป Fueling freelancers: Independent workers make up roughly one-third of the workforce, and they face high enterprise software costs despite using the products less frequently.

    • Keye provides flexible access at an affordable price while offering products that users may never have considered due to costs.

  • ๐Ÿ’ฐ Recovering revenue: Content and enterprise software providers struggle to reach independent users, and Keye supports them through revenue share, usage data, and access to future users.

  • ๐Ÿข Unlocking B2B: While Keye initially targets the 60 million global independent workers, the company plans to sell to enterprise teams underutilizing their software subscriptions.

POTENTIAL RISKS

  • ๐ŸŒŽ Partner dependent: The company must close high-demand partnerships to attract and retain users and cater to a broad end market.

    • Keye may also face long and complicated processes to close partnerships.

  • ๐Ÿ”“ Product usage: The company relies on users consistently engaging with a variety of products to meet partner expectations, maintain power in negotiating contracts, and attract new partners.

  • โฑ Innovative pricing models: Many SaaS companies are adopting usage-based pricing to offer products at an accessible price, which may challenge Keyeโ€™s ability to close some partners and convert customers.

Founder Profile

  • Rohan Parikh, CEO: Recent Wharton MBA graduate and previously worked as a trader at Natixis and a technology consultant at Accenture.

  • Paolo Fornasini, COO: Recent Wharton MBA graduate and previously worked in corporate strategy at McKinsey and Business Development at Google.

Comps

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Why Keye

  • With a tool for independent workers and businesses to access a variety of premium content and optimize their subscription spend, we are confident that Keye has unlocked a massive market opportunity. ๐Ÿ”

*Nothing in this content constitutes investment or legal advice. The information provided should not be used as the basis for making investment decisions. Readers should conduct their own research and consult with investment advisers before making investment decisions.*