Deal Memo
Publication Date: 01/17/2025
| TLDR: The growing influence of social media on travel planning has created a significant opportunity in the travel tech market. OTSY’s platform bridges the gap between social media-inspired content and live travel bookings, capturing a massive market driven by Millennial and Gen Z demand (84% of millennials say they are likely to plan their own vacation based on someone else's social media post). Their experienced team, including the former VP of Kayak, and CEO Michael DeLucca, a proven entrepreneur with $100M+ in prior revenue, has a fully built product (download OTSY on your phone to check it out) and has scaled to 20,000 users and onboarded 1,000+ creators. FundNV1 is participating in their $5M seed round, backed by Nevada state matching funds ($3M+ already committed). OTSY’s scalable commission-based revenue model and differentiated AI-driven personalization position us for potential 50x returns in this dynamic and growing market. |
FundNV 1 is leading OTSY's seed round with a $50,000 investment. Through OTSY Investors SPV, we're pooling up to $450k in additional capital for maximum impact. We've secured a matching investment of up to $500k from the State of Nevada SSBCI program – providing additional capital to accelerate OTSY's growth while strengthening our investment position.
Why OTSY
Our comprehensive due diligence underscores OTSY’s significant potential: their experienced team, led by a serial entrepreneur with $100M+ in prior revenue and a former VP of Kayak who increased ad revenue by $70M, has demonstrated their ability to execute in the travel and experiences space. OTSY’s innovative two-in-one solution combines AI-driven personalization and social media-inspired content with seamless booking, uniquely positioning it to capitalize on a rapidly growing market opportunity. Our analysis confirms the potential for 50x returns with successful execution - we are placing our trust in one of the best teams we've seen in the travel space and a founder who has invested $2M+ of his own capital into the company, and continues to do so.
Below are detailed diligence reports and investment documentation for Nevada Certified and SEC Accredited investors ready to take advantage of this opportunity.
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OTSY is a transformative social travel marketplace redefining how travel is discovered, planned, and booked. By integrating social media-inspired content with advanced booking technology, OTSY streamlines the traditionally fragmented and time-consuming process of travel planning. The platform addresses key inefficiencies in the market, including the lack of actionable travel inspiration and the gap between content and bookings, offering a seamless end-to-end solution for travelers and creators alike.
OTSY leverages a scalable commission-based model, pairing AI-driven personalization with a patent-pending live pricing system to deliver a superior user experience. In addition to a 20% commission on bookings, OTSY plans to generate significant additional ad revenue on the platform. With early traction, OTSY is poised for significant growth as it expands its offerings and monetizes untapped social media-driven travel demand. The company’s innovative approach positions it to become a leader in this evolving and highly lucrative industry.
Founding Team
Michael DeLucca, CEO & Founder: A seasoned entrepreneur with $100M+ in revenue generated, two successful exits, and $2M+ personally invested. Recognized as a leader in tech innovation and experiential travel, with features in global publications.
Eric Zaner, COO: Former VP at Kayak, where he scaled ad revenue from $30M to $100M and played a key role in its IPO and $1.8B acquisition. Brings extensive expertise in operational scaling and strategic innovation.
Matthew Goble, Head of Growth: Ex-Tesla Energy Regional Sales Director with a proven track record of building high-performing sales teams. Before joining Otsy, he invested $250K and helped secure over $1M in total investment capital, driving Otsy’s growth and innovation.
Mariah Revis, VP of Finance: UNLV MBA with over a decade of experience managing financial strategy for Fortune 500 companies. Specializes in budgeting, forecasting, and operational efficiency to ensure sustainable growth.
Jim Weglin, Solutions Architect: Master’s degree in management information systems from UNLV. Before joining the team, he invested $50K in Otsy, demonstrating his belief in the company’s vision. A 13x Salesforce Certified Technical Architect with expertise in AWS and blockchain technologies, Jim brings a wealth of experience and innovation to Otsy’s growth.
Dr. Sanjeev Kumar, Senior Data Scientist: Ph.D. in Machine Learning with expertise in deploying advanced AI models. Brings research-backed innovation to OTSY’s platform, enhancing predictive capabilities and automation.
Advisor Spotlight:
- Russ Sach: Founding executive team member at Expedia, responsible for scaling operations from $100M to $3B. His expertise in strategic partnerships and corporate development drives growth and shareholder value.
- Ikram Mansori: Expertise in cybersecurity at the NSA, responsible for safeguarding critical systems. Later contributed to Trust and Safety initiatives at Twitter and the Tech Coalition, focusing on protecting user integrity and fostering safe online communities.
| See Due Diligence Report below for the full list of Team Members/Advisors |
Go-To-Market Plan / Traction
- 20,000 Users: Live ad campaigns have just recently started running so this figure should be rapidly increasing. 1000-2000 downloads per week, 50% are converting into accounts.
- Creator Economy-Driven Growth: 1000+ creators with a combined reach of 100M+ followers, led by Gina Nacnac (ex-MagicLinks and Adobe).
- Unique Positioning: 84% of Millennials and Gen Z are influenced by social media into actionable bookings.
- Pipeline: Over 300,000 bookable experiences spanning 170+ countries integrated on-platform with real-time pricing and availability.
- Hypergrowth Potential: Monetizes 760M+ Instagram travel posts and 223B+ TikTok travel views, currently unbookable on other platforms.
Due Diligence Report
Click here to view full report
Market Background
The global travel tech market is rapidly expanding in an already massive $600B online travel market.
Social Media Influence: Video content is the most trusted medium, with 72% of users booking trips after watching related videos.
Direct Competition: Competitors like Atmosfy and TrovaTrip recently raised $12M and $15M respectively, showcasing strong investor confidence in the space.
Business Model
OTSY operates on a commission-based model with the addition of a one-time booking fee and optimized ad revenue:
Competitors
OTSY's key competitors include:
- GetYourGuide & Viator: Focus on travel experiences but lack Otsy’s social-media-first and creator-driven approach.
- Atmosfy & TrovaTrip: Early-stage platforms targeting similar markets but with narrower offerings.
- TripAdvisor & Instagram: Users may be inclined to stick with established platforms that offer parts of OTSY's functionality, using them in unison.
Otsy differentiates itself with:
- One-click booking via live pricing.
- Integrated creator monetization ecosystem.
- AI-driven personalized recommendations.
Press
Click The links below to view OTSY in the press:
Risks
- Competition: Established platforms like Viator and new entrants such as Atmosfy may innovate quickly. Household names like Instagram and TikTok could add actionable bookings to their platforms.
- Adoption Rate: Scaling creator adoption and converting social views into bookings will be critical. Keeping creator incentives high and having enough content available is key.