Investment Highlights

  1. The reputation management industry is by far the fastest growing industry on the planet right now from only $1 billion 4 years ago to a projected $40 billion by 2030.

  2. The industry is extremely fragmented and there is no clear leader for full-scope reputation services the way that Red Flag has positioned itself.

  3. The upcoming Red Flag app will use AI and predictive analytics to identify negative trends that will enable companies, executives, celebrities and athletes to prepare for potential reputation issues before they become issues and walk them through the steps for quick resolution.

  4. Over the last six years, no company other than Red Flag can boast a 95%+ success rate in resolving client reputation-related issues. In fact, during that time, only one client did not realize results of Red Flag’s reputation services and that was 100% due to a client miscommunication and not by any fault of the company.

  5. Red Flag has already established valuable partnerships and launched co-branded partner websites that represent more than 30,000 potential clients.

  6. Red Flag is also a full-service brand strategy company offering social media, websites, SEO, paid media and professional podcasting services.

  7. Red Flag is the only company in the reputation space using AI-based social intelligence and data analytics with a full team of dedicated analysts.

  8. Even though the company is a new Delaware C Corp. registered in 2020, Red Flag has been an operating division of CREDENTL LLC and then The POTENTL Agency for more than six years, having worked with hundreds of companies, executives, celebrities and athletes.

  9. Red Flag CEO Mike Magolnick is also a best-selling author, with his latest title ‘Tweet Tweet Boom’, a book all abut the fragile relationship between social media and reputation management. He has spoken at dozens of conferences to a cumulative one million people on this topic.

  10. The Red Flag executive team plus the board of directors and advisory board consist of a who’s who in their respective roles - another key aspect of the company’s plan for risk-mitigated success.

  11. Subscription based service companies have an acquisition value of $125-250 per user depending on the “stickiness” of the client (i.e. how long you keep that client active). When the Red Flag app is launched the company is planning to use paid media to achieve one million downloads within 24 months. Due to the daily-use nature of the Red Flag services and how intertwined the services will be with a client’s social media and brand strategy, we project an average client lifecycle at >24 months, which lends to a $250+ per user valuation. At that point, the company will have a cap value in the $400-500 million range (1 million users plus recurring revenue at 70%+ net margins).