Gutsy app makes dining out in the Mother City a snap
By Timothy Rangongo
Instead of going through the hassle of phoning restaurants to book a table, Capetonian foodies can now turn to Feastfox to find out, in real time, which venues have tables open. Stuart Murless, who managed to raise over R2m in funding together with his co-founders, explains how they got this app off the ground.
jCo-founder of Feastfox use the app once, and then use it repeatedly.
Tell us about your first booking.
It was the first completely independent booking where we didn’t know the person at all – with absolutely no link to us. The booking was at Nobu, one of our dining partners. It was positive to see people who appreciate fine dining and eating at a great restaurant were keen to use Feastfox as part of that experience.
How did you secure funding to start Feastfox?
Daniel Petz, one of the co-founders, led the fundraising effort. He is based in the US and is busy doing an MBA at Stanford. Having him based there opened a lot of doors and allowed us to access many networks. It’s been really great to have that funding in place; it has made a huge difference. We used a reasonably standard four-page agreement called the SAFE (Simple Agreement for a Future Equity) agreement. Before receiving the funding we had to fund the business ourselves.
We are sitting on about R2.3m that we raised and we try to spend most of it on business development. In the next few months we are going to be pushing harder on the marketing side.
You’ve got a bunch of really great businesses playing this pre-planned stage and no one really playing the spontaneous side, which is a much bigger opportunity.
What are the pros and cons for the SAFE agreement?
Lots and lots of pros. It’s very simple to understand. The funders don’t get equity in the business at this stage. They get a right to convert into equity when you do a first equitybased fundraising. The benefit to them of getting in early is that they will get to convert it into equity at an agreed capped valuation. It takes out the legal and regulatory burden that you’d have at this early stage, which makes a lot of sense. It doesn’t make sense to be spending a big chunk of what you’re raising on lawyer fees when you’re in such an early stage.