Drivana's Team
In an exclusive interview, Edson Arteaga shared his experience on preparing the company for raising funds through Arkangeles, and insights that fellow founders might leverage when looking to raise money.
You can find the details of the campaign following the interview, where Edson describes how he wants to enable individual investors to participate in what the company describes as “the next Mexican unicorn” in the making.
The Conversation
How does Arkangeles’ due diligence process compare to traditional VC scrutiny, and did it reveal any unexpected insights about your business?
The process is rigorous, analyzing operational, financial, and strategic aspects in-depth, similar to traditional VC scrutiny but more agile. Arkangeles emphasizes transparency and information accessibility for a broader investor audience. We discovered the importance of simplifying and clearly communicating our value proposition to a diverse audience, not necessarily investment experts.
How has the equity crowdfunding campaign influenced your product roadmap or business strategy? Are there specific features or initiatives that gained traction due to investor feedback?
Many crowdfunding investors are Drivana users, providing direct feedback from a diverse community. Initiatives like WhatsApp reservation integration and personalized insurance offerings gained traction from this feedback. Investors particularly valued features enhancing platform accessibility and security.
How do you balance the increased transparency required for equity crowdfunding with the need to protect competitive advantages? Can you share an example of a strategic decision that was difficult to communicate publicly?
We adhere to transparency principles while protecting our competitive advantages by sharing enough information to build trust without revealing critical details competitors could use. For example, we chose not to publicly disclose our exact risk assessment algorithm, though we explained its purpose and benefits generally. This decision was challenging, as we wanted to showcase our technological sophistication without compromising our competitive edge.
Have you noticed any correlation between crowdfunding investors and user acquisition or retention? How are you leveraging this unique investor-customer relationship?
Yes, many investors become active users and platform promoters. We leverage this relationship by incentivizing investors to use and recommend Drivana, increasing both acquisition and retention. We implement referral programs and exclusive benefits for investors, such as special rental discounts, encouraging their active participation on the platform.
What unexpected challenges did you face in structuring your SAFE agreement for an equity crowdfunding context, and how did you address them?
The structuring process is similar to traditional methods. The challenge lies in explaining the SAFE (Simple Agreement for Future Equity) concept to non-institutional investors. The platform provides extensive educational content for those unfamiliar with the ecosystem. Drivana is also creating educational materials and organizing webinars to clarify how SAFE works, its benefits, implications, etc., ensuring investors fully understand the terms and security of their investment.
How has the equity crowdfunding campaign affected your conversations with institutional investors? Has it changed the dynamics of these conversations in ways you didn’t anticipate?
Not necessarily, but we believe this crowdfunding campaign will help demonstrate our attractiveness and community support to institutional investors, strengthening our negotiating position. Having a solid base of support validating our business model allows us to negotiate from a stronger position.
In retrospect, what would you have done differently in preparing for the equity crowdfunding campaign? Are there specific metrics or materials you wish you had developed beforehand?
Regarding metrics, we have all our information well-organized and accessible. In retrospect, we would have developed more simplified educational content about the investment process and crowdfunding benefits to have ready. We’d also simplify terms that might be unfamiliar to non-institutional investors.
How are you managing investor relations with a potentially diverse and geographically dispersed crowd of small investors? Have you implemented any innovative communication strategies?
All our investors have access to a monthly investor update sharing progress, obstacles, metrics, reports, and all relevant occurrences during the month. This allows for clear, transparent communication and access to a broader sector for support when needed, such as talent recommendations for new positions.
Has the equity crowdfunding process revealed any interesting patterns or segments within your investor base that you didn’t expect? How might these insights inform your future growth strategies?
We appreciated the interest from a young segment, many venturing into this investment asset for the first time, mainly enthusiasts of innovation and technology. These insights indicate we should focus our marketing and growth strategies on these segments, developing features and campaigns that resonate with their technological interests and needs.
Looking ahead, how do you envision integrating equity crowdfunding investors into potential future funding rounds or exit strategies? Are there any unique considerations or plans you’re developing?
We plan to keep our crowdfunding investors informed and engaged through regular updates and opportunities to participate in future rounds. We’re considering offering preferential rights for future capital increases and maintaining a close relationship to ensure their continued loyalty and support. Regarding exit strategies, these investors are clearly an integral part of our plan, ensuring they benefit proportionally from Drivana’s success.
The Fund raising campaign with Arkangeles
From Personal Frustration to Market Disruption
Edson Arteaga, CEO and founder of Drivana, shared the origin story of the company in a recent interview. “It was precisly what happened to us,” Arteaga recounted, describing a frustrating experience trying to rent a car for a weekend trip. “I reserved and paid weeks in advance, only to arrive at the counter and be told they had my reservation but no cars available.”
This experience led Arteaga to question the entire car rental industry. “I thought, ‘What’s the point of making a reservation?’ The price I paid online wasn’t the real price. I ended up paying three times more due to hidden costs,” he explained.
A New Vision for Car Rentals
Drivana was born from this frustration, with a vision to make renting a car as simple as sending a WhatsApp message. The platform connects users seeking to rent a car with local hosts who generate income by renting out their vehicles.
“Our model isn’t just about being cheaper,” Arteaga emphasized. “It’s about providing a better experience. Users can have a car delivered directly to their home without having to leave the house. You pay for what you receive.”
Rapid Growth and Market Validation
Since its launch in March 2023, Drivana has demonstrated significant traction:
- Expanded from a pilot in Mexico City to operations in 5 major cities
- Completed over 4,000 rental days
- Generated $315,000 USD in Gross Booking Value in the last 12 months
- Acquired more than 12,000 registered users
- Listed over 1,000 cars on the platform
“We’re seeing a shift in consumer behavior,” Arteaga noted. “About 20% of our users make three or more rentals per month. Many are realizing it doesn’t make sense to own a car and deal with maintenance, services, and parking costs when they can rent one through Drivana only for the time they need it.”
The Crowd Equity Opportunity
Drivana is now inviting the public to be part of its growth story through a crowd equity campaign on Arkangeles. Key details of the investment opportunity include:
- Minimum investment: 5,000 MXN (approximately $275 USD)
- Post-money valuation: $8 million USD
- Fundraising goal on Arkangeles: 550,000 MXN (approximately $30,000 USD)
- Investment instrument: SAFE (Simple Agreement for Future Equity)
Investors will also enjoy special perks, including discounts on rentals for 6 months.
Innovative Features and Competitive Edge
Drivana sets itself apart through several key features:
- Advanced Security: “We’ve developed a unique algorithm for risk assessment of each user,” Arteaga explained. “We validate documents, conduct facial recognition, check criminal records, and even verify employment and income.”
- Insurance and Recovery Services: Drivana has partnered with HDI, the third-largest insurance provider in Latin America, for customized insurance solutions. They also offer GPS tracking and vehicle recovery services in partnership with Encontrack.
- WhatsApp Integration: “We’re working on integrating our platform with WhatsApp,” Arteaga revealed. “Users will be able to search and book directly through WhatsApp using AI and an automated flow.”
Market Potential and Future Plans
Drivana is targeting a significant share of Mexico’s car rental market, estimated at 4.7 billion USD annually. The company plans to use the funds raised to expand to 7 new cities in Mexico, enhance its technology platform, and acquire top talent.
“We estimate having a presence in at least four more cities within the Mexican Republic by the end of the year,” Arteaga shared. “By mid-next year, we’re looking to expand to other Latin American countries.”
A Call to Investors
Arteaga concluded the interview with a call to potential investors: “If you share our vision and want to join as a co-pilot on our path to becoming the next Mexican unicorn, with high potential for investment return, we invite you to be part of this exciting journey.”
For those interested in participating in Drivana’s growth, more information can be found on the Arkangeles platform.
