By: Deddi Zucker
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Mappo

Mappo has developed a unique technology to recognize and delight endless cultural and historical landmarks while traveling.The company won the prestigious start-ups contests of MICHELIN and FORD and received a grant from the Innovation Authority.

$104,000

Raised so far

12

Investors

17

Days to go
Minimum investment: $8,000
Type:Equity   
Stage:Seed +
Category:Transportation
  • Campaign Highlights
  • Pitch
  • Team
  • Investors 12
  • Updates 1
  • The Deal
  • Documents
  • Disclosures

Campaign Highlights

Working in huge global markets

The meteoric rise of the global automotive industry in recent years has created a vital need for innovation of the vehicle interior. Mappo is a breakthrough platform in the fields of InfoTainment and content for smart vehicles and media consoles for vehicles. This industry is expected to invest about $ 22 billion on content for car screens by 2022. In addition, Mappo expects to operate in the "Smart Cities" market, led by giants such as Google and with the encouragement of tourism leaders.

 

Mappo is already operating in the field with more than 15,000 interest points 

Mappo has entered the market with a series of business successes that led to its rapid deployment in the world's most important cities. The company has over 15,000 content points in Tel Aviv, Jerusalem, New York, Paris, London, Dublin, Barcelona and others. Moreover, Mappo's advanced technology allows the networking of whole regions by creating thousands of content points, in any cultural or commercial theme, in any city in the world - and in just 72 hours.

 

A commercial contract with NNG and partnerships with market leaders

Mappo has signed a commercial contract with NNG, one of the world's leading multimedia console companies. NNG serves as a content integrator for vehicle manufacturers. Over the past year, the company has sold more than 15,000,000 multimedia consoles, installed in numerous vehicles. In addition, the company is in advanced negotiations with Google Maps creator, Mobileye, global tourism giant Michelin and other companies.

Mappo won the prestigious MICHELIN ,FORD and Paris municipality  competitions 

Mappo won MICHELIN's prestigious "Breakthrough Start-ups" competition in March 2018. The company also won first and second place in the two main categories of FORD's annual European competition. Mappo is currently working with Ford's InfoTainment Innovation Center in California.
Mappo was selected as one of the 10 start-ups invited to appear at the investors' conference at MOBILITY SUMMIT TLV 2018, and also made it to the Israeli final of the CIMC CHINA HUNAN INTERNATIONAL ENTREPRENEURSHIP COMPETITION.

Mappo won the 2017 World Competitions in Paris, which it was able to present points of content and tour routes around the city.

 

Mappo will be integrated using the unique multimedia appLink of companies Ford, Mazda, Toyota, and Suzuki!

Following the winning of the Mappo competition at the Ford World competition, representatives of the company were invited to present the platform, its capabilities and user experience at the Mobile World Congress 2019, and subsequently the representatives of Mappo and the representatives of Mazda, Toyota, Suzuki and Ford have reached an official approbation on collaboration.

 

 

A portfolio company of Israel's leading incubator – THE TIME

Mappo has raised $ 800,000 to date, of which approximately $ 500,000 came from the Israeli Authority of Innovation (Chief Scientist). The prestigious incubator "THE TIME", chosen as the leading incubator in Israel, with many successes to its name, has invested in Mappo and is a major shareholder in the company.

Pitch

The idea

Background and need 

The basic platform of Mappo comprises maps. The digital map market is worth approximately $ 20 billion a year. Mappo offers the enrichment of digital maps in two markets that use them:

1.The automotive market; 

2.The smart city market (including tourism).

 

 

1. The Automotive Content Market (IN-CAR INFOTAINMENT)

The market is already estimated at over $ 20 billion and expanding rapidly, with an estimated annual growth rate of 10%. The dramatic changes occurring in the automotive world have created a new intensively developing field: in-car infotainment. According to a report by Research and Markets 2018, the INFOTAINMENT market is expected to grow from $ 19.66 billion in 2016 (mainly navigation and radio maps) to $ 33.16 billion in 2023.

Two technological developments have created new business opportunities worth billions of dollars in the automotive market: 

1. The entry of Internet into vehicles. Most cars are already leaving the production line with SIM;

2. The insertion of more screens into the car - a natural result of connecting the car to the Internet.

 

 

The car interior is now known by manufacturers as the "LIVING ROOM." When this space changes it offers travelers a new and different driving experience. In 2020, more than 50% of new vehicles will be equipped with SIM. The CONNECTED CAR is already the present, not the future. The online car will provide varied navigation options, travel routes and travel guides, emails, AR shows in the vehicle space, audio podcasts and advertising and gaming services.

The car will be equipped with two or three online screens, which will be used not only by the driver, but also by the passengers.

 

The solution

MAPPO's content upgrades your travel experience. The company offers the vehicle industry in-car Infotainment for the connected car equipped with SIM and for the autonomous car. Car manufacturers need content for the driver and passengers - and they are, by nature, unable or unwilling to produce it.

Mappo provides vehicle manufacturers with family-appropriate, location-based content that is synchronized with the movement of the car.

Mappo fills a real need when huge budgetary sums are being allocated: creating an improved driving experience that will help brand cars and enhance marketing and sales for manufacturers.

All car manufacturers devote great efforts into developing, researching and investing in the driver and passenger travel experience. Buyers of vehicles assign significant weight to this experience. The algorithm developed by Mappo will provide these needs for every car manufacturer anywhere on Earth.

 

Mappo's achievements 

1.  Commercial contract with NNG: one of the world's leading companies in the multi-media box inside the vehicle. This company is an integrator of content inside the car and has sold multi-media boxes to 15 million vehicles this year.

2.  Significant negotiations are taking place with Mobileye to integrate the Mappo technology into their products. 

3.  Winning the MICHELIN Competition in March 2018 for breakthrough Start-ups - MAPPO's product presentation at the 18th MOVIN'ON Conference in Montreal.

4.  Winning the European FORD competition in September 18:
Awarded second place by the professional jury, Awarded first place by FORD's focus groups – Mappo was chosen as the most popular start-up. Following this success, the company was invited to present the product as part of the FORD products in the FORD Pavilion at the annual Mobile Exhibition in Barcelona.

5.  Mappo was chosen as one of 10 start-ups to appear before the investor conference of the MOBILITY SUMMIT TLV 18 convention in October 18th.

6.  During the CES Conference in Las Vegas in January 2019, the company met in private meetings and presented its product to the world’s 16 largest car manufacturers.

7. Mappo was chosen as one of the best 24 start-ups (among thousands) to take part in the IMPACT Connected Car program in Poland in February 2019, led by the European Union and some of the most prestigious car companies in the world, as well as a grant of € 60,000.

8. Mappo was presenting and marketing the product within the FORD pavilion at the GSM exhibition in Barcelona in February 2019.

9. Mappo has reached an official approbation on collaboration with 4 automotive companies: Ford, Mazda, Toyota and Suzuki in February 2019.

 

2. The Digital City

 

The Need

The city and its institutions need digital content for travel, branding and tourism purposes.

The residents of the city and its institutions are digital. The city's residents and visitors are increasingly familiar with, consume, and use digital products and services.

Cities are looking for content for the purpose of self-branding and nurturing a tradition of identity and urban pride.

Urban institutions - municipalities, museums, highways and city streets, public transport, digital screens in squares or bus stations - all consume and search for content to put on their screens.

 

The solution

Mappo offers content at any point on the globe, including municipalities, tourism bodies, and institutions. The company knows how to provide the technology and the content it developed to two large markets of digital life in the city: municipal institutions and tourism and travel bodies.

Urban branding is a system of actions to build a positive image of the city, in order to achieve a competitive advantage to attract investors and tourists.

Mappo offers municipalities, museums and other urban institutions cutting edge technological options that will help brand them in a new and interesting way as smart, digital and connected cities. 

 


.

Over the past year, the company has proven itself as a response to the needs of the digital city:

Paris: the municipality of Paris and JCDECAUX Company have operated digital screens on bus stations that included information, games, and cultural content. The two bodies held a global competition in which 20 start-ups were selected to present their product. Mappo was one of those selected and presented on the screens content points and routes in the vicinity of the bus station.

Tourism in the Digital City

Tourists and local residents travel with their mobile phones. Mappo allows the user to travel, explore and learn without the need for a guide, an organized group, or dozens of sites and applications. Mappo allows the traveler - local and tourist - to meet with his/her childhood heroes, visit historical locations or experience a story and plot they had encountered on television or the radio.

• The activity and travel industry in Europe generated € 37,000 million in 2015, three times the size of the car rental market (€ 10,000 million), and reached nearly half of the total hotel bookings, estimated at € 80,000 million. (Phocuswright, 2016).

• The number of listings for tours and activities in a geographical aspect places Europe as the most popular tourist destination for tours and activities. The US is in third place (Skift 2018).

 

Source: Skift Research, Company Websites


• According to the same source, Europe is the world's leading tourist destination with 671 million visitors a year, and also leads the average number of activities offered in its various cities.

Business Model

B2B model: The company manufactures and sells data. The data produced by the company is in the form of POI (points of interest) or in the form of a route by subject. The company provides the content to companies that have applications or sites with hundreds of millions of users. These companies present the Mappo content to their users, using their own branding and marketing language.

The B2B strategy has two distinct advantages

  • Skipping over the necessary investments to bring users;
  • The market grows significantly - the company can sell data to any company, including competing companies because it operates as a WHITE LABEL.


Pricing: The company has two options for pricing its product:

A- Pay per unit
This model has already been implemented in the agreement for the distribution and sales of the product by NNG: annual fee for each vehicle in which the product is installed. Payment is renewed each year.

B-  SaaS (Software as a service)
Payment based on the extent of data use.


Content distribution in a B2B model:

Content is distributed to different customers in three ways: 

1. Data API - Customers who are interested in getting raw content and displaying it to their users in any way they prefer can receive it through queries to the API.

2. Web Widget - Customers interested in quick and easy implementation can integrate the widget on their site without any investment in development.

3. Google Maps Layer -  Mappo enables customers to enrich them with a Google Maps extension.

The Technology

The company develops a global platform that connects all types of content (texts, songs, TV series and movies) to their locations, as presented in the content. This connection creates a huge database and maps of content, including points of interest (POIs) and routes.

The data repository in question creates a layer on a digital map - whether it is in an app or on a website. This layer on the maps is created by the GEO-REFERENCE algorithm. This is a significant technological challenge: analyzing texts, extracting locations and placing them accurately on the map of the world.

The company's AI product is unique. There is currently no geographical content layer in the world that uses cultural content in its various forms. The layer is designed for mapping companies, smart cities, tourism companies, cultural institutions and educational institutions.

 

 

Patents

Text Geo-Referencing Engine:  The patent is for the core technology used in the product. The company is in the process of writing and reviewing patents, and registration is expected in July 2019.

Automatic Interest-Based Route Generation Engine: The patent is for the core technology used in the product. The writing process has not yet begun, however, an initial patent survey has been conducted. Registration is due in January 2020.

 

Existing products and technologies:

1. A platform for creating geographic content. The platform is web-based and adaptable to all screens, allowing the community to manually create and enrich geographic content with additional content related to location, creation or creator, and to upload movies and images.

2. Geo-Referencing engine in English. The company developed an engine capable of processing texts, identifying high-resolution location references (street, site, monument, neighborhood, building, city, district, state) with a trained model for literary texts. The engine is able to analyze entire books in English and place references on the world map with an accuracy of 85%.

3. Data API - a secure system for distributing content and managing users for the benefit of customers (B2B) who can receive content in different cuts and use it in their products.

4. Management system, for displaying and tagging content. The system enables editors to view, catalog, and label content generated by the engine, so that it can be used to learn and improve the engine and to discard irrelevant content. Using the system, it is possible to build databases for engine upgrading and independent learning through neuronal networks (AI).

 

Technological development plan for the coming year

1. SALIENCY: Select paragraphs and rank them according to the degree of interest they arouse. A high challenge, the implementation of which will enable the company to offer 'interesting' data rather than any paragraph, regardless of the degree of interest that they might generate.

2. ROUTE-GENERATION: Automatically generate tracks according to interests, geographical location, time and suitability for a particular user.

3. Route-Generation engine capable of producing tracks in real time according to subjects of interest and suitability to the user profile.

• Within 18 months, the platform is slated to create approximately one million pieces of content worldwide, in a variety of fields, in hundreds of cities.

• Technological development creates potential for two patents: one (Geo-Referencing) is already in the process of registration, and the second (Route-Generation) will be registered during the development process.

 

 

Competition

There are a number of prominent competitors in the tourism industry:

Vayable, Viator, VoiceMap - are advertising and marketing platforms for location-aware audio tracks;

Detour - offering location-based, content-centered and audio;

Travel -includes interactive travel, forums and an eBook;

However, none of these solutions presents the two unique selling advantages of Mappo;

1. Using the largest historical and cultural content hoard in the world;

1. Adding the geographic dimension to existing content;

2. Enriching traditional content such as text, music, or video by providing additional information to the viewer or to the listener, which changes the experience.

 

Exits in relevant fields

Cbinsights research data indicate a sharp increase in the number of start-ups in the field of TRAVEL TECH, which have been either purchased or issued. This trend is understandable in light of the tremendous increase in tourism traffic worldwide:

In the third quarter of 2017, there were 19 transactions in the sector - higher than the annual average of the previous four years. The largest exit in the field was Despegar, which was acquired by Expedia (one of the two leading tourism companies in the world) for $ 81 billion.

During this period, the major buyers were Airbnb, with 3 acquisitions; TripAdvisor- (Luxery Retreats-200 M), with 5 acquisitions (VIATOR-200 M); and Priceline group with 3 acquisitions.

A summary of the trend points to the following data by the information company TROOPTRAVEL: "While in 2014 there were 18 transactions worth $ 154 million, 2017 had 65 deals worth $ 1.7 billion."

 


Timeline

• June-August 16 Android and IOS apps 

• July 16 - The company's product is used on bus stops in Paris after winning the competition initiated by the municipality

• February 17 - Entrance to the incubator - THE TIME

• July 17 - The mappo.world platform goes online and replaces the company's applications

• October 17 - Agreement with the Municipality of Barcelona

• December 17 - Algorithm is running

• January 18 - Extensive proof of feasibility, for MICHELIN and presentation of the product at the company's international conference in Montreal

• August 18 – A contract with NNG to distribute and sell the product - in the automotive market

• September 18 - Winning the FORD Prizes in the final of the competition "EUROPE MAKE IT DRIVEABLE"

• January 19 - Marketing of the 16 leading global automotive companies began at the CES conference in Las Vegas

• February 19 - Mappo was Presentation and marketing of the product within the FORD Pavilion at the GSM exhibition in Barcelona

•February 19- IMPACT Connected Car program in Poland

The market

Go To Market

Markets and manufacturers are global and not bound by a specific location (such as the residence of consumers or manufacturers). The company needs to reach manufacturers and companies TIER 1 and TIER 2 - some of which are located in Europe and others in the US and Asia:

 

1. The most important targets are the multi-media companies and the mapping and navigation companies, which account for a significant part of the In-car Infotainment market. Some of these entities have offices in Israel (FAURECIA, NNG, Mapbox) - which helps the business development work.

2. Over the past year, the Company has established itself and is now recognized by most of the relevant parties - car manufacturers, mapping and navigation companies and multi-media integration companies. 

• Completion of the agreements with MOBILEYE

• Completion of the relationship with FORD

 

2. OEM manufacturers are the second most important target in terms of the multimedia operations scope. A significant portion of these companies have offices in Israel (Volkswagen, Mercedes, Ford, Hyundai, Volvo, Honda and others). The development activity centers in Israel also plays an important role in marketing. 

3. International companies connected to the company's field - MICHELIN, MOBILEY, TOM TOM, HERE, are engaged in mapping and work closely with the automotive industry.

 

 

Digital City / TRAVEL

This is the second effort in the company's priorities. The company will allocate funds towards the largest tourist cities in the world, in Europe and the USA, in some of which we are starting to operate and expand (Barcelona, ??Paris, Tel Aviv), and others are already in contact with the us at the time of writing this document - Berlin and Madrid.

 

Marketing workers and business development

Since both products are B2B, secondary effort will be invested in advertising, the main effort being made by marketing and business development personnel. These workers will be selected based on their experience in both markets, and by their place of residence, in order to ensure proximity to the target markets.

The exit strategy

The exit strategy

The company has laid the foundations for building a company that has a unique product for global markets. The founders are already able to point out clear signs that the product is forward-looking and meets the future needs of huge markets - vehicles and digital cities.

Progress in the planned technological development and business development path could lead the company to the next round of financing - A ROUND - at a value 10 times larger than the current round.

In our opinion, there will be a business point for a merger or sale after the A ROUND stage. The target companies for the merger or acquisition are global companies in the field of vehicles or travel, such as NNG, MAPBOX, FORD, MOBILEYE, TRIPADVISOR and AIRBNB.

 

Issues of acquisitions and mergers in the relevant markets (IPO M & A)

• 2012-2017: 70 issues and acquisitions and mergers of start-ups in the field of Travel Tech.

• Total purchases 2017 - 65 transactions worth $ 7.1 billion

• Greatest buyer – TRIPADVISOR with 5 purchases followed by AIRBNB with 3 purchases and PRICELINE with 3 purchases 

A good indication of what is happening in this field is the activity of BOOKING.COM: The company established an independent unit for acquisitions and mergers. The first acquisition was of the Israeli company EVATURE. Gilmore Tans, the company's CEO, "expects this unit to look for AL-based innovation.

BOOKING.COM is currently operating 18 incubators for start-ups, compared to 3 incubators only two years ago.

Use of proceeds

The funds will be utilized in accordance with the company's strategic goals: Technological development as detailed above and the creation of cooperation and sales of the product in the two markets to which it is directed.

The Company's technological development plan consists of working packages according to clear priorities - which will be carried out at a pace adjusted to the scope of the Company's raising.

In accordance with the funding rates, the funds will be allocated, while maintaining regular budgetary proportions: business development - about 30% and technological development - about 70%.

 

Team

Uri Weinheber
Board Director
Biography
Dr. Uri Weinheber is currently an active partner in the International Investment Fund - CATHAY. Likewise, Uri was a partner at THE TIME incubator between 2009-2017.

  • Founder
  • Chairman of the Board
Deddi Zucker
CEO
Biography
Deddi has Served as an active member of Knesset for 18 years, and later on in the fields of digital content, as an entrepreneur and manager. During this period he initiated and managed 3 cable television channels, founder of an internet production company and later in the cellular content worlds. Mappo is Zucker‘s fourth startup as an entrepreneur and manager.

  • Founder
Moshe David
Director and Co Founder
Biography
Moshe David served as president of Amdocs North America - and gained experience in managing an international company. Moshe is currently the CEO of TIBA PARKING. Over the years he has acquired experience in acquisitions and mergers. He was an entrepreneur and a director of several start-ups, including KIDOZ (chairman) and OMNISYS.

  • Founder
  • Director
Nir Trelowski
Director
Biography
Nir Trelowski has been an investment angel for more than 20 years and has served as CEO of several companies, among others, FIRST TIME and THE TIME Incubator in recent years. Nir is behind successes stories like PLAYBUZZ, MATOMY, METRICS and others. Today, Trelovsky serves as chairman of PIXELOT.

  • Director

Investors 12

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Updates 1

  • Update date: 04/03/2019
    Recently, Mappo has reached an official approbation on collaboration with 4 automotive companies: Ford, Mazda, Toyota and Suzuki The platform will be integrated into the Infotainment of hundreds of millions of new vehicles from all over the world in the coming months.

The Deal

Documents

Disclosures

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