0When collectors search for their favorite brands and toys online (i.e. Marvel, Star Wars, Power Rangers, Transformers, WWE), they’re forced to switch between many different sites, each with their own licenses and niches.
Collectors in this industry are committed to their specialties and deserve a vendor they identify with. Instead, they are at the mercy of a disconnected web of sellers taking no precautions to cater to specialty collectors.
Megalopolis is the hub of collectibles fandom. Collectors want to do business with experts who are as excited about the items as they are, which is why we aim to capture the buzz and enthusiasm of Comic-Con in the way we have crafted Megalopolis.
We know our customers aren’t just looking to buy a collectible every now and again, but are constantly looking for updates on new developments on their favorite brands. To keep our customer base engaged in between purchases, we launched an app that aggregates news tailored to the user’s interests.
The collectibles market is flush with dedicated customers with lifelong emotional attachments to the products. It grew 26%2 in 2018 alone.
Our top three competitors represent 3$160 million with the rest of the market divided among smaller retailers, including some which are industry-adjacent offer a sparse catalog.
1https://seekingalpha.com/article/4155536-collectibles-drive-toy-market-funko-wheel
2http://kidscreen.com/2018/08/14/global-toy-sales-grow-4-in-first-half-of-2018/
3https://ecommercedb.com/en/store/bigbadtoystore.com#general-information
3https://www.owler.com/company/toywiz#financials
3https://incfact.com/company/entertainmentearth-simivalley-ca/#
The collectibles market segment is the fastest growing in the toys & games industry. It is also the least-crowded and worst-catered to, offering us the perfect opportunity to achieve massive growth.
By April, our 2019 YTD revenue had eclipsed our total revenue from 2018 ($740k). By July 2019, we more than doubled our 2018 gross revenue. Our exponential growth has been driven by our dedication to customer retention and focus on building lasting consumer relationships.
30% of our lifetime sales are international and 75% of our lifetime revenue has come from repeat customers
We have maintained a 6.0 ROAS since September of last year
Pre-sold 500 units of first Megalopolis exclusive toy product directly after announcing it at San Diego Comic Con 2019
5,000 Megalopolis Mobile app downloads
27,000 loyalty program members
Official Fulfillment Partner of Mythic Legions by Four Horsemen
At Megalopolis, we strive to partner only with groups and individuals who produce or promote quality action figures/collectibles that cut no corners. We've assembled an impressive network with some of the most renowned independent talent in the industry.
Four Horsemen Toy Design - H. Eric Mayse, Jim Preziosi, and Eric Treadway started as sculptors with McFarlane Toys during the heyday of “Spawn.” They left to form Four Horsemen Studios and contract with Mattel, Hasbro, Super7, and many more. Megalopolis handles fulfillment of Four Horsemen's popular independently-released Mythic Legions toy line.
Boss Fight Studio - Former designers for Hasbro who left to form independent studio. We are an exclusive retailer and strategic partner of Boss Fight, and have a collaborative action-figure release coming later this fall.
*NOTE: Our Boss Fight exclusive debuted as a pre-order at San Diego Comic Con and was nearly 50% sold out within hours. It is up for pre-order here.
Pixel Dan - Toy industry insider/YouTuber (150M views, 250k subscribers)
Shartimus Prime - Toy industry insider/YouTuber (230M Views, 500k Subscribers)
We are primarily an e-commerce company and purveyor of toy collectibles, selling specialty and import collectibles from exclusive manufacturers and distributors. We've married technical innovation with unparalleled customer value, as our loyalty program allows consumers to get free products among other rewards — strengthening our bonds with our customer base.
Our brand is becoming synonymous with quality & efficiency, as well as our offbeat original characters and exclusive products. Our mascot, THE TOY OVERLORD, has no face or fixed identity and can neatly blend into any marketing or product category. In essence, we are building our own fandom that engulfs other toy fandoms.
The average Megalopolis customer purchases 2-3 times per year. We use our loyalty programs to incentivize these return customers and increase pre-order sales, which allow us to reduce risk and keep prices steady.
Our average product gross margin is 35%-40%, while co-branded exclusives can raise gross margins to as high as 40%-45%. Manufacturing our own goods promises even greater increases.
Offering payment-plans to our customers through providers partial.ly and Klarna allows collectors to plan frequent purchases or to afford an item that is in a higher price range.
Our key to sustainable revenue is our customer retention (which makes up 75 percent of revenue), and it is a large part of how we are able to market aggressively.
Our competitors offer little more than a place to purchase collectibles. They are interchangeable and forgettable. Megalopolis is a destination for collectors who have proven they will come back time and time again. We are a lifestyle brand, and much like the collectibles we sell, we have our own legion of dedicated fans.
Videos from us, Shartimus Prime, Pixel Dan, and more. Formats include stop motion, live action and animation!
Follow the comic misadventures of the Toy Overlord, Karen, the Loyalty Lion & the rest of the gang--with new installments released regularly via Megalopolis Mobile.
We curate headlines from across toy fandom and mix them with our own, providing the only truly comprehensive toy news experience available on mobile.
As we grow, we will not only continue to expand our product line but also innovate on behalf of our fans. Here are our targets for the next three years:
2020:
2021:
2022:
Subscription streaming platform. Surcharge upgrade to regular Megalopolis Mobile app. Content library bolstered with time and resources.
Users will immerse themselves via headset in a VR/AR shopping environment that combines e-commerce convenience with brick-and-mortar tactile experience. We will later utilize this technology for VR comic conventions--the very precipice of future fandom.
Earn royalties from licensing out Toy Overlord and related characters to third parties for media and merchandise.
We have our fingers on the pulse of collector culture and know what the fandom is looking for because we are collectors ourselves. Our team brings in an all-star cast of industry insiders, designers, and technologists primed to turn the collectible market on its head.
Interests: Dragon Ball, Street Fighter, Teenage Mutant Ninja Turtles
Role: The vision and the glue. Scouting market trends, directing ad campaigns, anticipating technology trends, reading sales reports, oversight of wholesale purchasing, filling in all the gaps and making all elements work harmoniously!
Fun Fact: Matt can be spotted cosplaying as the Toy Overlord in a number of Megalopolis videos!
Interests: Marvel Masters of the Universe, Star Wars, WWE
Role: Animator of all things Megalopolis, from Facebook Ads, to website copy and Overlordin' Ain't Easy. Andrew is the creator of the Toy Overlord, as well as the prototype art designer for all in-house product.
The brand's striking visual direction is all kudos to Andrew!
Fun Fact: Andrew has a gallery dedicated to strictly Toy Overlord artwork HERE.
Interests: 80's Horror, John Wick, Predator, Stop-Motion
Role: Architect of Megalopolis web, mobile, and beyond. Chris makes features technically feasible that others haven't dreamed of. No system or code is too abstract or broken. From minor web adjustments to ground-up development, Chris has done it all for us.
Fun Fact: Chris is producing/directing a globetrotting, stop-motion educational series with puppets called "Geo Monkeys" for Mega Stream!
This is your opportunity to lay early claim to shares in a proven company with huge ambitions. Megalopolis wants to meld the entire spectrum of pop-culture fandom under its banner — and we’ve already made quite a bit of headway.
Megalopolis is positioned for long-term success. Our core business is thriving, and profit margins will only increase as new facets are introduced. Our current and future revenue streams include collectibles, proprietary merchandise, subscription media streaming, licensing out IP, video games, and more.
Fandom is constantly evolving and quick to adopt new technologies and we are poised to lead the charge. We have the vision and brand equity to make Megalopolis a cultural phenomenon.
Our debt partner, Black Oak Capital, also has noteworthy StartEngine alumni and IPO prospects Hylete and Digital Brands Group in its portfolio.
We have excellent bedrock financial support. With your investment, we will have the resources to reach exciting new heights!
*Receive a Toy Overlord Pinmate as a token of our gratitude with all investments above the minimum.
How does Megalopolis make money?
We sell action figures to consumers. Our gross product margin averages 35% and we expect this to increase over time.
How will I make money from investing in Toy Overlord Inc/Megalopolis?
You will be compensated for your shares when either the company goes public or the company is bought by another entity.
How can I be sure that my shares in Toy Overlord Inc will appreciate in value?
We can't make any performance guarantees. We can, however, make a confident prediction that our stock will continue to appreciate based on our performance to-date.
Isn't the toy business seasonal?
Yes, but we aren't (strictly speaking) in the "toy business". Our business maintains consistent sales year-round due to our dedicated and largely adult clientele. Our target audience is not holiday-shopping parents!
Toys R Us declared bankruptcy. What makes you such hot stuff?
We get some variant of this question frequently. To reiterate, Megalopolis is not a "toy store"; toy stores are essentially dead. Brands like Toys R Us and FAO Schwarz were once cultural institutions, but now only exist as IP.
Megalopolis is "post-toy store". It's a toy-collecting lifestyle brand whose spirit lies somewhere between a theme park and Comic Con. Collectibles are the souvenir at the end of the virtual ride. Your entertainment is the brand itself, represented through comics, videos, and more.
Why do you ship everything in-house and not through a 3PL company?
A third-party logistics company (3PL) is not equipped to deal with the intricacies of collectibles -- such as how two Darth Vader action figures with subtle lightsaber variations, but the same SKU number, could be entirely separate items from one another. We are collectors with a lifetime of dealing with these details.
Your core business is working and growing, why add other layers (i.e. Mega Stream, VR)?
Having more than one revenue stream is stabilizing and ensures continued growth. Technology is evolving at a moment's notice. Tech that seems luxurious today can be made commonplace tomorrow, and we want to be at the forefront.
Where do you see Megalopolis in ten years?
Megalopolis is destined to be a cultural institution. We see it going public within ten years and being recognized universally as THE pop-culture fandom brand. Theme parks, breakfast cereals, films, etc., are not out of the picture.
Online Collectibles retailer Megalopolis announced a collaboration with Boss Fight Studio to do a 1000 piece Limited Edition Vitruvian H.A.C.K.S. new Darvold figure inspired by the famed Megalopolis pitchman, The Toy Overlord.
Megalopolis had a busy Comic-Con International: San Diego (SDCC) as the online collectibles retailer announced two new partnerships with Boss Fight Studio and Four Horsemen Studios.
Megalopolis.toys is a new online adult collector specialty retailer featuring all kinds of collectibles including items that aren’t usually available everywhere like the Lipton Iced Tea commercial’s Rocky & Mickey Puppet Maquette set, Thor Ragnarok Mezco One:12 Collective line and the S.H. Figuarts
Company | : | Toy Overlord Inc |
Corporate Address | : | 3753 S State St, Salt Lake City, UT 84115 |
Offering Minimum | : | $9,999.99 |
Offering Maximum | : | $1,069,999.56 |
Minimum Investment Amount(per investor) | : | $199.71 |
Offering Type | : | Equity |
Security Name | : | Common Stock |
Minimum Number of Shares Offered | : | 15,873 |
Maximum Number of Shares Offered | : | 1,698,412 |
Price per Share | : | $0.63 |
Pre-Money Valuation | : | $4,961,250.00 |
*Maximum Number of Shares Offered subject to adjustment for bonus shares. See Bonus info below.
Super Early Bird
Invest within first 48 hours and get an additional 10% bonus shares
Early Bird
Invest within the first week and get an additional 5% bonus shares
Invest $200+
Receive a Toy Overlord Pinmate as a token of our gratitude
Invest $500+
$25 Megalopolis gift card + choice of free Megalopolis gift shop t-shirt + lifetime subscription to Megalopolis Stream + previous perks*
Invest $1000+
$250 Megalopolis gift card + Megalopolis exclusive figure—Boss Fight Studio Vitruvian H.A.C.K.S. Darvold + previous perks*
Invest $2500+
$500 Megalopolis gift card + Boss Fight Studio Vitruvian H.A.C.K.S. Bundle (about $250 worth of product) that is compatible with our exclusive + previous perks*
Invest $5000+
Digital download of exclusive, previously unseen Overlordin' Ain't Easy animated short + lifetime free shipping + previous perks*
Invest $10,000+
Double loyalty points for life** + Level IV: Silver
Invest $25,000+
Triple loyalty points for life** + Level IV: Silver
Invest $50,000+
Mythic Legions action figure autographed by H. Eric Mayse (Cornboy) of 4Horsemen Toy Design + 5% bonus shares + Level VI: Platinum
Invest $75,000+
Your choice of an all-expense-paid trip to either Salt Lake City to meet the owners of Megalopolis & see the headquarters or a trip to New York with the team for the New York Toy Fair. Both include Level VII: Diamond which includes 5% bonus shares
*For all + previous perks, gift card values are not cumulative
**For both in-stock and pre-order items
[1] All perks occur after the offering is completed.
The 10% Bonus for StartEngine Shareholders
Toy Overlord Inc. will offer 10% additional bonus shares for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.
This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 1,000 shares of Common Stock at $0.63 / share, you will receive 100 bonus Common Stock, meaning you'll own 1,100 shares for $630 Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.
This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.
Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company that surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are cancelled or fail.
Investors will only receive a single bonus, which will be the highest bonus rate they are eligible for.
The Company will not incur any irregular use of proceeds.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
Though we thought we had dispersed all incentives to their respective parties, it seems the readout of investors we were working from contained numerous errors regarding amounts invested.
We are currently pulling new data and working to fix any of these errors in a timely fashion and sincerely apologize for the frustration.
This week Megalopolis will begin dispersement of all bonus incentives to those who participated in its StartEngine Reg-CF round that terminated April 31, 2020.
Shipping of all tangible bonuses will begin this week, and digital incentives will be dispersed via direct email contact.
Thank you for your continued patience.
Notice to our investors: We will be unable to meet our April 29, 2020, annual report filing requirements for securities sold pursuant to Regulation CF as a result of circumstances related to COVID-19. As such, we intend to rely on the temporary relief being provided by the Securities and Exchange Commission. We will continue to use our best efforts to comply with our ongoing reporting obligations.
Megalopolis rapid growth trend has continued into Q2 2020. Having earned $293k by April 24th (12.2k/day), putting us on pace for roughly $365k on the month. This beats our previous high-water mark of July 2019, when we earned $311k in net revenue.
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Megalopolis: City of Collectibles has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Megalopolis: City of Collectibles be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
Amid COVID-19 production delays, Megalopolis--along with Boss Fight Studio--has brought its long-awaited first exclusive figure to market. Darvold: Elven Swordmaster is a 1:18 scale, or 3.75" action-figure that is cross-modular with other figures in the Vitruvian H.A.C.K.S. series (the parts are swappable). It is a limited edition production of only 1,000 units and retails for $27.99.
The release of the figure has anchored a record opening pace for April - $80k in total revenue through the 6th.
[The following is an automated notice from the StartEngine team].
Hello! Recently, a change was made to the Megalopolis: City of Collectibles offering. Here's an excerpt describing the specifics of the change:
Extended length of campaign.
When live offerings undergo changes like these on StartEngine, the SEC requires that certain investments be reconfirmed. If your investment requires reconfirmation, you will be contacted by StartEngine via email with further instructions.
[The following is an automated notice from the StartEngine team].
Hello!
As you might know, Megalopolis: City of Collectibles has exceeded its minimum funding goal. When a company reaches its minimum on StartEngine, it's about to begin withdrawing funds. If you invested in Megalopolis: City of Collectibles be on the lookout for an email that describes more about the disbursement process.
This campaign will continue to accept investments until its indicated closing date.
Thanks for funding the future.
-StartEngine
From February 22-25, Megalopolis tallied $50k in net sales. The spike in sales was driven by Megalopolis-sponsored NY Toy Fair coverage by industry mega-influencers Pixel Dan, Shartimus Prime and The Fwoosh.
See the full event wrap-up here, on Megalopolis: https://megalopolis.toys/blogs/blog
In another major leap forward for Megalopolis, we are pleased to announce the beginning of an exclusive mobile partnership between ourselves and industry news leader The Fwoosh. Megalopolis will now offer regular news updates from The Fwoosh via our mobile app, as well as offer a dedicated “News” section on the app where customers will be able to browse past Fwoosh articles. We will likewise offer a catalog of Fwoosh videos from their “FwooshTube” channel, available to stream via our mobile video library.
Perhaps more importantly, an original Fwoosh web series will also air (weekly) exclusively on the Megalopolis app. The series, which Fwoosh editor Theodore “RoboKillah” Killington describes as an alternate toy history, “If [The Fwoosh] were in charge” of toy licensing and releases, is tentatively titled “The Fwoosh Five” and is scheduled to air later in Q1 2020. It will feature the Fwoosh staff discussing popular toy properties, but detailing exactly what they would have done (or would do) with them if they were the ones pulling the strings.
The Megalopolis-Fwoosh partnership has important implications for the accessibility of toy news and the evolution of the Megalopolis app. It puts news at the reach of collectors fingertips--sending them headlines in real time via mobile notification. The Fwoosh series also adds another feather in the cap of the Megalopolis Mobile video library, which currently offers free in-house programming, as well as free programming from industry names like Pixel Dan and Shartimus Prime.
With Megalopolis Stream--our upcoming (subscription) on-demand video service--on the horizon, “The Fwoosh Five” will provide viewers with a free taste of what is to come, both in terms of video programming from the Fwoosh, and in terms of the quality and exclusivity of content that will be available via subscription.
By adding top-flight programming and news coverage from The Fwoosh, Megalopolis continues pushing its mobile platform toward becoming the ultimate one-stop device for fandom and collecting. Stay tuned for further developments!
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