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INVEST IN ARKHAUS


A GLOBAL NETWORK OF NEXT GENERATION FLOATING SOCIAL CLUBS

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EARLY BIRD TERMS: $163,749 LEFT




$321,563


raised from 18 investors

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INVESTMENT TERMS
$20M$15Mpre-money valuation Priced Round
Early Bird Bonus: First $250K investors will invest at $1.46 per share and a
$15M pre-money valuation
Investor Perks:
$500, $1K, $1.5K, $3K, $5K, $7.5K, $10K, $25K, $50K, $75K

If you invest, you're betting ARKHAUS will be worth more than $20M in the
future.


Learn more about equity fundraises

LEAD INVESTOR
Douglas James Scribner
I grew up on a lake and it always been on boats on boats and the water. The idea
of a social club that floats sounds like such a great fit for me. I also live in
Miami part of the year so knowing that their 1st club will be so close is it
another reason for the good fit. On top of that I am fascinated with renewable
energy and solar power. I hope to one day own my own solar yacht! I see this
investment not just as a way to Increase my bottom line in the future, but to
also drive innovative energy solutions forward which is my passion. The tipping
point for my decision came when I found out they were selling membership NFTs,
I'm an early Bitcoin OG and love the crypto space. Not only am I an investor but
I also bought a perpetual membership NFT :)

Invested $75,000 this round

Learn about Lead Investors



0:53









arkhaus.miami
Miami FL

Main Street Hospitality Community Sustainability Recreation
Overview Details
Updates
What People Say
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4



HIGHLIGHTS

1
⚡️ A lifestyle club on 4 solar-electric yachts, connected to create an
extraordinary floating villa.
2
💰 Over $550k already invested prior to WeFunder campaign.
3
🗝 Membership pre-sales open. Over 40% applied for. Projecting fully sold out by
Q1 2023.
4
⚓️ Miami site identified and pricing negotiated; Vessels enter production in
Fall.
5
🤝 Coordinating with US Coast Guard to clarify all aspects of operations are
approved.
6
📈 Stable Projected EBIT (single location) of $8.0M in yr 1. Projections not
guaranteed.
7
🚀 Investment into parent multiplies with future locations (NYC, CA, Paris,
Istanbul, Dubai).
8
💼 Founders from Wall Street (Bear Stearns, RBS) & luxury brand management
(LVMH).

--------------------------------------------------------------------------------


OUR TEAM

Sam Payrovi
CEO, Co-Founder

14-year investment banker turned serial entrepreneur. Graduating from UCLA with
dual degrees, in 2001 he joined Bear Stearns’ market-leading mortgage analytics
F.A.ST. group.
ARKHAUS is the evolution of our first hospitality venture CSTM HAUS. During a
successful CSTM HAUS Miami pop-up at the Faena Bazaar rooftop, we met the Arkup
team and it became clear we could take this concept to a new level-one that
reflected Miami's "life on water". We soon announced ARKHAUS and pre-sale
memberships began rolling in.

Nathalie Paiva
CXO, Co-Founder

Drawing on marketing standards from years of in-house work with such global
luxury leaders as LVMH, Nathalie has extensive experience developing strategy &
communication plans for high-touch, service-oriented brands.

Drew Kelley
Head of Finance

With 20+ years in the hospitality, leisure & entertainment sector, Drew has
executed over $50 billion of capital market and strategic transactions at Bear
Stearns and Jefferies. Most recently, Drew served as the CFO of Mohegan Sun
Gaming.


--------------------------------------------------------------------------------


PITCH

A combination hospitality & real estate project, the ARKHAUS investment
opportunity has been structured to target venture-scale returns.

Currently, only one global player exists in the rapidly expanding market
of private membership clubs: Soho House. More importantly, this space has not
seen any innovation for decades. The market is yearning for a new player - one
that can innovate to excite its clientele and compete globally.


 * REVENUE:  Unlike regular startups which generate revenue many years after
   their initial investment, ARKHAUS is projected to generate revenue in the
   first year of operations (not guaranteed); The club will collect membership
   dues from all pre-sale applicants upon converting applications to full
   memberships (projected Q1 2023).

 * SCALE:  Hospitality and Real-Estate investments are generally made into a
   single location. This investment is into the ARKHAUS parent company and, as
   such, will benefit from all future locations.

 * MULTIPLE:  IB Research analysts target a mid to high teens (EV/EBITDA)
   multiple for the hospitality sector. A detailed examination of analyst
   reports provides an average 16.4X multiple for a mature membership club
   business.

 * EXIT:  As only the second global player, and with a differentiated
   offering, ARKHAUS will become an exciting acquisition target for competitors.
   The company will consider such an acquisition, or alternatively, target a 5-7
   year exit to Private Equity or IPO.

 * CURRENT vs FUTURE INVESTMENT ROUNDS:  This investment is into the ARKHAUS
   parent company and will benefit from all future ARKHAUS locations as well.
   Subsequent rounds of investment will be made into, and benefit only from,
   individual ARKHAUS locations. In addition, investors in this round will be
   provided with first access to such future investments.



> Positioned to redefine the members club of yesteryear, ARKHAUS connects 4
> futuristic solar-electric yachts to anchor an exciting new vision where
> community, innovation, and fun collide.  

Members can meet, relax or entertain from the modular floating villa, complete
with outdoor decks & rooftop lounges overlooking a protected pool in the
center. Each vessel is a ~2000sf livable yacht, designed and manufactured by
Miami-based company, Arkup. With 640sf of interior space, a 640sf open roof deck
covered by a solar canopy, and wraparound decks, each unit is a mini mansion
floating on water. 

To form the club, four Arkup vessels connect and deploy their retractable
spuds, anchoring and elevating the club into a solid platform hovering a few
feet above water. Eliminating any rocking or motion from the waves, the result
is a diamond-shaped platform comprised of wraparound decks that frame a
filtered, bay water pool.


On ARKHAUS, guests will experience 360 degrees of activities, entertainment, and
amenities across the multi-level structures which will be split between private
dining and communal space.





Mornings - The day breaks
Start the day with guided yoga and meditation led by world-class instructors.

Work Days - Limitless Views Inspire
Break away from the office to work with a view, or host a lunch meeting in
style.


Play Days - Indulge & Let Loose
The fun is just getting started as the week comes to an end. Featuring resident
DJs and performances, join us on the weekends as we unwind and party on
deck—with bookable cabanas, daybeds, rooftop jacuzzis, and food & bar service.

Evenings - The Night Caps
As the sun sets and the moon rises, mix & mingle with rooftop cocktails and
great company.

MEMBERSHIP DETAILS

 * Food & Beverage:  On-board dining will span from breakfast to dinner,
   featuring fresh, rotating menus from local noteworthy chefs and
   restaurateurs. Beverage service will be available on board at the bar or
   through the wait staff.
 * Programming:  Members and guests will have access to weekly hosted
   events—from master mixologist cocktail hours to world class music
   performances to the latest in health & wellness activities.
 * Access:  Every member will receive 30 hours of access to the club per month.
 * Guests:  Members can choose to draw on their 30 hours of access or purchase
   guest passes.
 * Charters:  Only members can charter individual ARKHAUS vessels for private
   experiences. Whether they keep the vessel connected for a private party or
   disconnect for a sunset sail, members are sure to offer their guests an
   unforgettable experience.



With only 360 memberships available, ARKHAUS has the luxury of staying true to
its core culture. This means members enjoy exclusivity and fun without the
drama. Access will be limited to Members and their Guests.



MEMBERSHIP DEMOGRAPHICS

By design, our application process allows us to handpick a curated membership
base. Every application is followed by a 1:1 conversion to assess the
demographic mix, according to the following targets:




Following a successful 6 month pop-up at the world-renowned Faena Hotel's Bazaar
rooftop, CSTM HAUS Miami served to assess, ideate, and develop the evolution of
the membership club: ARKHAUS. Announcing ARKHAUS in June of 2021, an aggressive
but manageable roadmap was launched.

 * (T-9 mo) Assets
   Begin production of the vessels upon closing investment round, with a 30%
   deposit to fund USA-based manufacturing.
 * (T-7 mo) Location
   Narrow private discussions with preferred options to secure location and
   docking agreement
 * (T-6 mo) Membership Agreement
   Finalize details in a uniquely crafted agreement that allows members and
   guests access to all four boats
 * (T-5 mo) Memberships Awarded
   With the location and membership agreements finalized, we will begin to
   select and award memberships to applicants.
 * (T-4 mo) Vendors & Partners
   Select entertainment, food & beverage, maintenance, and other vendors from
   our curated roster.
 * (T-2 mo) Staffing
   Hire 32 staff members across management, captains, hosts, lifeguards,
   bartenders, servers, operations, facilities, and security.
 * (T-1 mo) Training
   Engage in a rigorous hospitality and safety training program.



The rate of pre-sale memberships is outpacing projections, demonstrating the
tremendous market demand for a new type of member club.  

Word of mouth sold over half of Tier 1 Annual Memberships before the release of
any primary marketing materials. An initially budgeted $400k for marketing
provided a CAC of $1,111 for 360 memberships. However, an early social media
advertising test has demonstrated an actual CAC of $472, 58% lower than initial
projections. The growing market awareness, applicant excitement, and a larger
and more refined advertising budget will combine to drive the CAC even further
down.


Prior to opening, interested members can submit an application with a refundable
deposit, available in 3 Tiers:

 * Tier 1 | 80 available -- $5,000 [FILLED]
 * Tier 2 | 90 available -- $6,250 [ACTIVE]
 * Tier 3 | 180 available -- $7,500
 * NFT Forever Memberships | 10 Total, 4 Sold, 6 Available -- The club of the
   future isn't complete without the membership type of the future. ArkHAUS is
   offering a very limited 10 "Forever Memberships" via NFT sales, of which 4
   have sold for an average of 8.5 ETH ($27,753 USD equivalent at time of sale).
   
   

Membership

Location


Regulatory

Vessels



As a marine-based offering, the primary governmental interface for ARKHAUS is
the US Coast Guard. The company will have to secure its business filing, liquor
licenses, entertainment permits as required by city of Miami, Miami-Dade County,
and the State of Florida. However, ARKHAUS' location and its operations are
governed by USCG.

The US Coast Guard governs all bodies of water in the USA. Once ARKHAUS
establishes and approves its Miami operations with the USCG, it can deploy clubs
nationwide using the same framework. Opening a new club simply requires 1)
producing the vessels, 2) pre-selling the membership, 3) identifying the
location, and 4) selecting food, beverage, and entertainment partners.

ARKHAUS has engaged maritime-specialized legal counsel, Holland & Knight.
H&K has been in regular communication with USCG, working to verify every aspect
of operations. They have already produced a legal memo which clarifies the exact
mode of operations that fit within the USGC regulatory framework.


FLAGSHIP LOCATION: MIAMI

Boasting open water views and positioned away from marine traffic, ARKHAUS has
the ability to be permanently docked with a hospitality partners, or "floating"
a few hundred feet from the seawall.

The Miami location has been identified, negotiated, and agreed to in principle.
ARKHAUS will soon sign a 2-year lease for said location, but until then, cannot
disclose it.  Below are a few potential locations.

ARKHAUS at Paraíso in Miami

ARKHAUS at Maurice Ferré Park in Miami


FUTURE CITIES

Expansion beyond Miami will roll out in two separate 5-year phases. 

Once the first location is live and generating buzz in Miami, pre-sale
memberships will be made available to future locations in New York City, Los
Angeles, San Francisco, Paris, Istanbul, and Dubai. This is the first 5-year
phase of expansion.

With 7 clubs opened in the first 5-year expansion, ARKHAUS will have refined its
vessel production, on-board operations, pre-sales marketing and site selection. 
In the second 5-year expansion period, ARKHAUS can open 25-30 more locations
globally. Any body of water with the appropriate aesthetics, a suitable local
economy, and enough tourism draw to attract members from other locations is a
potential location.  Options include the French Riviera (Cannes), Sydney, Tulum,
Cabo San Lucas, Mykonos, Ibiza, Cape Town, Punta Del Este, Barcelona, the
Caribbean, Italy's Amalfi Coast, and many more.

ARKHAUS has already identified hospitality and investment partners in Dubai and
Mexico, and continues to receive regular inquires about opportunities to bring
ARKHAUS to new destinations.





Revenue is driven by a combination of membership dues, guest passes, and food &
beverage sales. The club's capacity is governed by 'Capacity Hours' that are
available to members and guest. 'Capacity Usage' is the Actual Used Capacity
Hours divided by the Total Capacity Hours Available. Selling only a conservative
360 memberships and expecting an average of 2 guests per member visit, ArkHAUS
anticipates operating at 50% Capacity usage in most of year 1.

After monitoring safety and experience at 50%, as well as alternative revenue
opportunities during year 1, the club can opt to sell a greater number of
memberships or allow more guests in order to approach 75% or 100% Capacity Usage
scenarios.


With food & beverage sales as the second source of revenue, Other Income will
also be generated in the form of cabana rentals, event bookings, charters, and
activity rentals.


With a projected annual top-line revenue of over $12mm in year 1 of full
operations, ARKHAUS still leaves much room for growth 1) on a per location
basis, and 2) via global expansion.


Per Location

ARKHAUS will initially offer only 360 total memberships (350 annual + 10 NFTs)
at reduced pre-sale rates.  In year 2, all pre-sale members will lock into a
$7500 annual rate, which will increase membership revenue from $2.31mm to up to
$2.63mm. Over time, as memberships are retired, new members will sign up at $10k
annually. A full 350 annual membership base at $10k annual will increase
membership dues revenue to $3.5mm annually.

More importantly, 360 members plus an average of 2 guests per visit only results
in 50% of Capacity Usage. This metric is the Actual Used Capacity Hours Used
divided by the Total Capacity Hours Available.  After monitoring safety and
experience at 50%, as well as alternative revenue opportunities during year 1,
ARKHAUS can offer a greater number of memberships to those on the wait list,
eventually reaching 75% or nearing 100% Capacity Usage scenarios.


By expanding Memberships, which also serves to increase Guest Pass revenue as
well as Food & Beverage revenue, ARKHAUS can approach $19mm (75%) and $25mm
(100%) in top-line revenue.

Global Expansion

With the Miami location open and generating buzz, ARKHAUS will accelerate the
expansion plans it is quietly deploying. As discussed in the Vision section
above, ARKHAUS will open 7 clubs in its first 5 years, and 25-30 more in a
subsequent 5-year expansion phase. 



> Summary: With highly attractive base economics per location, increasing per
> unit gross revenue combined with location expansion serve to create a
> multiplier effect in growth. As this investment is offered by the parent
> company ARKHAUS Inc., your investment will benefit from all single club growth
> and all future locations, creating a truly scalable hospitality business.



While many competitors in the private members club market prove consumer demand,
Soho House reigns supreme as the only global player. In July 2021, Soho House’s
parent company, Membership Collective Group (ticker: MCG) IPO’d, providing vast
information to analyze ArkHAUS’ market potential.

Analysis of 5 Investment Bank research reports (Bank of America, JP Morgan,
Morgan Stanley, Loop Capital Markets, HSBC) results in an average EV/EBITDA
multiple targets of 16.4x for year-end 2023.

We then apply this multiple to the projected1st year of full ARKHAUS
operations to obtain a projected valuation


Summary: Investment in this round is at a $20mm valuation ($15mm for Early
Bird). The above analysis indicates a single Miami ARKHAUS location will be
valued at $93mm (applying a more conservative 12x multiple for single location).
With 6 additional locations opened, ARKHAUS would be valued at projected $896mm
(applying the same 16.4x multiple as Soho House).



While competitors such as Soho Beach House, Fisher Island Club, and Bath Club
are all based on land, ARKHAUS is securing its market position as the next
generation-floating members club.



> COMPETITORS:
> Soho Beach House | The Bath Club | Faena Rose | 1 Beach Club
> Fisher Island Club | The Edition Club| The Standard Sp

Miami and many other cities with an active boating and aquatic culture present a
great opportunity for a differentiated marine-based club. However, yachts and
boats do not provide suitable configurations or headcount capacities for this,
which means no other membership club has been able to expand into this space.

In partnership with the designers and manufacturers of the vessels, ARKHAUS
envisioned a way to accommodate the necessary hospitality operations, redefining
the concept of the membership club both in terms of the venue as well as the
experience.

Anchored in Smart Design
Outfitted with electric engines, solar rooftops, and spuds that elevate the
entire platform out of the water, the modular club is built on four Arkup 40'
vessels; a state-of-the-art mansion on water meets the next generation of
Transformers.

Charting the Course for Our Collective Future
As sea levels rise and water-based cities like Miami face the inevitable reality
of disappearing coastlines, ARKHAUS looks ahead to marry Green Tech with Blue
Tech through a partnership with Seaworthy Collective, an organization that
drives regenerative ocean and climate impact through its community of current
and aspiring entrepreneurs known as sea change makers. The partnership is part
of ARKHAUS’ “Party up top, Research on the Bottom,” a campaign that aims to
equip ARKHAUS vessels with innovative startup solutions, such as drones that
will run underwater operations like mangrove restoration and cleanup, among
other initiatives. 

Power in The Members' Hands
Gone are the days of membership dues leading to red velvet ropes and anonymous
crowds. Today's luxury depends on those who are at the forefront of the changing
tides, and forming community around them. All perks and member benefits (such as
vessel charters) are designed to enhance the members' lifestyle. With only 360
memberships available in Year 1, the value of exclusivity reaches beyond
enjoyment of the club -- it also means opening doors and creating access to
unique opportunities that will, in turn, recharge the caliber of the membership
as a whole.




> What we stand for
> We're building a membership club that breaks the mold. A club for the world's
> disruptors, innovators, and those who care about moving the world forward. In
> a nutshell, we're creating a community of good work by day, and good people by
> night.

With $550k already raised, this investment round will accelerate ARKHAUS towards
reality. Since the prior crowdfunding campaign, the company has made tremendous
progress (see Traction above).   

Vessel deposits
A deposit must be placed to secure financing and begin production of the 4
vessels. US-based production will take approximately 6 months.

Membership marketing
The Marketing budget will be allocated toward content creation, digital
marketing, and member acquisition events. As membership presales have exceeded
expectations for a favorable Customer Acquisition Cost, ARKHAUS will have the
flexibility to allocate this surplus towards further marketing or other
operations. 


Pre-launch operations
ARKHAUS must undertake a variety of operational activities including surveying,
legal, agreements, club furnishings, payroll, and other ancillary expenses.

WeFunder Fee
7.5% of funds raised will go towards the WeFunder fee.




HOW CSTM HAUS PAVED THE WAY FOR ARKHAUS


Founded in early 2020, CSTM HAUS is a multi­-faceted hospitality business
offering a hybrid co-working & lifestyle membership as well as an event space
from a single flexible venue.

Following the NYC location in the Meatpacking District's famed "Little Flatiron
Building", CSTM HAUS set out to get its feet wet in Miami with a pop-up atop the
Faena Hotel's Bazaar Rooftop. The breathtaking views soon became the backdrop
for a new kind of membership club: a bright, inspiring space that cultivated a
healthy blend of powerhouse networking by day with vibrant fun by night. Events
such as the fast-growing #NFTuesdays series gained substantial notoriety,
leading to sponsorship from Stella Artois and Diplomático Rum.



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