2. CONTENT
Company's Summary.........................................................................................................3
Brief Introduction..............................................................................................................3
Main Competitive advantage ............................................................................................3
Main competitors...............................................................................................................4
Other competitors..............................................................................................................4
JetSmarter Business Model...............................................................................................5
Background.........................................................................................................................6
Location of offices.............................................................................................................6
History...............................................................................................................................6
Ownership and Corporate governance..............................................................................7
Products...............................................................................................................................8
Products offered ................................................................................................................8
Other regular products developed .....................................................................................9
Marketing..........................................................................................................................10
Objectives, mission statement.........................................................................................10
Promotional strategy........................................................................................................10
Distribution channels used ..............................................................................................11
Pricing..............................................................................................................................11
Expansion strategies........................................................................................................11
Personnel...........................................................................................................................12
Number of employees .....................................................................................................12
Organizational Hierarchical Structure.............................................................................12
Financing: complete informations..................................................................................15
Funding History Total Funding ......................................................................................15
Investors ..........................................................................................................................15
About latest fundings ......................................................................................................16
Possible allocation for the new founding raised .............................................................16
3. COMPANY'S SUMMARY
Brief Introduction
Jet Smarter is a mobile marketplace that offers instant pricing and availability for private jets
worldwide. The application democratizes the private jet industry by decreasing the entry price for
consumers, and helping air carriers' gain more exposure within the market. By eliminating the middle
man when it comes to booking a private jet, this app takes the process in the future with simplicity and
ease. The JetSmarter app in available for iOS and Android.
Main Competitive advantage
Predictive maps and algorithms to find where the demand is, so that JetSmarter will never over supply
the market, and can just meet the amount of demand we have. Other companies would over supply
and fly where they’d have 20% loads. JetSmarter has zero deadhead weight on our shuttles and a 90%
load factor.
JetSmarter doesn’t own any planes, but instead works with operators, owners and carriers who
manage and maintain the planes, hire pilots and deal with safety and compliance issues for the heavily
regulated industry. Partners with 800 air carriers all over the world. Between them, the carriers are
making more than 3,000 aircraft available to JetSmarter customers - and this number is growing.
JetSmarter possibly has not any direct competitors because there are services out there that only sell
empty legs, there are services out there that only give shuttles, there are services out there that only
give charters. There is no service that only gives all three like JetSmarter.
4. Main competitors
Stratajet (United Kingdom)
Invertors: JamJar Investments, Octopus Ventures, Piton Capital and Playfair Capital
Total funding: 13M
JetSetGo (India)
Investors: Puneet Dalmia and YouWeCan Ventures
Total funding: 2M
Other competitors
SurFair
Website: surfair.com
WheelSup
Website: wheelsup.com
5. THE BUSINESS MODEL OF JETSMARTER
Chartering a private jet can be a hassle, even for the 1%. Traditionally, booking private travel has been
a confusing process, with lots of forms and back-and-forth with brokers. JetSmarter came to make it
faster, easier and safer - simplify the process. Its Business Model Explained below:
6. BACKGROUND
Location of offices
HEADQUARTERS
FORT LAUDERDALE
JetSmarter Inc.,
500 East Broward Blvd., 19th Floor,
Fort Lauderdale, USA, FL 33394
+1 (888) 9 VIP JET
+1 (888) 9-847-538
LONDON DUBAI
The Broadgate Tower JetSmarter FZCO
Third Floor Dubai Airport Freezone
20 Primrose Street Building 5EA, Suite 710
United Kingdom, London EC2A 2RS P.O. Box 371135, United Arab Emirates
+44 (20) 7193 0727 +971 4 230 8300
ZURICH RIYADH
JetSmarter Switzerland GmbH, JetSmarter KSA
Uraniastrasse 28, 25 Floor, Kingdom Tower
Zurich, Switzerland, CH-8001 Riyadh 11573, Kingdom of Saudi Arabia
+41 (44) 520-2000 +966 (54) 922-2252
MOSCOW HONG KONG
JetSmarter Rus OOO, JetSmarter Hong Kong Limited
11 Timur Frunze St., Bldg 2, Suites 1-17 20/F., Alexandra House, 18 Chater
Moscow, Russian Federation, 119021 Road, Central, Hong Kong
+7 (499) 350-2090 +852 8198 0095
History
JetSmarter was founded in 2012 by entrepreneur Sergey Petrossov, whose idea made him one of
Forbes' 30 under 30 business leaders of 2016. In August 2012, the beta-version was launched and
tested among a closed group of private aviation users. After testing proved successful, Petrossov
sought and received substantial venture funding to expand JetSmarter’s scope.
In March 2013, the JetSmarter app was launched and made available to the general public on both
iOS and Android devices.
7. In June 2015, JetSmarter announced its new European Headquarters in Zurich, Switzerland.
In early 2016, it launched flights between Europe. According to Business Insider and TechCrunch
JetSmarter has raised $20 million from the Saudi Royal Family, American rapper Jay-Z, American
serial entrepreneur and investor Wayne Chang,and investment bank Goldman Sachs Capital
Partners. In total, Jetsmarter raised $56 million since its inception and has offices in Zürich,
London, Moscow, Dubai, Riyadh and Fort Lauderdale.
In December, 2016, JetSmarter announced it had raised an additional $105 million at a $1.6 billion
valuation.
Ownership and Corporate governance
Ownership
CEO and founder: Sergey Petrossov
Co-Founder: Ruslan Tolba
Corporate governance
President: Gennady Barsky
General Counsel: David Schubauer
Board Observer: Abdulwahab Ahmad Al-Nakib
Board Member: Bradley Stewart (CEO of XOJET)
8. PRODUCTS
The company, which currently offers about 50 routes between more than 30 cities around the world.
It's goal is to add another 80 routes within 2017.
Products offered
PrivateCharter
When you want to fly in private
- Create a fully customized privete charter flight in the most efficient way possible
- Build and book your custom itinerary in minutes
- Browse al aircraft results, right in the app
- When you select an instant booking aircraft, your price and flight are guaranteed the moment you
book
SharedCharter
If you don't need the whole plane and would like to share with other members
- Create a fully customized shared charter flight, quickly and conveniently
- Browse all aircraft results, right in the app
- We'll invite the other members to buy the empty seats and pass the savings on to you
- When you select an instant booking aircraft, your price and flight are guaranteed the moment you
book, whether we fill the empty seats or not
Jet Shuttle
If you want to book seats on pre-scheduled flights between major cities
- Book seats on scheduled routes, worldwide
- Bring along friends and family by purchasing additional companion seats
- Or create your own shuttle (AKA SharedCharter) and any of our posted routes. You choose the date
and time, and we'll invite other members to book the open seats. You're guaranteed to fly, either way
Jet Deals
If you're looking for a magically-random getaway, and want to get up and go today
- Book seats on spontaneous flights, worldwide
9. - Reserve available companion seats for friends and family
- Set your favorite locations in the app, and receive notifications when new JetDeals for there cities
become avaiable
- Choose from more the 250.000 seat annually on tens of thousands of flights
Other regular products developed
In addition to flexible flights whenever you fancy, the company is running regular routes between a
rapidly growing number of cities:
United States Europe
New York – Los Angeles London – Geneva
New York – Las Vegas London – Paris
New York – Miami Moscow – Nice
New York – Palm Beach London – Nice
New York – Chicago Paris – Nice
New York – San Francisco
Fort Lauderdale – Los Angeles
Fort Lauderdale – Las Vegas Middle East
Chicago – Fort Lauderdale Kuwait – Dubai
Chicago – Los Angeles Jeddah – Riyadh
Dallas – Houston Dubai – Riyadh
Las Vegas – Los Angeles
Las Vegas – San Francisco
Los Angeles – San Francisco
Mammoth – Los Angeles
10. MARKETING
JetSmarter has no declared objectives, vision and mission statement, however based on several
interviews with the CEO Sergey Petrossov I find out what could be their strategies.
Objectives, mission statement
Mission
Simplify the process of chartering a private jet and create a new class of travel - new segment between
private and commercial.
Vision
Petrossov says: The long-term goal is to eventually make all air travel private.
Promotional strategy
Invite people
JetSmarter usually offer highly selected people and celebrities to try their service. They aren't usually
paid to promote JetSmarter. That's all part of JetSmarter's strategy for appealing to people around the
world who can afford to fly on private jets. JetSmarter also has some well-known clients. Kim
Kardashian tweeted about it to her millions of followers, for instance.
Hosts and sponsors events
The company then hosts and sponsors events that will cater towards people who can afford to join.
But even then, JetSmarter is selective about who it wants to be seen using its service. "You have to be
very careful. Just because someone is famous doesn’t mean they’re good for our product," Grusevich
says.
Member Testimonials
JetSmarter members represent leaders in business, sports, entertainment, and culture. They use it for
its own promotion.
About membership
It’s a country club in the sky. It’s people who can afford a membership that get to [join]. People
actually like talking to each other and getting to know each other. They make friends. Some people,
very few actually, in the United States they buy memberships just to network. Some World-Class
Membership Benefits:
11. Vip Events
Jet Smarter brings you a one-of-a-kind experiences both in the sky and on the ground. Get access to
exclusive events, gallery, openings, celebrity meeting-and-greets, and more
HeliTransfers
Use our helicopter transfer service to bypass traffic, and arrive cool and collected. Available at select
airports, and seasonally to the Hamptons.
24/7 Concierge
Concierge services to book reservations at the finest hotels, restaurants, and clubs, and to fulfill the
most bespoke requests imaginable.
Distribution channels used
This a 100% App company. They are available at Appstore and Google Play. Everybody can download it
- it had 800,000 downloads and people registering through the app. However, when asked how many
people actually use JetSmarter, Grusevich says that it transported a total of 20,000 people last year
(which includes people who had seats booked for them by JetSmarter members).
Pricing
JetSmarter has about 6,700 members who pay $15,000 for the first year and $11,500 every year
thereafter and fly with the company about 12 to 15 times a year on average. They pay no additional
fees for seats on flights scheduled by JetSmarter but do have to pay to create a charter flight or to take
a member-created flight.
Expansion strategies
Before expanding to a new market, JetSmarter buys flight data and examines it to see which routes are
popular. It also translates its app to the local language and looks at how many downloads it has had
already.
12. PERSONNEL
Number of employees
Approximately 250 employees
Organizational Hierarchical Structure
Name Position Hierarchy Level
Abdulwahab Ahmad Al-Nakib Board Observer 0
Bradley Stewart Board Member 0
David Schubauer General Counsel 0
Wayne Chang Angel Investor 0
Servey Petrossov CEO 1
Edward Codispoti CFO 1
Mikhail Kirsanov CTO 1
Gennady Barsky President 1
Joseph Gnaster Senior Vice President of Aviation Partnerships 1
Paul Grusevich Head of Global Expansion 1
Joaquin Avino Senior Vice President of Business Development 2
Lolita Frangulyan Executive Vice President of Sales and Operations 2
Brent Hollenbach Director of Sales | USA 2
Collin Renshaw General Manager | MENA 2
Eric Jantzen Director of Sales | Europe 2
Karina Frangulyan Director of Internal Audit 2
Merzah Al-Askar Corporate Country Manager| MENA 2
Tom Engelhard General Manager | Europe 2
Wanda Will Strategy Director, Business Development 2
Brianna Zangara Head of Shuttle Flights 2
Sabrina Abitan Director of Shuttle Flights | USA 2
Nick Williams Head of Shuttle Flights 2
Veit Couturier Director of Shuttle Experience 2
Jena Kilbride Head of Member Experience 2
Amal Al Zubeidy Director of Member Experience- MENA 2
Anton Virchenko Head Data Architect 2
Jamie O'Connor Director of Human Resources 2
Matthew Atkatz VP, Executive Creative Director 2
Ryan Brisse Head of Treasury 2
Karina Frangulyan Director of Internal Audit 2
Antonio Caballero Director of Events 2
Gregory Schesser Culinary Director/Business Development 2
13. Matthew Hoeffel Operations Coordinator 4
Nick Vrbenec Shuttle Flight Coordinator 4
Brooks Newcomb Shuttle Flight Coordinator 4
Jamilla Munford Lounge & In-Flight Experience Coordinator 4
Anastasija Snicarenko Chief Counsel | Operations 4
Andrea Wolniewitz Executive Assistant to President 4
Jennifer Lawson Executive Assistant to CEO 4
Maria Mantilla Aviation Specialist 4
David M. Sheriden Sr. Aviation Specialist 4
Victor Schaefer Sr Membership Specialist 4
Peter Habib Aviation Specialist 4
Alexandria Daniels Shuttle Aviation Specialist 4
Holly Finn Account Executive 4
Krystal Succar Concierge Specialist 4
Rana Melis Karaoglu Marketing and Sales Executive 4
Joe Benson Senior Aviation Specialist 4
Ashley Palmore Shuttle Aviation Specialist 4
Jacob Karasiewicz Account Executive 4
Jags Minglani Senior Aviation Specialist 4
Drew Doidge Senior Membership Executive 4
Justin Harbor Senior Membership Executive | USA 4
Joseph Stanley Senior Membership Executive 4
Carlo M. Software Engineer 4
Tiffany Kaplan Concierge Specialist 4
Andrew Gerardi Media Buyer 4
Bryan Bellicini Aviation Specialist 4
Karim Ritani Data Engineer 4
Shemeem Ummerkoya Aviation Specialist |MENA 4
Justin Hruska Account Executive 4
Matthew Kepto Senior Aviation Specialist 4
Serhii Maletin Senior iOS developer 4
Pierre Samin Senior Membership Specialist | Europe 4
Matthew Sullivan Senior Aviation Specialist 4
David Anzolin Senior Membership Specialist | Europe 4
Andrew Sanchez Staff Accountant 4
Juliya Semchi Office Manager/Employee Relations 4
Michael Capalbo Staff Accountant 4
Jose Mugaburu Software Engineer 4
Genderie Rivera Senior Aviation Specialist 4
Bryan Binsse Membership Sales Executive 4
Sam Kimmell Account Executive 4
Olga Oleyarsh Data Econometrician 4
Erin Wolfkiel Senior Membership Specialist 4
14. Nelly Snarskaya Senior QA Engineer 4
Dana Robins Aviation Specialist 4
Christoph Daublebsky Senior Membership Specialist | Europe 4
Mina Said Aviation specialist 4
Brett Baumgartner Aviation Specialist 4
Gaieshan Dejean Member Support Specialist 4
Trip McFall Senior Membership Executive 4
Nickolay Yakovenko Senior Membership Specialist 4
Alexy Moshkov Project Manager / Software Architect 4
German Pabon Software Engineer 4
Nawar Yasmine Aviation Specialist | MENA 4
Elena Nikolaeva Accountant 4
Roman Nikolaev Senior android developer 4
Dmitriy Shulick Senior Data Visualization Engineer 4
Abdulaziz Karim Aviation Specialist 4
Hollis Gerth Data Specialist 4
Natalia Dushanalieva Accountant 4
Sakkeer Kuvvakattayil Moidunny Senior Aviation specialist 4
Mikhail Gosis Senior Tax Accountant 4
Jennifer Grimes Aviation Specialist 4
Stanislav Golovin System Architect Russia 4
Lauren Peck Shuttles Aviation Specialist 4
Mitchell Walker Account Executive 4
Anthony Font Senior Copywriter 4
Anisa Alikaj Senior Membership Specialist | Europe 4
Abby Listo Flight Experience 4
Rashaad Lambert Brand Advocate 4
Alana Rodriguez Corporate Paralegal 4
Nikolai Kotchetkov Lead Android Developer 4
Anna Mininkova Product Analyst 4
Luca Gavazzi Betancourt Executive Intern 4
Daniel Callahan Intern 4
Timothée Stephen Member Support 4
Katherine Jones Content Copywriter 4
Matt Yoklic Membership Specialist 4
Patrick Morgan Accounting Intern 4
Kara Boariu Office Manager 4
Davi Abdallah Senior Data Engineer/Data Scientist 4
15. FINANCING: COMPLETE INFORMATIONS
Funding History Total Funding: $155M
Round Date Funding Investors
Series C - II Dec 12, 2016 $105M
Challenger Universal, Jay-Z, Jet
Edge, KBBO Group, KZ
Capital and Saudi Royal Family
Series C Feb 22, 2016 $30M
Saudi Royal Family and Undisclosed
Investors
Series B Jul 23, 2015 $20M
Jay-Z, Saudi Royal Family,
Undisclosed Investors and Wayne
Chang
Investors
Investor
Investor
Type
Location Participating Rounds
Challenger
Universal
Corporation Qatar Series C - II (2016)
Jay-Z
Angel
Investor
(Individual)
New York, New York, US
Series C - II (2016) and
Series B (2015)
Jet Edge Corporation VanNuys, California, US Series C - II (2016)
KBBO
Group
Private
Equity
United Arab Emirates Series C - II (2016)
KZ Capital Other London, England, UK Series C - II (2016)
Saudi Royal
Family
Family Office Saudi Arabia
Series C - II (2016), Series C
(2016) and Series B (2015)
Undisclosed
Investors
Series C (2016) and Series B
(2015)
Wayne
Chang
Angel
Investor
(Individual)
Boston, Massachusetts, US Series B (2015)
16. About latest fundings
Series C funding
The main information we analyzed was the type of funding. JetSmarter has raised $105 million in Series
C funding. This kind of funding has a specific goal: investors inject this kind of capital in efforts to
receive more than double that amount back. I means that it will almost certainly for scale gain.
As the operation gets less risky, more investors come to play. In Series C, groups such as hedge funds,
investment banks, private equity firms and big secondary market groups accompany the before-
mentioned investors. That's why "common" people like Jay-Z decided to invest on JetSmarter.
Series C is about perfecting, and of course, continuing to scale fast and wide. Companies raise single
digit to hundreds of millions in this final round. One possible way to scale a company could be to
acquire another. Thera are other options. I'll cite in topics below.
Possible allocation for the new founding raised
1) Expansion of JetSmarter in Asia and Latin America: The massive funding round will be used
primarily for global.
2) Funding a cheaper service for shorter flights on small private planes - which will charge
customers $1 per mile flown. For instance: "on-demand” access to seats on a select number of
private flights for non-members. They would pay basically $1 per mile for shorter trips, like Boston
to New York, potentially.
3) Increasing the number of routes and flights available in the U.S.: The company wants to connect
more cities on the U.S. map, including connecting Florida destinations to Boston, New York and
Washington, D.C., and San Francisco to Seattle.
4) Decreasing the entry price for consumers
5) Building concierge services on the ground
6) More sophisticated tool for members to connect and interact with one another: creating more of
a “country club in the sky".
