Why I am buying Life360:-One in ten families with kids in the US...

Why I am buying Life360:

-One in ten families with kids in the US actively use the product today, and they have over 30 million users worldwide.

-Their retention and engagement is best in class for B2C —they are used on average ten times a day and churn flattens to 0% (and actually ticks positive) after 18 months.

-Beyond just having amazing market fit, they have an exceptional attachment rate to premium of 18%—ARR has gone from ~$1m to $100m (Dec 2020 forecast) in five years.

-The company grows organically and doesn't need outside capital—over 80% of new registrations come through word of mouth and they can become profitable whenever they want.

-They have deep resources at their disposal—over $60m is in the bank and they are approaching 200 team members with a 100-person HQ in San Francisco with satellite offices in San Diego, Las Vegas, Hyderabad, and Kyiv.

- Chris Hulls (Founder & CEO) is an extremely impressive individual and has considerable skin in the game (7% of all SOI). He finished high school a year early. Went to UC Berkeley, did an internship at Goldman Sachs and then turned down the full-time offer. He had the option for an "easy" path through life (Harvard Business School), but entrepreneurship was in his blood; the guy has grit and determination in spades.

360 was the biggest tech IPO on the ASX since Wisetech in 2016. The share price is down in the gutter at the moment, but the journey of Life360 is only just heating up.

Will this eventually reach a billion-dollar (AUD) valuation? I think so.

T.E.P.