#623: Could Indoor Playgrounds Be the Next Great Cash Flow Play?

An indoor family entertainment concept that started in Aurora is quietly on track to become a billion dollar enterprise, and most Colorado investors have not heard the story yet. Lava Island opened its first park in 2018 and now operates 11 locations across the country, with every single new park cash flowing positive in its first month. Chris Lopez sits down with Dan Price, managing partner at Amplify Capital, to break down the Lava Island investment opportunity. Dan came to this deal after a 9-figure exit in insurance services and is now the single largest investor in the offering, calling it a once in a couple decades opportunity. The conversation covers what makes Lava Island structurally different from Urban Air, Sky Zone, and Boondocks. The 2 to 12 age focus, the absence of arcades and go-karts, and a staffing model that runs on roughly 40 people versus 120+ at competitors all combine into a simpler, lower liability, higher margin business. Dan gets specific on the numbers behind the Lava Island investment opportunity. The original Aurora location did 6 million in top line revenue on 10 dollar hourly passes. Each new build costs around 4.5 million. The reinvestment fund is modeled at a 6.8x MOIC with target exit in late 2029 or early 2030. The cash flow fund delivered a 16.44 percent annualized distribution in May and is projected to hit the mid 30s by the end of next year. Accelerated depreciation gave 2025 investors 1.17 dollars in deduction losses per dollar invested. For offering details and data room access on the Lava Island investment opportunity, reach out through ampcap.co. In This Episode We Cover: Why no arcades, no go-karts, and a 2 to 12 age focus is the competitive moat How Lava Island scaled from 1 location to 11 in roughly 2 years The vertically integrated construction model with hand-painted murals at every park Why every new location has been cash flow positive month one The 6.8x MOIC reinvestment fund vs the cash flow fund paying monthly distributions How accelerated depreciation wiped out gains for 2025 investors Why Dan believes this is a once in a couple decades opportunity This is the most aggressive offering Lava Island will run before terms tighten in future raises. If you have wanted exposure to a proven family entertainment concept with national expansion underway, this is the episode to listen to before reaching out. Watch the Youtube Video https://youtu.be/M3Q3VOwRg88 Timestamps 00:00 Welcome and intro to Lava Island family entertainment investment 01:30 Dan Price background ranching roots to 9-figure insurance services exit 05:04 From Narrate Ventures to Amplify Capital growth capital rebrand 06:54 Why founders need partners painful and lonely journey 08:23 What Lava Island is 2 to 12 age focus vs Urban Air Sky Zone Boondocks 13:03 Operating leverage 40 staff vs 120+ at competitors 14:45 Liability de-risked no go-karts no climbing walls no teenagers 16:24 Founders Boyd and Celeste 15+ years building parks across Europe 23:06 CEO Chase hired with one location pedigree of scaling exits 25:34 Vertically integrated construction Polish muralists hand-paint every wall 28:44 11 locations open expansion to 40+ targeting billion dollar enterprise value 31:04 Every location cash flow positive month one 32:04 Reinvestment fund 6.8x MOIC modeled returns and qualified purchaser requirement 34:25 Cash flow fund 16.44% annualized May distribution mid 30s projected 35:06 Accelerated depreciation $1.17 deduction per dollar invested in 2025 36:41 How to reach Amplify Capital Links in Podcast Amplify Capital Lava Island Reach out to Chris and the team by emailing [email protected] for a warm intro to Amplify Capital or to discuss the opportunity further.