- Large addressable market with a big problem – 15% of premium in Auto Alone
- Workers compensation is next US market
- VA interest – Joe Robles relationship
- Validated by sophisticated players at Met
- Solution not a tool
- Enterprise ready: almost no “software debt” (administration, workflow, reporting, security all enterprise quality).
- Much of it built originally for DoD – losing solution for “continuous monitoring” at Feds
- Creator is a guy with a sterling track record: Oracle on Demand, Corio (IBM on Demand), Arcsight (HP 1.5BB)
- Solution provider is a guy with a brilliant reputation as a big data Analyst. Roomie at Chicago.
- Other key owner had to step out for personal reasons but used to run Booz and then DT Banking practices. Started with me at Chicago and PW.
Investment status
- Monta Vista partners putting in $750,000 from their fund
- In due diligence now.
- Committed a minimum of another $250,000 from their limited partners
- Total raise: $3 million
- Soft close: $1 million
- Indus Angel Group
- Looking for $250 to $500 from sophisticated investors who can help us
- Valued at $7.5 premoney.
- First customer generating minimum $840,000 next year – less than half of what it’s worth. $300,000 in January
- Go to market is proof of concept -> batch workbench -> real time
- Second customer quote: $250 ->60cents/ per policy per year->15cents more per policy per year (> million policies)
- Third cutomer quote: $250 to $500 ->70cents/policy per year -> 20 cents per policy per year (>million policies)
Top big data plays have $10 million or less in total venture equity raise to sale or public offer
- What we need: want extra dollars from friends to strengthen our position with follow on VCs. They threw us a curve with the 750 v. 1 million…need to get 250 ourselves.
- Looking for a soft commitment right now – ideally before 11/30
- Send an email to CEO indicating intent to invest
- Want influential people who can have an impact
- Valuation will double with second paying customer
- Will double again with third customer.
- This could easily be our only funding round.
- Funnel
Erie
- Similar to Shelter, only 3x the size
- Shelter story
