PITCH DECK
Scalable Global Solutions JSC
2022
SCALABLE GLOBAL SOLUTIONS JSC
__________________________________
MISSION
______
Our focus is to drive, create and Optimises our client´s impact in their market by creating a Department as a complete solution for their business growth.
VISION
______
To become the global DaaS provider.
We are introducing a new concept to clients that enables them to become more successful and competitive.
Their success is our success!
CHALLENGE
______
The global SME sector desperately needs cost-cutting, process optimisation, and finding talent.
This has forced 96% of all companies in Europe to adapt and rethink their business strategy.
THE ISSUE
______
The global SME sector desperately needs cost-saving, process optimisation, and finding talent.
This has forced 96% of all companies in Europe to adapt and rethink their business strategy.
Target market companies face problems such as:
DRIVING EFFICIENCY
- Not using state–of–the-art processes
- The value chain can be improved
- Too many things are done „in-house“
- 61% operational costs increase since 2019
WINNING TOP TALENT
- Finding the right people
- Getting talent at all
- 50% increased market shortage of competent and skilled employees in 2022
DRIVING EFFECTIVENESS
-
- No Business Process Optimisation implemented
- Not doing more with less management
- 58% increase in employment cost in the last decade
Lack of competent and skilled labour is the key challenge to 25% of small and medium businesses in 2020 – the number is close to 50% in 2022.
Having a highly-skilled employee base is crucial for innovation.
SOLUTION
______
DaaS The Future of Employment
With DaaS, we enable clients to build and manage their remote teams and whole departments in our offices in Croatia.
The game-changing solution is that our clients:
Get access to a worldwide talent pool
Handpick who they want to hire
Do not need to create a subsidiary
Can easily manage their new team and department with our SGS ONE software
EXECUTIVE LEVEL FEEDBACK
93%
We Understand
Recognise the need to make strategic changes in OPERATIONS, BACK OFFICE & HR, focusing on optimising the processes & reduce costs
61%
We are Aware
Feel that departments are not prepared to capitalise on transformational changes.
32%
We ask someone who knows
They considered alternative strategies and started to look into BPO solutions. DaaS would be the perfect solution to their problem.
SUCCESS FORMULA (Unique Selling Point)
____________
-
DaaS is an industry agnostic solution, covering 8 core corporate segments.
-
The client retains 100% control over their team and their day-to-day activities.
-
By having an employed team in Croatia, the client ends up with a 50% more affordable department than in Central, Northern or Western Europe.
-
DaaS is an industry agnostic solution, covering 8 core corporate segments.
-
The client retains 100% control over their team and day-to-day activities.
ECONOMIC ADVANTAGE
-
Scalable Global Solutions is a pioneer in what it offers on the market.
-
More significant vendors do not focus on smaller businesses (96% of the total market): We Do.
-
Better than outsourcing, our solution gives the client exactly what they want: Control.
-
Unlike other feature-rich software, our SGS ONE platform offers simplicity, and ease-of-use in managing your teams.
HOW DOES DaaS WORK?
______
HIRING AND ONBOARDING PROCESS
1. Client Requirements Plan
- Candidate specifications
- Number of employees
- Level of expertise
- Language skills
- Additional skills
2. SGS Recruitment Process
- Global search for local placement
- Recruitment network in the CEE region and globally
- Filter candidates that match the job description
3. Client Selection
- Interview
- Evaluate
- Decide
4. SGS Integration
- Employing the candidates
- Payroll and local law compliance
- Dedicate office space and equipment
- Whole department = one monthly invoice
5. Client Integration
- New hires integrated as clients’ employees
- New team is ready and set to work
- Exclusively managed by the client
DIFFERENCE: DaaS VS OUTSOURCING
______
Functions & Features |
DaaS |
Outsourcing |
| Ability to build your own department filled with selected team members |
|
– |
| Ability to change and replace team members |
|
– |
| Ability to define the Work and Job profiles |
|
|
| Ability to interview the team members |
|
– |
| Ability to select the staff |
|
– |
| Business communication conflict |
Low |
High |
| Command over Intellectual property |
|
– |
| Complete Control |
|
– |
| Completely Independent |
|
– |
| Confidentiality and Security Risk | – |
|
| Cost Reduction |
|
|
| Cultural Focus |
|
– |
| Dedicated Office |
|
– |
| Complete Control about the Procedures |
|
– |
| Complete control about the process |
|
– |
| Complete control of the department |
|
– |
| Complete control of the people |
|
– |
| Hidden Costs | – |
|
| Innovation Influence and adaptability |
|
– |
| Loss of Control | – |
|
Benefit & Quality comparison chart – DaaS vs Outsourcing
- 6.5% - Outsourcing
- 93.5% - DaaS
| Managed Office Service |
|
– |
| New Hire Potential Incubator |
|
– |
| Customizable facility |
|
– |
| Poor Quality of Service | – |
|
| Potential for conflict | – |
|
| Quality Control |
|
– |
| Quality of work |
High |
Low |
| Tailor-made Solution |
|
– |
| Things Get Lost in Translation | – |
|
| Time Zone |
|
– |
| Transparency |
|
– |
EMPLOYER OF RECORD (EOR)
______
SGS, as the Employer of Record, enables foreign companies to quickly and compliantly commence operations in Croatia, without creating a local entity.
- Once the client has found their new team, SGS takes care of everything, from hiring, onboarding, and HR administration, to legal and tax compliance
- The client’s employees are technically on SGS payroll, but they are exclusively working for the client’s company.
- Effortless payroll management – one invoice for your whole team. SGS handles the taxes, health and pension contributions.
SGS ONE
______
A practical CRM solution that shapes and supports every department
Project reporting, hiring process overview, creating sales lead list
The SGS ONE can do it
-
Easy implementation & navigation -
Entirely cloud-based, available also on mobile
-
The perfect, lite alternative to other complex systems on the market
SGS ONE, in particular, adapts to the demands of the clients’ departments and numerous sub-services across our eight key solutions
It is written in our SOURCE-CODE and is ready for deployment in the clients’ subdomain in 2 weeks.
SGS ONE – the new cloud solution to optimise your business.
WHY CROATIA
______
-
Excellent strategic geographical position with proximity to major European cities
-
Fully integrated into the European Union – Attractive place to work and live
-
Access to a multilingual market
-
High quality of life with low Costs of Living mean more affordable but equally skilled talent
-
IT Hotspot – The IT industry is becoming one of the propelling forces of the Croatian Economy
-
A country with a population of 4M is home to several Industry 4.0 Unicorns such as Rimac, Infobip and Nanobit.
-
Favourable corporate taxation system
FIRST TO MARKET
______
 |
BPO VENDORS |
CRM VENDORS |
RPO VENDORS |
OFFICE VENDORS |
|||||||||
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
||
SERVICE |
|||||||||||||
| CRM Vendor |
|
– |
– |
– |
|
|
|
– |
– |
– |
– |
– |
– |
| BPO Provider |
|
|
|
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
| RPO Provider |
|
– |
– |
– |
– |
– |
– |
|
|
|
– |
– |
– |
| Office Provider |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
|
|
|
| Dedicated staff/ not outsourced |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Resource selected by the client |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Resourcefully integrated |
|
– |
– |
– |
– |
– |
– |
|
|
|
– |
– |
– |
| The client fully manages the service. |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Virtual Dedicated workforce |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Exchange of staff by client |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Reduction of Operational Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dedicated Office space for the client |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
|
|
|
| Shared Office space for the client |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
|
|
|
| Office space for the client |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Fast implementation |
|
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
– |
| Complex to negotiate |
– |
|
|
|
– |
|
– |
|
|
|
– |
– |
– |
| Complex to implement |
– |
|
|
|
– |
|
– |
|
|
|
– |
– |
– |
MILESTONES
______
Signed three clients in 2021
44% quarterly revenue growth since Dec 2021
Raised €1.6M to date
Launched Channel Partner Network
Web redesign with multi-language support
Reach the Break Even point
Sign three more clients by the end of Q3 2022
Grow team to 85 people by the end of the year
Achieve revenue of €2,5 million by the end of year
REVENUE MODEL
______
1) Direct Sale – Dedicated and experienced sales managers identify and directly approach suitable SMEs in assigned regions. The expected profit margins per deal range from 35%-42%.
2) Channel Partnership –Value-Added Resellers (VARs) present a vital part of our organisation as they sell our solutions to a broader market.
3) SGS ONE enterprise software license – CRM software licences – SaaS subscription model.
The average contract initial deal size is ~€150k per year.
Our largest client is currently employing 12 people, with the plan to ramp up the team to 30 by Dec 2022. That single client would then be worth €1.2 million deal, per year.
This opens then the possibility of cross-selling and creating other DaaS solutions for this client.
FINANCIAL METRICS
______
Customer Acquisition Cost (CAC) |
€5,573 per client |
Monthly Recurring Revenue (MRR) |
€40,000+ |
Average Monthly Revenue Growth Rate (MoM) |
44% |
Burn Rate |
€65,000 |
Average Net Profitability per Client |
35% |
CLIENT CASE STUDY (36-MONTH CONTRACT)
______
Customer Acquisition Cost (CAC) |
€5,573 |
||
Net Profitability |
42% |
||
Quarterly Revenue |
2022 Q1 |
2022 Q2 |
2022 Q3+Q4 |
Number of client Employees |
7 |
12 |
30 |
Amount in € |
88,200 |
220,500 |
793,800 |
Annual Recurring Revenue |
2022 |
2023 |
2024 |
Number of client Employees |
30 |
60 |
90 |
Amount in € |
1,102,500 |
2,866,500 |
4,630,500 |
FINANCIAL FORECAST
______
P&L (€) |
2022 |
2023 |
2024 |
2025 |
Planned Revenue from Services |
8.807.500* |
36.655.000 |
69.273.050 |
111.336.861 |
Software Revenue |
295.216* |
906.367 |
2.560.788 |
6.689.183 |
Chanel Program Revenue |
1.761.500* |
14.662.000 |
27.709.220 |
44.534.744 |
Total Revenue |
10.864.216* |
52.223.367 |
99.543.058 |
162.560.788 |
Total Cost |
-5.400.950* |
-8.989.990 |
-29.000.000 |
-49.000.000 |
EBITDA |
5.463.266* |
43.233.376 |
70.543.058 |
113.560.788 |
* depends on the realized investment round
RISK AND MITIGATIONS
______
Risk |
Mitigation |
| Strategic – Ineffective pricing, marketing, or distribution strategy poses a significant strategic risk. | By providing a comprehensive, well-thought-out and long-term business plan, SGS has a vision of the future business. According to the market changes, SGS is adjusting its current path to achieve the long-term business plan goals |
| Legal – Proper documentation, the legal composition of the business, legitimate licenses, protection of the intellectual property rights, presence of shareholders’ agreement as to the cornerstone of any business, and abiding by all the necessary laws and regulations. | Due to dynamic changes in the regulations environment, SGS has rewritten all of the necessary legal documents and is keeping them updated with the help of three external lawyers. We also have proper professional legal and accounting (tax) support, with whom we have an exceptional relationship. |
| Operational – Stability of the internal management structure. | Company stability is established by employing experienced professionals. In addition, by following internal processes and procedures, everyone who joins the company and undergoes the internal training will quickly grasp how the company functions and become a vital part of the company. |
| Financial – The business plan should be realistic about how much money will be needed to break even and how much will be returned to investors in the coming years.. | By optimising costs, investing in people, and following the business plan strategy, we are transparently utilising realised funds and our revenue to achieve set goals. Our Break-Even point will be in Q4 2022 |
| Market entry – The selection of inappropriate pricing, marketing, or distribution strategy is a significant potential risk. In addition, cultural differences, administrative differences and economic differences are also present. | Doing proper market research before entering a country or a region is the most crucial part—secondly, direct client approach or via Channel partner. |
| COVID-19 – The COVID-19 situation changed or affected every company in the world to a certain degree and how business is done. In our case, it delayed sales, operations, marketing and R&D. Specifically, in sales, due to business uncertainty, customers who had already decided to go with us cancelled that decision. | SGS internally handled COVID-19 by optimising costs and implementing remote work. Externally, COVID-19 became an accelerator and the most effective marketing campaign in a long time, which immensely multiplied the market potential. In addition, it shifted the conservative audience mindset as they started exploring options for optimising their business, finding new employees, and reducing expenses. |
THE TEAM
______
Markus Borlinghaus
Founder & CEO
Inventor of DaaS
Has decades of experience in Corporate Leadership and working at executive level positions in Cisco Systems, Juniper Networks, Microsoft, Xerox and ATI.
Has decades of experience in Corporate Leadership and working at executive level positions in Cisco Systems, Juniper Networks, Microsoft, Xerox and ATI.
Has co-build two startups: Peribit Networks (sold to Juniper Networks) and Whale Communications (sold to Microsoft)
Marko Dubroja
Investment Account Manager
Marko is an accomplished and agile startup enthusiast, leading the Investment Team. With practical industry experience, ranging from gaming to quality assurance, and a Masters’ degree in finance from VERN University, he has the “out-of-the-box” mentality to achieve his team and company goals. Marko excels at cross-department projects, organises brainstorming sessions and has helped secure critical investments for the company.
Marijana Dobrovolec
Head of Marketing
Marijana worked in various sectors, from the textile, garment, and general retail for 20 years.
She specialises in digital and operational marketing, with a wide span of B2B – B2C and technical skills, such as building and managing webshops, CRMs and multiple kinds of websites in its backend and frontend.
INVESTMENT OFFERING
________________________
Scalable Global Solutions is looking for a €2,300,000 capital raise in exchange for 18% equity (regular shares)
PRE-MONEY VALUATION:………€10.845.000
NUMBER OF SHARES:……………………. 140.000
LEGAL FORM:…………….. Joint Stock Company
DISTRIBUTION OF FUNDS
______
The raised funds will enable us to establish SGS as the leading DaaS player in Europe.
Working Capital |
40% |
Operational expenses such as rent, software maintenance and salaries. |
Sales Team Expansion |
8,33% |
Hiring experienced sales talent to cover more ground and close more deals, will bring us closer to the break-even point (Q4 2022) |
Staffing and Recruiting |
8,33% |
Establish a functional recruitment matrix across the CEE and SEE region |
Further Channel Program Development |
21,67% |
Find new business partners and Account Managers across Europe |
R&D for SGS ONE |
11,67% |
Creating the SGS ONE 2.0, developing new modules, UI enhancement |
Marketing |
10% |
Digital Marketing Campaigns, Display Marketing and PPC Marketing |
BENEFITS FOR THE INVESTORS
______
Cash-out options of shares in later fundraising rounds
Success Fee – for every new investor the existing shareholder brings on board, we reward it with a success fee
Potential Exit for 2029+ with targeted returns of 25x-38x
EXIT STRATEGY
______
We have envisioned the following exit scenarios:
Merger
Acquisition
IPO
