PITCH DECK
Scalable Global Solutions JSC
2022
SCALABLE GLOBAL SOLUTIONS JSC
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MISSION
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Our focus is to drive, create and optimise our client´s impact in their market by creating a Department as a complete solution for their business growth.
VISION
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To become the global DaaS provider.
We are introducing a new concept to clients
that enable them to become more successful and competitive.
Their success is our success!
THE ISSUE
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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% increase in operational costs 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
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- 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
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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)
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DaaS is an industry agnostic solution, covering 8 core corporate segments.
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The client retains 100% control over their team and their day-to-day activities.
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By having an employed team in Croatia, the client ends up with a 50% more affordable department than in Central, Northern or Western Europe.
ECONOMIC ADVANTAGE
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Scalable Global Solutions is a pioneer in what it offers on the market.
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More significant vendors do not focus on smaller businesses (96% of the total market): We Do.
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Better than outsourcing, our solution gives the client exactly what they want: Control.
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Our SGS ONE platform offers simplicity and ease of use in managing your teams.
How does DaaS work?
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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
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Functions & Features |
DaaS |
Outsourcing |
| Ability to build your own department filled with selected team members |
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| Ability to change and replace team members |
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| Ability to define the Work and Job profiles |
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| Ability to interview the team members |
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| Ability to select the staff |
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| Business communication conflict |
Low |
High |
| Command over Intellectual property |
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| Complete Control |
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| Completely Independent |
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| Confidentiality and Security Risk | – |
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| Cost Reduction |
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| Cultural Focus |
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| Dedicated Office |
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| Complete Control about the Procedures |
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| Complete control about the process |
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| Complete control of the department |
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| Complete control of the people |
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| Hidden Costs | – |
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| Innovation Influence and adaptability |
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| Loss of Control | – |
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Benefit & Quality comparison chart – DaaS vs Outsourcing
- 6.5% - Outsourcing
- 93.5% - DaaS
| Managed Office Service |
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| New Hire Potential Incubator |
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| Customizable facility |
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| Poor Quality of Service | – |
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| Potential for conflict | – |
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| Quality Control |
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| Quality of work |
High |
Low |
| Tailor-made Solution |
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| Things Get Lost in Translation | – |
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| Time Zone |
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| Transparency |
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EMPLOYER OF RECORD (EOR)
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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
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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
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Easy implementation & navigation -
Entirely cloud-based, available also on mobile
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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
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Excellent strategic geographical position with proximity to major European cities
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Fully integrated into the European Union – Attractive place to work and live
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Access to a multilingual market
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High quality of life with low Costs of Living means more affordable but equally skilled talent
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IT Hotspot – The IT industry is becoming one of the propelling forces of the Croatian Economy
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A country with a population of 4M is home to several Industry 4.0 Unicorns such as Rimac, Infobip and Nanobit.
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Favourable corporate taxation system
FIRST TO MARKET
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BPO VENDORS |
CRM VENDORS |
RPO VENDORS |
OFFICE VENDORS |
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SERVICE |
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| CRM Vendor |
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| BPO Provider |
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| RPO Provider |
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| Office Provider |
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| Dedicated staff/ not outsourced |
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| Resource selected by the client |
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| Resourcefully integrated |
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| The client fully manages the service. |
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| Virtual Dedicated workforce |
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| Exchange of staff by client |
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| Reduction of Operational Cost |
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| Dedicated Office space for the client |
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| Shared Office space for the client |
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| Office space for the client |
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| Fast implementation |
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| Complex to negotiate |
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2022 WRAPPED
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232%
YoY Growth
€450K
Investments in 2022
€60K
Monthly Revenue
15%
MoM Revenue Growth
€3M
In signed deals for 2023+
9
Clients
9
Investors
31%
Valuation YoY Growth
REVENUE MODEL
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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 – Our Value-Added Resellers (VARs) have the ability to present our solutions to a wider market.
3) SGS ONE software license – SaaS subscription model.
BUSINESS MODEL
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We sign 36-month contracts with our clients, which auto-renew once they expire.
The average initial contract deal size is ~€100k per year, with 2 employees and an office.
Orbis, our largest client, is currently employing a team of 8 people (developers and consultants), and the goal is to grow their Croatian division to 30.
That single client would then be worth €1.2 million per year and open the possibility of cross-selling our other solutions, increasing the LTV of this client exponentially.
FINANCIAL METRICS
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Average revenue per client employee |
€5,573 |
Monthly Recurring Revenue (MRR) |
€50,000+ |
Average Monthly Revenue Growth Rate (MoM) |
12% |
Average Net Profitability per Client |
35% |
CLIENT CASE STUDY (36-MONTH CONTRACT)
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Net Profitability |
42% |
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Quarterly Revenue |
2022 Q1 |
2022 Q2 |
2022 Q3+Q4 |
Number of client Employees |
5 |
8 |
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
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P&L (€) |
2023 |
2024 |
2025 |
2026 |
2027 |
Revenue from Services |
5.000.000 |
16.600.000 |
35.500.000 |
67.200.000 |
102.650.000 |
Software System Revenue |
35.000 |
250.000 |
2.000.000 |
6.000.000 |
10.000.000 |
Investor Inflows |
1.438.000 |
1.941.300 |
2.911.950 |
4.367.925 |
6.000.000 |
VAR Program Revenue |
1.000.000 |
4.150.000 |
10.650.000 |
26.880.000 |
41.060.000 |
Total Revenue |
7.473.000 |
22.941.300 |
51.061.950 |
104.447.925 |
159.710.000 |
Total Cost |
-4.000.000 |
-13.400.000 |
-28.800.000 |
-54.500.000 |
-97.000.000 |
EBITDA |
3.473.000 |
9.541.300 |
22.261.950 |
49.947.925 |
62.710.000 |
EBITDA Margin |
46,47% |
41,59% |
43,60% |
47,82% |
39,26% |
THE TEAM
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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 Relations 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.
Luka Vuković
Head of Operations
Holding a master’s degree in Industrial engineering and a Google project management certificate Luka has more than 10 years of experience leading various technical teams and 5 years of experience as a hardware/software startup-company CEO, where he has built the company around his patent and led the product development from start to selling it on 3 different continents. On top of that, Luka has experience serving as a chairman and a board member in two public companies and as a president of the local basketball club where he actively played.
His drive is to build fantastic products that, eventually, millions will use.
Marko Klenović
Channel Account Manager
Marko has a career that spans for more than 20 years, working with European companies in areas of business development, consulting and market research. He has been working for the French Ministry of Economy, the Economic Office within the French Embassy in Croatia. He spent the other half of his professional life as Head of a bilateral Franco-Croatian Chamber of Commerce and Industry. Perfectly fluent in English and French with basics in German, Italian and Russian, Marko also has a strong background in office, administration, project and event management as well as PR.
Alexis Samohod
HR Generalist
Master in Business Administration from Centrum PUCP (Peru) and Eada Business School (Barcelona), with an achieved Magna cum laude recognition and Beta Gamma Sigma (BGS) Member. Ten years of experience in HR and Recruitment for the IT, mining, and construction sectors. Managing high-performance work teams for more than 20 projects across LATAM and Europe.
INVESTMENT OFFERING
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Scalable Global Solutions is looking for a €1,000,000 capital raise in exchange for equity (regular shares)
PRE-MONEY VALUATION:………€13.087.000
NUMBER OF SHARES:……………………. 140.000
LEGAL FORM:…………….. Joint Stock Company
DISTRIBUTION OF FUNDS
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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 (Q1 2023) |
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
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Cash-out options 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
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We have envisioned the following exit scenarios:
Merger
Acquisition
IPO
