PITCH DECK - SGS JSC

PITCH DECK

Scalable Global Solutions JSC

2023

Untitled 1

SCALABLE GLOBAL SOLUTIONS JSC

__________________________________

Scalable Global Solutions is a Croatian-based startup that enables international small and medium-sized businesses to create and manage their own teams and departments in Croatia without opening an entity.


We make it easy to implement, employ, pay, support & manage teams and departments.


By creating DaaS [Department as a Solution], our clients solve four key issues:​

BUSSINES GROWTH

REDUCING OPERATIONAL COSTS UP TO 50%

FINDING AND KEEPING EMPLOYEES

INCREASING EFFICIENCY BY 15%

HQ: Zagreb, Croatia

Industry: Future of Work, Business Solutions, HR, SaaS, BPO, Managed Office Space

Number of employees: 50-100

Fundraising stage: Seed

Looking to raise: €1M

Use of funds: Accelerating sales, Growing the Channel Partnership network, Creating the SGS ONE 2.0, Branding & Marketing

MISSION

______

 

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

______

 

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! ​

TARGET MARKET

______

FOCUS KEY

 

SME – Small & Medium-Sized Enterprises

50-5.000 employees

96%

96% of the target market has enormous potential for SGS DaaS. Global market pressure forces these clients to optimise their operations and businesses.

operations

TAM SAM

Investments in technologies supporting Future of Work initiatives will exceed $1 trillion worldwide by 2024 with a robust 17% CAGR over the five-year forecast period.

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

  1. Not using stateofthe-art processes 
  2. The value chain can be improved 
  3. Too many things are donein-house 
  4. 61% increase in operational costs since 2019 

WINNING TOP TALENT

  1. Finding the right people 
  2. Getting talent at all 
  3. 50% increased market shortage of competent and skilled employees in 2023

DRIVING EFFECTIVENESS 

    1. No Business Process Optimisation implemented 
    2. Not doing more with less management 
    3. 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 2023.

 

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:​

 

DaaS 300x300 NEW VERSION 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​

BO background 2

Sales background 2

OPS background 2

IT background 2

CC background 2

HR background 2

Marketing background 2

Finance background 2

MARKET POTENTIAL

______

Total Addressable Market [TAM]                                                                                                                                                                                                    € billion

LATAM 62,40
USA 157,00
ASIA 189,20
CENTRAL EUROPE & GCC 221,41
Total 630

TAM Global Potential

Total 630€ billion

  • CE & GCC 221,41€ billion
  • ASIA 189,20€ billion
  • USA 157,00€ billion
  • LATAM 62,40€ billion

SAM Europe Potential

Total 114,21€ billion

  • DE 33,02€ billion
  • AT 5,19€ billion
  • CH 5,99€ billion
  • UK 23,40€ billion
  • BENELUX 12,36€ billion
  • SCAND 11,23€ billion
  • FR 23,02€ billion

Servicable Available Market [SAM]

DE 33,02
AT 5,19
CH 5,99
UK 23,40
BENELUX 12,36
SCAND 11,23
FR 23,02
Total 114,21

Investments in technologies supporting Future of Work initiatives will exceed $1 trillion worldwide by 2024 with a robust 17% CAGR over the five-year forecast period.

MARKET FACTS by PWC Q4 2018

______

Company Challenge – Execution & Operations capability & delivery location needs to change. Companies’ Workforce, Business, and Department processes are not set up efficiently

If someone can do something better than yourself, that under no circumstances do it yourself.

John Chambers, 1998

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.

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.

  • Our SGS ONE platform offers simplicity and ease of use in managing your teams.

How does DaaS work?

____________

1. Client Requirements Plan

 

• Candidate specifications
• Number of employees
• Level of expertise
• Language skills
• Additional skills

step 01

step 02

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

step 03

step 04 1

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

step 05

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

 

  • SGS ONE 300x300 new logoEasy 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 means 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

______

logo

BPO VENDORS

CRM VENDORS

RPO VENDORS

OFFICE VENDORS

accenture sgs sgs sgs sgs sgs sgs sgs sgs sgs sgs sgs

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

SGS logo big ACHIEVEMENTS

______

11

Clients

€75K

Current Monthly Revenue

10%

MoM Revenue Growth

232%

YoY Growth

€3M

In signed deals for 2023+

14

Investors

€2.06M

Raised since incorporation

31%

Company Valuation YoY Growth

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 – 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

______

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

______

 

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)

______

 

Net Profitability

42%

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

______

 

 

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

______

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 co-build two startups: Peribit Networks (sold to Juniper Networks) and Whale Communications (sold to Microsoft) 

Kristina Šmidt Grancarić

CSO


She oversees all revenue-generating activities, including sales, channel partnerships and development, and customer experience.

She has 20 years of international work experience in Engineering, DIY and Fashion Retail in the D/A/CH region. 

Zana Aston

President of the Supervisory Board


“Holder of LeadTech Global Executive MBA, Public Speaker, and the Award Winner. Strong believer and promoter of
Diversity and Inclusion. Start-up Mentor. Advisory Board member for the Women in Tech Global Movement, Global
Startups Committee, and a member of the WBAF. “
His drive is to build fantastic products that, eventually, millions will use.

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.

INVESTMENT OFFERING

________________________

Scalable Global Solutions is looking for a €1,000,000 capital raise in exchange for equity (regular shares) or Convertible Note

PRE-MONEY VALUATION:………€16.100.000
NUMBER OF SHARES:……………………. 140.000
LEGAL FORM:…………….. Joint Stock Company

Road to success graphics

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 (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

______

 

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

______

 

We have envisioned the following exit scenarios:

 

Merger

Acquisition

 IPO

 

We believe that a Merger or Acquisition by an industry-leading BPO and HR company is feasible at a stage when we have developed a significant market presence.

 

CONTACT US FOR MORE INFORMATION,

LET'S WORK TOGETHER!



 


    GDPR Consent
    By submitting this form, you agree that we may use this information in accordance with our Data protection policy.



    SCALABLE GLOBAL SOLUTIONS JSC


    Ulica grada Vukovara 284
    Zagreb, HR-10000, Croatia
    +385 1 353 5930
    [email protected]

    OPEN: Monday – Friday: 8am – 5pm, CEST

    GET STARTED
    Supportscreen tag

    FOR MORE INFORMATION

    PLEASE CONTACT US


      GDPR Consent
      By submitting this form, you agree that we may use this information in accordance with our Data protection policy.