We thought the questions asked in the discussions area in our Crowdfunding Raise were superb so we wanted to replicate them here. Please let’s keep the discussions going and put forward your ideas to keep growing Crunch (and therefore your investment!)
Investor query (originally posted on Seedrs):
Quick question: What is the plan for an exit for Seedrs investors and what timeframe do you plan?
Our response:
The exit plan is likely to be a trade sale and could happen anytime soon or over the next 3-4 years.
We have such a differentiated product; software AND service is very much in vogue. It can 10x revenue streams very easily. If you have a solid platform and understand service scalability.
2 years ago we were approached by a HUGE US software company who were stunned by the revenue potential of adding service (they had tried it in the US) and knew we were the only company in the accountancy and tax space, globally, that were the experts.
We were offered a considerable multiple of revenue however we hadn’t launched the new platform properly, didn’t have Crunch Free to provide huge scalability or had mastered the accountancy super scalable model. It wasn’t the right time for either of us. Today we have mastered all these things and need funding to take the marketing and conversion to the next stage.
So there is likely to be very big businesses, who are in our space, who need our platform and considerable operational intellectual property to access this game changing capability (which clients love and to see huge revenue increases). It might be a challenger bank wanting to leap ahead of the competition or a huge insurance company wanting to access a huge micro/small-business community. We shall see!
The barrier to entry in what we have done is huge and accordingly we’d expect to see some very interesting offers over that time period.
Hopefully that answers your question sufficiently.
Thanks,
Darren CEO & Founder
