Disruptive Tech Innovation - Online Education & Business Software

Opportunity Snapshot

  • Country: India India
  • Industry: Internet, eBusiness
  • Stage: Start-up
  • Investment size: $5,000,000 / min. $1,000,000
  • ROI: 10% in 5 years
  • Type of investment: Debt, Equity

Investment Opportunity

The objective is to serve education for all at an affordable costs and to develop a business software at global level covering each metric of a business.

Main Development:
1. To create an web-based Education platform for all across globe
2. To develop a Business Software which covers every information and helps businesses to make faster and accurate decision making.

Target Market:
1. Education - Childrens, Students, Professionals & Working Employees
2. Business Software - All Industries, Small, Medium and Large Org

Revenue Generation:
As the concept is at early stage, revenue generation is expected to begin for Education after 2-3 months after the investment and in case of Business Software around 6 months time.

Business Goals:
Is to make intangible excellence in field of Education & Business Software

Project Timeline
1. For Education, the process will begin immediately and long lasting.
2. For Business Software, manifolds modules will be developed which takes around 2 years of development period. Sales to begin after 6 months for some of the phases modules.

Funding Needs:
1. Need USD 5 Million with minimum lock-in period of 5 Years
2. In form of Debt or Equity
3. 100% Liquid Collateral with 0% Credit Risk
4. Maximum 3% Per Annum Returns during 5 Years
5. Forever Royalty of 10%-20% on revenue

Competitive Advantage

1.1. Future Competition and Possibility that market may be satisfied by Substitute Products
With massive increase in dependency on technology, there will be competition in the market and accordingly we always focus on making products with features best in world which makes easy, affordable and valuable for users to adopt.
We strategize to make our product unbeatable and uncompetitive in the world with no compromises on the quality of the product. We focus on building a forever relationship with our customers and make available a tool with them forever.
We strive to keep our customers happy at all times.

1.1. Critical Factors that determine Market Potential
After intensive research, discussion with top management of selective companies and extensive practical professional experience, it have been observed that there exists a huge potential in the market both at national and international level for the features planned for Online Education & Business Software as existing Online Educational Resources and Business Software available in market serves the customers’ needs only to an extent with without much flexibility.
Hence, major critical factors which determine market potential are:
• Unique inbuilt features
• Flexibility
• Inexpensive
• Real time basis
• Covers all database
• One source for all needs
• Pre-defined industry wise analytical reporting tool
• Assist businesses in doing great business
• Global information
• A tool for all departments to depend on

Rationale for the deal

Research & Demand:
We research the international market and found huge potential in Business Support Function and Education in terms of each small area of work where digitalization can with innovative advanced technologies can be created and introduced at global level.
Our Company can fill the existing gaps and create the demand for all businesses and students,professionals.
We target to create technologies for every businesses and education available at an affordable costs with multiple payment plans to make businesses easy to get enrol with us and get benefit of achieving their business goals with matured and safest business processes.
Professional Experience Team:
We hold team of professionals who possess more than 10 years of experience who after serving multiple industries and diversified portfolios identified such existing gaps in real business life and quantum of pressure and time spend by each individual on the workings to extract the historical database.

As per McKinsey poll, 84% of global executives acknowledged that innovation is extremely important to their growth strategies, yet a staggering 94% were unsatisfied with their own innovation performance

Real Practical Problems
1. Masses and masses of data that companies accumulate are not organized in a way that enables them to predict which ideas will succeed
2. Human control processes, systems & functions
3. Delays & Non-Compliances
4. With globalization every economy is changing at a faster pace, bringing new challenges for businesses, education and demands compatible winning strategy
5. Getting true & fair information is not always easy, reliable and more time-consuming, costly
6. Innovative Educational resources for conceptual understanding

Use of financing

Use of Funding:
We target to achieve business growth together with growth of invested funds. We keep 100% capital preserved while achieving superior risk adjusted returns. We target to keep the funds in an risk free Fixed Deposits to earn an interest which will be ploughed back towards operational expenses of the company. Keeping intact the invested funds.

Expected Earnings:
1. Interest Income
2. Operational Revenue

Estimated Operating Costs
1. Staff Costs - out of interest income (up to development period)
2. Premises rentals - out of interest income (up to development period)
3. Travel Costs - out of interest income (up to development period)
4. Sales & Marketing Costs - to be spent out of revenues

Funding Rounds:
To well establish the business, we identified maximum funding required is USD 5 Million. However, to gain confidence of investor's, we can consider to make the funding in 3 or 4 rounds as per convenience of investors.
With first round with minimum of USD 1 Milion, which can enable to well establish and hire staffs on board to initiate the activities and then to raise second of funding.

Opportunity for the investor

For Debt Investment:
1. Minimum of 3% Per Annum Return over first 5 years period.
2. Repayment of Principal after 5 Years in 5 annual installment or full repayment as mutually agreed
3. Forever Revenue Royalty of around 10%-20%

For Equity Investment:
1. Minimum 3% Dividend payout for first 5 years
2. From 5th Year, to raise dividend to 10%-20% of revenue earned.
3. In 5th Year, to introduce IPO so as to release some of equity holding from the investor to public and return investor some capital appreciation in terms of share premium.

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