Spundge Inc.
www.spundge.com
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Offer Information
Min Max
Investment Target £70,000 £225,800
Share Price £0.65 £0.65
Shares Offered info 108,527 350,077
Percentage Offered info 4.90% 14.26%
Shares Issued info 2,104,459
Pre-money Valuation £1,357,376
Share Type --
Minimum Investment £64.50
Tax Relief Available None
Sector Internet, Apps & eCommerce
Location Montreal, Canada
Company Number FC034067
Spundge Inc.
Spundge is an end-to-end content platform for professionals that make it easy to create, distribute, and monetize your content. Spundge has a growing community of 28K+ users on a revenue generating cloud based platform.
About Spundge Inc.

SPUNDGE ALLOWS CORPORATE ORGANISATIONS (ENTERPRISES) TO COLLECT, SORT, FILTER, MANAGE AND COMMUNICATE, KEY INFORMATION AND KNOWLEDGE THROUGHOUT THEIR ORGANISATIONS IN A HIGHLY EFFICIENT AND COST EFFECTIVE MANNER, THAT DRIVES DOWN COSTS AND INCREASES THE QUALITY AND QUANTITY OF VALUABLE INFORMATION ACROSS THE ENTERPRISE.

SPUNDGE ALLOWS INDIVIDUALS TO CREATE AND MONETISE THEIR EXPERTISE BY MATCHING THEM WITH OTHERS AROUND TOPICS OF INTEREST ON A UNIQUE PATENT PENDING PLATFORM.

Spundge was founded by Serial Entrepreneur Richard Szalwinski,who was the founder and director of companies like Softimage and Discreet Logic, which sold to Microsoft for $130M and Autodesk for $400M respectively. Szalwinski is Founder and acting CEO of Spundge.

INTRODUCTION AND EXECUTIVE SUMMARY

The Vision: to provide professionals with all the knowledge they need to make critical business decisions.

The Objective: to build an international brand and marketplace for knowledge professionals. 

The Role Model: Spundge has the same objective in its sphere of operation as Netflix has in theirs, that is to provide all the knowledge professionals need in one easy to access place. With a difference: we also provide a content creation platform or terminal that disrupts the way content is created and sold.

Uniqueness: Spundge aggregates knowledge and professionals on a platform where they can filter, create, syndicate and SELL their knowledge, while maintaining their copyright and developing long-term revenue streams. To the best of the  knowledge and belief of the Spundge management team there is no other software platform commercially available that integrates these elements into a single, integrated, easy to use platform offering, using cloud based technology.

Tag Line:"Monetise Your Expertise” 

Why We Are Doing This? There is an enormous demand for curated and expert content services in the financial, health and education markets. Yet it is painful and time consuming to supply value added content to third parties. 

How It Works: Curators of knowledge, content professionals, experts and enterprise/(corporate) entities are starting to chose Spundge over their own solutions or other content management platforms because they are given a sophisticated document, content management and workflow systems yet simple to use tools and workflows designed by our award winning team of software developers (customer testimonials and survey’s available on request).

Curators, content professionals, experts and enterprise clients use the platform to:

  • Create specialised notebooks around topics of interest or expertise
  • Source talent
  • Collaborate with peers around their expertise
  • Create private or public networks around their expertise
  • Promote their expertise to partners and customers without relying on IT, marketing departments or external agencies
  • Increase their billing hours
  • Analyse performance of content they distribute
  • Monetise expertise through individual topic based pay walls

Spundge management believes that Top Curators and experts in specific fields can earn up to $200,000 (£129K) a year. When they use Spundge they have the potential  to increase their revenue and reduce the effort and costs of content creation and syndication. One of our enterprise clients has produced a survey that shows they have increased time on producing content while reducing their content related costs by 50%. 

To view a demonstration of the platform click on this web-link https://vimeo.com/104626884.

For an explanation of how content creation applications work for enterprise clients clink on this link https://davidhiggerson.wordpress.com/2012/09/21/spundge-a-tool-all-journalists-should-try-and-10-ways-to-use-it.

What We Have Achieved To Date:

  • We have approximately 28,000 registered users who have created more than 67,000 articles and saved more than 600,000 items into topic based notebooks from a growing database of more than approximately 2M items.
  • We have Approximately 530 registered PRO users and 3 enterprise clients that provide approximately $10,000 (£6.45k) per month of recurring revenue.
  • We have developed a software platform with unique workflows that can be accessed via desktop or mobile devices.
  • We have developed a business model that once married with the platform becomes a unique and strong barrier to entry.
  • Richard Szalwinski and  his dedicated team  of software engineers have invested  3  years and $3.0m  of  capital investment to develop a fully commercial software  platform .  N.B. Richard Szalwinski –Founder and CEO, has invested in excess of $620,000 personally into the  project – he  has approximately 28 per cent of  shares currently in issue.

 

What We Are Doing Now

  • We have established business operations in London, UK. In order to have easy access to experts and their audiences, as well as to emerging markets
  • We are working with specific experts and groups of research analysts in London’s Financial Research community to produce targeted quality content that will be sold via the platform to individuals, corporations and institutions, and to emerging markets
  • We have a pipeline of research houses that require content and / or can use the platform to increase revenue and lower costs
  • We are interviewing sales personal who have access to research boutiques that provide paid content to third parties
  • We have signed a two-year reseller agreement targeted at 25 financial institutions that require a collaborative content platform to manage data internally or syndicate it to their partners and customers.

Why We Will Succeed

  • Customer evidence suggests that Spundge has developed a top quality software platform.
  • Customer’s evidence suggests that the Spundge is superior and offers more functionality than niche products.
  • Customers evidence suggest that there are substantial cost savings to be made as a result of using Spundge in terms of the costs of curation and content creation, generating significant revenue opportunities for Spundge.
  • The core Spundge team has calculated that between them they have in excess of 80 man-years of software engineering and design and relevant software development experience in the creation of content tools and the processing of vast quantities of multiple forms of data.
  • A serial entrepreneur leads us with a track record of building software businesses and winning multiple awards including two Oscars and for design and technical achievement.
  • Our cost structure disrupts existing content providers, third party agencies or consulting services
  • Our platform has been tested and is ready to scale.

 

By adding curators, content professionals, experts and their direct audiences, and helping them package and sell content we will develop a revenue ramp with high software margins. This will establish a visible brand, attract other curators, content professionals and experts to use the platform, and so establish a content marketplace we are in the process of building.

The table below shows the effect of a further US$250,000 (£161K) being raised through Crowd for Angels into the equity of Spundge Inc. It is part of a late stage Seed funding round to raise US$350,000 (£225.8K) in total, of which existing shareholders have already raised US$100,000 (£64.5K) and which falls just short of the minimum fundraising to this round of funding –set at £70,000.

 Spundge Financial Matrix

NB. The estimates assume the $1.5m has been raised. The financial estimates above are calculated on a calendar basis and take into account the current cash burn ahead of the fund raising.

  • The table above sets out the pre and post valuation of the Company assuming the maximum fundraising of $250,000 (£161k)is raised through Crowd for Angels platform – (Note: the US$100,000 raised as part of this round from existing shareholders in May 2015 is already incorporated into the number of existing shares in the table above).
  • The information on the right of the table provides an indication of the significant financial rewards that could be achieved on the basis that the Company reaches its financial targets.
  • The company has invested in excess of US$3.0M (£1.935K) to build and soft launch the platform, this compares favourably with the value ascribed to the business on this round of funding.
  • This late stage seed-funding round is part of a larger fundraising effort of up to US$1.5M (£0.968M) to scale its community and to commercialize the platform it has built and launched. It however does not need all the funds immediately, due to the “roll out” nature of the Company’s business plan that can be flexed to match its available financial resources.
  • This is the reason that we are seeking US$350,000 (£225.8K) of seed funding, incorporating US$250,000  (£161K) of funding through Crowd for Angels as part of this late-Seed investor round.
  • Essentially the rate at which experts can be engaged can be flexed to match the available funding resource. Further fundraising efforts will continue to add to the financial resources of the Company, ideally at increased issue prices as evidence of revenue generating opportunities builds.

N.B. Any investment made by an investor via the Crowd for Angel’s investment platform will be in accordance with the existing Spundge Inc.’s Shareholder Subscription agreement. Investors can request a copy the Shareholder Subscription agreement, found in the documents section.

For investor convenience the issue price for this issue has been set at $1 per share and  has been fixed at a Sterling equivalent of GBP 0.645 per share for the  purposes  of the immediate fundraising  plans.

Company History - Formation

Spundge is a Canadian company (registered number 7912340) with its main office in Montreal, Canada. 

Team

 Key members of the team include:

  •      Richard Szalwinski - founder, president and shareholder. Founded xtranormal, Behaviour Communications, Discreet and Softimage
  •       Juan Pablo Di Lelle* - lead architect & Vice President of products, and shareholder
  •       Gijsbert de Haan* - senior product specialist and shareholder
  •       Andrew Edwards -  Company Secretary of  Spundge UK Ltd and shareholder in  Spundge Inc.
  •       Filippo Tampieri* - senior product specialist and shareholder

We have used an exchange rate of 1.55 USD to 1 GBP 




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Offer Information
Min Max
Investment Target £70,000 £225,800
Share Price £0.65 £0.65
Shares Offered info 108,527 350,077
Percentage Offered info 4.90% 14.26%
Shares Issued info 2,104,459
Pre-money Valuation £1,357,376
Share Type --
Minimum Investment £64.50
Tax Relief Available None
Sector Internet, Apps & eCommerce
Location Montreal, Canada
Company Number FC034067

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