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Apr 28, 2015 12:44 EST

Beamshare: saves video production teams time, enabling them to collaborate quickly and effectively on video projects

iCrowdNewswire - Apr 28, 2015

Beamshare

Beamshare

Beamshare is an online platform that enables video producers to share, discuss and finish projects quickly and easily. Film, TV and video production is a growing worldwide market worth £4.5Bn per year in the UK alone. We have our first paying customers and with your investment we plan to grow our UK and international sales and build a profitable company with excellent exit potential.

 

 

The Idea

Beamshare solves a clearly identified problem for the video production industry. Now that we have our first customers, we plan to grow UK and international sales and to develop a scalable business model with appealing potential returns on exit.

Beamshare lets video producers work more efficiently and finish projects faster.

A producer told us that a typical corporate video project should take around two weeks, but in reality from our experiences it can take as much as six months because of the time it takes to get feedback from clients.

The film, TV and video production industry is a large and growing worldwide market, worth £4.5Bn per year in the UK alone. For companies in this industry, sending draft videos to clients and team members and getting their feedback is a major headache which wastes time and money. Our product, Beamshare, is designed to solve this problem. Beamshare saves video production teams time, enabling them to collaborate quickly and effectively on video projects.

The company and the product

Our company is Onecodec Ltd and our product is Beamshare.

Video production professionals need to share projects with colleagues and clients quickly and easily. Using Beamshare, a producer or editor sends a unique link to their client. The link takes the client to a page like this one. Everyone involved can view, add comments and discuss the clip or project. It’s very simple to use and it can save hours, days or weeks spent on email chains, phone calls and discussions.

Beamshare is a user friendly and secure online platform that lets video producers share video and documents with clients and get rapid and meaningful feedback. This means that a producer can finish projects faster, saving time and money and increasing client satisfaction. Beamshare is a web based service that works on any modern web browser, on desktop or mobile devices. We have drawn on our expertise in video streaming to make Beamshare fast, robust and easy to use and we have built it to meet the needs of editors and producers in the film, TV and video industry.

Our business model

Customers can try a limited version of Beamshare for free and pay a monthly fee to use all its features. New customers discover Beamshare through word of mouth and referral, when existing users share work with them.

Achievements to date

We have secured the first commercial sales to TV production company MGAlba and Search and Rescue operator Bristow Helicopters, with revenues of £10,785 to November 2014. Our customers tell us they are delighted with Beamshare because it is web based, it is exceptionally easy to use and it saves them time.

We are now in a strong position to launch the product and scale up domestic and international sales.

Why we need funding

We are seeking investment to launch Beamshare and generate market awareness, to grow sales in the UK and internationally and to capture a share of the worldwide video production market. We will use the investment to:

  • Hold a series of launch events in key locations within the UK
  • Recruit sales staff to generate traction and grow UK and international sales
  • Recruit customer support staff to ensure the product continues to meet customer needs
  • Grow turnover and achieve profitability within 18 months and a turnover of approximately £2M in 36 months.

The Market

Market size and background

Our target market is the worldwide video production industry, which includes:

  • Film and television production studios
  • Corporate video producers
  • Digital marketing agencies
  • Training providers
  • Specialist production teams
  • Animators
  • Solo operators.

Video production is a growing worldwide market. The UK market alone consists of ~10,000 companies with over 200,000 employees and a turnover of £4.5Bn. 

A typical customer is a professional in the video production industry, for example an editor, director, associate producer, videographer, production manager or specialist. Our customers are technically aware, willing to try new products, and are extensive users of computer and internet technology. Their main source of information about new products and services is via word of mouth from trusted colleagues and industry contacts. 

Key trends and developments

Key trends in the market include:

  1. The rapidly increasing use of online video in the corporate world, for marketing, customer communication, training and business operations. Increasingly, advertising and training budgets are being spent on the production of video for online delivery.
  2. The recent shift within the broadcast industry to online video production. Increasingly, we’ve learnt that teams are distributed across multiple locations and there is a need for efficient and fast collaboration between team members and with clients, using online tools.

Weaknesses, threats and competitors

Our biggest challenge is to grow market awareness and sales quickly, in order to capture a significant share of the market. Successful funding from this Crowdcube investment round will enable us to increase our market share rapidly.

At the moment (March / April 2015), our largest competitors are existing solutions such as File Transfer Protocol (FTP), Wetransfer and Vimeo. We believe these solutions are not fit for purpose, typically involving a mixture of interactions such as file transfer, emails and phone calls. This is such a slow process that video production projects can be delayed by weeks or months as a result.

A number of subscription-based review and approval solutions are beginning to emerge, including Wipster, Screenlight and Mediasilo. To our knowledge, none of these have gained significant market share and our contacts in the video production industry report that competing solutions tend to be difficult to use, particularly for corporate clients and non-technical colleagues. There is therefore an excellent opportunity for a straightforward solution such as Beamshare to capture a large share of the target market.

The People

Professor Iain Richardson, Managing Director, is an international expert in video streaming technology. The author offour influential books on digital video compression, Iain advises some of the world’s leading technology companies on strategy, intellectual property and corporate acquisitions and has given invited expert lectures at the US Patent and Trademark Office and the Smithsonian Institution. As a consultant to firms such as Google, HTC and Qualcomm, he is very well connected with senior executives in multi-national technology firms.

Dr Yafan Zhao, Technical Director, is an expert in video streaming and communications and the author of numerous publications and patents on the subject. An accomplished software engineer, she is responsible for the technical development and robustness of Beamshare.

Pat Ballantyne, Marketing Director, has extensive experience of user needs, online accessibility, corporate and media communications. She is responsible for product accessibility, marketing and sales strategy and communications.

Daniel Blasco Calzada, Software Engineer, is an expert in web technologies and is responsible for server and application development.

Vivian Tsang, Market Development Officer, implements the Beamshare marketing and sales strategy. With a background in Management and Computer Science, Vivian plans and manages company visits, events and customer communications and tracks sales prospects.

The Financials

These notes should be read alongside the Financial Snapshot

SALES:

  • Key sales drivers: Beamshare subscriptions. Individuals, small teams or enterprises purchase monthly or yearly subscriptions to the service.
  • Other key sales drivers: Users can try a limited version of Beamshare prior to purchasing a subscription. Existing users send invitations to shared video projects and recipients are encouraged to sign up to Beamshare. A referral system offers incentives to existing users if they persuade new users to subscribe.
  • Sales targets: A total of approximately 700 paying subscribers by March 2016; 6,000 paying subscribers by March 2017; 19,000 paying subscribers by March 2018.

 USE OF FUNDS:

  • Marketing: We plan to drive UK sales in 2015-16 through launch events in key areas for film and TV production, sector-specific trade shows, in-application referrals and sales partnerships. We plan to develop and grow international sales in 2016-18 through the same mechanisms in the US, EU and further international markets.
  • Recruitment of additional staff: Sales and business development, customer support, technical support and product development.

 EXPENSES AND PROFITABILITY: 

  • Profits: Gross margin exceeds 90% by 2017-18. Cost of sales includes internet hosting (database storage, data storage, application hosting and online processing), customer support staff, referral discounts and sales partnership commission costs.
  • Expenses: Overheads include marketing and travel, ongoing product refinement, management and general business overheads.

 EXISTING DEBT OR EQUITY INVESTMENTS:

  • Equity: In total the company has raised £364,192 of equity before this Crowdcube round.
  • Director’s loan: The company will take on £21,950 of Directors loan for short-term working capital, to be repaid from net profits during 2017-18.

 CASH:

  • Cash burn rate increases from £9K to £33K per month by end of year 1, approximately £50K per month in year 2, approximately £70K per month in year 3.
  • We plan a further equity funding round of approximately £300K, to be completed by December 2015.

The Exit Strategy

Our goal is to build a profitable company with a turnover of £2M-£3M and exit within 3-4 years through a sale to a large technology or solution provider.

Through his international reputation as an expert in video streaming, founder Iain Richardson has advised some of the world’s largest technology firms on technology and corporate acquisitions. In the last 5 years he has consulted on international acquisition deals worth more than £130M. As a result, he has an extensive network of connections with senior corporate acquisition executives in major technology multinationals. We plan to use this network to identify a suitable buyer once we have demonstrated Beamshare’s scalability and profit potential.

 

 

Rewards

Rewards with monetary value over £1000 can affect the amount of EIS you may be able to claim. Please obtain independent tax advice if there is any concern as Crowdcube does not provide legal or tax advice.

  • Invest £20 and get

    Listing on our investors Wall of Fame on the Beamshare website. Access to a private Facebook group with exclusive updates on latest news, events and offers. Invitation to yearly events, one in Scotland and one in London.

  • Invest £100 and get

    Exclusive Beamshare T-shirt or mug.

  • Invest £500 and get

    1 years’ free subscription to Beamshare Solo.

  • Invest £5,000 and get

    Voting rights (“A” shares). 1 year’s free subscription to Beamshare Team. Meet the Beamshare founders – we will take you out for dinner (UK only).

Share Types

This company is offering both A and B shares. If you invest £5,000 or more you will receive A-shares which have full voting rights. If you invest less than £5,000 you will receive B-shares which have no voting rights or pre-emption.
 

Tax Relief

Beamshare has submitted their plans to raise money, details of their structure and trade etc. to HMRC and has been given advance assurance that the proposed share issue is likely to qualify for Seed Enterprise Investment Scheme (SEIS) tax reliefs relating to their shares.

Tax relief is available to individuals only, who subscribe for shares in a Seed Enterprise Investment Scheme (SEIS). Relief is at 50 per cent of the cost of the shares, to be set against the individual’s Income Tax liability for the tax year in which the investment was made.

If you sell, give away, exchange or otherwise dispose of shares, tax reliefs can reduce your Capital Gains Tax bill. Your shares must meet certain conditions to qualify for these reliefs.

Please visit the HMRC website for further information on SEIS tax relief

The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investors, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.

Risk Warning

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated.

Please click here to read the full Risk Warning.

This page is communicated by Crowdcube Capital Limited and has been approved as a financial promotion by Crowdcube Ventures Limited, which is authorised and regulated by the Financial Conduct Authority. Pitches for investment are not offers to the public and investments can only be made by members of crowdcube.com on the basis of information provided in the pitches by the companies concerned. Crowdcube takes no responsibility for this information or for any recommendations or opinions made by the companies.

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