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May 4, 2015 10:31 EST

Compare Cloudware: find, choose and use the right cloud solution for specific needs through a unique and powerful comparison engine

iCrowdNewswire - May 4, 2015

Compare Cloudware

Compare Cloudware

Compare Cloudware makes it easy for people to find, choose and use the right cloud solution for their specific needs through a unique and powerful comparison engine. Think of hugely successful examples in other sectors like Compare the Market, Trivago, Right Move or even Just Eat. Now, think of a ‘supermarket’ for users and sellers of cloud software and services and you have: Compare Cloudware.

The Idea

Compare Cloudware: A comparison website for a £6.1 billion market. (www.gov.uk: ‘ICT in the UK Investment Opportunities’ February, 2014).

Take the idea of a comparison website like Compare the Market, Trivago, Just Eat or Right Move. Now, turn it into a ‘super market’ for users and sellers of computer software and services and you have: Compare Cloudware.

Go to comparecloudware.com and you’ll see this market innovation is already a commercial reality.

Compare Cloudware is the first and only dynamic comparison website to the best of our knowledge, that fully satisfies the needs of sellers and buyers of cloud applications and services.

We’ve built the comparison website ; proven the idea; have 120 commercial agreements with sellers including market-leading brands like Skype, Sage and McAfee; and now we’re ready to build on success with an EIS funding round.

 

What’s unique about Compare Cloudware?

Compare Cloudware has a powerful comparison engine designed, developed and built by our team. In addition to this:

        – we translate and simplify features and benefits for buyers  

        – we make it quick and simple for people to find what’s best for them

        – we remove confusion for buyers and accelerate sales for sellers

        – we have a strong business model with four revenue streams

We believe Compare Cloudware is the best way for sellers to sell and buyers to buy. It’s independent, authoritative and comprehensive – which means it’s a resource which buyers and sellers will come back to – again and again.

Cloudware is typically a multiple purchase item with repeat business that generates recurring revenue in the form of commissions from sellers (vendors) on an annual basis.

 

What is cloudware?

If you use eMail or FaceBook, you’re using cloud-enabled services.

Cloud business applications and services include accounting software, project management tools and online meeting facilities. Compare Cloudware has eighteen different categories of Cloudware to choose from.

Today, ‘computers’ are anything from a smartphone to a laptop, a tablet or a desktop pc (even your TV can be a computer). We all have them and they all need applications and services to make them work- whether it’s for personal or business use.

Cloud has revolutionised the way applications and services are delivered: instead of buying them outright and installing them on to a computer, you can now ‘rent’ them as and when you need them – at much lower cost. They’re not using up valuable space on your computer anymore; they are stored centrally and securely ‘in the cloud’.

With Cloudware, automatic updates to the latest version are free. Whether you’re looking to do spreadsheets, use an online meeting service or even try some creative software, the choice of ‘apps’ and services is both exciting and mind-boggling – hence the demand for a free-to-use, independent and comprehensive comparison website.

Compare Cloudware gives you results and choices to suit your needs in less than a minutes;offers free trials; and enables you to start using cloud solutions.

Watch the video ‘What is Cloudware?’ to discover more.

 

What will further investment achieve?

The Compare Cloudware team are highly experienced in the technology and marketing sector and focussed on achieving business goals related to specific time and money investments. With this next round of funding, we will:

Accelerate transactional revenue through market activation with the small business audience. Ignite alternative revenue through the ‘Cloud Kit’ store/‘Cloud Clinic’Continue to optimise the site (including mobile adaptation) to increase traffic and conversion. Consolidate the position of Compare Cloudware with increased vendor participation and introducing sub-categories. Prepare the Compare Cloudware platform for international markets.

See Investor Summary attachment for more details.

 

The Market

The introduction of applications and services delivered from the cloud has created a market with a global value of $121 billion in 2015 (Cloudtech March 5, 2014)

In the same way that comparison sites like Trivago have disrupted the traditional high street travel agent relationship, Compare Cloudware working towards winning business away from traditional retailers of IT software and services who simply cannot provide a freely available, comprehensive and independent way to help people find, choose and use cloud-enabled applications and services.

With so much choice and the opportunity to save up to 50% compared to traditional software and services, the demand from users is to understand and compare what’s on offer and make informed buying decisions. That demand can only be properly met with a dynamic comparison website.

The market for Cloudware extends from consumers to small and medium size businesses (SMB) to large enterprises. The SMB market is a particularly high-growth sector as shown by some of the following statistics:

  • 18% of UK small medium enterprises (SMEs) use cloud and a further 30% plan to use them in the next 12 months. 
  • 69% of small and medium businesses (SMBs) expect to increase their use of cloud technology in the next three years 
  • 81% of established cloud users in the UK plan to increase cloud usage over the next 2 years. 

For more details on the Cloud market opportunity and competitive landscape, please read the Information Memorandum and Business Plan 

The People

The founding team of Compare Cloudware is a group of professionals who have been at the forefront of the IT sector for many years.

Our combined knowledge of the technologies and systems of virtually every major IT provider and frontline market experience has given us the insight and expertise to make Compare Cloudware a  highly effective marketplace for both Cloudware users and vendors.

Gary Gould

With over 20 years’ experience in the technology sector, Gary has held senior marketing and commercial leadership positions with a number of global brands including Cisco and Panduit and BT. 

Gary has core responsibility for vendor partnerships, commercial policy and corporate sponsorship. He is also a key contact for investor, industry, analyst and media relations for Compare Cloudware.

Andrew Miller

As co-founder and Director of The Rubicon Agency (technology marketing services) Andrew has worked with global brands including AT&T,  Cisco and McAfee . He has many years of experience in strategic marketing including senior roles in business and consultancy organisations. 

In addition to his operational responsibilities, Andrew leads the strategic direction for Compare Cloudware and is a key interface for partners. Andrew is a co-founder of Compare Cloudware.

Ian Wilson

Ian is co-founder and creative director of The Rubicon Agency and a co-founder of Compare Cloudware. Ian’s experience includes senior creative roles in marketing services. He has created international campaigns for leading technology brands including Xerox, Alcatel Lucent and Cisco.

Ian’s role includes brand, communications and marketing direction for Compare Cloudware.

The Financials

These notes should be read alongside the Financial Snapshot

SALES: Key sales drivers

  • 2015 sales derived from vendor marketing packages, scale out will be from transactional revenue generated from affiliate sales commissions.
  • Beyond 2016, additional revenue streams from the Cloud Kit Shop (Hardware Sales) and international growth is expected (See Business Plan) 

USE OF FUNDS: Outline how you plan to use the funds you raise on Crowdcube?

  • Continue to optimise the site (including mobile adaptation) to increase traffic and conversion.Consolidate the unique position of Compare Cloudware with increased vendor participation and introducing sub-categories. 

EXPENSES AND PROFITABILITY: Please comment on your expense levels, gross and EBITDA margins

  • Compare Cloudware is a success based marketing model which requires investment in promotion but low capital expenditure.
  • Profitability is expected in late 2016/early 2017 

EXISTING DEBT OR EQUITY INVESTMENTS: Please outline the background to any existing debt or equity finance on the company balance sheet

  • No debt has been carried forward relating to the development of the Compare Cloudware platform and acquiring commercial relationships  

CASH: Cash burn rate, Operational cashflow, when will you need to raise the next round?

  • The burn-rate is £28k per month.
  • No plans for another round unless to scale rapidly due to market conditions

The Exit Strategy

The target return for an early stage technology opportunity usually sits in the 5-10x range. Unlike single product technology propositions that rely on driving adoption and subscription revenue, Compare Cloudware is a free-to-use market based proposition where there is existing demand and huge growth potential. From our research, technology multiples generally operate in a range of 3-5x depending on growth rate, scalability and the level of annuity business. On that criteria, we believe Compare Cloudware has the potential to exit in three years in the range of £18-30 million. By lighting up all 4 sides of the business model and accelerating international expansion, the exit value could be substantially higher.The Compare Cloudware team believe multiple types of trade buyers could provide a realistic exit opportunity including computer hardware businesses (Dell, HP), eTailers, mainstream comparison websites, telecom services providers and publishers.

 

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 £250 and get

    For £250 investment, each investor gets a free link to download a free copy of our book: ‘Small Business and The Cloud – What’s the Big Attraction of Cloudware?’ – written by the co-founders of Compare Cloudware.

  • Invest £1,000 and get

    For a £1000 investment, each investor receives a free printed copy of our book: ‘Small Business and The Cloud – What’s the Big Attraction of Cloudware?’ – written and signed by the co-founders of Compare Cloudware.

  • Invest £5,000 and get

    For a £5,000 investment, each investor receives an invitation to a ‘Investment Closing’ dinner with the Compare Cloudware team.

Share Types

This company is offering both A and B shares. If you invest £1,000 or more you will receive A-shares which have full voting rights. If you invest less than £1,000 you will receive B-shares which have no voting rights or pre-emption.
 

Tax Relief

Compare Cloudware 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 Enterprise Investment Scheme (EIS) tax reliefs relating to their shares.

Tax relief is available to individuals only, who subscribe for shares in an Enterprise Investment Scheme (EIS). Relief is at 30 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 EIS 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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