Kapio Cloud is Crowdfunding Through Seedrs
Take a look at the next-gen for encyrpted data-driven reporting solutions for the construction industry. And it’s BIM, Big Data and AI ready.
For more information on Kapio’s Seedrs crowdfunding campaign, click here.
- Kapio Cloud is a disruptive, pay-per-user, SaaS model, featuring cloud-based, multi-lingual, real-time reporting for contractors & clients in the construction sector
- The software is currently in use on over 20 construction projects worth $35 billion in Europe, South America and Southeast Asia
- Optimise-International, the parent company is seeking further investment for sales and marketing purposes to increase users and scale the business into existing and new markets
- Currently the construction sector is worth $10 trillion but is expected to increase to $14 trillion by 2025, and up to $17 trillion by 2030
- The software was designed to support new technologies that are coming online in the construction industry – the use of Big Data, machine learning, robitics and IIoT – to power decisions and keep the sector competitive
- Construction Sector hasn’t seen productivity gains in 80 years due to outdated paper-based processes
- Currently the global construction sector loses $1.6 trillion per year in lost productivity
- Kapio Cloud digitises construction project management processes, reduces management costs, raising productivity and profits while reducing costly disputes. It’s encrypted, so security is built in. And its been designed to accept any data set; robotic scans, BIM, blueprints, PDFs, delivered to the cloud, ready for analysis and collaboration among teams
- Contractors, suppliers, clients and financiers can use the software for €1.99 per user, per day for unlimited projects. This drives down project costs.
- There are no contracts, no upfront fees and a money-back guarantee
- The project control platform digitises the entire reporting processes of the $10 trillion construction industry.
- By digitising core business and project processes, it gives construction project stakeholders a fully-flexible platform with real-time sharing, security, storage, analysis and management of information, up and down the supply chain.
- Collaboration between teams is made easy. Construction companies using Kapio Cloud can generate, read, approve and reject reports in any combination of 20 languages, over multiple projects and multi-cultural teams. This enhances transparency.
- For construction contractors this means reduced reporting costs and costly contract disputes, more control, greater collaboration, quicker payments and greater profits.
- For clients and stakeholders such as government, financiers and insurance providers, it means greater transparency, a real-time view to assess and maintain contractual integrity and easier handover processes.
According to McKinsey, on average, large construction projects run over time by around 20% and over budget by up to 80%. Construction lags far behind other sectors in the use of digital processes. Rather, many companies continue to use paper and PDF-based methods for reporting purposes. Kapio Cloud addresses this by replacing paper-based processes with digital data information capture, storage, and sharing.
On any construction project, a construction team can amass mountains of data (typically in our experience as PDFs, Excel or Word format) just to get paid each month.
These outdated and cumbersome processes can increase data entry errors and admin costs while delaying payments. This has adverse effects, especially when dealing with multi-million dollar contract disputes, which can rely on hard to search material, taking a long time to resolve.
At project end, the construction company must assemble and hand over relevant documentation to the client. Kapio Cloud digitises the entire process, reducing a lengthly, cumbersome and costly task to mouse clicks.
• May 2016 – Website launched.
• May to Nov 2016 – Software developed.
• Sep 2016 – Raised circa €68k from founders & investors.
• Nov 2016 – Reporting beta version launched.
• Nov 2016 to March 2017 – platform integrated to SaaS.
• Jun 2016 – Reporting software field tested by ICOP, (Italian Engineering Foundation).
• Dec 2016 – Software field tested on multiple projects.
• 2016 to 2018 – Raised over €500k from friends & family in equity financing.
• Mar 2018 – Document Control module developed and tested.
• Jun 2018 – New website launched.
• Jul 2018 – Document Control launched.
• Sep 2018 – Dashboards launched.
• Nov 2018 – EFFC, European Federation of Foundation Contractors, representing 16 European National Federations names Kapio Cloud as Associate Member.
Kapio Cloud is a subscription-based model, designed on a “pay-as-you-go” basis.
Revenue is derived from software subscription sales to any user that requires transparent evidence of workflows and progress summaries integral to every construction and engineering project (e.g. architects, planners, contractors, engineers, suppliers and clients).
The annual construction sector generates €10 trillion of which 1.5%, or over €1bn is allocated to IT. With a sector that is due to grow to $14 trillion by 2025, which already employs over 250 million people, this is a large and growing potential customer base.
A major infrastructure project might cost several billion Euros. A project of this scale could net around 1,600 users, with an average spend of €3/day, generating revenues of €1.75m. Just 7 similar projects in each of 20 different countries would achieve 0.25% market share.
Use of proceeds
Total planned spending on sales, marketing and advertising is approximately €4.5m to 2022.
This represents a very aggressive 43% of income ploughed back in to grow the business in 2019, before settling to 11%, by 2022.
The Kapio Cloud team hopes to grow to 80 people by 2022, with approximately 20 personnel added each year.
Key hires will be in sales and marketing, supported by customer service staff. We will also increase the development team to produce add-on revenue features.
Please note, the company currently has outstanding loans totally circa €762,567.60 (current conversion as loans in Danish Krone). These loans are over a number of tranches, which have been issued from May 2016 until last month. The loans accrue 5% annual interest and mature from 2022 until 2024 (With the first loans maturing in 2022 and subsequent loans in following years). The current value of outstanding loans plus accrued interest is approx. €816,367.56. The loans are due in 5 instalments, 20% on the maturity date and a further 20% in each following year. Investor funds will not be used to repay any of these loans.
• ICOP, Italian Foundations Specialist – 5 projects – 350+ employees.
• Refico – A leading Vietnamese property developer – 100 users.
• Terratest – Top South American Foundation Engineering firm – employs 1,400+ engineers – uses Kapio Cloud on 6 projects w/6 Clients on-boarded.
• Aarsleff, leading Danish UK/Baltic contractor w/ over 6,000 employees & c. €1.5 billion/year, currently trialling Kapio Cloud.
• Metisplan – UK-based consultant forensic planner collaborating on API builds for Primevera P6 and MS Project, to integrate and automate data exchanges with Kapio Cloud.
What is crowdfunding through Seedrs? Seedrs has provided helpful information below:
Why invest in businesses?
Beyond the potential profits that may come from investing in a portfolio of businesses, investors can enjoy a few additional benefits of buying into businesses they believe in.
First, it’s a chance to be a part of the next big thing – to be like the dragons on Dragon’s Den and pick exciting businesses, follow their progress as they grow and get credit and recognition for having been one of the first people to spot them.
Second, you get to contribute to the culture of innovation by supporting entrepreneurs when they need it most and giving them a chance to get great new businesses off the ground.
Third, it’s a way to get involved with innovation in an area you’re interested in or are passionate about, and share in the success of the business.
And, it is the opportunity to support your friends and family on their exciting new business endeavour.
What are you investing in?
Investing in businesses (equity crowdfunding) is about picking early-stage and growth-focused businesses that you think have the potential to grow. You invest money in them in exchange for a portion of their equity, meaning that you buy shares in their business. If a business that you’ve invested in succeeds, the shares that you own will become worth more than what you paid for them, and you may be able to sell them at a profit or receive dividend payments in the future. However, if the business fails – as many businesses do – you will lose some or all of your investment.
What are the main risks of investing in businesses?
There are three broad types of risks when investing in early-stage and growth-focused businesses. The first is that the business will simply fail – or even that it will tick along without ever really succeeding – and you won’t get any of your money back.
The second is that even if the business succeeds, your investment is likely to be illiquid. Even a successful investment will be locked in for a long time – often several years – while the business grows. This means that you are unlikely to be able to sell the shares, and you will likely not receive dividends, in the early years of your investment no matter how successful it later turns out to be.
Finally, there is the risk of dilution. If the business raises more capital later on (which most successful startups need to do), the percentage of equity that you hold in it will decrease relative to what you originally had. Dilution in itself is not always a bad thing, and this blog postexplains why it is often to be welcomed, but it is something of which you should be aware.
Read our Risk Warning for additional information about the risks associated with investing in early-stage and growth-focused businesses.
The importance of diversification
The key to investing in early-stage and growth-focused businesses successfully – and mitigating the risks described above – is diversification. Most businesses fail, but the few that do succeed can do so to such a degree that they more than make up for losses. This means that in order to achieve strong returns, you need to have invested in a few of the big winners. Your chances of doing so are much greater if you build a diversified portfolio by investing small amounts in many businesses rather than large amounts in just a few. And when we say many, we mean many. We believe that an effective portfolio should include at least 50 early-stage and growth-focused businesses and potentially 100 or more (there is even data out there to suggest that investing in as many as 800 companies may greatly increase your performance).
One of the main reasons we developed Seedrs was to make it easy to create a diversified portfolio of investments you choose. By setting the investment minimum very low, we make it possible to invest in many businesses – no matter how much money you are prepared to invest.
The main way you can make money from your investments is by selling your shares in the businesses for more than you paid for them. There is no active secondary market for shares in private businesses, meaning that you won’t be able to sell them immediately. However, if the company grows to the point where it floats on a stock exchange, is bought by another company or conducts a share buyback, you are likely to be able to sell your shares – often at a significant profit – at that stage.
Alternatively, some businesses may begin paying dividends. This can occur if the business has achieved profitability but does not expect to continue growing significantly; it can also happen in cases such as theatre productions or films, where the company has a limited duration and distributes any profits at the end.
What are we going to use the crowdfunding for?
Seedrs crowdfunding monies will be used for sales and marketing purposes; specifically to raise the profile of Kapio Cloud into the construction sector, create sales leads to convert to higher subscription user numbers among existing and potential construction companies in the UK, US and emerging construction markets.
“We are a Real Estate Development firm in an emerging market (Vietnam) and over the years have used many of the legacy information management systems . The ease of use in a multi lingual environment, SaaS payment system, responsiveness of the support team and the integration with our other software is starting to make Kapio Cloud an indispensable part of our operations.”
For more information about Kapio’s crowdfunding campaign through Seedrs click here.
Capital at risk
Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.