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Skreens investment

Skreens Investment Presentation Review

Skreens Investment Presentation Review

Skreens provides hardware that allows for display of multiple sources of video feeds on a single screen.  Think of picture in picture in picture with signals coming from any device with an HDMI output.  The screen can be controlled real time with touch screen technology.  Skreens holds a US patent on its technology.
Skreens has validated consumer demand via a kickstarter campaign which generated $500K with 1200 units purchased in a single month.  No specifics were provided as to management team or investment amount sought.

INNOVATION AREA:  Millennial Consumers

Skreens identified innovation area definitely provides a cool gadget, WOW factor but does not fall into one of my preferred innovation areas.  The Skreens technology would definitely be attractive to a millennial market which represents the largest and most powerful consumer force available today which provides macroeconomic support for the innovation.  The strength of the innovation would depend on having an experienced Intellectual Property attorney review the patent and similar patents to understand the power of the Skreens innovation.

INCOMPLETE

Size of the Opportunity

There is no question that first mover technology and gadget geeks will flock to Skreens and similar technology.  The challenge is can it get to the second group of users before competitors and knock offs flood the market.  Also as part of the patent assessment you would want to see if follow on products are protected or if this would be a one hit wonder.

There is a huge risk with hardware technology if global technology protection is not obtained.  International patents add costs and can potentially delay time to market in addition to providing hardware pirates with your blueprints.

INCOMPLETE

Inefficiency

Initial pricing seems healthy but is always at risk with hardware as knockoffs and competitors will flood the market of successful products.  Hardware companies need to continually innovate to maintain long term viability.  An investor would need more information as to future product plans.

INCOMPLETE

Business Godfather Commentary

I will definitely want to buy Skreens technology for my wife and my brother but I do not have insight into the power of the Skreens patent or the strategy for future product roll out.  Cool product but I would need more info to determine if it is a cool company to invest in. 

As an Active Investor you would want to receive an accelerated pay out based on units sold rather than being reliant on the long term health of the company as a way to mitigate your risk.

Caveats

This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation.  My assessment might change if I had conducted more thorough due diligence.  I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis.  Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.

ostendio investment review

Ostendio Investment Presentation Review

Ostendio Investment Presentation Review

Ostendio is a cyber security and risk mitigation company with an initial focus on healthcare.  Ostendio has a cloud based workflow purporting to be Salesforce for security.  Ostendio’s product has been operational since 2014.  Ostendio appears to have strong and experienced management.

Ostendio is seeking to raise $700K.

Innovation Area:  Big Data and Healthcare

Ostendio addresses two innovation areas.  Its focus on the workflow of managing security infrastructure differentiates it from the many assessment tools available.  The focus on security management provides opportunities for Ostendio to become an essential part of client operations which may provide pricing power.

GREEN

Size of the Opportunity

Ostendio’s initial focus on healthcare provides an industry that has significant security requirements and growth prospects but which also has been a challenging industry to enter due to the diffuse and heterogeneous nature of its participants.

Ostendio may benefit from branching into a non-healthcare arena so it does not get pidgeon-holed into a challenging sales environment.

Ostendio asserts the healthcare GRC market in North America is projected to reach $1.3 billion in 2020 which appears to me to be too small given the high number of competitors in the space and the complexity of the healthcare IT Sales Process.

RED if sole focus is Healthcare; YELLOW if broaden industry focus.

Inefficiency

Ostendio needs to address its current pricing model based on the data they provided.  Ostendio claims 1300 licenses sold and $325K in revenue combined for 2014 and 2015.  If the math is right a license costs $250 but their expenses appear to be closer to $500 per license.  Pricing would need to be adjusted closer to $1000 per license to make this an attactive opportunity.

Ostendio projects losses through 2018 even with receipt of funding which tells me they are going to be looking for more funding and fast.

RED

Business Godfather Commentary

Ostendio has experienced success in its initial implementation of its cloud based solution but needs to address its pricing model and its industry focus to make itself more attractive to me as an active investor.  Ostendio would benefit from providing potential investors with a clearer path to return of their investment and return on their investment.

Caveats

This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation.  My assessment might change if I had conducted more thorough due diligence.  I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis.  Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.

DisposeRX Investment

DisposeRX Investment

DisposeRX Investment Presentation Review

DisposeRX is a development stage company focused on the safe disposal of a leftover and/or expired drugs by providing a patented drug disposal technology.  DisposeRX asserts pharmaceutical companies have some responsibility to ensure safe disposal of unused prescriptions.  DisposeRX appears to have strong and experienced management.

DisposeRX is seeking to raise $500K.

DisposeRX INNOVATION AREA:  Healthcare

DisposeRX has identified a niche in the healthcare space.  More research is necessary to determine the level of responsibility on pharmaceutical companies to address the issue to determine the viability of the opportunity.  If responsibility is not mandated and associated with fines or other costs, this could be a classic case of failure of the commons as identified by Coase 50 years ago.

INCOMPLETE

SIZE OF THE OPPORTUNITY

DisposeRX asserts there are 3 billion prescription vials issued each year in the US.  Their solution retails for $0.11 per bottle so on its face this could potentially be a $300 million opportunity.  Absent a strong mandate the opportunity is likely much smaller than that.

INCOMPLETE

INEFFICIENCY

Success of this relies on market saturation and almost monopoly relationships being formed with pharmaceutical companies and/or responsible parties.  Commoditization seems inevitable.

RED

BUSINESS GODFATHER COMMENTARY

Full evaluation of DisposeRX requires knowledge of existing regulatory structure regarding disposal of pharmaceuticals.  Even assuming favorable analysis in that area the risk of commoditization is too great without some avenue to obtain cash faster as an investor – perhaps a piece of each product sold by the company.  Absent that there is not a clear path to this being an investable business based on what was presented.

CAVEATS

This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation.  My assessment might change if I had conducted more thorough due diligence.  I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis.  Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.

devensoft investment review

Devensoft Investment Presentation Review

Devensoft Investment

Devensoft Software provides a SaaS web based application that companies use to manage the complexities of Mergers and Acquisitions.  Devensoft automates tracking and provides a repository of documentation.  Devensoft allows for the measurement of synergies and financial performance.  Devensoft has been operating its product since 2014.  Sales more than doubled in 2015 and are projected to double twice by 2017.  Devensoft appears to have strong and experienced management. The Devensoft investment opportunity is $1 million in capital.

When I apply the Business Godfather assessment of whether they are an Investable Business for me I look at:

  1. The Innovation Area
  2. Size of the Opportunity
  3. Inefficiency Capture

Innovation Area: Big Idea

With Private Equity and established companies looking for opportunities the M&A market is booming.  Devensoft applies established innovations to a growing niche.  Companies generally have a poor track record of integrating acquired companies.

GREEN

Size of the Opportunity

While M&A activity is booming now, this traditional has been a cyclical market.  While the potential market includes businesses with significant budgets their is a somewhat limited universe of potential users.

YELLOW if general investment; GREEN if Strategic Investment

Innefficiency

Devensoft is clearly creating efficiency and value for clients.  Current Pricing is billed on a per seat basis on an annual pre-paid subscription.  The pricing strategy probably needs to be reviewed in an effort to improve profitability.  Exploring success fees may be a way to gain client commitment and combat commoditization of service.  Devensoft can provide great value as a strategic acquisition but there is danger that the service provided allows most of the value to flow to clients.  YELLOW – RED

Business Godfather Commentary

I would want to see a clear exit strategy as an investor because there is a danger that Devensoft becomes a commodity in a cyclical business which is not attractive.

Caveats

This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation.  My assessment might change if I had conducted more thorough due diligence.  I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis.  Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.

Rx Investment Review

Cyber RX Investment Presentation Review

Cyber RX Investment Review

A Cyber RX Investment – Cyber RX is an online measurement and analytical tool that helps companies quantify and manage their cyber security risks and improve their cyber security readiness.  The Cyber RX product allows for a quick assessment of a company or organization’s cybersecurity readiness based on the NIST cybersecurity standards and best practices.  The Company owns a trademark and has submitted a provisional patent application in May 2015.  Cyber RX appears to have strong and experienced management.

Cyber RX seeks $2 million in funding for product enhancement and sales and marketing.  

When I apply the Business Godfather assessment of whether they are an Investable Business for me I look at:

  1. The Innovation Area
  2. Size of the Opportunity
  3. Inefficiency Capture

Innovation Area:  Big Data

Cyber Security is an absolute growth area as more and more companies and organization use Big Data approaches and more and more companies and organizations fail to protect the Big Data systems they have created.

GREEN

Size of the Opportunity

Although Cyber RX cites the potential size of the cyber security market as projected to be $61 billion in 2019, Cyber RX is initially only addressing assessment and evaluation of systems which is a much smaller piece of this market.  The real opportunity is in the remediation and ongoing monitoring of the security issues unearthed by the assessment.  The better business opportunity is in using the Cyber RX tool to support a services business.  This approach would hamper the ability of the business to scale but would provide more predictable means of growth, funding and profit.

YELLOW

Inefficiency

The Cyber RX product purports to conduct a full assessment in hours rather than weeks and months.  In this case the benefits flow to the user and the cost is borne by the company.  It is not clear how much of the inefficiency Cyber RX is positioned to capture.  Pricing of the tool will likely get commoditized.

RED

Business Godfather Commentary

Cyber RX is in a growing industry but likely must rely on services to fuel its growth and profitability.  Cyber RX looks to be a strong business but not one that necessarily needs outside investment.  My recommendation would be for Cyber RX to pursue an organic growth strategy fuelled by the founding members sales efforts rather than spending too much time pursuing funding.

Caveats

This Presentation Review is my opinion based on extremely limited information – a 1 page write up and 5 minute presentation.  My assessment might change if I had conducted more thorough due diligence.  I provide this assessment for educational purposes in applying the Business Godfather Investable Business Analysis.  Entrepreneurs are always swimming against a universe of people who may not fully understand their true business innovation and that may apply to me.