Photo - SPARQ
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SPARQ

Personal finance platform for everyday use

Estonia
Market: Financial services
Stage of the project: Prototype or product is ready

Date of last change: 30.12.2020
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Idea

SPARQ’s personal finance platform is a unique technology that allows users to take their finances to a whole new level, i.e., to categorize their spending, manage their subscriptions, complete financial challenges to earn SPARQ’s internal currency (Q-points), make free European payments, earn special rewards, offers and challenges from partner companies and socialize their financial life.

Current Status

we have developed an Early Adopter Pack that will allow our users to gain access to our application prototype, as well as receive exclusive benefits.

Market

SPARQ focuses on the millennial market. The beachhead market is Europe, where there are more than 100 million millennials (roughly 20% of the entire European population). SPARQ plans to reach 5% of the market by Q4 2025.

Problem or Opportunity

The research on this generation revealed that they use new technologies more competently, which is logical since it is very difficult to imagine the life of an advanced person without a phone. But since all purchases are in easy reach (such as by touching a bank card or smartphone to the terminal), it becomes much more difficult to control the health of your budget. So, for example:
59.29% of millennials admit to drunk shopping
The average spend for these drunk purchases is a whopping €201.53.
44.47% of millennials admitted to having a shot every week
95.1% of millennials admit to impulse shopping
With nearly 1 in 5 (18.7%) admit to impulse shopping every day
The average spend on an online impulse purchase is €42.43
33.5% reported experiencing regret after an impulse purchase
81.3% said they shop online at least once a month

Solution (product or service)

SPARQ offers a unique analytics tool—the SPARQ dashboard—that allows users to take full control of their finances and monitor all of their expenses. Taking full advantage of this tool will ensure the user is always aware of their financial health status and whether their monthly balance is moving in the right direction. Monitoring everyday expenses, managing active subscriptions, tracking utility payments and covering all existing obligations will help our end users to optimize their financial lifestyle.

Competitors

Bank challengers and neobanks constitute a significant share of the fintech market. As per the PricewaterhouseCoopers (PwC) fintech report, by 2020, 77% of financial organizations plan to integrate blockchain into their operations and 90% of payment companies plan to use blockchain by 2020. It’s projected that global digital payments will reach an annual value of €618.80 billion during 2020. Global neobanks and challenger banks are expected to gain €401.45 billion in 2027, with an extremely high CAGR of 48.1%. The potential of the bank challenger market is reflected in the fact that in 2019 alone, investors funded bank challengers to the tune of $100 million. Due to the increased popularity of fintech retail banking, younger millennials will, on average, visit their physical bank just twice a year by 2022.

Advantages or differentiators

Payment system for fast and free transfers between users and a prepaid card for daily spending.
SPARQ dashboard. This is a unique selling proposition that allows users to take full control of their money management.
A gamification framework that is used as a feedback mechanism.

Business model

SPARQ’s business model combines both B2B and B2C approaches. The internal ecosystem of SPARQ is designed to cover all of the Company’s expenses (including CoGS and administrative expenses) and the breakeven point is reached by selling Q-points to SPARQ users. The business model consists of three stages: building up the community, direct monetization of users (B2C), and indirect monetization of users (B2B).

Money will be spent on

Product market fit
First revenue
Downloads
Community building
Preparation to series A

Team or Management

Risks

This is only a little part of our risk management strategy:
Delay risk - in order to attract investment, we have a very short time to develop the application. Every delay in one or another project affects the future.
Managing operational risks from third-party service providers - we need to get our own EMI licence as soon as possible.
Underfunding - Under-funding is a killer and it usually strikes much quicker than the unsuspecting startup thought it would.
Choosing the wrong pricing strategy - until we have a product, all our pricing strategies are based on market research and upon product release, the strategy may have to be changed and our estimate will change because of this
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video