Photo - Paqt - the Agreement Platform
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Paqt - the Agreement Platform

SaaS platform for frequent dealmakers - chat + legal tools

Canada, Toronto
Market: Information and media, Telecommunications, Financial services, Another, Mobile applications
Stage of the project: Prototype or product is ready

Date of last change: 01.11.2020
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Idea

Paqt is an all-in-one web platform that supports dealmakers through the full cycle of a deal - fr om negotiation, contract creation, and document redlining, to signatures, authentication, and payment.

Our app centers on messaging, wh ere chat is the glue for all the steps in the dealmaking process. Our holistic approach allows us to build-in automation and legal know-how throughout, improving accountability, reducing legal risk, cutting cost, and speeding up the agreement cycle.

Current Status

We have 70% of the product completed with a working demo environment.

We graduated fr om the Founder Institute course In September 2020 and successfully completed business plans for Paqt in Vision, Customer Development, Revenue, Branding & Design, Legal & IP, Go-to-Market and Scale, Product development, Hiring and On-boarding, Building relationships with mentors, advisors and early supporters, Growth to Equity, and Funding.

Our market research, validation, and business plan stages are largely completed. We are now actioning our research to build the product to a level that would be commercially viable and generate self-sustaining business growth.

Other key achievements:
- We have an advisory board of 5 advisors with previous tech, startup, corporate marketing and legal experience.
- We are part of the Legal Innovation Zone, wh ere we have access to top Canadian legal-tech founders, mentors and legal market players.
- We have 5 LOI’s signed, 50 users waiting for the product to launch and a mailing list of early supporters that we’ve collected during the summer.
We’ve won pitch events @ Startup Blink (1st), Entre (NY 3rd place) and Hatch Pitch at the finale of Houston Cyber Summit (1st place)
- 2 university-based business law clinics were helping us with legal research - Queens and Western University.
- We’ve partnered with Trulioo to provide Digital ID, and are in talks with Plaid and a few other established industry service providers.

Market

Frequent dealmakers
Early adopters - more tech savvy IT service providers
Early mass users - frequent dealmakers - lawyers, construction firms, export/import, manufacturing, sourcing & procurement, etc.

Problem or Opportunity

Modern dealmakers use a variety of scattered tools that lack an understanding that an agreement is a process. This problem was quantified by Goldman Sachs to be equivalent to 5% of the annual revenue and this doesn't include negotiation expenditure. Our early adopters are SME IT service providers (like web, app developers), who have 5+ deals/m and have a bunch of NDA's, IP right transfers, SOW, Master Agreements and contracts flying back and forth.

We have LOIs signed and a formed list of early interested users (both individuals/professionals/freelancers and businesses).

Solution (product or service)

Paqt is an all-in-one web platform that supports dealmakers through the full cycle of a deal - fr om negotiation, contract creation, and document redlining, to signatures, authentication, and payment.

Our app centers on messaging, wh ere chat is the glue for all the steps in the dealmaking process. Our holistic approach allows us to build-in automation and legal know-how throughout, improving accountability, reducing legal risk, cutting cost, and speeding up the agreement cycle. We simplify entering into agreements, which avoids problems and work that the leading contract-centric contract generation or AI tool has to solve with far more complicated (and costly!) software.

What exactly do we do? For security, we verify IDs with Trulioo, authenticate your documents via QR code, and create an immutable record of what’s exchanged on a public blockchain. To cut cost, we’ve built-in negotiation tools that save time, user permissions and restrictions that prevent errors, and legal know-how that saves you a call to your lawyer. For faster agreements, we simplify communication with group chat, automate your contract creation using your chat history, and streamline multi-party approvals with workflows. Paqt is ready to use for business people without legal experience.

We have a working prototype and are now building out our MVP’s core features. We are further partnering with 3rd party services to provide Paqt’s verified ID, payment, and an accessible contract clause library. We are 2-3 months from finishing our MVP and launching our product.

Competitors

Docusign and PandaDocs are our biggest competitors because they are in our ballpark and large enough to pivot to what Paqt is offering. They both offer services that address our target market’s pain points in their own way. Neither company offers a solution like Paqt today, however.

Other notable competitors include AirSlate, WhatsApp for Business, and good old-fashioned Email + add-on services.

We fear Zoom and Slack the most as future competitors because, although they are not near our market now, they have shown a willingness and initiative to expand their business messaging to more niche product offerings and overtake established incumbents.

Other market-adjacent competitors include:
Superhuman, combining email with chat features.
Wechat, as chat with payments, but not likely to gain entry into the North American market.
Webform tools: FormAssembly / Typeform / Wufoo + Salesforce + Email

Advantages or differentiators

The leading contract B2B SaaS and AI platforms are contract-centric; they start with the contract document at the core of the platform and build their features on top of it. This still requires ancillary communication between parties to negotiate before the contract drafting process even begins.

Paqt begins with the heart of an agreement: communication. By beginning with messages, not documents, and capturing more of the negotiation history on-platform, Paqt can avoid problems and reduce work that leading platforms have to solve with very sophisticated and costly software solutions.

This allows Paqt to offer more value to businesses at a price point substantially lower than comparable market offerings today.

As a practicing lawyer, Will can attest that contract drafting is a pain but not the crux of the problem. Getting to a mutual understanding before even beginning the drafting process is where the real pain lies. And that is now scattered across multiple communication channels like phone, email, texts, documents, and in-person meetings. Paqt combines all this communication with contract generation in one easy-to-use platform.

Finance

Tiered subscription model with a base package being @ $10/user/month.
We have all financial projections set in place in our data room and would be glad to reveal those if it might be of interest.

Business model

We have all financial projections set in place in our data room and would be glad to reveal those if it might be of interest.

Money will be spent on

Finishing the last touches of the product (hiring some extra development resource), launching the MVP and start selling Paqt.
The remainder would be spent of marketing and iterations on user feedback.

Offer for investor

Safe round for $550,000 USD with a 15% premium or a 5MM cap.

Team or Management

Risks

Bigger player potentially moving in with an exact offering (unlikely but a major risk).

Incubation/Acceleration programs accomplishment

Founder Institute Toronto (Global Summer Graduation Cohort 2020)
Legal Innovation Zone (part of one of the few & one of the first legal-tech clusters in the world)

Won the competition and other awards

Won 3 Pitch events:
- Startup Blind Monthly pitch (early 2020) - 1st place
- Entre Pitching Event (early 2020) - 3rd place from over a hundred companies that applied
- Hatch Pitch Cyber 2020 - final of Houston Cyber Summit (1st place amongst hundreds of companies) Autumn 2020.

Invention/Patent

We have a number of in-house disruptions for the contracting world.
Disclosing it here would make it non-patentable in the future.

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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