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SimpliCapital

SimpliCapital uses AI to optimize Working Capital.

USA, Connecticut
Market: Financial services, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 04.01.2023
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Idea

SimpliCapital empowers businesses to achieve higher & predictable cash flows by accelerating receivables inflow & optimizing supplier payments outflow along with an integrated digital payment platform

Current Status

- MVP released in Aug-22
- QuickBooks Online API built Oct-22
- 1 Customer integrated
- 2 GTM Partnerships signed
- Initiated build of 2nd API for MS Dynamics
- 3 LoIs signed waiting for API development

Market

Over 75% of the 200k+ US mid-market companies have poor cash flows & therefore are our initial target customers with UK/Canada expansion as phase 2. Our initial target sectors are Manufacturing, Construction, Business Services & Healthcare that have typically high past dues.
There are about 200,000+ mid-market companies in the US alone. In 5 years, we project ~1,300 customers generating ~$40M in revenues. In 10 years, we could grow up to 20,000 customers or about $1B in revenues with a valuation of over $10B.

Problem or Opportunity

Over 75% of the 200k+ US mid-market companies have poor cash flows which results in billions of dollars trapped in unpredictable receivables inflow & in maintaining large cash buffers to manage payables outflow. Smaller, thinly staffed firms suffer even more, relying on manual processes & assume AI is unreachable for their size.
After surveying 100+ small business owners/CFOs, 95%+ still use spreadsheets to forecast & manage cash flows. Automating & increasing cash flow efficiency is something they want to do but that will just take time & additional resources, a luxury they dont have.

Solution (product or service)

SimpliCapital plugs into accounting systems/ERPs via APIs in real-time and uses AI to predict receivables inflow with 90%+ accuracy and optimize supplier payables outflow by 20%+ to increase overall cash availability for businesses by 20%+.
We are ultimately going to build a finance ecosystem for lower mid-market companies by offering multiple programs like invoice/supply chain financing, RTP and BNPL capabilities, and much more.

Competitors

Most small businesses track their cash flow manually on spreadsheets. Quodient and Kyriba are our closest competitors but with price points 10X higher. Competitors who offer similar solutions to large firms with 10-25X price points include Corcentric, Trovata and TIS.

Advantages or differentiators

Our product capabilities are unique and differentiated in an under-served lower middle-market.
- SaaS deploys in hours/customized in days (vs. long implementation times)
- AI engine connects AR to AP (vs. siloed AR or AP solutions)
- Integrated payment platform (vs. disjointed multiple payment channels)
- KPI external benchmarking (vs. custom analyses)

Finance

Our revenue model is subscription-based:
- Revenue-based pricing tiers ($200 - $2k/Month)
- No installation fee for QuickBooks, Xero
- Upsell advanced modules
Our margins are expected to be 80%+.
In 5 years, we project ~1,300 customers generating ~$40M in revenues.

Business model

We are a subscription-based SaaS company. Our channels are:
- GTM partnerships (companies offering adjacent solutions, accounting offices etc.)
- Preferred vendors for industry/trade associations
- White label (banks, FIs, Receivables Financing companies etc.)
- Lead generation firms
- Private equity, Direct and 3rd party referrals

Money will be spent on

- On-board 150 Customers
- Become Cash Flow+ in Mar’24
- Build 7 APIs
- Build 10 GTM Partners
- In-source Tech and Sales Team
- Complete Product Development

Offer for investor

$1M Pre-Seed SAFE Round.
Post-Money Valuation Cap: $8M
Bootstrapped to-date.

Team or Management

Incubation/Acceleration programs accomplishment

GSD Venture Studios

Invention/Patent

In the process of filing an IP for our Payables Optimization Algorithm.

Product Video

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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
Product Video
Presentation