Commerce Sync
-
Upload
charlie-wilson -
Category
Software
-
view
40 -
download
0
Transcript of Commerce Sync
Simplifying small business
Executive Summary
© 2016 LucaLogix, Inc.2
Commerce Sync is a SaaS company that automates
bookkeeping for small business
We closed a $2.55 million Series A in August and
November 2015
We serve 10,000 SMBs and grew recurring revenue 291% from
June 2015 to June 2016
We distribute through the largest and fastest growing channels in
payments and commerce
The Real Life Of A Small Business
© 2016 LucaLogix, Inc. 3
Evokes images of this…
The Real Life Of A Small Business
© 2016 LucaLogix, Inc. 4
…but actually involves lots of this
The Numbers
© 2016 LucaLogix, Inc. 5
40% of small business owners say bookkeeping and taxes is the worst
part of owning a business
40% 300hours per year
A typical small business owner spends 300 hours per year on bookkeeping
and accounting
>$1,000
A typical small business owner spends >$1,000 per year in administrative fees
(3 in 10 spend >$10,000 per year)
Spent in administrative feesof small business owners
Spent on back-office work
%
The reality for a small business owner is time spent and money wasted on despised tasks:
Monumental Relief For Small Business Owners
© 2016 LucaLogix, Inc.6
Gather receipts…
…Key enter data
Review, correct, edit, reconcile…
…Upload to accounting
software
Cross fingers and hope it is
right…
… and repeat: daily, weekly, monthly?!
Step 2: Connect using accounting credentials, configure (optional)
Step 3: Complete, accurate and fully automated bookkeeping
The Old Way
>20 hours , every month
The Commerce Sync Way
Less than 1 hour , forever
Step 1: Activate from POS
ü Accurate Data
ü Time Savings
ü Business Visibility
A Large “Niche” Market
© 2016 LucaLogix, Inc.7
There are 3.4 million storefront businesses in the U.S., most using standalone point-of-sale (POS) and accounting software
Cloud technology is disrupting the POS and accounting software industries, fueling growth. This is particularly true among SMBs• POS units will grow 87% by 2020, driven by the adoption of 25 million tablet POS systems• Small business accounting software (QuickBooks and Xero) will grow 169% by 2020
Small business owners are embracing software• 85% of owners will invest more in software in the next 5 years• 81% say it is important that the software solutions they use work seamlessly together (today, most do not)• Millennials are the next generation of small business; 67% of business owners expect to retire within 10 years
Our Secret: Bookkeeping automation is driven by scalable technology, complemented by contextual awareness• There are 1.7 million bookkeepers in the U.S. performing manual data entry• The accounting services industry generates >$54 billion annually, excluding the Big Four• Effective automation requires complex, “application aware” technology; not a simple integration
Sources: Intuit, Xero, Street Fight Insights, Bureau of Labor Statistics, Statista, Aite, Paychex
What Sets Us Apart?
© 2016 LucaLogix, Inc.8
1. Efficient distribution (The greatest challenge in selling to SMBs)• Tightly coupled relationships with large channels allows us to leverage their sales efforts• Low cost of customer acquisition, yields LTV : CAC > 3
2. Highly valued product• Major (not incremental) improvement for SMBs, addressing a genuine pain point• Customers are happy to pay for the service ($250-500/year)
3. Unique, defensible position• Channel relationships are typically exclusive or near-exclusive• Proof points of channel renewal (Authorize.net), replacement (Square) and expansion (Visa)
“We were able to save three hours a day, allowing us to focus on customers and build a community business.”
– Little Jenna’s Grooming, South Riding, VA
“Commerce Sync not only saves time, but we save money by not having to hire a bookkeeper to help with data entry.”
– Green Envy Garden & Gifts, Albany, GA
There are three keys to our success:
Our Customers Love Us
© 2016 LucaLogix, Inc.9
“I love the reliability and time savings offered by Commerce Sync. I can see the transfers happening
and rely on it happening every day!”
Angela Milano, Pitman, NJSecond Chance Retail (Acquired via Clover)
“Our accounting had become a nightmare before Commerce Sync, but now we use the
time we save to focus on running a successful business.”
Lisa Maggio, Boulder Creek, CACentral Avenue Paper & Print (Acquired via Square)
“Commerce Sync has saved us many, many hours of manual entry. Customer support
has been great!”
Scott Carden, Spartanburg, SCBanana Box Market (Acquired via Clover)
We Are Growing Rapidly
© 2016 LucaLogix, Inc.10
Commerce Sync Recurring Revenue
$57,358 $56,308
$82,265
$145,446
$183,095 $211,631
Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
We Have Generated More Than Just MRR
© 2016 LucaLogix, Inc.11
Q1 25 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16
Recurring Revenue $57,358 $56,308 $82,265 $145,446 $183,095 $211,631
One Time Revenue $70,000 $170,000 $8,000 $17,578 $280,410 $61,262
Total Revenue $127,358 $226,308 $90,265 $163,024 $463,505 $272,893
Sources of one time revenue:
Recurring revenue is our focus, but we have generated a substantial amount of one-time revenue from related partners to help build our business
We Achieve A Lot With A Little
© 2016 LucaLogix, Inc.12
Developed the best automated bookkeeping product for SMBs in the market
Opened and developed key distribution channels, including Clover (First Data), Square, Stripe, Visa, NCR and iPayment
In a little over a year with less than $2 million, we:
Grew recurring revenue 291% to $74,000 in June 2016
Generated more than $1.3 million in total Commerce Sync revenue
Handled more than 60 million small business sales records, eliminating thousands of hours of manual data entry