clevergig is a B2B SaaS company and Startupbootcamp alumnus. Our smart, on-demand scheduling software allows temp agencies and other middle-men to quickly match the right worker with relevant shifts or projects. We are tapping into the fast-growing gig economy and on-demand product and service deliveries. Our business model is subscription based, where a customer pays a license fee per user. Our product is fully operational and we have built up significant commercial traction in the last few months. Gross margins are high (90%), with healthy acquisition costs relative to Customer Lifetime Value (CLV). Our goal for the coming 5 years is to build a company with €5m in annual recurring revenues (ARR).
About this round
This relatively small funding round is meant as a bridge towards a larger (growth) round in 2019. Please note that funding room is therefore limited. We will use the proceeds of this round to become cash flow positive and further grow the business. This then strengthens our position when negotiating with venture capital funds. Joining this round is a great opportunity, as you are protected by the cap, while our next growth round is expected to be done at a much higher valuation than this cap.
We use a subscription model, where clients pay a license fee to use our software. Our Annual Recurring Revenues (ARR) currently stand at €46K and have been growing fast in the last few months. With every new month that passes, we add more clients and thus increase our ARR. In the last 4 months, we found product/market-fit and managed to sign up most of our clients. All customers are Small- to Medium-sized firms from the Dutch temp or event agency space. We have another 47 deals in our pipeline, with a CLV of €170K when assuming a 30% conversion rate. Each month some 20 new prospects show interest in our product and request an online demo to see our product.
Our sales model is typical for a SaaS company. Almost everything is done online or via the phone, which is highly efficient and allows us to build a scalable model going forward. A prospect typically requests an online demo via our website (generated via online campaigns) or is approached by a cold call. If there is a fit, we then demo the product in an online meeting. After negotiations, we onboard the client via an online session and provide support via online chat or phone.
Our clients - small to medium sized temp agencies - act as middlemen to provide staff to their clients. Usually on short notice. Examples include staffing to fill open shifts for companies in hospitality, healthcare, and logistics. Our current clients serve more than 500 of their clients via our software. To date, more than 750 workers are actively being scheduled via our app. And it is safe to say that our product is becoming an indepensible part of our customers' daily operations. The scheduling data provides the key source of information to bill their clients, and pay their workers. Key numbers are provided below.
In February alone, >2,500 shifts - or 15,000 hours - were scheduled. A 44% increase from the previous month. Best news of all is that 91% of those shifts were fully staffed, and most of them within minutes after publishing. Below you can find a short demo of how you can quickly fill an open shift:
The gig economy is here to stay. Consumers want products and services now and delivered to their door. As a result, smart companies are shifting to a more flexible workforce to deal with peaks and insource specific knowledge. At the same time, an increasing number of workers is choosing to make a living via several sources of income. We foresee a future where employees no longer have a fixed role within a single company but are dynamically teamed together from project to project, based on skills, knowledge and staffing needs.
clevergig aims to make a strong contribution to this changing labor market. We wish to enable companies to create an on-demand workforce and to provide them with simple tools to manage their flexible workforce. At the same time, we aim to ultimately give workers the freedom to do the work they want to do, when they want to do it. Growth scenarios include linking up temp agencies' clients to our software and making our software a plug-and-play solution to adjacent software providers. Our focus remains on the on-demand space, rather than traditional and predictable scheduling.
Temp agencies provide an extra layer of flexibility for many firms in the Netherlands. Some agencies provide on-demand services, filling open shifts on an ad hoc basis. A temp agency planner currently wastes time in finding the right worker with such an open shift. He or she often uses email and Whatsapp Excel to assess worker availability. Then calls or messages his pool of workers to find the right person and share relevant information on the shift. Workers are left with an old-fashioned and slow experience, while clients are left in uncertainty on whether a shift is filled.
clevergig offers a workforce management (WFM) tool, to manage and schedule a flexible workforce with ease. We are now fully focussed on temp agencies. Helping them to quickly schedule the right worker for an open shift. Workers take a more active role and provide real-time availability, and accept shifts from their phone. Our product is used by small to medium size temp agencies that have a pool of on-demand workers, who act as a layer of flexibility for one or more clients.