Enfusen is seeking a strategic partner to bring our cutting edge technology to market
The Enfusen “Story”
Enfusen was founded in July of 2013 around the idea of leveraging data to drive better results from local marketing campaigns. At first the business was driven by an idea and a bunch of spreadsheets.
The first break came when we were approached by the team at Microsoft to run a pilot of our algorithm with their partners. This partnership started in December of 2014 with a three partner pilot. After a successful pilot round we were expanded to six countries and 12 partners. We grew that to closer to 50 partners during FY15. By the end of FY15 we had generated over $50,000,000 in sales leads for Microsoft Partners. We unfortunately lost our contract for FY16 as Microsoft decided not to focus on their SMB Partners and instead went with Adobe to focus on their Enterprise Opportunities. What at first seemed like a major loss to the business turned out to be the best thing that could have happened.
We spent the next six month retooling the platform to be a white label agency focused platform. This solved two of our biggest problems. The first being that our recommendations were to complicated for non-professional marketers and second that we needed a target audience that could leverage our recommendations to generate revenue. Our BETA of the agency platform was launched in December of 2016.
During the BETA we ran into scaling and data issues. We worked on these until June of 2016 when we realized (well we knew this all along) that we needed to rebuild our platform from scratch to create a single scaleable tool that brought together our four years of data. It was at this point that the Enfusen of today was born. It took nearly a year and an additional $250,000 (bringing the total five year investment to $800,000) to launch the new version.
We’ve concentrated on supporting our enterprise customers in Healthcare and Non-Profit Fundraising during that time. The generated large dependable revenue streams to perfect our algorithms and platform. Now that we’ve completed the development phase we’re looking for a partner that can help us bring this product to the masses.
Target Audience Overview
Buyer Persona: Local Agency Owner
Annual Revenue $250,000 to $2.5M
Number of employees: 2-5
Number of clients 2-25
Services Offered: Local SEO + Lead Gen
Avg MRR: $1000 to $5000
– Enfusen serves as a sales tool that helps them close 3x more clients
– Enfusen serves as a dashboard and management tool that allows them to increase their monthly retainers
– Enfusen serves as a single source of all needed marketing data saving them money with less 3rd party subscriptions
– Enfusen pulls together all SEO Efforts around conversion modeling allowing them to show customers greater returns extending client retention time-frames
– Enfusen serves as an AI Powered Task Manager cutting labor costs and increasing efficiency in delivery of work
Buyer Persona: Multi-Location Enterprise
Annual Revenue $10M to $1B+
Number of Employees (in Marketing Team): 10-25
Number of Locations: 10-50
Services Desired: Local SEO + Lead Gen
Avg Contract Size: $100k to $250K
– All of their digital marketing data under one roof
– Management tools to keep executives up to date on progress
– Increase in campaign efficiency with AI Powered Task Manager
– Competitive analysis tools that help them out-market their peers
– Increase in conversion rates from structured campaigns
Potential Growth Ideas
– The reason for this offer is to find a strategic partner with a pre-existing audience in the Local SEO / Local Marketing Space. This would give the platform its initial user base to create scalability.
– As a SaaS Platform we run with high margins that increase as the user base increases which allows for a great rev share or affiliate program.
– The founder Roger Bryan has written a best selling book on the topic of Data Driven Marketing (Data Driven Marketing: Leverage Data to Increase Sales, Grow Profits, and Land More Customers) which could be used as a lead magnet to attract trial users.
– The platform would work well for someone with SEM experience on both Facebook and AdWords. This is how Agency Analytics grew their platform to 2000 agencies.
– The platform has a strong enterprise use case that can be leveraged with trade associations or franchise associations.
The target exit is to reach 2000 active subscribers over the next 3-5 years.
How that breaks down
– Subscribers 2000
– Avg Revenue $247pm
– Total Monthly Revenue $494,000
– Annual Revenue: $6,000,000 (round)
– Margin: 80%
– Annual Net: $3,600,000
– Multiple: 6x
– Target Exit Price: $21,600,000
Potential Acquisition Partners
Marketing Automation Platforms: There is a big push by players such as Hubspot, InfusionSoft, and SalesForce into both the SMB (Small to Mid-sized Business) space as well as into Artificial Intelligence.
Enfusen carries a value prop of owning the intellectual property that drives the platform as well as four years of data that the IP is built off of. That coupled with a strong revenue model will make the platform a great acquisition target.
Sample Campaign Results
Enterprise $1B+ Hospital in Top 10 Metro Market
Overview of Enfusen Platform
Enfusen Administrative Panel Overview
Enfusen Development & Support Overview
Legacy System: Content Management & Writer Management
– Currently Roger Bryan owns 97.25% of this business. You have 1% that went to an angel investor, 1% that went to the old CTO and then .75% to two previous admins. This leaves plenty of equity for a partnership or potential funding rounds in the future.
– There are three different revenue streams (not all are part of a partnership on the software side).
— Services: Traditional Local SEO Services – Approx $30,000 per month
— SaaS: Software + Service (Consulting) – Approx $5,600 per month
— Software Only – Approx $2,500 per month
* The goal is to find a strategic partner to grow the Software side of the business. The partner may decide to create income streams from Services or SaaS if they like. They should not assume that any Service or SaaS revenue would be part of the deal.
This isn’t exactly what I’m looking for but would be open to selling the entire platform to an interested party. We have roughly $800,000 into this platform and with it having minimal revenue from software we would not be able to sell on a multiple. Basically you’d really have to want this to buy us out.
The ideal scenario is to bring in a partner that has an audience that this product would work with. We’re willing to do a rev share and equity deal with the right team to bring this product to market.
The partner would split revenue at an agreed upon percentage with the partner doing the selling taking the majority share. In exchange they would handle all aspects of sales, development, and support. The revenue split would be on gross sales.
Once the partner hit an agreed upon MRR it would trigger an equity event where they would receive a percentage of the platform (a real percentage a not just a couple points).
The goal is to establish a real partnership giving everyone an opportunity to earn money and to invest their time where it is best used.