When you have a great team solving a big problem in a market that is growing quickly, you have a recipe for outsized returns. That’s why we are excited about the future of Place and why they are one of the largest investments in our fund.
This is what Mike Troy, managing director at Geekdomfund and lead investor in this financing round, says about place technology, a financial forecasting software running on SalesForce. The company is currently raising funds on WeFunder.
So what’s so exciting about Place? Brandon Metcalf, founder and CEO of the company, previously founded, scaled, and exited Talent Rover, an operating software for the staffing industry running on SalesForce. The company, which had offices in 8 countries and customers in more than 40 countries, was acquired in 2018 by Bullhorn.
So not only the founder has an incredible management experience and an exit under his belt, but he lived through the problem of financial forecasting first hand and, with the lack of solutions to address the challenge, he decided to build Place to eliminate the pain and effort it takes to quickly produce and update accurate forecasts.
I completely agree with Mike, whose VC fund invested $1,300,000 in the company (of which $250k in this equity crowdfunding round), when he says that a great team solving a big problem is a recipe for outsized returns. Even better if the team has lived that big problem first hand and didn’t find any other solution on the market.
The company’s traction shows that the problem is real and that Place is an effective solution—the company launched in January 2020 and grew to $325k in ARR as of March 2021, with 100% of customer reviews saying the product is going in the right direction, 40 active customers and zero churn.
IN THIS REPORT
What is Salesforce: Before diving into the analysis, I’ve included a brief overview of what Salesforce is and why it is a great ecosystem to invest in.
What is PlaceCPM: What exactly is PlaceCPM? What’s the problem the company solves?
Product Market Fit: What’s the product? Did Place Technology build something that customers want? Are they willing to pay for it? How good is customer retention? If they didn’t already find a product-market fit, how likely is it that they will find it?
Market Analysis: Is the market big enough? Is it a stable/growing market? Could we make a significant return if everything goes smoothly?
Business Model: How does Place Technology make money? Is the business model sustainable and scalable in the long term?
Competitive Advantage & Economic Moat: Has the company an unfair advantage? How does it differ from its competitors? Can the company build a sustainable economic moat? Is there anything preventing other startups from competing in the same market?
Financials, Debt & Liquidity: Will the company have a sufficient runway after this raise? Or will it run out of business in a few months? Has the company a healthy balance sheet? Will it fail because of too much debt?
The Team: Does the team have industry-relevant experience? Skin in the game? Management Experience? Can we trust them?
Valuation & Exit Strategy: Is the valuation reasonable? What is the valuation at which VCs have invested in Place? Will we have our money back? How are we going to get a return on the investment?
Conclusion: Did I invest in Place Technology? Does the company meet our 10 investment criteria?