Pitch Iteration: 05
Thursday, 07 September 2017
“Enterprise Process Automation.”
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Hello!
This is an old pitch.
Read the latest.
Invisible automates enterprise Processes.
If it can be turned into a set of instructions,
we can build a process around it.We have built the world’s first Digital Assembly Line.
To run it, we built the world’s first general Synthetic Intelligence.Humans do the work, technology coordinates humans.
We operate around the clock, running Processes 24/7.There are 25 people on the team, operating in 6 countries.
Your first Process costs $250 a month,
but at scale, Processes cost as little as $10 a month.Once we build a Process for your company,
we can run it for up to 25 hours a month at no extra cost,
and we can support anyone in your company with it.Processes begin completely custom,
and you can delegate by text or by screen recording,
or by doing a video call with one of our designers.Over time, we upgrade and network Processes together,
so we can support every aspect of your life and business.
Synthetic
Why have humans in the loop?
The most important technology in the 20th century was not the Computer.
It was the Assembly-Line.
During WW2, Ford built a B-24 Bomber every 58 minutes.
We are building the Digital Assembly Lines of the 21st century.
Humans do the work, but technology coordinates the humans.
Software solutions are efficient but only solve one problem.
Human solutions are not efficient but can solve many problems.
Synthetic solutions
— processes run by humans coordinated by software —
are both efficient and flexible.
Capabilities
With 75 Processes in our Capabilities Index,
we can supporting everything from Productivity
— Inbox, Calendar, Contacts, Communication and Tasks —
to Events, Travel, Accounts, Hiring, Sales, Finance, Decisions and more.
We’re working on making this presentable on our website.
It’s a design challenge.
In a vertical economy where everything is hyper-specialized,
We are radically horizontal.
Technologies
We’re supporting our operations with
48 Technologies in our Technologies Index.
We don’t have our own app,
we build on top of existing platforms.
We build automations, integrations, operator tools
— anything we can to improve coordination and reduce switching costs.
This is also a design challenge.
Because none of our tech has a front-end.
But we will be solving this on the website as well soon too.
Metrics
We don’t have many metrics because we’ve been busy innovating.
Now that we’ve got a model to test that will start to change.
$200K debt =
$100K in debt to former team members.
$100K in debt to current team members.
All structured without interest, not due until an institutional Series A.
$27K Burn =
$17K Core Team Fixed Costs +
$12K Assembly Line Marginal Costs —
$2K Client Revenue.
4 Engineers + 3 Operators = Core Team (w/ equity)
18 Workers = Assembly Line (from $3/hr up)
3 Clients
Model
We’ve built multiple models to explore future scenarios.
Gross margins in all our models begin positive and increase over time.
In our moderate model, they begin at 33% and grow past 50%.
We charge per Process, with 25 hours of operation per Process.
Every single Process we operate is profitable, there are no loss leaders.
The price of a Process improves over time — seen below.
— Asimov Tier. Processes 1–10. $250/Process.
— Rand Tier. Processes 11–50. $200/Process.
— Simmons Tier. Processes 51–200. $150/Process.
— Tolkien Tier. Processes 201+. $100/Process.
All sales are currently from our existing network.
Response rate on sales emails is 10%.
We’re currently targeting enterprise customers.
Our existing clients are all tech-savvy SMBs with 20 to 100 employees.
By Q3 2018, we plan on launching individual pricing,
with a self-serve purchase experience on the website.
Individuals will be able to purchase processes at 1/10th the cost,
with 1/10th the hours — so we will maintain identical margins.
As clients bring us custom processes, we continually discover new use cases and use them to improve the efficiency of existing processes.
After we release a self-serve “add to cart” purchase experience,
we will begin to re-sell existing Processes, which will make sales and onboarding more efficient.
Projections
These are just projections, but indicate our growth plan.
3 Clients, 10 Processes, $2,500 Revenue — September
6 Clients, 30 Processes, $7,500 Revenue — October
9 Clients, 50 Processes, $12,500 Revenue — November
12 Clients, 80 Processes, $18,000 Revenue — December
15 Clients, 110 Processes, 24,000 Revenue — January
18 Clients, 150 Processes, $30,000 Revenue — February
22 Clients, 200 Processes, $40,000 Revenue — March
27 Clients, 275 Processes, $57,500 Revenue — April
32 Clients, 360 Processes, $70,000 Revenue — June = Profitable!
Running 360 will take 75 workers averaging $4 per hour full time.
Marginal Costs will increase to ~$50,000.
So total costs will increase to ~$70K.
Use Of Proceeds
Runway, a major website upgrade, training costs.
Depending on the raise size, 9 to 29 months runway based on current burn. Debt will only be paid off if we raise the full amount.
No need to make hires on core team.
Only opportunistic hires.
No plans to increase salaries until profitability.
Although a very gradual increase may make sense as revenue grows.
Story
The company was started in October 2015.
Our first 6 months were explosive,
we had 5 clients paying $10,000 each and a waitlist.
We raised our first angel round.
With that capital,
we scaled our operations team to 25 people to keep up with demand.
But our technology and architecture did not scale
— and we could not brute force it.
So, having spent the capital, we had to cancel all of our clients, except for one.
Only six of us stayed — three engineers and three operators, including me —
and for one year, we bootstrapped with a single client from May 2016 to May 2017.
In July, tested our new technology and operations architecture on new clients.
In August, we figured out how to reliably hire, train and manage agents around the world.
In September, our business model is finally ready for sales growth and capital.
Thesis
The biggest problem in the world is solutions.
We live in a hyper-specialized economy.
There’s an app for everything.
There’s a vendor for everything.
So why isn’t everything perfect yet?
Solutions have costs.
You have to organize them, coordinate them, manage them, run them.
Instead of introducing yet another bot, app, or narrow AI,
Invisible’s general Synthetic Intelligence provides a single touch point for unlimited specialization.
It can run all of your apps for you,
all of your processes for you, organize all of your data.
By doing your work for you,
it frees you to do your real work — thinking, creativity, decision making.
This is our vision for technology.
Technology is at its best when it is invisible.
When it sets humans free to create the future.
Team
Team profiles are below.
Rodrigo is new — an engineering apprentice.
But the rest of us have been together from the beginning.
These guys followed me through hell and have the spirit.
Team is distributed.
That dynamic has been awesome, actually.
Everyone has equity.
Keenahn and I have 25% on a non-diluted basis.
The other four have 12.5% on a non-diluted basis.
Rodrigo hasn’t received a grant yet (too new).
I’m in firm control but ownership is distributed.
This has allowed us to keep burn way down.
Even with all our workers, burn is $29K and going down.
Technologies Team
Keenahn Jung (CTO, PM Automata)
linkedin.com/in/keenahn
Leonardo K. Kewitz (Senior Software Engineer, PM Postman, Osmosis)
br.linkedin.com/in/kewitz/en
Gunar C. Gessner (Senior Software Engineer, PM Gear)
br.linkedin.com/in/gunargessner
Rodrigo Oliveira (Junior Software Engineer)
linkedin.com/in/rodrigo-goliveira
Operations Team
Francis Pedraza (CEO)
linkedin.com/in/francispedraza
Kamron Palizban (COO)
linkedin.com/in/kamronpalizban
Corey Breier (VP Sales, VP Support)
linkedin.com/in/coreybreier
+18 operators worldwide on the digital assembly line, and growing!
Located in Kenya, the Phillipines and Croatia.
Pitch
You should invest.
We’re actually going to change the world.
Not just make it more efficient.
Here’s how: read these 34 Revolutionary Claims.
General A.I. isn’t the future,
General S.I. is the future.
Terms
Seed Round.
$250K to 1M on $5M SAFE — taking an additional 4–16% dilution.
Previously raised $500K on $2.5M and $5M SAFEs for 15% dilution.
Timing
Targeting Monday, 25 September 2017 for the first close (DONE!);
rolling from now on until raise is complete.
Sources
Approaching both angels and institutions.
Runway
Through Wednesday, 01 November 2017.
Closed
$30,000
This Round (Seed)
Last Round (Angel)
This is the list of investors from our first $500K raise:
— Mark Pincus
— Lee Linden
— Edward Lando
— Christopher Fong
— Brian York
— Siraj Khaliq
— Kyle Lam
— Tomohito Ebine
— Katsuhiro Okamura
— Hiten Shah
— Brent Bushnell
— Richard Craib
— Ryan Morris
— Zak Holdsworth
— Daniel Kochis
— Joe El Achkar
Interest
If you’re interested,
Just call me at 415–535–7171 and leave a voicemail.
Or we can schedule via email at:
francis@invisible.email.
