Over the last 2 years the company has been developing an IoT home security solution. The company ran a successful crowdfunding campaign, with 2.200 devices sold to 800+backers in 54 countries. It is ready to penetrate the Danish market and due to hyper low price tag and its innovative value proposition it has the potential to gain huge traction in Denmark and abroad.
This SPRINGBOARD® will be held in Danish/ Dette SPRINGBOARD® vil blive afholdt på dansk
There are 30.000 burglaries into private homes in Denmark every single year. The country holds the unpopular record of being the country in Europe with the highest burglary rate per capita. When it comes to preventing a burglary an active neighborhood watch and home alarm system are two crucial factors. The company has combined those two factors into one simple solution and made it affordable for everyone.
Since its crowdfunding campaign the company has been in stealth mode, doing small pilots to improve the hardware and the platform, and sharpening its business model, which is now subscription based.
The company targets detached and semi-detached homeowners, as homes with ground floor access accounts for the most burglaries. In Denmark alone there are 1.1 million houses that fits our criteria.
Competition is high on the market. There are strong players like Verisure, G4S, Falck and Securitas, but still 75% of households in Denmark don’t have any form of security systems installed. The company will not focus on stealing customers from its competitors, it will focus on the 75% that don’t have any form of security in their homes.
Currently the company has approx. 100 subscribers and the goal is to increase that number to 300.000 over the next 3 years. The company has a B2C strategy with direct online sales to its customers using digital media, PR and its own referral program. It also has a B2B strategy which includes partnerships with Insurance companies, Telecom companies and internet providers. The company has been in talks with Topdenmark and Waoo, which both have shown interest in partnership.
The company has also been approached by a financially strong team in Spain that would like to franchise the solution and bring it to the Spanish market.
In January 2018 the company got an investment from an investor group. That capital was used to get the company from prototype -> production -> go-to-market strategy. The group has decided to add more capital to the company to support its growth in Denmark over the next 12 month.
The company has obtained a proof of concept next step it to get a proof of market penetration.
Spørgsmål til panelet
B2B White Label. Companies can sell the solution as their own brand. General discussion about pros and cons?
B2B Partnership. Partners handle sales and first level support. They get a share of the recurrent revenue over the customers lifetime. The company is looking for feedback on revenue split and what it needs to be aware of regarding such partnership.
B2C. The more people in a neighborhood that has the solution, the better for the neighborhood. The company has built a referral program that should motivate neighbors to spread the word. What is the best practice to secure a high referral rate ?
Internationalization. Franchise vs B2B Partnership deals? Franchise would mean less cost for the company, but also less earnings.