The Company needs €500K to complete its design library and digital platform development phase, acquire clients and partners for first years builds and adapt its service to the German and Dutch markets after Belgium.
Build system structure: Engage data architects and software engineers for system design. Build digital platform, integrated database environment, and digital tools towards version 1.0 and 2.0 of digital infrastructure.
Client acquisition: Identify and sign up clients/ partners for first builds and execute.
80% of the funding is planned to be used for R&D and 20% for marketing purposes.
The company has already raised €50K from VLAIO with a grant application submitted in 2023 and is expecting to receive approval within 2024 for a development grant of ~€370K. Also, as it was chosen to be a participant of the EIT Community NEB Catalyse accelerator program, it has been awarded an investment of €50K under a SAFE agreement. To this date, the founder has invested ~ €400K and is committed to increase his contribution as needed.
109% CAGR in the first 5 years of sales post R&D period
The company's revenue model is a fee paid by its clients for the service it offers throughout design and build phases of a residential project. This fee will be quoted upfront in the agreements and paid in installments. The fees are to be calculated over total cost of a residential project excluding land costs. As its digital infrastructure is completed, the company saves more time and costs to justify charging a higher fee. This will also be backed by agreements with design and build partners. The company expects revenues to grow with a ~ 109% CAGR in the first 5 years of sales post R&D period that is between 2025 to 2030.
The company's COGS is mainly comprised of the salaries paid for employees managing and maintaining the digital collaboration platform and providing after sales service. The company expects to start with already high gross margins at ~54% in 2025 and project them to reach and stabilize around ~80% in year 5 onwards.
At the beginning, the company's main OPEX item will be Sales and Marketing that are expected to be around ~25% of sales in 2026 and then to stabilize around ~15%. The company will keep an ongoing R&D effort, which will decrease as a percentage of revenue over time, but continue to remain at ~5% of revenue. As the company scales up, the weight of Management Personnel and General Admin as percentage of revenues will decrease.
In 2030, the company expects to reach an EBITDA level of ~ Eur 7.2 M at a ~50% margin.
