Ray Barratt
Albuquerque, NM (USA)
Role(s):
Founder/Owner/Principal
Brivea Inc
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Startup
Location:
Albuquerque
Industry:
Technology/Web
Year Founded:
2012
Number Employees:
1-10 people
Business Stage:
Creation/Idea
Entity Type:
"C" Corporation
Description:
Executive Summary - (Nov 2013) see https//(URL removed)
Background - Brivea Inc ( a Delaware corporation) has back office in Albuquerque NM and is currently moving its corporate offices to Manhattan. Brivea has a suite of cloud hosted software to monitor all corporate IT costs and provide an executive dashboard (Cognos based) to the CEO. CFO and CIO. This will be hosted by IBM, Brivea is an IBM Global Entrepreneur,
Proof of concept has been done with 10 client companies and has shown how this tool can identify where and how 10-15% can be saved on a clients IT portfolio (all areas of IT spend). The target is Fortune 1000 companies plus a BriveaLite for smaller companies, again SaaS based..
The Problem that Brivea is addressing - Many organizations continue to invest heavily in IT but a significant proportion of stakeholders in those organizations continue to be disappointed with the results. Sometimes promised benefits fail to materialize or arrive later, or at higher cost, than was planned. Studies continue to indicate that mistakes from 10-15 years ago are still being made today. Corporate IT costs are sometimes superficially analyzed and only partially understood this leaves tangible savings unrealized. In a number of cases current IT costs are higher than they should be; existing IT investments are underutilized and future investment are not optimized to the Business Plan.
The Opportunity - Today’s economic challenges are considerable, with competition and globalization at an all time high and the resulting increased pressures on profitability. Brivea sees this as an opportunity to engage with clients by making an aggressive ‘health check’ of IT from a cost, ROI and value for money perspective. BriveaWare then advises clients on which IT ‘vital signs’ are in good shape and recommends actions for those vital signs which are not optimal. Brivea has unique technology behind this called the BriveaScore (TM) and the whole web based suite is marketed as BriveaWare. All this technology is currently being patented.
The Brivea mission: Help clients maximize their ROI from IT.
Brivea differentiates itself by being obsessively focused on IT ROI; engaging with the CFO or CEO; quickly identifying tactical cost savings (e.g. software licensing); identifying underutilized software and recommending changes to future IT priorities and technologies in order to better serve the business plan. Pricing is based on fa 3 year subscription and will be around $500-750k per annum. Several proof of concept companies spend over $3m for a one year analysis with one of the big 5. These consultants will see BriveaWare as disruptive to their world.
Brivea’s Financial pre-tax plan ($millions):
Financial Summary $millions
Year 1 Year 2 Year 3 Year 4 Year 5
Annual Revenues 1 4 8.5 12 18
Annual Operating Expenses 1.2 3.5 5.6 8 11.3
EBIT -0.2 0.5 2.8 4 6.7
Break even on a monthly cash basis occurs at the end of year 1.
Investment - Brivea is seeking an initial investment of $500,000 for working capital to launch its business and 3 further investments of $100,000 each in 6, 12 and 18 months time for expected expansion and supporting cash flow lag on profit sharing revenues. These latter investments may not all be needed depending on the time it takes to create a solid order book. The main use of the investments is for working capital to support sales and marketing, travel, consultants and payroll for the core team of 4.
Brivea wants to keep the number of investors low and recognizes that some equity may be granted to investors.a Private Placement Memorandum for $5m is now available.
Brivea Confidential – Not to be forwarded, duplicated or otherwise communicated without the prior express permission of Brivea Inc