- Key customers include VMware and Deloitte
- Since launch in January 2020, the Company has signed up 700+ users, 6 pilots, and are in multiple discussions for additional pilots in Q2
- Board of directors includes angel investor and entrepreneur Jason Calacanis
- Advisors include co-founder of Mobileiron, Ajay Mishra
- Investors include DNX Capital, XG Ventures, and 205 Capital
- Total Amount Raised: US $1,487,884
- Total Investors: 508
- Total Round Size: US $2,498,326
- Seed :
- Minimum Investment: US $1,000 per investor
- : Preferred Equity
- US $9,000,000 :
- Side by Side Offering
Enterprise buying is getting more data-driven; according to a 2019 Forrester research 74% of enterprise buyers state they will buy from a vendor that is “the first to provide a tailored provable path to value”. Hyper-personalization for enterprise buyers is no longer a nice to have, rather it’s a business imperative to win in the increasingly competitive enterprise market landscape. Hyper-personalization has well-documented benefits which include: faster time to close by up to 33%, up to 60% higher win-rates, and 55% higher deal sizes.
However, for most enterprise sellers hyper-personalization at scale remains an unattainable dream, fraught with the following systemic issues:
- Key information needed by a salesperson lives in silos.
- The process of personalizing content for a buyer remains incredibly complex and time-consuming.
- There is a missing feedback loop between what is actually presented to customers and related engagement analytics. In addition, sales managers have little visibility into deal engagement and product marketers keep wondering how their produced content is being used and how effective it is with customers.
Contiq solves these challenges by delivering an AI-powered customer engagement platform that provides a hyper-personalized customer experience at scale that leads to higher customer engagement/satisfaction, higher win-rates, and shorter sales cycles.
Contiq has a SaaS subscription business model with an average sales price of $250 per user/year. Our 2019 ARR was $250K and projected ARR of $1M+ in 2020.
We have already closed deals with Deloitte and VMware and have expanded our focus to mid-market firms like ServiceNow, ZenDesk, InfinityGlobal, GradTouch, vArmour, and Informatica.
Since the January launch of our new mid-market product, we have signed and discussed 11 new pilots and acquired 700+ users.
A Side by Side offering refers to a deal that is raising capital under two offering types. If you plan on investing less than US $20,000.00, you will automatically invest under the Regulation CF offering type. If you invest more than US $20,000.00, you must be an accredited investor and invest under the Regulation D offering type.
US $570,308 (under Reg CF only)
Investors who invest $432,400 or less will have their securities held in trust with a Custodian that will serve as a single shareholder of record. These investors will be subject to the Custodian’s Account Agreement, including the electronic delivery of all required information.
- Invest in the first two weeks and receive the next tier of perks
- $15k+ Get the enterprise or team edition of Contiq at 25% off list price for their sales teams to use
- $50k+ Get the enterprise or team edition of Contiq at 50% off list price for their sales teams to use
- $100K+ Get the enterprise or team edition of Contiq at 50% off list price for their sales teams to use
It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.
The graph below illustrates theor the of Contiq's prior rounds by year.
Market SizeThere are over 32 million B2B sales and marketing professionals worldwide employed by 44,000 companies that are using Microsoft Office/Googles’ GSuite that have in excess of $50M in annual revenue. These companies are across multiple verticals: IT, Consulting, Finance, Healthcare, Media/Advertising, Government, Education, and Manufacturing.
Our ideal customer profile is the 6 million B2B sales and marketing professionals that use Microsoft Office, Salesforce.com and are in the Technology, Finance or Consulting verticals working for companies with more than $50 Million in annual revenues.
Competition and DefensibilityUnlike the competition, Contiq captures engagement analytics on content that is “actually presented” to customers, which is generally lost in emails and hard drives. Contiq is able to capture this unique data because of its native integrations with sales communication tools, such as Outlook, PowerPoint, Gmail, GSlides, and then apply machine-learning techniques to help the salesperson easily get rich buyer engagement insights and use those to deliver a data-driven, personalized buying experience and subsequent recommendations. Contiq’s focus on empowering the salesperson to deliver highly personalized buying experiences at scale within native workflows quickly is what makes it unique. Competitors such has HighSpot, Seismic are primarily focused on internal sales enablement and have an incomplete experience for salespeople to maximize engagement with buyers. Contiq is looking to dominate the multi-billion dollar customer engagement analytics and insights market and become the “MixPanel for Customer Engagement Insights”.
The development and commercialization of the Company’s products and services are highly competitive. It faces competition with respect to any products and services that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. The Enterprise Selling and Customer Engagement market is an emerging industry where new competitors are entering the market frequently. Many of the Company’s competitors have significantly greater financial, technical and human resources and may have superior expertise in research and development and marketing approved services and thus may be better equipped than the Company to develop and commercialize services. These competitors also compete with the Company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, the Company’s competitors may commercialize products more rapidly or effectively than the Company is able to, which would adversely affect its competitive position, the likelihood that its services will achieve initial market acceptance and its ability to generate meaningful additional revenues from its products and services.
The Company’s expenses will significantly increase as they seek to execute their current business model. Although the Company estimates that it has enough runway until the end of year, they will be ramping up cash burn to promote revenue growth, further develop R&D, and fund other Company operations after the raise. Doing so could require significant effort and expense or may not be feasible.
The Company projects aggressive growth in 2020. If these assumptions are wrong and the projections regarding market penetration are too aggressive, then the financial forecast may overstate the Company's overall viability. In addition, the forward-looking statements are only predictions. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
The Company has not prepared any audited financial statements. Therefore, investors have no audited financial information regarding the Company’s capitalization or assets or liabilities on which to make investment decisions. If investors feel the information provided is insufficient, then they should not invest in the Company.
The outbreak of the novel coronavirus, COVID-19, has adversely impacted global commercial activity and contributed to significant declines and volatility in financial markets. The coronavirus pandemic and government responses are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued material adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate material adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Funds, their performance, and their financial results.
Through its operations, the Company collects and stores certain personal information that customers provide to purchase products or services, enroll in promotional programs, register on the web site, or otherwise communicate and interact with the Company. The Company may share information about such persons with vendors that assist with certain aspects of their business. Security could be compromised and confidential customer or business information misappropriated. Loss of customer or business information could disrupt the Company's operations, damage their reputation, and expose them to claims from customers, financial institutions, payment card associations and other persons, any of which could have an adverse effect on their business, financial condition and results of operations. In addition, compliance with tougher privacy and information security laws and standards may result in significant expense due to increased investment in technology and the development of new operational processes.
The Company relies heavily on its technology and intellectual property, but it may be unable to adequately or cost-effectively protect or enforce its intellectual property rights, thereby weakening its competitive position and increasing operating costs. To protect its rights in its services and technology, the Company relies on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. It also relies on laws pertaining to trademarks and domain names to protect the value of its corporate brands and reputation. Despite efforts to protect its proprietary rights, unauthorized parties may copy aspects of its services or technology, obtain and use information, marks, or technology that it regards as proprietary, or otherwise violate or infringe its intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If the Company does not effectively protect its intellectual property, or if others independently develop substantially equivalent intellectual property, its competitive position could be weakened.
Effectively policing the unauthorized use of its services and technology is time-consuming and costly, and the steps it takes may not prevent misappropriation of its technology or other proprietary assets. The Company's efforts to protect its proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of its services, use similar marks or domain names, or obtain and use information, marks, or technology that it regards as proprietary. The Company may have to litigate to enforce its intellectual property rights, to protect trade secrets, or to determine the validity and scope of others’ proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.
The Company's existing investors have not waived their pre-emptive rights and may plan on exercising those rights. The pre-emptive right entitles those investors to participate in this securities issuance on a pro rata basis. If those investors choose to exercise their pre-emptive right, it could dilute shareholders in this round. This dilution could reduce the economic value of the investment, the relative ownership resulting from the investment, or both.
The Company has engaged in related party transactions. During the year ended December 31, 2019, the Company advanced funds to officers of the Company. These advances are non‐interest bearing. At December 31, 2019 and 2018, the amount of advances outstanding is $183,500 and $0, respectively, and are recorded under ‘Related party advances receivable’ on the balance sheets. The Company expects these amounts to be paid back after the upcoming equity financing. As of the date hereof, the Company has issued convertible notes to a shareholder with an aggregate principal amount of $1,360,000. At December 31, 2019 and 2018, the outstanding balance of convertible notes payable to such shareholder is $960,000 and $450,000, respectively, and is recorded under ‘Shareholder notes payable’ on the balance sheets. The convertible notes bear an interest rate of 2% per annum and mature on December 31, 2021 unless repaid or converted into shares of the Company upon an earlier date. No amounts are required to be repaid prior to the maturity date. The outstanding principal and unpaid accrued interest on outstanding convertible note balances shall be automatically converted into shares of equity securities at a 20% discount upon the Company’s next round of equity financing with an aggregate sales price of not less than $10,000,000. Accrued interest on the convertible note as of December 31, 2019 and 2018 was $3,036 and $18,745, respectively, and is recorded under ‘Accrued interest’ on the balance sheets. The Company recognized interest expense of $15,709 and $3,036 during the years ended December 31, 2019 and 2018, respectively.
The company has prior convertible notes which will remain outstanding at the close of this offering, which may convert into shares that are senior to the Series Seed-3 Preferred Stock. The Company has issued to 205 Capital, L.P. unsecured convertible promissory notes for an aggregate principal amount of $1,360,000, with such notes converting at a 20% discount to the price per share of the securities sold in cash to other investors in the Company’s next bona fide equity financing of at least $10mm after the Company’s sale of Series Seed-3 Preferred Stock. Such convertible notes have not been factored on a pre-money basis into the calculation of the Series Seed-3 Preferred Stock share price.
Subject to Board approval, the Company intends to issue an additional convertible promissory note or a Simple Agreement for Future Equity (SAFE) instrument with a prospective investor for a principal amount of $25,000. Such note or SAFE would be convertible at a certain discount to the price per share of the securities sold in cash to other investors in the Company’s next bona fide equity financing after the completion of the Company’s sale of Series Seed-3 Preferred Stock. The Company is currently in the process of negotiation with such investor and the exact terms of such anticipated investment are to be determined.
The total amount raised may include investments made outside of the SeedInvest platform via Regulation D under a separate purchase agreement. $442,076.56 has been raised prior to the launch of the SeedInvest campaign. The earliest investment counted towards the escrow target was made on October 28, 2019. There is no guarantee that the Company has this cash available for operations as of the date of launch. See balance sheet for current cash balance.
The Total Amount Raised, as reflected on the SeedInvest platform, may be partially comprised of investments from the Company’s management or affiliates. Such investments are not being counted towards the escrow minimum. If the sum of the investment commitments does not equal or exceed the escrow minimum at the offering end date, no securities will be sold in the offering, investment commitments will be cancelled, and committed funds will be returned. As a result, the Total Amount Raised may not be reflective of the Company's ability to conduct a closing.
Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.
Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.
Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.
Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company's employees, including its management. You should carefully review any disclosure regarding the company's use of proceeds.
Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.
Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company's board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.
Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors") Representatives of SI Securities, LLC are affiliated with SI Advisors, LLC ("SI Advisors"). SI Advisors is an exempt investment advisor that acts as the General Partner of SI Selections Fund I, L.P. ("SI Selections Fund"). SI Selections Fund is an early stage venture capital fund owned by third-party investors. From time to time, SI Selections Fund may invest in offerings made available on the SeedInvest platform, including this offering. Investments made by SI Selections Fund may be counted towards the total funds raised necessary to reach the minimum funding target as disclosed in the applicable offering materials.
Frequently Asked Questions
A Side by Side offering refers to a deal that is raising capital under two offering types. This Side by Side offering is raising under Regulation CF and Rule 506(c) of Regulation D.
The Form C is a document the company must file with the Securities and Exchange Commission (“SEC”) which includes basic information about the company and its offering and is a condition to making a Reg CF offering available to investors. It is important to note that the SEC does not review the Form C, and therefore is not recommending and/or approving any of the securities being offered.
Before making any investment decision, it is highly recommended that prospective investors review the Form C filed with the SEC (included in the company's profile) before making any investment decision.
Rule 506(c) under Regulation D is a type of offering with no limits on how much a company may raise. The company may generally solicit their offering, but the company must verify each investor’s status as an accredited investor prior to closing and accepting funds. To learn more about Rule 506(c) under Regulation D and other offering types check out our blog and academy.
Title III of the JOBS Act outlines Reg CF, a type of offering allowing private companies to raise up to $1 million from all Americans. Prior capital raising options limited private companies to raising money only from accredited investors, historically the wealthiest ~2% of Americans. Like a Kickstarter campaign, Reg CF allows companies to raise funds online from their early adopters and the crowd. However, instead of providing investors a reward such as a t-shirt or a card, investors receive securities, typically equity, in the startups they back. To learn more about Reg CF and other offering types check out our blog and academy.
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by Contiq. Once Contiq accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to Contiq in exchange for your securities. At that point, you will be a proud owner in Contiq.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or passport
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
If you are investing under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
An investor is limited in the amount that he or she may invest in a Reg CF offering during any 12-month period:
- If either the annual income or the net worth of the investor is less than $100,000, the investor is limited to the greater of $2,000 or 5% of the lesser of his or her annual income or net worth.
- If the annual income and net worth of the investor are both greater than $100,000, the investor is limited to 10% of the lesser of his or her annual income or net worth, to a maximum of $100,000.
Separately, Contiq has set a minimum investment amount of US $1,000.
Accredited investors investing $20,000 or over do not have investment limits.
You are a partial owner of the company, you do own securities after all! But more importantly, companies which have raised money via Regulation CF must file information with the SEC and post it on their websites on an annual basis. Receiving regular company updates is important to keep shareholders educated and informed about the progress of the company and their investment. This annual report includes information similar to a company’s initial Reg CF filing and key information that a company will want to share with its investors to foster a dynamic and healthy relationship.
In certain circumstances a company may terminate its ongoing reporting requirement if:
- The company becomes a fully-reporting registrant with the SEC
- The company has filed at least one annual report, but has no more than 300 shareholders of record
- The company has filed at least three annual reports, and has no more than $10 million in assets
- The company or another party purchases or repurchases all the securities sold in reliance on Section 4(a)(6)
- The company ceases to do business
However, regardless of whether a company has terminated its ongoing reporting requirement per SEC rules, SeedInvest works with all companies on its platform to ensure that investors are provided quarterly updates. These quarterly reports will include information such as: (i) quarterly net sales, (ii) quarterly change in cash and cash on hand, (iii) material updates on the business, (iv) fundraising updates (any plans for next round, current round status, etc.), and (v) any notable press and news.
Currently there is no market or liquidity for these securities. Right now Contiq does not plan to list these securities on a national exchange or another secondary market. At some point Contiq may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when Contiq either lists their securities on an exchange, is acquired, or goes bankrupt.
You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. If invested under Regulation CF you may also receive periodic updates from the company about their business, in addition to monthly account statements.
This is Contiq's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. If the company runs a side by side offering that includes an offering under Regulation CF, you may also find a copy of the Contiq's Form C. The Form C includes important details about Contiq's fundraise that you should review before investing.
For offerings made under Regulation CF, you may cancel your investment at any time up to 48 hours before a closing occurs or an earlier date set by the company. You will be sent a reminder notification approximately five days before the closing or set date giving you an opportunity to cancel your investment if you had not already done so. Once a closing occurs, and if you have not canceled your investment, you will receive an email notifying you that your securities have been issued. If you have already funded your investment, your funds will be promptly refunded to you upon cancellation. To cancel your investment, you may go to your account's portfolio page by clicking your profile icon in the top right corner.
If you invest under any other offering type, you may cancel your investment at any time, for any reason until a closing occurs. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your account's portfolio page by clicking your profile icon in the top right corner.