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Frequently asked questions
Equity
Capabilities
We use a whole host of factors to determine an appropriate equity exchange. Factors include:
- Current Business; what is the performance of your current business like?
- Prospective Business; what could your business do after the project?
- Complexity; how much development time is required to complete the project?
- CAPEX; how much will it cost us to deliver the project?
We strive to take on board all factors that could effect the cost to deliver and the prospective value of the return. This is a collaborative discussion undertaken with you in the lead - you best know your business and what the project could mean for it.
Yes, this is absolutely one way to think about the arrangement.
Investors enter businesses for all sorts of reasons under all sorts of arrangements every day. Fundamentally investors deliver something up front with the hope receiving something back in the future.
Under Automation for Equity we enter your business in exchange for delivering a functioning solution with hope to grow your business.
With Automation for Equity your equity goes further.
With a cash investment; you will receive cash in return for equity. This investment is based on the current value of your business and the prospective future value of your business based on two probabilities; first the likelihood of the automation project delivering the functionality you require and secondly what this functionality can do for your business. After the investment, you must then source and manage the delivery of the project with another entity. In this arrangement the other entity must make a profit whilst delivering the project. This ultimately costs you more to receive the project than it does to deliver the project.
With Automation for Equity not only do we not need or aim to make a profit on day one (making the initial cost lower) but we also know what we can deliver, so one of the probabilities in the equation is replaced with certainty. Furthermore, since our return is based solely on your success we are inextricably tied to delivering solutions that work for your business - not just what you asked for.
As such through Automation for Equity we are able to deliver for less equity than any like for like cash investment arrangement.
All of our Automation for Equity projects are delivered in exchange for equity.
We have operated as standard automation providers previously and, for very small projects, we may consider alternative arrangements but this is certainly the exception, not the rule.
Talk to us, you may be surprised at how little equity we require!
All of our Automation for Equity projects deliver according to milestone equity agreements.
Before starting the project we will agree on acceptable milestones and how much equity each one is worth. As we achieve the milestones equity is released to us.
Milestones are typically based around delivery and acceptance of functional solutions.
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