VC | Creative Artist.
Software as a service or SaaS is not a necessarily a new business model or idea but surely one you may be hearing about more frequently as our daily routines and business operations rely more heavily on technology and devices. SaaS is "a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted." (wikipedia). These types of ventures typically build, customize and operate their own platforms and software. SaaS models are cloud based, meaning all the applications, storage, processing, communication, monitoring and networking are hosted centrally and accessed by the customer over the internet. SaaS vendors are very appealing to SME's or small to mid-size enterprises as they provide SME's a turnkey solution for managing day to day business needs allowing them to spend less capital on servers and IT manpower and more on growing their businesses.
SaaS vendors offer low cost installation as often the app/software is downloaded from the cloud and installed quickly versus the need to have a mobile hardware tech as per conventional software companies. A SaaS company has a variety of options regarding how it can be compensated for services rendered; for example, an up front fee can be charged to install and access applications, then a monthly subscription fee would be charged usually on a per user basis. As a bundle of applications are tailored to the customer's needs then a per transaction payment plan could also be engaged as all the information processed for the customer is ultimately routed through the host servers. The benefits of this are clearly evident as the company scales up the number of customers and transactions, as the cost of operating with 1,000 customers or 100,000 may only require spending some additional money on servers. SaaS is also attractive to small enterprise because it allows them to save money on startup, infrastructure, and maintenance which frees up capital for growing their businesses. Many of the industry leading tech giants such as Microsoft, IBM, Google and NASA all have a SaaS cloud model operation. Another major driver for SaaS adoption is speed and access to the internet; as more business is done out of the office and in the field, having full access to cloud applications on the go is a huge benefit over having access strictly in the office.
According to a Forbes report, "by 2018, 27.8% of the worldwide enterprise applications market will be SaaS-based, generating $50.8B in revenue up from $22.6B or 16.6% of the market in 2013. IDC estimates the overall enterprise applications market in 2013 was $135.9B." It goes on to suggest "demand for SaaS enterprise applications is accelerating and exceeding the demand for on-premise applications by five times (during the five-year forecast period through 2018, SaaS revenue is forecast to grow at 17.6% CAGR, while on-premise revenue growth is only forecast at 3.1%)".
Blockchain technology, also known as a distributed ledger, is currently disrupting how we process, store and protect data. What exactly is a blockchain or distributed ledger? I'll use a metaphor to break it down as simply as possible - surely the tech savvy readers will cringe here. Imagine a book as a blockchain, and each chapter as an individual block in the chain. A group of writers are writing the book together and in order for another chapter to be completed, it must first be sent to several publishers. All the publishers need to agree 100% that the copy of data in the chapter is exactly the same as all the others' copies. If singularity is achieved, the chapter is written in the book, and the writers move onto the next chapter. Every writer has an exact copy of the book and can view it anytime from start to finish. A blockchain is a fairly simple concept yet extremely effective at processing and protecting data.
Blockchain is quickly becoming the catalyst for change in almost every industry that has a need for reliable, trustless data collection and verification. It promises to change the way industries track goods and services and protect supply chains from corruption. It provides a degree of accountability and even suggests it can speed up government data collection and processing to meet day to day needs. What makes blockchains so attractive to the business community is once data is stored to the block it cannot be modified, corrupted, or deleted and it is transparent with a timestamp.
An article by suggests "deployments of blockchain should bump up sales growth in cloud services, databases and servers by 35 percent, according to Susan Eustis, chief executive officer of WinterGreen Research. Within five years, blockchain technology will push more than 55 percent of large companies with more than 1,000 employees to use the cloud instead of their own data centers, up from 17 percent today." Finally, blockchain technology sector growth is formidable. Last year according to Statistic.com, the sector was worth $339.5 million and going into 2018 projecting an increase of 164% for a $548.2 million sector valuation.
A unique Vancouver, B.C. based technology company called Subscribe Technologies Inc. (CSE:SAAS) (OTC: SRBBF), (Frankfurt: 6GQ) is building a proprietary blockchain based, cloud SaaS platform which offers investors an opportunity for blockchain technology exposure in their portfolio with a lean and highly scalable business model.
Check out the Jan. 23/18 news release which headlines "SUBSCRIBE TECHNOLOGIES DEVELOPING PROPRIETARY NEW CLOUD BASED SOFTWARE AS A SERVICE (SaaS) PLATFORM FOR SMALL AND MEDIUM SIZED ENTERPRISES, POWERED BY (BLOCKCHAIN) DISTRIBUTED LEDGER TECHNOLOGY".
Subscribe Technologies Inc. already has a full suite of applications within its portfolio developed and deployed with over 350 plus existing users and growing. The company is well positioned to provide SME's a turnkey software solution for businesses through the following applications, with others in development:
These tools offer SME's accounting, file storage and general business management solutions through the cloud. The company boasts easy integration of bank accounts, websites and any other plugins relevant to the needs of the user. The company has also suggested it will be integrating blockchain into these initial apps as well as those to be released in due time.
In Canada alone "there are almost 1.1 million SMEs in Canada." according to BDC report (business development bank of Canada). According to a report by the U.S. Small Business Administration office of Advocacy there were 28.8 million SME's in 2015. These figures demonstrate a large market opportunity for the company which is still at the beginning of its journey and development.
Subscribe Technologies is led by CEO and President Paul Dickson, who has been an entrepreneur and software developer spanning 20 years. Mr. Dickson has made a career of identifying opportunities within the software sector, both in startup stage development and acquisition. Mr. Dickson runs the day to day operations of Subscribe Technologies Inc.
Harvey D. Dick, Director, has more than 20 years of experience as a director of public companies. Mr. Dick was the President of Jet Gold Corp., a mineral exploration company, from December 1995 to May 2003 and a director of Jet Gold Corp. from August 1995 to February 2006. He has been a director of Regal Resources Inc. from January 2006 until February 2013 as well as President from January 2006 until January 2010 and CEO from January 2006 to January 2010. Mr. Dick received a B.A. Degree in Economics from the University of British Columbia.
The companies advisory board is led by Chad McMillan (www.chadmc.com) who is an experienced veteran of the public markets, serving the company in a senior strategic advisory role. Some of his roles include but are not limited to offering assistance in accessing capital and identifying new opportunities for the company as it grows. One of Mr. McMillan's most recent accomplishments was as an early investor, advisor and founder of the publicly traded augmented reality/movie startup Imagination Park Entertainment Inc. (CSE:IP) which has evolved into a successful world class movie/AR studio.
In the most recent company news release this past week it was announced the addition of several new members to the advisory board, several of which give the company exposure to the Southern California technology community.
Mr. Timothy Lewis
Southern California based Mr. Lewis brings 20 years of corporate infrastructure/security/application design and development experience to Subscribe. His core competencies include blockchain/trust-layer/security application development, data center, network, system, security, communications design, development, and deployment. He was previously engaged with system design, trade/data expedition and security for several banks/networks including Northern Trust for communication/security design and migration, and at NewEdge Group during pre-and post-merger efforts for design, security and communication networks. This project encompassed a global multi-asset brokerage formed in 2008 from the merger of Fimat and Calyon Financial, the brokerage arms of French financial companies Société Générale and Credit Agricole, respectively. He also worked with SpiderRock on systems and communication design consulting and automated strategy management platforms. For his part, Mr. Lewis has also long been active in the cryptocurrency community, commencing his own Bitcoin mining operations in 2010. As such he has also earned a deep understanding and expertise in mixed-use mining operations and in driving change towards the next generation of staked mining protocols. Mr. Lewis received his education in Computer Information Science at Ohio State University.
Mr. Taylor MacDonald
Mr. MacDonald is a 15 year veteran of the finance industry, and has worked in Vancouver, London, and New York on both the buy side (fund management) and sell side (equity capital markets). He is presently the founder and President of Caerus Capital Management, a Vancouver-based investment company and merchant bank focused primarily on two things – resources and innovation. Mr. MacDonald is also graduate of the Wharton School of Business at the University of Pennsylvania, a CFA Charterholder, a member of the Silicon Valley Blockchain Society, and a Director of STAND, a scholarship foundation for youth at risk.
Mr. Ryan Bozajian
Ryan “Boz” Bozajian began his career in entertainment, lending his talents and technical skills to feature films at companies such as American Zoetrope, Lucasfilm / Industrial Light & Magic, Sony Pictures Imageworks, Radium, Pixomondo, Mirada, and Crafty Apes. As a visual effects artist, lead tool developer, pipeline architect, and supervisor, Ryan had the privilege of working directly with such film industry legends as Francis Ford Coppola, Walter Murch, Dennis Muren, Guillermo Del Toro and many others. Over the years Ryan also founded multiple media production companies and led teams on set and in post on commercials and online content as a flame operator, visual effects supervisor, creative director and producer. He brings his many years of blending creative, technical and business roles into the realm of technology with a keen eye for top talent, disruptive methodologies, and most of all, a potent vision of the emerging technology landscape. Ryan is presently the Director of Emerging Technology for Caerus Capital Management, and founding member of the Silicon Valley Blockchain Society.
The companies management experience on both technical and market levels is extensive. The company has also stated they intend to continue adding depth, talent and experience to the team.
Financially the company is cashed up and debt free. On Jan 9/18 the company closed a financing for $500,000 with the issuance of 10 million shares at $.05 and 10 million warrants, and recently closed another financing reserved exclusively for the recently added advisors totalling $150,000 with the issuance of 1 million shares and 1 million warrants exercisable at $.25. Subscribe Technology is very well positioned for success as it begins to execute on its business plan. Subscribe Technologies Inc. has low partially diluted float of 37,877,670 shares. Management ownership of the share structure is estimated to be around the 30% mark.
From a technical standpoint I'd suggest the stock appears to be in a consolidation phase and could be poised for another leg up. The chart shows a previous breakout from $.08, constructing a flagpole of $.17. Chart suggests a flag is forming in a consolidation phase and if the stock can breakout past $.22 we could see a new price target of around $.37 after the next leg up. At the close of Tuesday's trading session market cap was $6.68 million.
I'd suggest putting Subscribe Technologies Inc. (CSE:SAAS)(OTC:SRBBF)(Frankfurt: 6GQ) on you're radar as the company offers a great opportunity for exposure to blockchain and scalable business that is not available with many other plays on the Canadian exchanges. General sentiment is the blockchain trend is poised to overhaul software and data solutions across many verticals, Subscribe Technologies Inc. is well positioned to take advantage of being one of the early movers in the software as a service industry.
By Jason Clegg, Mar. 20/18
Editor and Co-Founder of www.blockchainstocks.net
Full Disclosure: At the time of the writing of this publication, principles of Blockchainstocks hold a long position of Subscribe Technologies Inc, (CSE:SAAS, OTC:SRBBF, Frankfurt: 6GQ).
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VC | CREATIVE ARTIST
I have spent some 15 years building and financing startup companies, with a deep passion for positive social impacts and the creative arts. Now as I continue about my personal and professional journeys, I share everything I know and have learned with you here.