Venzee Technologies Inc: a SaaS Model Gaining Enterprise Traction in a Very Big Market
Peter Bell, VentureCapNews, 6 February 2018
A relatively new public company called Venzee Inc. (TSXV:VENZ) has found a better way. A better way for suppliers and manufacturers to distribute product information to their retailers both online and in stores. And the solution is so powerful it dramatically improves margins for its clients in the cutthroat retail and Ecommerce business. In one case study alone with Anheuser Busch, the software saw this:
- 65% increase in data transmission speed
- 100% reduction in errors (human error manually uploading spreadsheets)
- 74% increase in overall data quality
Venzee automates a legacy issue, the use of spreadsheets to transmit data between suppliers and their retailer customers which eliminates human error, improves margins and increases speed to market. Venzee is infinitely more scalable than spreadsheets and manual process will ever be and is gaining momentum in the industry.
Employees (or small business owners) spend countless hours every day fiddling with spreadsheets because suppliers and retailers use different software. Of course, their software is not compatible and that means someone somewhere has to perform data entry — cost and chaos ensues. You are never going to get all the different players to agree on a common data standard or to use the same softwareystem, so there is a huge opportunity for software that transforms and distributes data between the different systems.
The story around Venzee gets better when you look at the network effect of their software. The more enterprise customers that use the software, the more sales opportunities for Venzee. Why? Each time Venzee integrates with a major retailer, the thousands of suppliers that make up the retailers supply chain have a simple choice. Continue to use labour intensive spreadsheets or automate the process with Venzee, reducing costs and accelerating revenue for both the supplier and retailer. And of course, suppliers sell to other retailers and quickly realize that Venzee could automate the process of updating all of their retailers.
There is a network effect taking place that very few companies have in their business model, and this network effect can be explosive.
The addressable market for Venzee is stunning. There are millions and millions of suppliers and manufacturers in the United States which still use static spreadsheets to distribute new product content and updates to their retailers. This is hard to comprehend but it’s even harder to imagine the total cost associated with the widespread use of spreadsheet for product information management. The fact companies still use spreadsheets is just insane, but they do, and VENZEE is going to change the industry.
Here is one testimonial from a customer for you to get the feel of what a game changer it is:
- “Switching from spreadsheets to Venzee has accelerated our business. The automation Venzee provides gets our products into the marketplace fast. We’re thrilled!” Cindy Fogarty, VP Ecommerce, ELK Group International
In total addressable target market of millions of suppliers, it only takes a sliver of success for the Company to become a wildly exciting for investors.
- 5,000 customers at $150 USD per month equals $750,000 USD per month in revenue ($9M/year)
- 10,000 customers at $150 USD per month equals $1.5M USD per month in revenue ($18M/year)
Venzee recently completed an IPO at $0.50 in December, 2017. The stock made a high of $1.80 on the frenzy has pulled back significantly to $0.50 giving investors a much better entry point. At $0.50 the company has a $30M market cap and about $5M in cash and a new senior sales team to grab as much land as they can.
With multiple announcements this year with new clients adopting the software, including client testimonials on results. This is one to watch in 2018.The company currently has approximately $5 million cash on hand and has a sales team that is grabbing as much of the market as they can.
Find out more at https://venzee.com
Investor Relations, Kin Communications Inc.
This is not in any way investment advice nor any sort of stock recommendation. Please do your own due diligence and talk to a qualified investment advisor.
The contents of this article are for informational purposes only. Nothing in this article, in any way whatsoever, should be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy, hold or sell any security. Note the inherent risks when investing in microcap stocks. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.
Venzee Inc. is a paid marketing client of Stockpools Inc. and one or more of the owners does own shares in Venzee Inc.