Activity Report August, 2014
Fund Management:
Fund Director: Thiago Domenici
Fund Administration: BRL Trust
Managing Director: Carlos Eduardo Guillaume
“This report is published with the sole intent to disclose information and provide transparency to CONFRAPAR´s management and shall not be considered as an AvanTI Fund sale offer. Despite all the attention, both in the collection as in the processing of the disclosed information, CONFRAPAR must not be held accountable for the accidental publishing of incorrect information, nor for investment transactions or decisions made based on this report. All opinions and estimates are provided within a context and conjuncture at the moment of editing this report. No information or opinion shall be interpreted nor has the intention to serve as a purchase offer or a sale offer of the shares or assets mentioned. Past performance does not ensure future performance.”
Financials Fund’s Statement (BRL) Share’s Value
609.466,80
Subscribed Shares
50
Available Shares
150 Financial Position as of August, 29th, 2014
Capital Call Forecast (8 years) S1/2022 S2/2021 S1/2021 S2/2020 S1/2020 S2/2019 S1/2019 S2/2018 S1/2018 S2/2017 S1/2017 S2/2016 S1/2016 S2/2015 S1/2015 S2/2014
0,65% 1,15% 1,15% 1,15% 1,15% 2,15% 8,1% 8,5% 10,0% 9,0% 15,0% 14,0% 8,0% 7,5% 8,5% 4,00%
0%
2%
4%
6%
8%
10%
12%
14%
16%
The capital call forecast is only a prediction. There may be changes to the dates and amounts to be called, once they vary according to the Fund´s development.
Activity Report – August, 2014
Companies Pipeline Overview KPI
Companies approached
Investment Deck Approved by Pre. Approved by Approved Committee Inv. Committee
Investments
YTD
72
19
6
0
0
TTD
303
57
16
0
0
Projected 2014
144
62
12
1
1
% YTD 2014
50%
31%
50%
0%
0%
Information from all the companies received by the Fund will be made available, and may be discussed during the Fund’s Activity Review meetings. AvanTI Pipeline
Companies under analysis Comunique-se
Marketing and Communication Systems
AvanTI has been analysing the Workr Platform and its tools, the sales channels and implementation process. The Fund has interviewed the company’s clients to validate the product’s performance. Comunique-se offers several digital communication solutions such as mailing list, e-mail marketing, press releases and corporate reports distribution, CRM and clippings. Company Investment Deck (Portuguese)
DirectOne
Marketing Automation System
Direct One’s analysis is on hold right now, because the company has closed its first investment round with a strategic investor, Servix. AvanTI is considering a co-investment round or a Series B in the near future. However, any advance is on hold until DirectOne and Servix close their deal. Company Investment Deck (Portuguese) “From August, 2014, the KPIs on the Pipeline Overview represent: YTD (Year to Date in 2014); TTD (Total to Date, since AvanTI has beginning to analyze companies); Projected 2014 (number of companies the Fund is willing to analyze during the year); % YTD 2014 (% of companies analyzed regarding the number of companies projected to 2014).”
Activity Report – August, 2014
Companies Companies under analysis Telbrax Telbrax and AvanTI are working together in the company’s strategic plan for 2015-2017, based in four main verticals – Retail (pilot), Corporate, Long Distance and Data Center. The company’s strategy is to deploy its own infrastructure in underserved metropolitan areas, and enter into capacity swap agreements, through IRU contracts, with the major telecom carriers in mainstream areas. AvanTI is also talking to Telbrax’s clients and has been receiving a good feedback about the company’s services and reputation. Company Investment Deck (Portuguese)
Concert – under structuring
Smart-grid Software
AvanTI Team has not been able to advance in the analysis process because Concert is still in a full operational reengineering. Therefore, business plan, projections and commercial strategy are being reviewed. We expect an update by September. Company Investment Deck (Portuguese)
Techbiz – under structuring
Cyber Crime Forensics Software
Techbiz is working on its new business plan for 2015-2019 where the main strategy is to launch a SaaS version, already internally developed, to enter the mid-market. AvanTI has been analysing the company’s revenue per client, which is excessively concentrated in government agencies and branches. The new strategy intends to attract more private companies and diversity its commercial portfolio. Company Investment Deck (Portuguese)
Activity Report – August, 2014
Companies Companies under prospecting COMPANY, HQ AND BRANCHES, 2014 FORECAST REVENUE
FLAGSHIP PRODUCT
MAIN DRIVER FOR INVESTMENT
COMMENTS
A5 Solutions, São Paulo, SP (HQ), BRL 24MM
Contact Center Technology and Integration.
Currently they are structuring a holding company that will encompass A5 and two more spin-offs. One for contact center building automation and the other for a multichannel tool for contact center.
The founders have a strong background from Avaya, one of the market leaders on business communication solutions .
Enalta, São Carlos, SP (HQ)
Their portfolio is based on 3 verticals: (i) e-Track (traceability, embedded management and equipment telemetry); (ii) e-Manager (fleet and manufacturing process management) and (iii) e-Control (controllers, meters and active tools for embedded systems).
Not available.
Enalta is the only Brazilian company among the 50 most innovative companies all over the world (Fast Company 2013). Currently, the company is under due-dilligence by another investment fund.
Mentore, São Paulo, SP (HQ) Sorocaba, SP (R&D branch), BRL 5,5MM
Plataforma SA, a LIMS (Laboratory Information Management System) is used in Petrobrás labs (about 2000 equipment and 500 models).
Mentore is planning a go to market in private organizations, specially on medical drugs and Food & Beverage companies with Plataforma SA (LIMS) and Utilities market with iTracker.
Mentore is a small company with a high R&D potential. They are also finishing the tests of a new equipment for underground assets traceability. They have intellectual property rights for all portfolio.
Grupo ABL, Curitiba, PR (HQ), BRL 25MM
Digital TV software
During the first approach, the partners demonstrated interest in receiving investment for Digital TV product expansion
ABL Group covers 5 companies: ABL Systems, ABL Serviços (contact center), ABL Mais BB, Eletro & Mais and ITV.
Activity Report – August, 2014
Companies Companies under prospecting COMPANY, HQ AND BRANCHES, 2014 FORECAST REVENUE
FLAGSHIP PRODUCT
MAIN DRIVER FOR INVESTMENT
COMMENTS
Techne, São Paulo, SP (HQ) Rio de Janeiro and Fortaleza (branches), BRL 30MM
Lyceum, a management software for education, used since 1999 by institutions like FGV, FAAP and Insper. About 2 million of students access the Lyceum for enrollment, verify grades and request services.
Since Lyceum is used by A-class institutions, Techne is planning to go down in the customer pyramid, including a cloudbased strategy.
Techne maintains an agreement with the Polytechnic School of USP (Universidade de São Paulo) to obtain the very latest in technology and professional training.
Axur, Porto Alegre, RS (HQ), US and UK (branches), BRL 22,5MM
A proprietary platform focused in digital security, including anti-fraud, brand, content and market protection, policy compliance and VIP (corporate) protection.
Internationalization plan that is under development with UCLA.
Axur is the leader in the Brazilian private banks market.
4Sec, Curitiba, PR (HQ), BRL 4MM
Caseboard is a platform 100% customized for information analysis using any available database including GIS data, facial recognition, repetition temporal patterns and any other variable.
Since the main Caseboard´s customers are government entities, 4Sec is planning to introduce Caseboard in the private market, such as retail and ecommerce.
The go to market strategy is under development. The company’s annual revenues are below the Fund’s minimum limit for investment.
Qualisign, São Paulo, SP (HQ), BRL 2MM
Digital signature, electronic authentication, digital time stamping, digital protocol and safe email.
Domestic market expansion.
Qualisign is a spin-off from Qualisoft, a Security Electronic Transaction Brazilian company. Under monitoring.
BRy Tecnologia, Florianópolis, SC (HQ), BRL 8MM
Digital signature, electronic authentication, digital time stamping, digital protocol and safe email.
Not available.
Not available.
Activity Report – August, 2014
Companies Companies Declined Declined •
Neoway: SIMM is a solution for Big Data, focused on market intelligence, which acts directly on prospecting new customers and business opportunities through a software platform that search and correlates data that comes from more than three thousand sources. Developed technology in cloud computing, the solution is used by leaders of Construction, Banking, Healthcare, Oil & Gas, Telecom and other sectors. Neoway has just received investment from Monashees, Accel Partners and Endeavor Catalyst.
•
ProRadis: the company has two main products, SmartRIS is an ERP for clinics and hospitals and Image2Doc is a cloud software that stores and shares images and allows the issuance of reports remotely. The Fund’s allocation strategy does not consider start-up investments.
•
Advicetech: E-Guardian, is a Money Laundering Prevention software. It´s a tool that allows the user to be aligned with the main concepts and techniques currently used in the fight against Money Laundering and Terrorism Financing. Advicetech has no interest in investment at this moment.
•
Rede Midas: the company is in the payment methods market and although they had a revenue of R$ 25 MM in 2013, they are currently inactive due to regulatory changes and have a high debt.
Activity Report – August, 2014