XYZ-CO ASSOCIATES

5550 77 Center Drive., Charlotte, NC

Contact: David Worrell
Executive Summary [email protected]
www.FuseFinancialPartners.com

Our Mission:
Solutions for an Evolving Energy Industry

XYZ-CO provides innovative solutions via proprietary geo-spatial data,

Key Management: software as a service, data visualization, automation tools, and consulting
to electric power utilities, government agencies, and corporations. Our robust
XXXXX, CEO: data sets and rules-driven platform help companies solve mission critical
A serial entrepreneur and problems and persistent challenges.
accomplished tech executive, he
has over 30 years of experience Named to the 2017 cohort of high-potential companies at the ABC incubator,
in the software industry and is a XYZ-CO continues to receive mentoring from the sponsors, Duke Energy and
visionary with a proven ability to Southern Company. Parts of our first product, Storm Suite, have already been
bring technology to market and purchased by Duke and Southern, and 5 other applications are ready to create a
develop successful companies. mission-critical suite of services to the utility industry.

XXXXX, CTO:
John’s career has been in IT and Our Market:
quantitative analytics. He XYZ-CO exists at the convergence of four powerful market forces: Big
founded XYZ CO in 2006 to Data, Software-as-a-Service (SaaS), Mobility, and Unmanned Aerial Vehicles
bring innovative modeling (“drones”, which are perfect for gathering geospatial data).
solutions to utility processes.
XYZ CO has become a trusted By collecting and harnessing proprietary geospatial data from multiple sources,
service provider offering state- giving users easy ways to visualize that data, and then serving it all up on both
of-the-art technologies to solve web and mobile platforms, XYZ-CO has become a go-to solution provider for
today’s utility challenges the utility industry.

David Worrell, CFO (part time): SIZE: There are over 3,000 electric utilities in the US, including 2,000+ public
David is Managing Partner at companies and 900+ rural cooperatives. Each of these companies could
Fuse Financial Partners, purchase one or more of our software applications. We estimate that 30% of
Charlotte’s largest provider of utilities will be ideal customers – purchasing our highest margin products.
“fractional CFO” services. XYZ Additionally, government regulators and the many businesses that serve the
will use Fuse resources for all utilities create a large pool of potential customers for our data and software.
issues related to accounting and
finance. GROWTH: The demand for SaaS solutions is growing at a rate of 15% to 22%
per year, according to Gartner and Forrester respectively. Most of this growth
Industry & Sectors: is driven by the increasing specialization of SaaS providers – what Gartner calls
Geospatial Data / SaaS “Vertical SaaS” or “Industry Clouds”. XYZ-CO is one example of this
for Utilities, Gov’t, Real Estate vertical SaaS strategy – enabling vertical markets (utilities) to make better
Developers, and others use of highly specialized data sets.

Company Founded: DEMAND: Like other industries before them, utilities are racing toward
broader adoption of SaaS and data-driven services like ours. In a recent
North Carolina, 2006 survey, 57% of utilities said that they need better data analytics and
predictive solutions. Utilities agree that these tools will reduce outage duration
Strategic Partnerships / IP: (70%); improve customer satisfaction (61%); and improve emergency
IP developed in house with management and preparedness (34%).
guidance from Microsoft and
Dell Computer. STAGE: Although “Vertical SaaS” is a relatively new phenomenon, it is
indicative of a maturing market place for SaaS in general. Software delivered in
the cloud is no longer just hype – it has reached broad acceptance, which is
driving diversification, verticalization, and widespread adoption.
XYZ-CO Associates Executive Summary page 2

Stage of Development:
Primed for growth: 16
employees; long-term trust
established with Duke;
steady income; all software
is beta or better; Storm Suite
has been tested by Duke.

Top Customers:
1. Duke Energy – SOLD!
2. Southern Co. – SOLD!
3. Entergy – SOLD!
4. TVA – in discussions
5. Spectrum Cable - identified
6. Google Fiber – identified
7. FPL - identified

Investment to date:
Approximately $500,000 in Our Products:
development costs have been
internally funded. Company has The following data visualization products have been developed and are set to
small line of credit for working roll out during 2018 / 2019:
capital. 1- Storm Suite (repair & response management)
2- Shoreline Management Planning (for compliance)
Financing Sought: 3- Cartovid: Aerial Damage Assessment via video
▪ $1,750,000 note
4- Gizmo: Weather Impact Analysis (predictive analytics for physical plant)
5- Helicopter Safety (mapping T&D pole and corridor data)
▪ $13,000,000 equity
6- DroneAUC.com (registry of drone pilots for utility use)
Use of Funds:
▪ Software development The Business Model:
▪ Sales team expansion
XYZ-CO has developed three distinct revenue streams: Software Licensing,
▪ Service delivery Software Usage (Disaster Response), and Consulting. These fees provide a
infrastructure basis for both steady recurring revenue and variable fees when outages occur.
Our contracts include annual maintenance fees, and per-use charges as
Burn Rate: appropriate. For incident-response products (i.e. Storm Suite), we expect most
Current $500K/month of our profits to come from software usage fees during outages.
Increases to $1,350K in 2017
Like most software-as-a-service providers, XYZ-CO has very low cost of sales.
Projected Rev & EBITDA And thanks to advances in cloud computing, massive scale (such as during an
2017 $1.8mm … ($0.5mm) outage event) is available quickly and cheaply. Likewise, our data is often
2018 $2.5mm … ($1.0mm) acquired at no cost through customer relationships and other means.
2019 $8.2 mm … $1.8mm
2020 $19.1mm … $6.4mm
The Competition:
Exit Strategy: Although crowded, the Utility SaaS sector is immature. Our speed to market
Building for acquisition by and our Tier 1 customers will help us grab market share from the following:
major software company at
appropriate valuation. Targeting Telogis (a Verizon Company) – fleet management software using GPS
3-5 years. AdeptTech – shoreline management and compliance
Arcos – broad offering of software products for utility companies
ERSI – California based, GIS software for utilities. Largest of competitors
Harris Geospatial – broad portfolio of data viz tools for grid management
RAVYN – European entrant focused on mobile communication app