Contiq is an AI-powered platform that helps with buyer intelligence. That is, a sales person can use this system to identify the best content for a deal. What’s more, anyone can invest in Contiq through the equity crowdfunding site, SeedInvest.
The founders of the company include Arun Lal and Rahul Kapoor. They started the company because they had first-hand frustration with the inefficiencies with enterprise sales and marketing.
In terms of Lal’s background, he worked as a product marketer at Microsoft (NASDAQ:MSFT) and VMware (NYSE:VMW). A big part of his role was to craft sales enablement content.
As for Kapoor, he also has an impressive background in the enterprise software market. He worked in engineering and product management at VMW, Intel (NASDAQ:INTC) and EMC. Note that he was involved in creating large-scale AI/MI systems for collecting data from virtual machines.
The Platform
Contiq has a myriad of use cases, such as for sales management, marketing activities, enterprise sales and consultative sales. Just some of the benefits include real-time metrics to gauge the health of the pipeline and measure the engagement of the prospects, sales rep coaching, improved personalization of content and better close rates.
One of the innovations is the Deal Engagement Score (DES). With this, you can prioritize the focus of sales on the best opportunities. Yes, the DES is based on sophisticated AI/ML techniques.
Another nice feature of the platform is PitchBuilder. This is a PowerPoint plugin that can create sales decks within minutes.
So then what has been the traction with the product – which is definitely a key consideration as to whether to invest in Contiq stock? Well, the company has been able to snag large customers, such as Deloitte, VMW and Informatica. It certainly helps that the system has enterprise-level features like physical data center security and environmental controls with Amazon’s (NASDAQ:AMZN) AWS, encryption, data recovery and data ownership systems.
To get a sense of the impact of Contiq, look at VMW. After the company implemented the system, there was a 25% increase in productivity and a 20% improvement in win rates. There was also $250,000 in new potential revenue per representative.
Contiq operates on a SaaS subscription business model, with the average sales price at $250 per user each year. Last year, the ARR (annual recurring revenue) was $250,000 and the forecast is for more than $1 million in 2020.
In all, the company estimates that the market size is about $8 billion, which is based on 44,000 companies that are potential customers for the software. But for now, the focus is on targeting large high-tech operators and consulting firms. This is a billion-dollar opportunity.
Invest in Contiq Stock?
Contiq closed a $2.4 million round back in June 2018. This allowed the company to build out the platform and put together a sales team.
Regarding the current equity crowdfunding round, the company has raised over $1.3 million. The minimum investment size is $1,000 and the security offered is preferred equity. As for the valuation, it is set at $9 million. The investment comes along with various perks that are based on the amount committed. For example, if you invest between $15,000 and $50,000, you will get the team edition of Contiq off 25% from the list price.
But as the situation with any early-stage company, there are considerable risks. Perhaps the most important one is the competitive landscape. Keep in mind that Contiq must fight against a variety of rivals like ClearSlide, Outreach, DocSend, HighSpot and Seismic. Besides, when it comes to AI, the technology is far from foolproof and requires having access to large amounts of data.
Thus, before making an investment, it’s important to do your own due diligence and analysis.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is an advisor/board member for startups and author of various books and online courses about technology, including Artificial Intelligence Basics, The Robotic Process Automation Handbook and Learn Python Super Fast. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.
