EDGE10 is a world leader in data solutions that analyse and optimise the performance of athletes and teams.
The global sports industry was worth US$1,274 trillion in 2016, with the US market alone accounting for $496 billion. Sport is big business. But overall human performance analytics sophistication is low. In order to succeed in today's ultra competitive elite leagues, practitioners need new tools to realise the marginal gains that make the difference between winning and losing.
These same elite sports practitioners are increasingly adopting a scientific and data driven approach to elite sports performance and face increasing problems managing the huge amount of data being generated from wearable tech, video analysis and game data. EDGE10 solves these problems and helps teams gain a competitive advantage.
EDGE10's mission is to advance human performance in the world's most challenging arenas, enabling men and women everywhere to perform at the edge of human ability.
Our SaaS product was born from our desire to simplify the process of data collection and analysis, enabling elite sports teams to optimise the condition of their most valuable asset: the athletes.
Just like elite sport, our success is built on the calibre of our team. We're proud to have assembled a strong team of sports science, data science, and technology professionals to help deliver our vision. The team are led by an experienced group of executives with a track record of results in a range of industries.
Substantial accomplishments to date
Some of the key milestones on our journey so far:
EDGE10 has also been recognised in the following ways:
- In 2014 we were the proud winners of the Sports Technology Awards for Best Use of Technology by a team or club, won in conjunction with Leicester Tigers.
- EDGE10 has worked hard to build a market leading position in elite sport. In 2017 our leadership was recognised by the Sports Innovation Lab report into the sector. EDGE10 was formally awarded the status of one of only three 'Game-changer' businesses in Sports Science globally.
EDGE10 achieved 29% CAGR between 2013 and 2016 in Annual Recurring Licence revenue.* This is a key driver of value for any SaaS business.
*Source: Unaudited management accounts
- Long term Contracts:
EDGE10 charges a recurring annual licence fee for use of our software and our standard new contract length is 4 years. Average total contract value for our clients is now in excess of £100,000 GBP per client. This provides significant stability in our medium to long term cashflow. The long term nature of our contracts also enables deep integration with the customer's process and staff, contributing to the 'stickiness' of EDGE10 with clients.
- Additional Revenues:
1) In addition to the base license fee we also offer a range of paid add-ons for more sophisticated customers such as our advanced analytics package.
2) EDGE10 also generates revenue from one-off consultancy and development fees, charged to customers who wish to customise the product to suit their specific needs.
- ARR (Annual Recurring Revenue).
As a result of the SaaS model, approximately 80% of EDGE10's revenue is from Annual Recurring Licence Revenue.
Use of proceeds
The investment capital will be used to drive our growth in 3 key areas. Each area is intended to grow our addressable market and lever the existing investment in our product.
1) Reinforce our leadership in elite sport by increasing global market share, with a specific focus on North America.
- Initiate marketing campaign with specific focus on major league sports and colleges (NCAA).
- Expand US sales office with new business development, consultancy and support staff.
2) Generate revenue lower down the sporting pyramid.
Invest in development capacity to secure launch of a 'lite' product for semi-elite and amateur organisations.
3) Enter adjacent human performance markets such as Workplace Wellness.
- Analyse new markets for entry and develop tailored products:.
- Launch products with associated marketing campaign.
Please note the following:
- The Company currently has a £15,000 overdraft facility. The funds raised will not be used to pay this.
- £65k reflected as part of the total amount raised in this campaign was received by the company during the campaign creation process and may be used by the company in accordance with the use of proceeds in advance of closing the campaign.
EDGE10 has succeeded in building a market leading SaaS platform by working with some of the biggest sports teams in the world to relentlessly refine our product.
EDGE10 has built a strong client base of Elite Teams around the world in a short time, including Arsenal FC and Newcastle United FC in the Premier League, as well as multiple teams across the NFL, NBA, MLS and NHL in the US. In Australia we work with almost 50% of the AFL which is not only the largest league in the territory but is also arguably one of the most advanced leagues in the world with regards to sports and data science. Working internationally has allowed us to refine our SaaS platform to ensure it meets the needs of many different organisations in different markets.
In addition to famous name league sports, our product is also a great fit for Olympic federations as shown by our work with USA Track & Field and the Irish Institute of Sport, among others.
Ultimately, our platform is a flexible solution for tracking and analysing human performance data in any arena, be it space exploration, military, or the workplace. We see huge opportunity in these adjacent markets, and we've already proven our suitability having worked with the European Space Agency and GSK. Q3 2017 sees the launch of our pilot in workplace wellness to further our expansion into these adjacent markets for Human Performance Analytics.
Characteristics of target market
The Global sports market is worth US$1,274 trillion (Plunkett Research 2016), with the US market alone accounting for some US$496 billion of this.
The elite sports market globally was estimated to have been worth $146.6 Billion in 2014, growing at a CAGR of 5.4% (source PriceWaterhouseCoopers).
North America and specifically the US has the highest concentration of Elite Teams across the Major League Sports and NCAA (College) sports markets and EDGE10 opened our new office in Austin, TX in July 2017 to support our client base there.
The make up of the EDGE10 client base is split approximately one third in UK and Europe, one third in North America and one third in the Asia Pacific region, proving the global reach, capabilities and demand for our product.
Due to increasing customer sophistication, the explosion in the use of data from multiple sources in sport, healthcare and by consumers, means that there has never been more focus on the health and wellbeing of not only elite athletes but also the wider population. EDGE10 is at the forefront of the changing culture around wellness and performance, driving demand for flexible, customisable platforms to collect, analyse and visualise performance data.
As a recognised leader in our market, with over 250 elite teams using EDGE10 software and services, our sales pipeline is predominately driven by personal recommendations from influencers in the industry. Our experienced global sales team then work closely with the prospective organisation to understand their needs and recommend the right solution. The reputation we've established in a relatively short time is a cornerstone of our success.
Using the new investment we will seek to accelerate growth by complementing our existing name recognition in the industry, with a targeted marketing and PR campaign aimed at North America, central to this will be sharing some of our client's amazing achievements in partnership with EDGE10.
Moving down the human performance pyramid our strategy will shift from a largely sales led process, with a longer sales cycle, to a more marketing led approach using a range of digital channels. Our marketing strategy will leverage the success we've helped to create in our famous name clients.
We have demonstrated clear leadership in the elite sport market with our roster of customers in the US, Europe, and Australia. Our success is built on offering a flexible and powerful solution that can be configured to fit the workflow of elite sporting organisations, where there is no such thing as one-size-fits-all. At the top level each team is attempting to find an edge with novel process and data analysis. We consider the EDGE10 platform to be largely unique in the market, enabling teams to build advanced customised workflows and analysis for human performance science.
Furthermore, we consider that the breadth of our platform is unmatched, offering solutions for all practitioners in a club from coaches, to medics, to athletes. This approach simplifies the procurement decision for organisations, knowing they have one provider to manage in delivering a large proportion of their requirements.
Contrast this approach with our competition who typically focus on a specific niche such as video analysis, injury prevention or strength and conditioning. Our platform connects the dots, integrating with these niche services to provide organisations with a single view of the data.
Our strategy will be to continue to strengthen our position as a data agnostic hub for human performance science, integrating with a range of niche services to offer a streamlined workflow and data analysis capability for organisations.
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