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GoalGorilla N.V. team 9
GoalGorilla N.V. Enschede, NL

Award-Winning Social Software, Overfunding!

Drupal Social is the next generation of GoalGorilla's community software. A €1.25 million turnover business, this investment offers a 300% return in 3 years.

$245,110 INVESTED
100%
$245,110
Required
10.53%
Equity
Small_thumb_lg_beeldmerk_goalgorilla_white_rgb Award-Winning Social Software, Overfunding!
INNER CIRCLE
The concept

De Nederlandse vertaling is beschikbaar op deze link.

After successfully raising €150.000 in 7 days we are now overfunding to reach the €200.000 for 10% of our equity goal. Read details about this in the 1.5 update.


GoalGorilla is a digital agency. We design, develop and market websites and web applications. We are a established business working for a wide variety of clients. As of 2015 we have a €1.25 million turnover and have an expected profitability of 15%.

Among a wide range of projects, the last three years we worked on social business communities. In 2016 we standardize this software and bringing it to a wider market. We call this software 'Drupal Social'. 

This is your chance to participate, and share in the success.

What does our community software do? Our software empowers people to effectively collaborate and organize. Replacing traditional intranets, it fuels efficiency and bottom-up organisational innovation.

The impact truly shines when you look at the business cases.
- Greenpeace Greenwire
- Stad Scoort Oplossing 

Be sure to check them out below under 'Award winning business cases' and 'Achieved so far'.

The software on a technical level: Drupal. Our software runs on open-source code, called Drupal, of which the latest and greatest version 8 has been released this November. You can see Drupal as a collection of tested and packaged functionalities. This allows us to build software faster.

You explicitly invest in GoalGorilla, not in Drupal. We use Drupal in order to accelerate development, and will be contributing back to it's excellent developers community.

The open-source nature of our offering is important to us. We decided to give credit where it is due, hence we choose to include the technology in the product name; 'Drupal Social'.


Award winning business cases
. Jort Kelder, on behalf of the jury of the Dutch Interactive Awards 2015, about a project powered by our community software  :

"The Airbnb for volunteers. A global case with impact and great scalability. Beautiful platform to connect people. Interesting concept because the organisation is turned upside down and the community, of motivated volunteers is empowered. A case with great potential."

* Heading image by Maurice Dekkers, for Emerce.

Unique Selling Points

We are taking the best of our award-winning software and making it better in 2016. We offer our customers:

- tools to grow a healthy community;
- data ownership;
- Saas and custom versions.

Read more about this on the product section.

Revenue model

Our two software versions have distinct business models: 

- Saas version: a monthly fee per user
Enterprise version: design, marketing and development services billed through (hourly) service contracts

This hybrid revenue model allows us to sustain cashflows during the development of our product in 2016, and therefore reduces financial risks throughout the lifetime of the investment.

Achieved so far

We are a team of 23 web professionals working from two offices in Amsterdam and Enschede. Among our clients are multiple multinational brands, but also a handful of fast growing (Deloitte Fast50 and FD Gazellen) Dutch start-ups.

One of our projects, powered by our community software, has won the prestigious Dutch Interactive Award 2015.

Our community software empowers 30.000+ Greenpeace volunteers to create a better planet, and help Dutch government to create jobs (in Dutch) much more efficiently.

You can find an presentation of our agency in the attachments.

Required investment and purpose

We require € 346.400,- in order to rewrite our software and bring it to market in 2016. We fund this by raising € 150.000,- up to € 200.000,- in equity and in addition invest € 146.400,- up to € 196.400,- from our own assets.

This investment is mainly for used for new staff (€215.000) and marketing (€108.000).

For the investor

You will receive shares in GoalGorilla N.V. through a cooperation.

Our first funding goal is € 150.000,- in exchange for 7,5% equity. When we reach this first goal, we will add an over-funding round that will bring the total to €200.000,- in exchange for 10% equity.

We are considering exit opportunities through further funding rounds and/or buy-back of shares. We project for a €8 million valuation at the beginning of 2019, which gives you a 300% return in 3 years.

In addition, when liquidity permits, the shares will entitle you to a 5% dividend.

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Mieszko Czyzyk
Marketing Director

Co-founder of GoalGorilla. More than 10 years of professional experience in data-driven marketing. Responsible for Marketing/UX for Drupal Social.

Mieszko; "Seeing the strong business cases our community software creates I believe bringing this to many more organizations is a great win for the social software space and for Drupal in general."

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Taco Potze
Development Director

Co-founder of GoalGorilla. Extensive experience in social communities and social intranets. Board member at 'Stichting Drupal Netherlands' . Product owner for Drupal Social.

Taco; "Drupal Social brings the best of open-source to social business software: the security and speed of innovation of a strong development community and the open nature to run it where and how you like it."

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Evelien Schut
Consulting Project Manager

Project Manager at GoalGorilla. Consulted on GoalGorilla's largest social software projects, including our award winning community. Scrum Master for Drupal Social.

Evelien; "Creating effective teams in a growing company is a big challenge. I implement agile workflows and use scrum to maximize productivity and keep teams happy."

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Jaap-Jan Koster
Drupal Architect

Drupal Architect at GoalGorilla. 10 years of experience working with Drupal. Development lead for our award winning community project. Lead Developer for Drupal Social.

Jaap-Jan; "The launch of Drupal 8 provides an unique opportunity and the ideal platform to rapidly rebuild and further improve our software offering."

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Xinyu Ma
Interaction Designer

Interaction Designer at GoalGorilla. Professional Doctorate in Engineering in User System Interaction from Eindhoven University. Lead UI designer for Drupal Social.

Xinyu: "Designing for a great user experience is very important for the success of digital products. People expect for fast, intuitive interfaces. I will brings this to Drupal Social."

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and 23 Gorilla's
More than twenty Web Professionals

Cross functional team made out of 23 web professionals in Amsterdam and Enschede. Close to 2/3 of which will contribute to Drupal Social.

Disciplines ranging from design to online advertising. Check out the whole team at goalgorilla.com/team

The product

Our software empowers people to effectively collaborate and organize. It fuels efficiency and bottom-up organisational innovation.

You really need to see it change organizations to believe it :)
That's why we focus so much on presenting successful business cases like Greenpeace Greenwire and Stad Scoort.


Our software includes:

* User profiles and search
* Creation of Organic Groups
* Social Login (Facebook, Google etc.)
* Facebook-like timeline
* File sharing and multimedia (blogs, photos, videos etc.)
* Event registration and management
* User privacy and security settings
* Chat functionalities
* Multi-language & multi-domain
* Management tools (analytics, dashboards)


A fully responsive front-end concept can be seen at: http://social.goalgorilla.com/prototype - note that this is a concept based on the Greenpeace Greenwire living style guide, not the final prototype

Unique Selling Points

- Tools to grow a healthy community. You get tools and analytics to grown your community. Software features don't drive success, a healthy community does!

- Data ownership. You are in control of your data. EU customers keep their data the EU, USA customers keep their data in the USA. Simple.

- Saas and custom versions. You can choose between fully hosted and 'on-premises' versions. Your organizational needs shape the software, not the other way around. 

Revenue model

We’ll provide enterprise services for our largest clients tailoring it to their unique set of needs. Later in 2016 you can buy a fully maintained SaaS version for a monthly fee per user.

Scalability

The software as a service (Saas) version of our software is highly scalable both on a product level and in business model. 


We project:

  • 2016: 18 paying customers with 1350 total paying users
  • 2017: 99 paying customers with 12375 total paying users
  • 2018: 356 paying customers with 71200 total paying users

Our strategic marketing and sales efforts will focus on The Netherlands and West-Europe first. 

Expanding into the USA and rest of Europe, the Americas and further is the next logical step.

Current status

Drupal Social is a distribution for building social communities and intranets inspired on our award winning social community platform. This platform is loosely based on Commons for Drupal 7.

Drupal Social is a complete redesign and rewrite of this concept. We are focusing our efforts on creating a minimum viable product (MVP) within 3 months. 

A fully responsive front-end concept can be seen at: http://social.goalgorilla.com/prototype - note that this is a concept based on the Greenpeace Greenwire living style guide, not the final prototype

Planned developments

This is our roadmap:

* Q4 2015 - Competitive analysis, interaction design and how-to-demo’s

* start Q1 2016 - UI designs, living style guide, start development sprints

* end Q1 2016 - Development prints, 1.0 release ‘MVP’-version

* end Q2 2016 - Developments sprints, 1.0 release ‘Distribution’-version


We are running the project from this Drupal.org page

Target group

Our software is targeted at early-adopting organizations, that are replacing traditional intranets or their first generation social software products such as forums with communities.


We see five distinct types of stakeholder communities:

* employee collaboration and communication (social intranet)

volunteer communication and organization (volunteer communities)

* fan recognition and rewards (fan communities)

customer support, self-service and loyalty (support communities)

* external stakeholder engagement (partner extranets)

Our software is targeted at organizations with 50+ of such stakeholders.


For our enterprise services an organization has to have €1 million yearly turnover or more.

Market size

IDC, a premier market intelligence provider, estimates the 2014 market for Enterprise Social Networks at $1.4 billion annually

It is a high growth industry which is projected to accelerate year-over-year. Projected growth:

2015: 21,6%

2016: 23,6%

2017: 24,7%

2018: 25,7%

2019: 26,1%

The enterprise social networks market is expected to reach $3.5 billion by 2019 at a compound annual growth rate of 19.1%. The online communities market is expected to reach $1.2 billion by 2019 at a compound annual growth rate of 24.3%.


Source: Wordwide Enterprise Social Networks and Online Communities 2015-2019 Forecast and 2014 Vendor Shares

Competition

Our products replaces legacy intranets, usually hosted on premise with high hardware maintenance and licence costs.
Our main advantage against the closed-source competition is clear data privacy and ownership options, and the lack of vendor-locking.

Our direct competitors are closed-source software products:

* Jive

* Yammer

* Lithium

* parts of Salesforce.com

Drupal’s leading company Acquia (currently on the IPO track) was named a 'Visionary' by Forrester in 2014 with it’s Drupal social software: Commons.

But Acquia doesn't own the Commons software platform. Acquia layers a number of enterprise level commercial services on-top of the Drupal CMS. In fact, Drupal version 8 launches in Q3 2015 and Acquia will not make a new version of their Social Software ‘Commons’ in Drupal 8.


Gartner cautions on Commons:

...there is some concern about whether the open-source community will keep up with expectations in this market...“.


Gartner was right, when it comes to Acquia. But now, 2 years later, GoalGorilla has the ability to seize this amazing opportunity, put Drupal back on track and become a leader in open-source Social Software.

You can download a detailed analysis of the competition in the following reports under attachments:

Customer feedback

Our enterprise version is used by:

Greenpeace international 

multiple Dutch municipalities (Dutch language)


Both customers achieve amazing results with their communities, which will be a part of our sales pitch for Drupal Social.

Customer feedback

"Greenpeace Greenwire is increasing Greenpeace's reach and amplifying the power of our volunteers every day. 

By enabling people to self-organize and providing them the tools to coordinate, learn from each other, and share their ideas and stories, it provides a place to create remarkable campaigns and content, extending our reach far beyond the limits of our staff numbers and office locations.

- Brian Fitzgerald, 

Greenpeace International Head of Digital Network & Mobilization.

New customers

We are talking to multiple launching customers that our interested in our product.. 

We can disclose some of the details of these talks to investors, but only in private and under NDA agreement.

Sales pitch

A huge advantage compared to early stage startups is that at GoalGorilla we already have a team of experienced marketing staff to promote products and services.

The management team has years of experience in sales and a business network in The Netherlands and beyond.

We are selling to early-adopting organizations. Our pitch will be focused on successful business cases involving communities. We are working hard on:

  • unique brand identity for 'Drupal Social'
  • bundling business cases
  • online marketing research for organic and paid search

For the first brand identity mock-ups, and online marketing research, see the attachment section

Marketing & sales channels

A big part of sales will happen online: we attract prospects through targeted advertising and engage them with the right content, at the right time.


Saas version: online marketing through organic and paid search, social media and referrals.
Enterprise version: existing business network and word-of-mouth, the Drupal community.

Marketing objective

We have a detailed plan on how much traffic and at which conversion rates we need to attract in order to meet our sales targets. 

The software as a service (Saas) version of our software is highly scalable both on a product level and in business model. 

  • 2016: 18 paying customers with 1350 total paying users
  • 2017: 99 paying customers with 12375 total paying users
  • 2018: 356 paying customers with 71200 total paying users

You can find it included under attachments: 'Future sales projections - 3 years'

Turnover so far

The company’s turnover has grown steadily since our founding and first profitable year in 2008. In 2014 we won a FD Gazellen Award due to our 3-year historical revenue growth of ~35% each year and being profitable through all years.

- 2013: € 659.409

2014: € 935.844
- 2015: € 1.285.000 (projected)


In 2015 we our profitability will be around 15% on a revenue of approximately € 1.285.000. 

Projected turnover

In 2016 will invest heavily in Drupal Social. We will be working less on Enterprise client projects and therefore will see a small drop in revenues and profitability.

- 2016: € 1.075.536 of which 9% recurring product revenues

- 2017: € 2.143.512 of which 42% recurring product revenues

- 2018: € 4.344.800 of which 72% recurring product revenues

See the 'Future sales projections - 3 years' attachment for details.


This investment will start to show strong returns in 2017 and further, where we see a dramatic growth in recurring revenues and profitability.

Assumptions

Revenues are based upon a model of both recurring revenue from the Saas version and Enterprise services. Our model takes into account:

For the Saas version
- traffic to our website
- trail conversion rates 
- trail to paid customer conversion rates
- average user counts of paid customers
- monthly user fee 


For the Enterprise version:
- design services
- support services
- marketing services
- development services

See the 'Future sales projections - 3 years' attachment for details.

Investment requirement

We require a minimal € 150.000,- through crowdfunding and offer 7,5% equity in return. When the first target is successfully met we will add a over-funding goal that will bring the total to € 200.000,- in exchange for 10% equity. 

In addition we invest € 196.400,- or € 146.400,- from our own assets.

Norbert Horstink, Director at Credion Deventer B.V. , providing financial auditing services, about the investment:

"I like the combination of investing with equity funds and own assets.

GoalGorilla runs a healthy operation and management has thoroughly considered the investment timeline and forthcoming liquidity."

Future investments and financing: We are looking into the possibility to raise further funding, preferably through lending, in the second half of 2016 in order to accelerate sales through marketing in 2017 and beyond.

See the 'Cash flow coming 3 years' attachment for details.

Purpose of investment

We will invest over a period of 12 months, creating a fully working, sell-able and lovable product.


New staff € 215.000
Marketing € 108.000
Web services / tools € 11.400
Hosting € 12.000

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Total € 346.400

The main costs is new staff, consisting of three developers a projectmanager, and a sales staff. In total almost 4,5 new full time employees will be working on Drupal Social.


The total Drupal Social team will be 6,6 full time employees, on average. But we don’t expect investors to cover operational costs for existing staff that also does other work. Neither do we use the investment for covering management fees. In other words: you only invest in the resources needed for Drupal Social.

See the 'Investment plan (funds)' attachment for details.

Return

You will receive shares in GoalGorilla N.V. through a cooperation.

We are considering exit opportunities through further funding rounds and/or buy-back of shares. We project for a €8 million valuation at the beginning of 2019, which gives you a 300% return on equity in 3 years.

In addition, when liquidity permits, the shares will entitle you to a 5% dividend. We calculate liquidity by using the quick ratio and solvency percentage.

Company Valuation: we base our valuation on the DFC method, which is one of the most used models to value public companies. 

The Equidam methodology however applies two important additional features: 

1. The annual cash flows are weighted according to the country-specific survival rate for companies.

2. The calculated present value is further discounted by applying an illiquidity discount because the sale of the equity stake is likely to happen on the private market. As a consequence, investors need a higher return.

- Criteria

EBITDA Year 3 € 1,844,800
Long Term Growth Windsorized* 0.5%
Value of the company in the last Year (Terminal Value) € 7,787,131

- Assumptions

Industry Beta 1.39
Market Risk Premium 5.5%
Weighted Average Cost of Capital 9.3%

Norbert Horstink, Director at Credion Deventer B.V. , providing financial auditing services, about the valuation:

"Calculations show [GoalGorilla's] valuation might be higher than the valuation offered on Symbid, which is good deal for investors.

The full company valuation report is available in the attachment on the right hand side, you can find the DFC valuation on page 10.

Current management will retain prioritized shares, and in 2016 GoalGorilla N.V. will offer employees the possibility to participate through equity. We view employee participation as a critical factor to retain talent in a increasingly competitive job market. 

See the 'Shareholders agreement' for details.

Risks

We view entrepreneurship not only as a trade of taking risks, but as one of mitigating and minimizing risk.

We see the follow risks and ways to minimize them:

- Technology risk = delay in product release. We work with agile methodologies based on existing Drupal and GoalGorilla software.This greatly reduces the risk of not releasing on time.


- Team risk = shortage of developers, under-qualified management. We already have a skilled team and attract developers through internships and targeted hiring. Management has proven track record running a growing and profitable business.


- Market risk = gaining large enough market share. We have years of experience in successfully marketing online products. We reserve a big part of the budget for marketing. Successful business cases, and traction within the open-source community give us a higher visibility and attract prospects and clients.


- Finance risk - Further investments needed upon success: build strong relationships with investors both informal and formal.