Filip Barilić – SGS JSC
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Author: Filip Barilić

Risks and returns on investing in a SaaS start-up

Posted on by Filip Barilić

Philippe Botteri from Accel stated that if the current growth continues at this pace, the cloud solutions might overtake on-premises software in value by 2025 and the entire software market should be worth approximately $1 trillion.

SaaS is a subscription-based or pay-per-use model that users can access through online via a web browser. It has a significantly lower upfront cost compared to a one-time fee for an on-premises solution, which is a large capital investment and has a lengthy (and often complicated) implementation process. The SaaS model decreases the financial risk as it is paid either monthly, quarterly, or annually and can be canceled anytime, compared to a one-time fee for traditional software.

 

SaaS are attractive investments for several reasons:

  1. Predictable and recurring revenue – just like with any subscription-based software (Netflix e.g.), investors can count that the income stream will be secure, it can be grown by getting more subscriptions or increasing its cost, compared to a one-time purchase of software (or movie for this analogy).
  2. Already in the modern consumer mindset – instead of having to buy one large and expensive purchase, the modern consumer likes to have options, flexibility, and more reasonable-priced products. A suitable market already exists for the SaaS business model, you just need to have the right product.
  3. Capital efficient – based on insights from Crunchbase, 49% of all SaaS funded by VC’s that exited, raised less than $10m before their exit.

 

On the other hand, there are certain risks of investing in SaaS:

  1. Governance – with scalability, as the company grows, the number of users that use the software grows as well, meaning, a lot of data is just floating around, and that data needs to be organized. Financially speaking, if a company does not know if its platform or apps are being used to their fullest, they are losing money. Companies that have well-structured governance are reported to have almost 20% increased revenue than their competition. Connected with this, is also data privacy, where a company must be always aware that they are compliant with data privacy laws such as GDPR.
  2. Continuous development – the SaaS market is constantly evolving, with new services right behind the block. If the company is not agile in adapting to changes on time, it will be a sign of weakness and it will reflect on their value in the end. The SaaS market is extremely volatile, and if you are not ready for that kind of a “ride”, think again before you invest in these kinds of companies.
  3. Economic crisis and the big players – smaller SaaS’s, who are on the path of becoming profitable, face two more risks. The first one is if an economic crisis would occur, smaller companies do not have the cash reserves to withstand a serious market downfall, where the need for their services will rapidly decline.

 

The second is the danger of big players in the software market, where they can simply buy out the smaller ones or use their near-unlimited cash reserves to create a rival SaaS of the smaller companies.

There are certainly ups and downs when it comes to investing in SaaS, with plenty of rewards if the investments are successful, but with risks as well.

 

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Sources:
www.thebusinessresearchcompany.com
blogs.perficient.com/2
www.omg.org
www.fool.com/

 

SGS submits project proposal on InvestEU Portal

Posted on by Filip Barilić

We are excited to announce that Scalable Global Solutions has submitted a funding proposal on the InvestEU Portal. This platform offers an easy-to-use project database that grants visibility to EU, Iceland, or Norway-based projects that are seeking financing. It also provides investors with information about available investment opportunities.

Our project proposal aims to support the growth of small and medium-sized businesses (SMEs) by providing a unique solution that allows them to create and manage their own teams in another location, without opening a new entity. We offer globally sourced talent, office space and equipment, handle compliance, and implement a CRM system to automate processes, enabling SMEs to quickly and efficiently scale their operations and enter new markets.

We are confident that our proposal will be selected for funding, as it aligns with the InvestEU Portal’s mission to support SMEs and promote economic growth and development. We will keep you updated on the progress of our proposal and any developments in the future.

We are thrilled to have the opportunity to secure funding through the InvestEU Portal, and we look forward to the potential growth and success that this funding will bring to our company and our clients.

CRIISP TV Interview with Markus Borlinghaus

Posted on by Filip Barilić

Our founder and CEO, Markus Borlinghaus, interviewed CRIISP TV where he spoke about our current investment opportunity and the milestones we hit this year, such as signing 9 new clients, implementing a partner program, and raising €450k in investments from new and existing investors.

You can access the video here: TV Interview SGS by Wholesale Investor with Markus Borlinghaus – YouTube.

CRIISP TV is a part of Wholesale Investor. Wholesale Investor is a global leading investment platform that connects innovative, emerging companies that are looking to raise capital with an active, engaged and growing ecosystem of over 31,000+ high-net-worth investors, fund managers, family offices, PE and VC firms, and government bodies.

 

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Digipool

Posted on by Filip Barilić

Challenge

Digipool is Finland’s fresh, agile & modern recruitment and resourcing agency. They use artificial intelligence and an extensive personal network to provide a flawless customer experience and stellar results. With its business growing and wanting to have a better global outreach, company intends to improve its day-to-day operations and have the ability to track project assignments.

 

Solution

Scalable Global Solutions presented Digipool with the SGS ONE software and its HR module.

 

Client outcome

The user-friendliness of the SGS ONE CRM software helped improve Digipool’s business processes across the whole company. They can now streamline its day-to-day activities across departments clearly and concisely. With the HR module, the recruitment process is optimised: easily tracking candidates across projects and generating unified reports with a few clicks. Satisfied with the outcome of using the SGS ONE, company has decided to become our Channel Partner as well for the Nordics.

ORBIS

Posted on by Filip Barilić

ORBIS IS HELPING COMPANIES DIGITALISE THEIR BUSINESS PROCESSES

 

1. COMPANY DESCRIPTION

ORBIS helps SMEs and international corporations to digitalise their business processes – from jointly developing the customer-specific big picture to practical implementation in the project. The digitalisation and automation of business processes across the entire value chain ensure our customers’ competitiveness.

Expertise for over 35 years The process-related know-how and innovative flair of our 750 employees, combined with the expertise gained from 35-plus years of successfully undertaking international projects in various sectors, make us a competent partner. We rely on SAP and Microsoft’s solutions and technologies, our partners whose portfolios are complemented by ORBIS solutions. Our focus is on SAP S/4HANA, Microsoft Power Platform, customer engagement (sales, customer service, field service and marketing processes) and the realisation of the smart factory. Using smart cloud technologies such as machine learning, cognitive services or the IoT as a basis, we promote our customers’ innovative power in developing innovative products, services and business models.

Our expertise results from over 2,000 customer projects with over 500 customers operating in the automotive supply industry, construction supply industry, electrical and electronics industry, mechanical and plant engineering, logistics, metal industry, consumer goods industry and trade. Long-standing customers include, among others, ZF-Konzern, Hörmann, Hager Group, Rittal, Andreas Stihl, BEUMER Group, ÖBB, Plasser & Theurer, Paul Hartmann and Sick, Bystronic, Ferrum, Halter, Yanmar Marine International, PALFINGER, Ottakringer and LiSEC.

 

2. CHALLENGE

The international success of ORBIS and the constantly growing customer base led to the continuous growth of our consulting and implementation teams, demanding more and more well-trained and experienced experts in their respective fields. One of our core convictions always has been to be close to our customers, which resulted in a very strong local team within Europe, especially in the DACH region.

As we continued to grow our ORBIS workforce within Europe, one strategic decision was to establish an office in the Balkan region with the benefits of a close distance to our core markets, a well-educated workforce, and many people with some German skills.

While we were convinced that the path of opening an office in the SEE region would be a valuable addition to the group, there were some risks involved with that. With no pre-existing business in the region except for some international rollouts of existing customers, we had little to no insights into the market and the governing laws around setting up companies for hiring employees. One advantage would be common EU laws, which made a strong case for Croatia as our preferred country to open an office.

As an IT company, one of our most important tools is proofs of concept – the first versions of a project demonstrating the planned architecture’s viability.
We quickly realised that this was what we needed: A proof of concept of our strategy – a low-risk approach with quick wins!

 

3. SOLUTION COMPANY DESCRIPTION

That’s where SGS came into the picture – the first conversations sounded exactly like what we needed: A low-risk approach to enter the market with local support ensuring compliance with local laws and a lot of know-how about the market. SGS was able to offer us the full package: An all-inclusive offering providing office space, payroll management, recruiting services, HR consulting, office management and IT support. This allowed us to quickly set up a team consisting of different roles from junior developers to senior consultants and solution architects with the skill-set and mindset we needed and looked for without taking the risk of founding a company and managing all the non-operative issues of running a business. SGS handles the daily business of all that, while we can focus on onboarding and integrating our new team members as soon as possible. That has allowed us to add new members to the team with minimal ramp-up time.

 

4. PLANS FOR THE FUTURE

Starting ORBIS business activities in Zagreb with SGS was just the beginning – after growing our team to seven people in the first six months, we look forward to adding additional roles and new members to the team. SGS even provides the services to found our own company and transition our team into that organisation if we want to do that later. While this is a fantastic service, we don’t see any reasons for that at the current time and look forward to continuing our business relationship in the current, very successful way!

 

5. GENERAL ORBIS COMPANY FEEDBACK

Overall, the cooperation with SGS has been a very positive one – but one of the most impressive things about SGS is how they handle things if things go wrong, as they always do. From the beginning, SGS was open, transparent, and incredibly engaged in getting its services and performance right and quickly correcting any mistakes. They demonstrate an open and transparent communication style and a friendly and positive company climate, which is a major part of our team’s happiness at their job. It’s easy to see that SGS considers our success to be their success and wants to do everything that guarantees their clients’ success.

For us as an ORBIS, the last year was a very successful proof of concept and looking forward to the future growth of our very own department at SGS!

 

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Venture & Capital 2022 startup event in London

Posted on by Filip Barilić

This month, we were a part of the Venture & Capital 2022 startup event in London, UK, hosted by Wholesale Investor.

Our CEO, Markus Borlinghaus, gave a brief company presentation and presented our latest investment round to participating investors, partners and potential clients.

Check the whole pitch on our YouTube channel.

SGS vlog video wall

Posted on by Filip Barilić

We are proud to announce the launch of the SGS Vlog landing page.

Our CEO Markus Borlinghaus, has initiated the first series of vlogs, telling about the story and concept of Scalable Global Solutions.

Check our short videos and find out more about our company and our DaaS (Department as a Solution) service.

WATCH VLOGS

 

 

What better way to start your week than with a training exercise?

Posted on by Filip Barilić

Last week, we had the pleasure of hosting @DavorBilman in our offices for two full days of in-person training. 

The exercise was the improving awareness of key sales and investment abilities. It has also allowed us to bond with colleagues from different offices in a more relaxed atmosphere. 

Since one picture is not nearly possible to describe how the training went, we are bringing you several pieces of the atmosphere in the below gallery. 

http://sgs-daas.com/job-opportunities-2022/.







 

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10 Fun Facts About The SGS Team

Posted on by Filip Barilić

Diversity is our key.
We love our differences and are always curious.
We respect each other, listen, and are always ready to help.
With a smile, of course.
We enjoy the atmosphere at SGS.
We love to laugh and make jokes.
With the first step into SGS, you notice happy people, and it is so encouraging to be yourself.


Let’s start all over:

 

  1. We are a team of 11 different nationalities and growing

We employ our talent globally, whether for our clients or for us. There are no borders on planet Earth.
Talented and experienced people ready to work and make results are welcome to the team. We do wonder how many different nationalities will be till the end of the year. So exciting!

 

  1. The team member who travelled the most to become an SGS team member travelled more than 10.000 kilometers


There was arguing between Peru and Iran, but, of course, Peru won. The other places were Turkey, then Germany, Bulgaria, and Bosnia. We especially appreciate our Bosnian colleagues, who cheer us up every day.
As much as we love jokes, nobody can beat Bosnian humour.
Yes, they all came directly from their countries to the SGS. 

 

  1. Every nation loves ketchup (very much)

This hot and spicy topic during lunch happens often. Maybe better not to mention details. Okay, we will.
First, you grab the ketchup,
the plate and the fork,
And then the actual food.
And then you peek into the colleague’s plate to see how much they took.
Never enough ketchup.
Is it hot or regular?
It has to be hot!

 

  1. We fluently speak 11 different languages

Croatian, German, Bosnian, Spanish, Persian, Bulgarian, Hungarian, Turkish, Russian, Polish…oh and English. Want to join us?

 

  1. Most of us speak two languages, and some members even more

There are variations of combinations, but the usual one is English and German.
Whoever brings something new, we will try to learn at least a few words.
We can add Italian, Slovenian, Serbian, Chinese, Thai and Dutch to the above list.

 

 

  1. English is the official language in the company, although we are in the heart of Croatia

This one is obvious. It is not just that our team is diverse, but our clients are also worldwide.

 

 

  1. We have 4 dogs and 3 cats, and some of them sometimes prefer to work from home

We love it so much when they visit or stay with us, but somehow they prefer resting their paws on their couch.
We don’t judge.

 

 

  1. Our big lunch table is getting smaller every month

This sounds like pure magic.
It isn’t.
Our team is rapidly growing, and we love to have lunch together.
Good food, great jokes, sharing ketchup.
Gatherings like every happy family.

 

 

  1. We don’t care so much about the coffee as we care about the sweets

Don’t get us wrong, coffee is essential, but sweets go directly to the heart.
There is always something sweet in the office; this makes our day brighter.
We have a secret stash 😉

 

  1. We love popcorn, not just in the cinema, but in front of the computer, after lunch… We stop when we are done

You can see the colleagues walking through the hall with the popcorn.
They will gladly share it with you, but they won’t hand you the bowl.
Unless you do some trick, like: “look, there is a squirrel“.

 

 

 

 

 

 

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