Company Overview –
GApro instantly and securely shares insurance information anytime, anywhere, to anyone who needs it through easy to use self-service access.
|Name: GAPro||Minimum Raise: $20K|
|CEO: Herbert (Herb) Gibosn, Jr.||Maximum Raise: $100K|
|Company Founded: 2012||Structure of Raise: Common Stock|
|Location: Detroit, MI||Valuation: $4.845M pre-money valuation|
|Crowdfunding Portal: Netcapital||Minimum Investment: $100|
|Crowdfunding Link: https://netcapital.com/companies/gapro|
|Positives||Risks and Reservations|
|Team is highly experienced in the industry as well as in their respective roles.||Company is very early stage – pre-revenue. There is little ability to evaluate traction, pricing and the market’s acceptance at this early stage.|
|They have signed their first customer to a pilot project with 17,000 policies. This effort should provide additional useful information.||Company will likely require additional rounds of funding and the investor will face dilution.|
|If there is product/market fit, then growing through additional strategic partnerships may allow the company to scale quickly.|
|The recurring revenue model is great for revenue continuity and maximizing corporate value.|
Every time a policy or business relationship changes, evidence of insurance and compliance verification is required. Today’s expensive certificate of insurance is a vortex of agent/broker manual effort, paper, email, faxes and procedures where data is both late and locked in certificate forms.
GAPro delivers data-driven Verification-as-a-Service, significantly reducing both costs and errors associated with legacy certificate form-based approaches. GAPro provides all insurance stakeholders with secure self-service access to their insurance information, providing real-time and ongoing insurance confirmation and compliance verification globally. Additionally, GAPro can provide new customers and sources of revenue for carriers and agent/brokers
User payment for access to the software will be through a combination of usage fees based upon subscriptions and on a per transaction basis. Carrier subscriptions average $5K per year. Agency revenue is usage-based leading to subscriptions and averages $180 per year.
- In partnership with Mercato Solutions
- NAPA/Gallagher, 4th largest broker globally
- 17,000 pilot agents
- 100,000+ potential agents
- Recognized as one of the top InsurTech companies to watch in 2017
- Partnered with Insurance Thought Leadership
*Source: Company provided on crowdfunding campaign website
Senior Management Team
|Herbert Gibson, Jr.||Chester Gladkowski||Naga Gautham Peddibhotla|
|Position:||CEO & Founder||Co-Founder, CMO, CIO||CoFounder, CSO, CDO|
Insurance Company Operations:
- Stew Nelson, Senior Risk Advisor – Kapnick Insurance
- Bob Dowdell, Former Chairman and Chief Executive Officer of Marshall & Swift / Boeckh and advisor to Genstar Capital in the area of financial and business services.
Technology & Application Security:
- John Wurler, President – One Beacon Technology Insurance Company
- James McGovern, Chief Architect – Hewlett-Packard
- Art Judson, VP/Program Manager – Goss, LLC
- Barry Zalma – Zalma Insurance Consultants, World Risk and Insurance News
- Jack Gibson, President & CEO – International Risk Management Institutes, IRMI
- Bill Wilson, SVP – Independent Insurance Agents/Brokers Association (IIABA)
- David Walker, Board of President, 2013-2014, IIABA; President – Hartland Insurance
- Tim Dodge, Director of Research – IIABNY
- David Wroe, – Former Senior Vice President and Chief Technology Officer of Chicagobased CNA and Chairman and CEO of Agency Management Systems, Inc. Currently Director of Insurity, Inc. and advisor to Genstar Capital in the areas of financial services and software.
Team has significant experience and depth. I would expect that they also have extensive relationships with potential strategic partners, as well as potential acquirers. The team does not appear to have experience in a software startup and that could present some unique challenges for them. However, they have completed their MVP and now the major issue is to begin getting traction with clientele – and I would expect that if they have product/market fit, that they will be successful in business development.
Industry: Insurance Industry
TAM (Total Addressable Market): $29.3B
*Souce: Business Plan
This solution is the first verification-as-a-service offering. While this can allow for quick growth and market share accumulation it also comes with the challenges of educating the market, which can be expensive and time-consuming. Early first mover advantage may benefit the company significantly through network effects and thereby becoming the standard.
The only competition is the handling of paper files which can be relatively expensive and time-consuming. This solution is the first to market.
Revenue to date: $0
Revenue Last Fiscal Year: $0
Previous Funds Raised:
- $125,000 seed funding from Start Garden
- $50,000 seed funding from Invest Detroit
- $40,000 from PowerMoves
- $35,000 Owners Cap
Use of Funds
- Add capabilities and extend existing Pilot from 17,000 to 120,000 policyholders
- License and deploy GAPro in the Asian insurance marketplace
The company would likely become an attractive acquisition target by a variety of both strategic and financial buyers.
Recent Acquisitions in the Field
|Date||Company Acquired||Acquired By||Amount|
|Nov. 28, 2016||MarketStance||Verisk Analytics||Unknown|
|Nov. 26, 2013||Applied Systems||Hellman & Friedman||$1.8B|
|March 23, 2012||MediConnect Global||Verisk Analytics||$348.6M|
Expert Opinion Summary
The most impressing aspect of the venture is the quality of the team and their advisors. This is a very early stage company that is pre-revenue. It’s so early that it is not yet clear if there is product/market fit. As soon as they demonstrate that there is product/market fit and begin showing traction, this venture could grow in value very quickly.
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