Company Overview –
SkillMil helps veterans get hired by providing personalized knowledge and skill matching to fill the business position demand.
|Name: SkillMil||Minimum Raise: $50K|
|CEO: Noel Gonzalez||Maximum Raise: $500K|
|Company Founded: January 2017||Structure of Raise: Crowd Safe, 20% Discount|
|Location: Jupiter, FL||Valuation: $4M Valuation Cap|
|Crowdfunding Portal: Republic||Minimum Investment: $50|
|Crowdfunding Link: https://republic.co/skillmil|
|Positives||Risks and Reservations|
|Very experienced management team with deep knowledge of the problems facing veterans||There is strong competition from employment services and online sites in general, in addition to well-funded veteran-focused employment sites.|
|Early customer adoption validates model||Management doesn’t have direct experience running a related business or technology startup.|
|Excellent technology partners and advisory board||Company is reliant on 3rd party technology|
|Growing market||Valuation is high compared to Monster acquisition valuation|
Veterans struggle to find jobs and companies struggle to find candidates. Job searching is a new concept to veterans and current major job search websites do not do well with matching a person’s training and background to the job. Hiring managers discount experience obtained in the military due to the jargon used to describe it.
Skillmil helps veterans find jobs by understanding and translating “military speak” and creating clean resumes. They also match candidates to jobs using a SkillScore and they list specific skills/experience a candidate is missing to achieve a 100% fit. Skillmil helps businesses by training them on how to fully use veteran benefits.
They want to expand Skillmil through partnerships with military education schools. They also plan to license their platform on a white label basis to other job search engines. Skillmil’s third phase (2019+) will grant other military training programs access to the Skillmil set matching feature so they can appropriately adjust skill levels and certifications in the commercial sector.
Skillmil has a subscription based fee for companies but their services are free to veterans. Each company working will Skilmill will pay a licensing fee based on their size; the fee ranges from $1,500-5,000/month. The fee will include X amount of hires per year; for each additional hire, the company pays 5-15% of the employee’s yearly salary.
- Early customers include American airlines and amazon
- Raised $500,000 to date
*Source: Company provided on crowdfunding campaign website
Senior Management Team
|Noel Gonzalez||Ken Roman||Steve Garza||Leonard Chapman|
|Position:||CEO & Founder||COO & Co-Founder||CTO & Co-Founder||CSO & Co-Founder|
*The other founders, Ken Roman, Steve Garza and Leonard Chapman, together own approximately 28%
*The remainder is owned by the company’s independent contractors and by SRI International
This team has excellent leadership skills from their Navy experience and the advisory team has relevant and deep domain experience. However, management has never run a job placement company or a technology startup and may face unexpected problems as a result.
Industry: Job Placement
TAM (Total Addressable Market): $124B
*Souce: Portal Page
Driving Trends: 1.5M veterans will be coming on the market in the next 5 years.
Successfully integrating returning veterans into the civilian workforce is a critical need and there are many companies trying to address this problem. Many companies seek options to add the right veteran worker and are partnering with companies like SkillMil due to the problem of translating military job descriptions into civilian jobs. The industry is growing and while technology will be a differentiator, in-depth understanding of the veteran-civilian divide will likely provide the most opportunities.
SkillMil offers significantly deeper understanding and matching of military job classifications than competitors. However, other competitors have significantly greater experience and funding.
Revenue to date: $0
Revenue Last Fiscal Year: $0
Previous Funds Raised: $500K
Use of Funds
The majority of their funds will be used software development, working capital, future wages, and marketing.
The most likely exit is through an acquisition by a larger competitor. Monster was acquired by Randstad in 2016 at an EBITDA multiple of 4.9x.
Recent Acquisitions in the Field
|Date||Company Acquired||Acquired By||Amount|
|August 8, 2016||Monster.com||Randstad||$429M|
|October 1, 2012||Indeed.com||Recruit Co., LTD||Unknown|
Expert Opinion Summary
Most investors value a strong team as the number one factor in an investment decision. SkillMil has a strong team in general, though they don’t have experience in this industry. Early customers and strong technology partners seem to indicate that they have traction. However, valuation is high and they are competing against a number of larger, better financing companies that may be able to match or exceed SkillMil’s produce offerings.
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