# Investor Update H1 2025 | Contractor+ - Canonical URL: https://wefunder.com/feed/182411 - Entity ID: wefunder:feed_item:182411 - Published at: 2025-05-16 19:51:53 UTC - Updated at: 2025-08-31 14:20:53 UTC ## Author Justin Smith ## Subject Contractor+ ## Content Before I get into this long winded update, I want to sincerely apologize for neglecting to send a quarterly update in Q1. We didn't have much to report on, but I should have taken time to put an update together regardless, good, bad, or ugly, you deserve to stay in the loop at every step of the way. This is going to be a long one... Sorry.Let's get the "not so great news" out of the way first. We ended 2024 at $38.59K MRR. In our last update in September, however, we reported that we were at $39k MRR.So, on the surface, it appeared that we had lost revenue. But the amount hitting our bank every month was still increasing. Albeit, not exponentially as we had hoped. Something was wrong.After a thorough audit of our active subscriptions, we found some issues with our iOS subscriptions. Apparently this is a big problem that all apps on iOS deal with, and Apple doesn't really have a concrete solution to solve it. What happens, is when a user temporarily "cancels" their subscription on their iOS device, Apple doesn't always send the webhook to Chargebee, so the subscription still appears to be active. Then, when they renew or purchase again manually, it creates a duplicate subscription - double reporting. Completely threw off our numbers and it was a nightmare to reconcile. We implemented a bandaid solution from the iOS side where on opening the app, we check for active subscriptions and sync those with our server, then sync those with Chargebee daily. This appears to be working so far, so that's a plus. But, it appears we were only at $35k MRR in September, and we had only added around $4k in MRR in Q4. In December, we believed (according to Chargebee) we were at $42K MRR. But this was inaccurate as well. It's now May 16th, 2025, and our MRR is $42,000. Still growing. NET retention is still ~95%. But, we haven't spent any money on ads or customer acquisition since December. Just the bare minimum from Apple Search Ads and Google. No retargeting, no paid ads at all. I made the decision to cut ad spend temporarily to stop the burn and preserve our cash reserves. We ended 2024 with around $170k in the bank. 5 months into 2025, and we still have right around $150k. I made this decision solely because the development of our V2 product was taking a lot longer than our team had initially projected. V2 was originally just going to be an additional feature set. Pretty straight forward development process, had everything mapped out based on available resources. But our CTO wanted to do a complete rewrite now, versus waiting to do it later. We were going to have to do it eventually. So, we decided to take that up first. By his analysis he thought we'd be done with the re-write by September of 2024. Our v2 product with the complete end to end rewrite of our entire platform ended up taking us a full year. For the last 3 months, our board asked that we worked Saturdays as well, and our entire team has been working 10+ hour days to get this across the finish line. That brings us to the good news. Really good news, that we're super excited about. V2 is almost ready. We're tightening everything up and getting ready to shift our entire engineering team to bug fixing in the next two weeks. Our QA team has filed over 3,000 bugs since we started the development of v2, and our team has managed to get this down to 1,200 or so, but once our entire team is focused on this, it will move pretty fast. So, what have we accomplished in the last 12 months?Complete backend rewrite from core PHP to Laravel, all 580 endpoints. Complete frontend UI/UX revamp & rewrite from a static Bootstrap-based UI to a modern, fully interactive React application.Extensive internal postman API documentation for all endpoints, and soon the most extensive publicly available API in the industry. By a long shot. Microservices architecture, with Node powering certain functions (like our email services, and Laravel powering others). Complete development of a world-class CRM. Honestly, if you removed "Contractors" from the equation, it'd still be one of the best dang CRM's I've ever used. Two Way Email, SMS, Voice. Full communication history of every contact. Leads, Clients, Subs, Vendors, Tenants, Property Managers, over 50 different contact types.Property Profiles - so every property/service address has it's own profile, timeline, schedule, access information, and more. Business Phone System with IVR, number management, call recordings, transcription, AI summarization & sentiment analysis. Making all your communication history searchable. Nothing will ever slip through the cracks ever again. You can also sort contacts by sentiment, quickly identifying who may need a little extra TLC.Opportunities (Deal Flow / Sales Pipeline Tracking) - Think PipeDrive, Close CRM, a completely customizable kanban view that gives you visibility into how much value you have at east stage of your sales process, or with each sales rep. A complete revamp of our Estimates module. Now you can add optional line items, good/better/best options, navigate your costbook, add group templates, line item templates, etc. You can even rename the entire module to Quotes, Scopes, Proposals, Bids, or whatever you want to call it in your business.A complete overhaul of our Schedule - helping you schedule based on availability and distance/location. Drag, drop, print. We took tons of user feedback and created a schedule that would actually solve their biggest problems.Card Present with Bluetooth Card Readers & Card On File for automated recurring billing for service contracts.Estimatic AI - AI estimates, at the speed of thought. It's not just some generic GPT wrapper either. We utilize multiple fine-tuned models, each serving different core functions, with RAG to pull in data such as your costbook data, local labor rates & markup relative to the specific task/job type, BLS data, and material pricing. Plus, we've built in a feedback loop, to continually improve based on user feedback.USA Construction Labor Rate Index & API - We've built our own index across 25 different industries in construction for the US. New, beautiful frontend website in Next.js migrating from Wordpress to Strapi, with multi-language support and over 50 free tools and resources (calculators, templates, tools, things that get a lot of search visibility, improve dwell time, and thus rankings and traffic!) Big Chief AI - Our AI Assistant that handles your calls, scheduling, and invoicing to help you eliminate the busywork and grow your biz. You can assign Big Chief to any extension on your IVR and it will handle your calls 24/7/365, qualify your leads, intake your service requests, and schedule your estimate appointments. Postcard OTP - This was a product that was born out of a pain point we were experiencing inside our own business. Dealing with fraud has been a nightmare since we started facilitating credit card payments as an ISV. Assuming all the risk is, well... risky business. We've had to learn a lot the hard way, unfortunately. But at least we're learning. To prevent fraud we've started blocking VPNs, Tor Exit Nodes, over 150 different privacy-focused email hosts and browsers, Data Center IP ranges/proxies, implement 3D Secure for online payment processing, and... Even then, we have dozens of cases of identity theft where fraudsters are claiming to be another business (identity theft). They will sometimes clone their website, etc. So I started looking for ways to fix this once and for all and I realized the one thing a fraudster can never do is receive mail at the business's address. They can put the address on their merchant application, but if they can't get an OTP code that we send them on a postcard (just like Google My Business does), then they aren't who they say they are, and we won't enable their payouts/settlements. Problem solved. I realized, nothing like this exists, so I created the backend service, vibe coded a frontend for it and will likely be spooling up a cold outreach campaign to sell this service to other ISV's, PayFac's, Neo-Banks, and anyone else who deals with a high volume of fraud. Credit card fraud cost businesses $31B last year alone. This solution can eliminate it for good. Of course, if we do end up selling this as a separate product/service, it's owned/operated by Contractor+, so you own a piece of this too (and anything else we do, for that matter). I've got integrity, would never SBF you, iykyk. Stopped the fraud dead in its tracks, perhaps added another nice revenue stream. It's a big win even if we don't sell it.Financial Quick Stats:$42K MRR<5% Net ChurnBurn is around $10k. At current burn, runway is approximately 15 months. We have non-dilutive options available as needed as well (Approx $100k) so our runway can be unlimited, at least for now until we start spending on customer acquisition again.Payments revenue is around $7k/month now, unfortunately, we aren't seeing this hit our bank account for the next 9 months because our payfac partner is keeping it to recover from the fraud. Sucks, but at least we caught it fast before it became an even bigger problem.What's next?We're currently aiming to ship our v2 product and new website in mid to late July. That gives us around 6 weeks for finishing touches and bug fixes. Our product team still has tons of work to do beyond that, but this is a major milestone for Contractor+, and objectively gives us the best solution in many regards for the customers we serve. With the launch we'll also be launching new ad campaigns, cold outreach campaigns, and I'll be refocusing on sales and customer success - scaling the revenue engine. What do we need from our investors?Right now, nothing. Our cash reserves are safe, we have plenty enough runway to achieve our immediate goals (thanks in large part to you), and we're excited to make this happen.We will share a Q2 update in August. At that time, if you know any contractors or service businesses that can benefit from Contractor+, my ask would be that you make an intro and setup a demo! Thank you for your continued support. Without you, none of this would have been possible. 🫡Before we close -- I do have one introduction I'd like to make for a good friend of mine, and an investor in Contractor+:Our first investor, the lead investor in our first Wefunder round, Brandon Schlichter, known as "Investment Joy" on YouTube / TikTok acquired a commercial roofing firm in Chicago last year. They're closing millions in contracts, on track to grow the company by 300-400% in the first year alone. They should do $19M this year. Their 2025 booked work has already surpassed last year's total revenue. The issue is some of their larger contracts take a long time to payout. Because of the rapid growth, he's looking to raise some capital, and is offering investors a 16-20% annual ROI. He's helped us when we needed it most, so I'm happy to return the favor. I've known him most of my life and I can confident vouch for him. Here's his pitch deck. This isn't an equity investment like your investment in Contractor+, and it does require that you're accredited. For context, the S&P 500 averages ~10% annually. Treasury bonds pay ~4.5%. Even most real estate investors are happy with 6–8%. Brandon’s offer of 16–20% (dependent on investment size) annual return is 2–4x higher than most mainstream opportunities — and it’s backed by real contracts from a fast-growing business. If you’re interested, I’ll make the intro.