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Invest in Kountable

The B2B marketplace for Sustainable Trade

EARLY BIRD TERMS: $152,950 LEFT

$97,050

of a $200,000 goal
INVESTMENT TERMS
 $40M  $35M valuation cap Future Equity
Early Bird Bonus: The first $250K of investments will be in a SAFE with a $35M valuation cap
$1K, $10K, $25K, $50K
LEAD INVESTOR
Managing Partner
The most relevant endorsement of Kountable comes from the entrepreneurs in Africa that rely on its supply chain financing and trust network to grow their essential businesses. As a leading Africa focused VC fund the perspective of the customer matters most to us, and we have witnessed Kountable facilitating trade with efficiency and trust. Global Supply Chain Management companies operate in a $3.3bn addressable market projected to grow at a 15% CAGR over the next 5 years. Kountable has been building technology and financing procurement transformation in emerging markets since 2015. Kountableā€™s software platform and trade financing operations offer end to end data transparency. A successful tradetech business for Africa requires a combination of finance, technology and logistics skills sets. We met the team in late 2019 and were quickly impressed by the combination of structured finance, technical vision, platform product expertise and risk management within Kountable. Kountable is now at an inflection point with a burgeoning pipeline of vetted and committed trade customers and a sophisticated product that is ready for scale deployment.

Highlights

1
šŸ†VC backing from Bootstrap Labs, MSAD Ventures, Lateral Capital, and Reaction Global
2
šŸ’ŖšŸæOn Kountable, Abbott sold 9.4M malaria kits to the Rwandan gov't and cases fell by 62.5%
3
šŸš€Q1 2022 order volume is already +5X 2021 full-year sales
4
šŸ’°Completed $70M in contract sales in 1st 5 years resulting in $3.8M in revenue
5
āš”ļø$1.3B in project proposals evaluated
6
šŸ“ˆ$0-$189,000 in subscription year 1 (2020/1)

Our Team

B2B commerce needs to be redesigned for inclusion and efficiency if we're going to address our biggest challenges as a planet. We saw a way to do it quickly, profitably and sustainably by using technology to bring entrepreneurial, financial, local and global knowhow into a transparent environment governed by trust-building data.

Kountable's B2B Marketplace is built to unlock trillions in trade opportunities with speed and scale


From the mayhem surrounding PPE purchases and the "toilet paper wars"Ā in 2020Ā to current energy prices, the importance of well-functioning markets has hit home like never before.Ā 

Marketplace platforms are built to make markets work better, and for decades, global procurement has been in desperate need of a digital marketplace.Ā Ask any major seller or buyer if theyā€™ve ever encountered a trade failure, or what enterprise sales execs call ā€œstuck or sitting invoicesā€. The response will be some iteration of ā€œyes,ā€ ā€œall the time,ā€ or ā€œdonā€™t get me started.ā€


Countless budgeted, planned, contracted projects that could have changed millions of lives for the better fall apart, often heartbreakingly close to the finish line, because the required supplies never leave the manufacturerā€™s loading dock and the orders never get filled.

Progress thatā€™s at our fingertips in healthcare, sustainability and climate, education, inclusion and economic recovery depends on solving this problem. The good news is that weā€™ve unlocked a real solution, just by adding one missing piece to the puzzle.

Kountable has built a B2B marketplace that unlocks sustainable trade and improves the lives of millions by getting large-scale impact projects over the finish line.

With $1.3B in project order volume to date, Kountableā€™s marketplace is where traders come to get goods and money to flow to complete these transactions so the work they enable can get done.


And we're just getting started.Ā 

The ProblemĀ 

To understand the size of this problem, we need to give you a quick Masterā€™s Degree in how big organizations buy or ā€œprocureā€ goods for projects. Donā€™t worry, itā€™s not the Ph.D. version, and in 3 minutes you'll knowĀ more than most about how really important things get done (or not done!) in the real world.

The marketplace


The buyers need these goods to address an outcome that matters to them such as eradicating malaria, building a hospital, transitioning to clean energy, or stopping COVID.

Once the outcome is budgeted for and formalized as a project, a seller shows up with a product that can contribute to the outcome. And, presto, you have the elements of a B2B marketplace!

The SME trader is a bridge between the seller and the buyer, and may be a local supplier, formal distributor, value-added reseller, or just an entrepreneur hustling to capitalize on an opportunity.

Why SMEs?

SMEs are the boots-on-the-ground subcontractors and provide valuable local know-how, product knowledge, installation or after-sale service, in-country distribution, and may also meet the buyerā€™s commitment to support local small businesses.Ā 


So, every year, SMEs are invited by large buyers to participate in hundreds of billions of dollars worth of purchase transactions globally.

Now, we have a project with all the players (buyer + seller + SME) and money earmarked by the buyer to pay for the goods. Our three-party marketplace is ready to complete the trade. Presto again! Or so it seems.

The Failure

The SMEā€™s job in these transactions is to purchase the goods from the seller, usually a large global manufacturer, often located on a different continent, and have them shipped to where their customer, the buyer, wants them. Letā€™s say this process takes 90 days.

The challenge is that the seller wants to get paid before they let the goods leave their loading dock on day 1, but the buyer won't pay until after they receive the goods in their warehouse on day 90.


50% of trade finance applications from SMEs are rejected and recent figures estimate a $3.4T global gap in the amount of financing requested by SMEs vs. what they actually receive. Itā€™s just not easy for banks to lend large sums of money or extend large amounts of credit to small businesses and thatā€™s what this comes down to ā€” the payment risk that an SME represents to a bank.Ā 

Banks areĀ also not allowed to make decisions based on the motivation behind the product. Believe it or not, when extending traditional credit, the fact that the project will save lives isnā€™t part of the decision. This is tough on bankers and one of the reasons they love Kountable too.

Without funds to pay the seller the sale canā€™t happen.Ā 

Ā Itā€™s hard to even grasp how much missed opportunity that represents in terms of organizations that never got the goods they needed to get critical jobs done. Banks and traditional financial institutions have not been able to provide solutions that make a noticeable dent in these numbers, so they keep going up.

The problem has historically been seenĀ as a small business credit problem because the only way itā€™s measured globally is through rejected credit applications.Ā 


The desired outcome of the buyers is not ā€œsmall businessā€ either, with goals like stopping peopleā€™s suffering from malaria, diabetes and COVID,Ā building hospitals, transitioning to clean energy, distributing clean water and educating girls.


These transactions NEED to get done, at scale, as quickly and efficiently as possible. Real lives depend on it.

The Solution

To solve this problem at scale, we need a better way to approach it ā€“ one that provides a repeatable, reliableĀ solution to fund not the SME, but the transaction ā€” a purchase from an institutional grade seller to an institutional grade buyer, with the SME performing key tasks in the middle.Ā 

This is where Kountable comes in.


Our multi-business collaboration platform is a B2B marketplace with payments and credit built in that are designed to solve exactly this set of challenges.Ā 


The game changing shift we achieve is to move the payment risk from the SME, who is small, tough to underwrite and often lacks a standardĀ credit rating of any kind, to the buyer, who is a big, public-facing institutional player whose credit is usually rated by one if not several global rating agencies like Fitch and Standard & Poors.Ā 


And thrown in for good measure, they get to easily digitize their trade business and receive cutting edge AI-supported business intelligence from their data on Kountableā€™s platform.

Kountableā€™s process makes it safe for us to purchase goods on the SMEā€™s behalf, avoiding the need for small business credit that banks simply cannot provide at the speed or scale needed to meet the demand.Ā 


Global enterprise sellers, SMEs and institutional buyers can collaborate and our platform supports them through the process of building, packaging and executing a transaction from end to end. Investors recognize the institutional quality of that transaction and are willing to invest, resolving the funding challenges. Banks even refer us transactions that they canā€™t fund and have become valuable partners in the process.

On Kountable, trades get done overĀ and over again and with every trade, our members getĀ smarter and better at what they do. Finally, a real presto!

Our Traction


Since inception, our order pipeline has been full, and we have received project order volume of $1.3B, with an average project order value of $150k.

Ā Our banking partners include SVB, Standard Chartered, Citi, BNY Mellon and Ecobank.

We've also worked with many emergingĀ SMEs in local economies, giving them the opportunity they need to get in the game. There is no one else providing this opportunity for them, and by doing so, we solve the trade gap in critical supply chains.

    Ā We were #433 on Inc.5000's list of fastest growing private companies in the U.S.

    Ā In March 2019, Kountableā€™s main credit provider experienced financial distress and went into receivership. This prevented us from funding most of the trades in our pipelineĀ andĀ forced usĀ to a near financial stand-still until the receiver was able to reach a settlement, a process that was long and frustrating for Kountable and its clients.Ā Ā 


    Throughout this setback, Kountableā€™s customer demand continued to be strong, with tens of millions of dollars worth of transactions proposedĀ each quarter. But withĀ ourĀ capital constraints, we wereĀ unable to support them. Hence the dip in the chart above.

    Our response to thisĀ damagingĀ disruption and the clear evidence of market demand was to double down, butĀ with an improved strategy. We focused onĀ rebuilding our platform to enhance our B2B marketplace offering,Ā brought on new investors andĀ capital partners and hired experienced executives. Now we've resumed our rapid growth trajectory and are expecting to deliver the same pace of growth we did before.

    The improved technologyĀ platform and go-to-market strategy are meaningful upgrades.Ā 


    Our Future


    Kountable'sĀ Q1 2022 order volume is over 5X 2021 annual full-year sales.Ā  Our take rate is 12%. Our 2022 sales forecast is $30M and our Q1 contracted sales was nearly 2X forecast.Ā 


      (Forward-looking projections cannot be guaranteed).



      Kountable is currently contracted to:

      • Improve healthcare delivery in over 25 countries in the next 3 years by deploying our solution to increase access to diabetes care, maternal and infant diagnostics and COVID self-testing andĀ genomic sequencing for pandemic preparedness.
      • Lower the cost of diabetes monitoring, first in Rwanda, and then across the continent in partnership with FIND (the global alliance for diagnostics), and a consortium of medical device and consumable manufacturers
      • Improve affordable access to diagnostics for COVID, Malaria, Hepatitis, SyphilisĀ and HIV across our markets
      • Improve maternal health for 27M African mothers through the rollout of a new antenatal screening test


      How It Works

      Kountableā€™s cloud-based B2B marketplace relies on risk-mitigation and operational technology to facilitate trades between heavily vetted, experienced SMEs, buyers, and sellers.Ā 

      Our platform enables businesses to sign up and join our dynamic and trusted Kountable community. All members get access to an ever-evolving ecosystem that appreciates all the fragmented solutions needed by SMEs, buyers, and sellers when managing major community-changing projects.

          Here's a video to delve deeper:

            Competitive Edge

            • Each Kountable transaction has been verified by our trade experts
            • At Kountable, we know our SMEs, Sellers, and Buyers!
            • A dedicated team of experienced field professionals
            • Minimal transaction fees
            • Worldwide market potential
            • Strategic partnerships with industry key players
            • Powerful go-to-market strategies - workshops, coaching seminars, and webinars
            • Lean and effective operations - minimal costs with maximum returns
            • We deliver the goods directly to the end customer
            • We only take on the credit risk of large corporates, well-funded NGOs, and national and multilateral institutions like the U.N., not the SME.


            The Team


            Capitalizing on our areas of expertise, we are uniquely qualified to get Kountable to where it needs to go.Ā 

            In addition to our team, we have a line-up of powerhouse advisors on our bench:Ā 

            Finally, we have our VC and AngelĀ investors:

            VC Investors:

              Angels investors from:Ā 

              • Amazon
              • Citi
              • Standard Chartered
              • UBS
              • Yelp
              • Oracle
              • Matthews Funds
              • Schlumberger

                Our Impact

                Our digital infrastructure facilitates the building of physical infrastructure for clean water, sustainable energy, quality healthcare, and improved education. Every trade that happens on Kountable's platform contributes to the U.N. Sustainable Development Goals as well as being good business.

                Kountable's one-of-a-kindĀ B2BĀ trade marketplace gives visibility to projects, stakeholders, and opportunities that otherwise would not be seen. The market expands through this visibility, accelerates businesses, streamlines supply chains, and multiplies opportunities.


                The feedback we get time and again from our partners, big and small,Ā is that Kountable is the solution to their trade problems and that they can think bigger and do more because of us.Ā 



                Imagine where we could go.

                The Ask

                As part of our current capitalization to scale up, we're raising up to $3M ($1M in this Wefunder offering)Ā from our communityĀ to take Kountable to where this massive, unserved market needs us to be.

                • Support the revenue acquisition of our current $88M pipeline from active members.
                • Build institutional treasury volume and capacity to improveĀ health for hundreds of millions by changing quality of care
                • Close enterprise contracts to improve maternal health, infantĀ mortality, diabetes care, and COVID response with leadingĀ healthcare companies
                • Support the US launch (ā€œbringing Kountable homeā€)
                • Hire to support our partnerships in banking, healthcare, and energy transformation

                Our 2021/2022 PlanĀ 

                  • Q1 2022:Ā Launch of Sustainable Trade Securitization PlatformĀ 
                  • Q2 2022:Ā US launchĀ 
                  • Q3 2022:Ā Order and project tracking improvementsĀ 

                  Forward-looking projections cannot be guaranteed.




                  What will we do next?



                  See, we told you it was big.





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