|1||$3.15 million raised. $2.8 mil ARR sales in 2020. Backed by Amazon. Demand up 1400% since March '20.|
|2||Projecting $4.8mil+ ARR sales in 2020 following Q2 deals just closed in all 50 states.|
|3||Led by award-winning entrepreneur, Founder, Angela Hood, incubated at ideaSpace-Univ. of Cambridge|
|4||489% growth 2019-2020 with $169 billion annual market in the US alone.|
|5||Very close team with multi-million dollar exits in the HR and tech industries.|
|6||Exceptional API engineering and tech stack enables product to work in global job market.|
Angela and her ThisWayGlobal Team have nailed it. As an active angel investor for over 20 years, I have chosen ThisWayGlobal as my largest investment to date. ALL of my criteria boxes were checked:
Tenacious Founder. Rock Star Management Team. HUGE Market Opportunity. Innovative Product. Timely Solutions. Bountiful Potential Acquirers.
Now, with the socioeconomic fallout of the Pandemic, there is a crucial demand for TWG Products. Ai4JOBS helps companies find highly qualified contenders and automatically removes all candidate and employer bias. Thus, companies can hire and benefit from a diverse talent pool…a home run for humanity.
In 1990 our founder, Angela Hood, was graduating from Texas A&M University during a recession, and much like today, there were far fewer open jobs than there were candidates.
With the support of her mentoring professor and fellow Aggies, Hood developed an innovative way to match graduating students to new jobs. It was very successful, even in a tight market, because she removed all the friction that still exists today.
But it had several shortcomings. It was manual, technology was still in it's early stages so it couldn't scale and there was no way to remove bias because people were making the matches.
As a female working in the construction science industry, Angela learned to use her initials AL, rather than her name Angela, on the top of her resume. By not identifying herself as a woman, she received responses and interviews from companies that had previously overlooked her application when it was clear she was a woman.
Following encouragement from friend, author and TechStars MD, Amos Schwartzfarb, Angela understood how she could translate her expertise in designing and developing neighborhoods and buildings into the development of software. She decided to fully commit to solving the 'job market' problem at scale.
After months of interviews and packing up the family, including their two Scottie dogs, Angela moved to England to begin her R&D and technology incubation at ideaSpace - University of Cambridge in England.
People from ages 18 - 58, from around the globe and the United States military, helped by providing data, feedback, bias analysis and more.
It was these individuals that guided us in the direction that made the real difference.
Each had suffered the 'black hole' of the candidates experience when they were applying for jobs and were frustrated by the irrelevant job matches they would receive.
Some of the worlds largest pharma and tech companies sent advisors to guide us. Interestingly, had we followed their advice our technology would have failed. This was because they wanted to develop the AI in a way that would have "baked in" the very bias' we were trying to eliminate. We knew that working with the broadest set of data and inputs is how we would 'matching that matters'.
Still, each of these contributors played an important role in how we cast to understand bias. For instance, we now know that there are over 500 different bias' and they come from both the employer AND the candidate. It goes far beyond just gender and ethnicity bias. Here's a great graphic we reference to help identify 188 of the most common bias'.
It took decades of waiting for technology to catch up with our idea. But our time has come.
We have developed fully automated technology that 1) works inside any job platform, 2) reduces costs, 3) improves outcomes for candidates and employers, and 4) reduces bias for both employers and candidates.
Never has the US, and the world, experienced such a rapid change in employment numbers. This very short video shows just how big the problem is.
The corona virus has caused this extraordinary situation. We believe mankind can use technology to mitigate it's effects.
Twenty five years after that first experiment in college, and following a successful career in construction and land development, Angela had seen the employment bias continue as a USMC military spouse. She watched her husband, a retired F/A-18 fighter pilot, encounter bias towards veterans.
CEO Angela Hood with son and husband
Her daughter shares stories of racial and LGBTQ injustices in her previous workplaces and her son discussed the challenges his fellow sailors experience when they leave active duty.
In short, very little progress has been made in the last quarter of a century.
Our team has always been diverse. We proactively seek diverse team members, investors and advisors. For us diversity includes many aspects beyond just ethnicity and gender.
Our team built a semi-automated version of or technology and learned a lot about what works for the user and how to monetize our platform. Once we knew customers would pay for the solution, we raised our pre-seed investment and started to test the market and refine the platform.
The World Economic Forum helped by providing us with some of the world's most complex job descriptions and diverse applicants in the world. results were tested against some of the largest recruitment firms and established technologies in the world and we won the 'bake-off'. It was a great moment for the team but the real work had just begun!
Link to White Paper.
Our early user interface was utilitarian, to say the least. But the results proved that the technology worked.
And this stage of development is where we had a significant break thru. We figured out how to address bias from the applicants, as well as by the employer.
Here's the original interface:
In just seconds you see all applicants for all jobs, ranked and scored, without bias.
This saves our customers hours on each open job and greatly reduces the risk of overlooking qualified candidates.
Ai4JOBS is simple, fast and fair.
Our new mobile app improves communications between candidates and employers. The pandemic has caused many people to move locations(not to mention a lot of stress!) and remote work is more available.
These trends led to our launching of the Career Companion. This is a mobile application, providing compassionate guidance to the job seeker.
We still need a name for the companion and EVERY investor will be invited to submit a suggested name that will be voted on by all customers, investors and candidates.
We are excited to hear your suggestions!
We raised funding to continue the R & D (add more job types, refine bias reduction, improve the user experience) and become ISO 27001 certified so we could work with large companies. In our early days we worked out of a small, one room office of a Victorian office in downtown Austin, Texas. It only had room for 3 people at a time, but it had one wall that was a giant white board! It also had a conference room where we could meet and celebrate milestones with our early investors.
Recruiters have a hard job so we need to keep things simple for them. This is where integrations come in so they get great results without having to change their existing workflow.
In Q3 of 2019 we completed our first system integration with Greenhouse.io It was exciting because it proved we could:
1) Integrate in less than 15 minutes, when most competitor integrations take weeks, or even months.
2) Show live matching to prospective customers during their demo. This proved our tech worked in real time, was truly automated, accurate and unbiased.
3) Deliverustomer value is delivered in less than 30 minutes.
Long before the pandemic and riots of 2020, ThisWay was pushing the need for bias removal and increasing diversity in hiring.
In October of 2019, ThisWay's unbiased matching platform, Ai4JOBS, was awarded the coveted Innovation of the Year Award at HR Tech Conference in Las Vegas, selected by over 10,000 attendees, sponsored by Randstad and under-written by the Society of Human Resource Management and Paragon Labs.
This award created market awareness contributing to a sales pipeline of over $18 million.
Our founder, Angela Hood, tells a funny story about how Barbara Corcoran inadvertently caused her to prove she can pitch without the support of a pitch deck!
Hear the story:
"More than 100 companies were vying for the award and the pack was narrowed in the first round, immediately following a keynote from Shark Tank's Barbara Corcoran. Ultimately Ai4JOBS and its suite of products was crowned as the industry attendee favorite."
Ai4JOBS Named HR Tech Innovation of the Year ~ Yahoo Finance
Following our win, we began hearing from some of the largest and best known brands in the world.
These companies were also some of the first to identify problems with bias and the financial implications of increasing diversity. Below are some of the corporations in our pipeline, due in large part to the current focus on reducing bias.
It has been exciting to start working with such great organizations. The deal sizes are much larger but they also have longer sales cycles. Fortunately we have a great team of advisors and we identified that 84% of the Fortune 500 uses Salesforce.
So our next integration was our Salesforce app, Ai4JOBS. This launch was incredibly challenging due to timing. But it's now live and rated 5 out of 5 stars.
Our Salesforce launch day was March 13, 2020, the day after the World Health Organization declared we were in a world wide pandemic. Yes, the timing could have been much better.
We had press releases scheduled and ad campaigns ready to launch. But we are not a tone-deaf company. The world was scared and this was not the time to talk about our new technology.
Along with the rest of the world, we needed to make quick decisions on how to continue operations while keeping our team safe.
We had some incoming investors that were worried our tech would no longer be needed. In truth, our tech has never been in greater demand.
Even with the challenges posed by the pandemic we have had nearly $300,000 in sales of our Salesforce app. Link to Ai4JOBS Salesforce App
For the previous thirteen days, our phones had been silent and nearly every email was about Covid-19. Austin had just declared a lock-down.
We had a company team meeting already planned so we decided to hold a 'Zoom-site' (took 14 hours), with the goal of answering one question:
"What is the purpose of building unbiased job technology if we can't help both people and companies at a time when the world needs it the most?"
Within the first 45 minutes the team rallied around our Core Values:
1) Resiliency 2) Transparency 3) Diversity 4) Thoughtfulness 5) Innovate for Humans
The Answer: "We would flip our tech upside down so it could specifically help people match to jobs in any system, including job boards, social media platforms, etc.
And our tech would be accessible in a mobile application so that job seekers would have support, even if they didn't have access to a computer. We could truly level the playing field. Our company was made to serve this time in history."
Importantly, we also wanted to open ourselves up to a broader range of investors. And this is when we started to work with the WeFunder and Arora Project teams.
By increasing access to more investors, including those that were unaccredited, we can spread the solution to reach more people and more companies, generating improved job outcomes and greater return on investment for all involved.
Essentially...we wanted to remove bias from our own investment process.
We are passionate about this problem and ThisWay's team is committed to building a great company that provides significant value to our customers, partners and investors.
Each year we host a celebration of that years accomplishments. This year we anticipate hosting a virtual meeting in October of 2020 when investors can get to know our team a bit better. There's always a theme and we would love your suggestions!
Thank you! We look forward to having you on Team ThisWay!
Videos from our customers, investors and advisors coming soon.
Video from Aaron Cox, long time customer and SVP of Texas Association of Business in Austin, Texas.
Video from Kelsey August, Chairperson of Central Texas Angel Network, CEO of LoneStar Direct and our Lead Investor.
Video from Matthew Ketterman, entrepreneur, attorney and our largest investor.
Video from Brandon Metcalf, entrepreneur, investor, advisor with industry exit worth hundreds of millions of dollars.
Video from Kevin Przybocki, entrepreneur, investor with exit worth hundreds of millions of dollars.
ThisWay Global has financial statements ending December 31 2019. Our cash in hand is $76,567, as of June 2020. Over the three months prior, revenues averaged $35,830/month, cost of goods sold has averaged $7,723/month, and operational expenses have averaged $93,337/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
We match all people to all jobs, without bias. Removing bias is essential to leveling the playing field and 1) helps millions of unemployed people get new jobs 2) supports businesses to re-open 3) spurs economic growth. Post Covid-19, average job application rates grew from 125 for each job to 1000+ applicants in many cases. Our tech identifies qualified candidates, but without bias. And we increase job opportunities for candidates by matching them to jobs they may not know about.
In five years, we hope (but not guarantee) to be the #1 matching engine across multiple industries (OEM): ATS, RPO, Enterprise, Staffing.
ThisWay Global LLC was incorporated in the State of Delaware in September 2016.
Since then, we have:
Historical Results of Operations
Our company was organized in September 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $35,000 in debt and $3,150,000 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 7 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
ThisWay Global LLC cash in hand is $76,567, as of June 2020. Over the last three months, revenues have averaged $35,830/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $93,337/month, for an average burn rate of $57,507 per month. Our intent is to be profitable in 12 months.
Our sales in 2020 are nearly $1 million and we have sales pipeline of over $18 million. This is due to our tech and integration API's now being complete and our product aligning with market timing and demand. Our company has experienced significant growth in demand due to the large number of people unemployed, companies needing to restructure their workforce and the increased focus on removing bias and increasing diversity.
We have more investment coming into the business and over $750,000 in invoicing that has just gone out to customers. So we have several ways to mitigate cash flow, including utilizing incoming revenue from customers, deferred salary to myself and founders floating the business with personal funding in the short term.
Our current, average Annual Contract Value is $133,000, including integration. We expect the ACV to remain close to this as we continue to have customers agreements ranging from $25K - more than $1 million per year.
We have put together a special package that has been very well received so far. Essentially companies get 18 months of our platform for the price of one year. While this cannot be guaranteed, sales projections are 19 deals per quarter for $900K in revenue per quarter, or $1.8 million over the coming six months. We have an additional $2.4 mil in closing stages in our pipeline. These are larger deals that have been in the works for over a year. We believe we will need a total of $350,000 to break even by end of the year.
Forecasted expenses will be between $98,000 - $125,000 for the next 6 months and ramp up a bit with increased revenue because we will add customer success and marketing. These figures cannot be guaranteed.
For additional capital, we have a group of current investors that have continued to support our company in multiple rounds and we are in discussions with a number of venture capitalists that have increased interest in the company following their seeing how applicable our technology is for enterprise companies in todays market.
That a larger competitor develops similar technology and uses their size and capital to capture greater market share.
The chaos and distraction due to the COVID-19 quarantine and it's effects keep our customers from deciding to buy.
Our status as an early-stage startup disincentives large/enterprise customers from early adoption and conversion to long term contracts.
We are currently a small team of highly skilled experts, but our lack of depth on "the bench" is a continuing risk, meaning we one have one person in each role--one front-end engineer, one back-end engineers, one salesperson, one customer support person, etc.
Combination of above risks resulting in team members getting sick and adversely affecting the company's ability to deliver.
Relatively low capitalization for the target market of mid/large/enterprise customers, which puts company at risk of not reaching cash-flow positive before funds run out
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief. [Rule 201(z)(1)(i)].
The company is currently resolving a lawsuit brought against it by a purported competitor. A motion to dismiss has been filed and a ruling is expected within a month. Maximum financial exposure is lest than forty though
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