Page 52 - Futr Investment Proposal

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Review of Critical Assumptions

• Overly ambitious and needs significant sensitivities. This does make us question
management’s ability to adequately plan and forecast the business going forward.
Revenue • Public sector revenue is getting more market traction than the affiliate marketing revenue
therefore sensitivity will be higher on the marketing revenue.

• No payment terms to speak of Debtors are expected to pay monthly upfront which for a SaaS
business which is not unreasonable and the costs are mostly payroll so are settled in the
month.
Working Capital • They have modelled £200k of the investment landing in Feb and the remaining £1.8m in April.
With recent sales traction they should be able to take the whole investment in April.
• No VAT in the original model, this has been corrected in our sensitivities. Corp Tax and R&D
appear to be reasonably forecast.
• Overly ambitious, there are 31 additional roles in the 10 months to October and a further 16
roles in the following year. Past experience tells us that recruiting more than 1-2 people per
month in the early stages becomes almost impossible without harming the growth of the
Headcount company's operations.
• The way the tech architecture has been created means elements of code can be outsourced
for development without risking giving away any IP. They already outsource to India for
software coding.

• CEO/CTO are forecast at £95k with senior management below them at £70k - £80k, this all
Salaries • There are 19 Business Development staff who are all due to be paid £25k, which is not enough
seems reasonable.
and it will need to be increased.