Enigma Digital - 2020 Acceleration Plan

Economic rationale / Business Model

Our financial objective is to grow 100% to €1.44m by end 2020, and reach €4.5m and €14m by 2021 and 2022 respectively. 

Why invest?

Large market need – an estimated 17m monthly searches globally for lost or inadvertently deleted data from iPHONES and Android. Enigma alone records 350,000 searches pm.

Stable, effective, and good value current product delivering €85,000 pm rev, growing at 8% pm. Average rev per purchase of €43 with CAC of €14. Current GM of 68% and EBITDA 13.5%. Forecast revenues of €1.44m, €4.5m, and €14m 2020, 2021, 2022 with associated EBITDA of €0.3m, €2.25m, and €10.14m.

Clear, market relevant product roadmap encompassing ‘multi-language’, ‘screen unlock, ‘data repair’, ‘cleaner’, ‘eraser’, ‘in-product messaging’, and the development of an Android equivalent solution.

Strong marketing and channel management aided by top digital marketing agency; UK based SOMETHING Digital. 

Expert senior exec management. Newly appointed CEO, Aldo del Bo, was a former senior executive at cyber security leader Kaspersky.

Large and committed European VC backers including Mangrove Capital (Luxembourg).

Offering 20% post money equity to new investors of €1.5m generating an expected 16X cash multiple. 

Financing details

Project financing secured: EUR 0.50 million (33 %)

Financing source: Private

Financing of €1.5m will be by the issuance of Ordinary shares in Enigma Digital Limited. There are currently 282,310 shares and options issued representing 100% of the fully diluted equity. 

We envisage 75,000 shares being issued at circa €20 per share. This implies a pre-money valuation of €5.75m giving the new investors circa 20% of post funding equity. 

Current shareholders have indicated a willingness to take up 1/3 or €500,000 of the issue.

UK government funds may be available.

The promoter has received / applied for EU / EIB financing support related to this project.

Existing or potential bottlenecks for the realisation of the project / Potential risks

Enigma is free of legal proceedings, and not subject to any regulatory framework other than the EC GDPR legislation (use of consumer data).

There is a risk associated with Apple’s declared objective of protecting iPHONE users’ data and making access more restrictive for Enigma and its competition. 

Our bottleneck is funding – to hire additional senior mgt, expand our software dev team, and increase our customer acquisition spend so as to build an internationally recognised data market brand.

Project additional information

We’re transitioning from one-off purchases (urgent consumer need), to a subscription model offering a suite of helpful data management tools.

We’re in the right place at the right time. Smartphone penetration continues - Deloitte Global predicts 90% developed country penetration and 1.8bn annual sales by 2023. Smartphone capacity is increasing from a low of 13.4Gb in 2013 to an expected 60.5Gb by end 2023. More capacity = more valuable consumer data. Smartphone usage continues to grow; TechCrunch report a 20% per annum increase in average apps numbers on smartphones from current av. of 80, plus increasing daily interactions. GDPR is driving innovation as the market races to offer consumers the tools to manage and control their own data.