Thinxtra is the exclusive Sigfox IoT technology operator in Australia, New Zealand and expanding to Hong Kong as the first global specialised IoT products and solutions provider.
Key features of the opportunity:
- Leading the "Internet of Things" (IoT) revolution as a first mover, Thinxtra is deploying and expanding the first nationwide IoT networks in Australia, New Zealand and Hong Kong
- Customers across key industries in Australia and New Zealand with an aggregated expected total contract value of $300M over the next 8 years
- Thinxtra networks already service 74% of the Australian and New Zealand population with a pipeline of 200+ identified IoT opportunities
- Participate in the company's current $15M+ Series B funding round with $15M already secured and now accepting limited over-subscriptions up to $20M
- Invest alongside Clean Energy Finance Corporation (CEFC), a large specialised Australian Government institutional investor, Adcock Private Equity and NZX-listed global technology company Rakon
This is an investment opportunity to subscribe for units in an Australian trust that will enter into a Shareholder agreement with Thinxtra Pty Ltd (Thinxtra).
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2. Business Overview
Thinxtra is building nationwide internet of things networks with Sigfox connectivity. Thinxtra's long term vision is to help build our Smart future, developing the Asia-Pacific IoT network and bringing 50+ million objects online.
Most current and future IoT use cases require wireless sensors to send small amounts of data. Most businesses struggle to implement IoT due to high costs, high power consumption, complexity's or lack of a suitable network.
Thinxtra's LPWAN ("Low Power Wide Area Network" - fit for the purpose of sending very small messages over long distance and very little battery consumption) solves all these issues.
Businesses gain a whole new understanding and control of their assets and the environment they operate in, radically changing their ability to make economic decisions and improve their activity. Every vertical will be impacted, from industry, mining and agriculture, to logistics and infrastructure, transforming our lives as we move towards Smart City's and Buildings.
|Interview of Things (IoT) & Sigfox|
What is a 'Thing'?'Things' are connectivity enabled sensors able to capture data about movement, temperature, geolocation, and other factors. Devices connecting to an LPWAN network have up to 10 years battery life and a connectivity range of up 50km in rural areas and 5km in cities. Captured information is then available on apps and IoT platforms.
What is the 'Internet of Things'?The Internet of Things is disrupting the way businesses interact, people live, shop, work and travel. It allows devices to be connected to the internet making the information they capture accessible anywhere. The analyst firm Gartner predicts that by 2020 there will over 20.4 billion connected devices.
What is the benefit of Sigfox's LPWAN Network?
Sigfox is the most mature LPWAN and the first global cellular network fully dedicated to connected objects. The Sigfox network covers 32 countries and 1.7M square kilometres worldwide. Sigfox provides its protocols free to any hardware manufacturer and companies have developed low-cost modules and devices with prices beginning at $1.5/unit.
The IoT connectivity market spans numerous verticals with an estimated 20.4 Billion connected devices by 2020 (Gartner).
Irrigation, cattle monitoring, air and water quality, food monitoring.
Connected parking spots, smart lighting, waste management.
Water and electricity management.
Fire detector, sprinkler, and hydrant monitoring.
Process optimisation, GPS tracking, and geo-fencing.
Chronic disease and aged-care home monitoring.
Thinxtra has customers across all key industries in Australia and New Zealand with an aggregated expected total contract value of $300M over 8 years.
Thinxtra has identified a pipeline of 200+ IoT opportunities representing 50M+ connections by 2021. With over 100 local partners Thinxtra has developed an ecosystem of device makers, platform suppliers, system integrators, manufacturers, consultants, incubators, universities and IoT organisations including:
Thinxtra has a first mover advantage in the Asia-Pacific IoT space with long-term customer, recurring revenue via a subscription model and slow competition.
Thinxtra is lead by a team of IoT, Telco deployment, and solution engineering experts led by an experienced Board of Directors.
Thinxtra is a preferred network partner in Asia Pacific for Sigfox. Already covering Australia, New Zealand and Hong Kong Thinxtra continues to assess expansion opportunities in other countries in APAC.
4. Revenue Model
Thinxtra's business model is based on 3 revenue streams:
- Connections - Ongoing subscriptions to access the network - selling subscriptions to customers paying yearly fees to Thinxtra for the connection of their devices on the Sigfox network.
- IoT Platform Solutions - Thinxtra is working on offering its own branded platform in 2017 as it provides high margins and strong revenue. The IoT platform complements Thinxtra's offering with value-added services such as consultancy, data analytics, and business process optimisation.
- Devices - selling, distributing or manufacturing connected devices - either off-the-shelf from selected overseas vendors and local device makers, or through bespoke services when required for very large projects.
The potential revenue combined for Australia, New Zealand and Hong Kong is shown below:
5. Investment Opportunity
This is an investment opportunity to subscribe for units in an Australian trust that will become a shareholder in Thinxtra under the following key terms:
- Security type: Series B Preference Shares valued at A$15.47 per share
- Total funding round: A$15M+
- Pre-money Valuation: A$46M
Clean Energy Finance Corporation (CEFC)
A large specialised Australian Government institutional investor, CEFC is investing $10M in this Series B funding round on the same terms* as VentureCrowd investors.
Why this institutional investor likes Thinxtra?
"The clean energy revolution offers enormous opportunities for the Australian economy. By investing in the innovative new approaches that are set to drive the next wave of emissions reduction, entrepreneurs and start-ups can be at the forefront of this exciting transition."
* Same valuation and other material terms. Some exclusive terms apply to the investor that are specific to its status as an Australian Government body. The investor also has a right to appoint a director to the board of Thinxtra.
Adcock Private Equity
Adcock is an industry-agnostic, globally-active, private equity firm founded in 2010 by leading Australian entrepreneur Brook Adcock. The firm identifies and capitalises on new and emerging market opportunities with great business ideas and technologies. Adcock is investing in the current Series B funding round.
Rakon (Listed Strategic Investor)
Rakon is a public company listed on the New Zealand stock exchange (RAK). Rakon is a global high technology company and a world leader in its field. The company designs and manufactures advanced frequency control and timing solutions for telecommunications, global positioning and space and defence applications. The company's products create extremely accurate electric signals which are used to generate radio waves and synchronise time in the most demanding communication applications. Rakon has five manufacturing plants including two joint venture plants and has five research and development centres.
|Current Funding Requirements|
Thinxtra's Series B funding round will contribute to completing network deployment in Australia, NZ and Hong Kong and to monetise the network to become the #1 Asia-Pacific IoT Service Provider.
CEO & Co-Founder
Loic is an entrepreneur and pioneer of IoT in Australia. Loic was previously leading the latest IoT/M2M strategic initiatives in Utilities, Health and Transport in ANZ at NetComm Wireless and Sagemcom.
|Mike Van Doorn|
Commercial and Sales Director
Mike leads the go to market sales program to connect the ANZ market. Mike has held senior sales and chief engineering positions with Cubic Defence where he designed & deployed complex networks and connectivity programs.
VP Marketing & Ecosystem
Renald is a serial IoT and IT marketer and ecosystem developer. He was previously Managing Director Asia Pacific for Lacie Australia (Seagate) where he established sales and distribution networks throughout Asia Pacific.
Managing Director Asia
Murray leads Thinxtra's Corporate Development and program. He has held senior international executive roles with Telstra International, Superloop and Serco. He has built and led growing ICT companies across Asia and EMEA for 20 years.
Tugberk operates and maintains our ANZ network and customer experience. He has been working in end-to-end wireless telecommunication systems design, M2M, cloud and data centre administration with Alcatel & Optus.
Network Deployment Director
Sam leads the Trans Tasman rollout of the IoT network. Sam has a track record of complex telecommunication project delivery having held senior roles with Cubic Defence and Cubic Transportation Systems.
Chief Financial Officer
With 10 years' corporate experience as CFO, Auditor, and Commercial & Supply Analyst, working in small business and transnational corporations, Julies has a keen eye for details and business improvements.
Further information about this investment opportunity is available in the data room.
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