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Sonician AB

Making Sales Fun

The software Otto® developed by Sonician, is an online marketing automation & Bulk-CRM software as a service (Saas) solution that helps Business-to-Business companies with complex products to increase their sales both on-line and off-line.

Think sales-support systems are all similar? Our long-term client Bonnier-Mediafy tested four systems, where Sonician's system Otto® won and was 2.9 times higher than the closest competitor.

E-commerce has revolutionized sales of simple products, Sonician aims to provide a similar revolution for the sales of more complex products. The complex products market is 3x bigger than the market for simple products according to Frost & Sullivan.

Investor proposal

We are a scalable business that offer more profitability and huge growth opportunities than regular product-sales. By selling software, it allows us to have low operating overhead costs and high profit margin. We have the ability to focus on our core-business and further company growth and development.

We aim to have our stock listed within 2-3 years through an IPO on a recognized marketplace.

Until this time, we are aiming to provide our investors with a 4x Return on Investment. This can be deemed viable as long as we reach our goal of tripling turnover every year until IPO.

Product

The problem this product solves

Less than 1% of potential buyers who visit a company web-page selling complex products would actually contact or buy directly online.

It is estimated that 73% of all companies in the business-to-business sector sell complex products, effectively making it a market 3 times bigger than what it served by e-commerce solutions. We realized that it is hard for the potential customers to understand if the complex-solution suits their business needs. Therefore we developed a great solution to this problem.

How the product solves it

Our market research showed that most buyers are not psychologically ready to buy a complex product just by visiting a web-page.

Therefore we created our software Otto®, in order to help companies to convert their site-visitors to buyers of their products.

It allows sellers to make simple interactive online guides to help their web-site visitors understand all what they need to know in order to take a buying-decision for more complex products or services, while showing the sellers who are most interested in buying.

The first test-client who used Otto® actually grew sales 3 times immediately after starting using it.

Product features

Sonician builds a software called Otto®, an online Marketing Automation & Bulk-CRM Software as a Service (SaaS) solution. Otto® helps businesses connect buyers and sellers by automating gathering, nurturing, scoring and converting potential clients to buyers, through e.g.:

  • Inbound Marketing Form-builder that captures contact details
  • Outbound Marketing & Newsletters (via Email, print, phone or SMS)
  • Easy-to-Use Bulk-CRM-system (Customer Relationship Management) to manage many contacts as easy as one
  • Marketing Automation - of communication to contacts.

Decision-Assistant® suggest what your website visitors should do in the next step of their buying process based on their answers to interactive questions.

Product use cases

Our software Otto® has been installed for over a hundred different businesses so far.

The clients are small to large organizations with complex products: Manufacturers, Consultants, Meeting & Events companies, High-Tech businesses as well as Media companies and one-man coaching consultants.

Otto is used both for on-line visitors (Inbound Marketing) and to reach new contacts (Outbound Marketing):
  • On websites it gather contact details and follow up to lead the customer through the buying process.
  • It’s used to reach out to new contacts via e-mail, phone, social media or print marketing when potential clients don’t actively look to buy.

Team

Otto® Right-hand man
Otto is our most loyal worker-bee. He is the one working incessantly 24 hours per day, seven days per week without ever complaining. He is the one making sure we have enough leads to contact, and who will make sure our potential clients will understand how much he can help ... See more
Otto is our most loyal worker-bee. He is the one working incessantly 24 hours per day, seven days per week without ever complaining. He is the one making sure we have enough leads to contact, and who will make sure our potential clients will understand how much he can help them, too, and finally he scores them based on their interest, such that the rest of us can focus on helping the most engaged of our clients out as much as possible. See less
Henrik Rudberg avatar
Henrik Rudberg CEO
Henrik Rudberg holds a Master of Science degree in Industrial Engineering and Management from Chalmers Institute of Technology and Ecole Superieure de Commerce de Paris. He was the first trainee at Cisco Systems, Sold Internet Telephony solutions as Marketing Director from Hotsip (sold to Oracle), was behind the idea that ... See more
Henrik Rudberg holds a Master of Science degree in Industrial Engineering and Management from Chalmers Institute of Technology and Ecole Superieure de Commerce de Paris. He was the first trainee at Cisco Systems, Sold Internet Telephony solutions as Marketing Director from Hotsip (sold to Oracle), was behind the idea that became Spring Mobil (sold to Tele2) and he founded the Voice over IP Service Provider Cellip which is now the second largest of its kind in Sweden. See less
Stefan Sanz-Velasco avatar
Stefan Sanz-Velasco Director
Stefan Sanz Velasco holds a PhD in Innovations within the Telecom & IT industry and a MSc in Industrial Engineering and Management. He is a member of the Global Operations Management team at Nobel Biocare. Previously, he has been Management Consultant with Arthur D. Little – the world’s first strategy ... See more
Stefan Sanz Velasco holds a PhD in Innovations within the Telecom & IT industry and a MSc in Industrial Engineering and Management. He is a member of the Global Operations Management team at Nobel Biocare. Previously, he has been Management Consultant with Arthur D. Little – the world’s first strategy consulting firm, and enjoyed leading product management and sales positions in vehicle, life science and telecommunications software industries. See less
Luke Goodwin avatar
Luke Goodwin Sales Manager
Luke Goodwin is an accomplished Sales Consultant with assignments in the software, consulting, construction, fitness and travel advisory world. He holds a Bachelor of Business and Marketing from the University of the Sunshine Coast, Australia, and is an avid writer and sought-after presenter.
Henrik Hallgren avatar
Henrik Hallgren Consulting Sales
Henrik has been Microsoft Partner Manager at HP, Executive Outsourcing Sales at HP, Oracle Partner Manager at Affecto and Consulting sales at Tieto and Cybercom and he takes care of our Partner, Consulting, Training and Rent-a-Marketers Sales.

Market

Target Market

Our software Otto is utilized by both consumer- and business-oriented organizations from one-man companies up to large corporations, and in terms of clear product-to-industry fit, it covers the needs of 45% of all the different types of Industries all over the world.

  • Micro-perspective: Estimated potential customers in Sweden: approximately 40 000 businesses, with an average yearly sale of €2500/company, €100M/year only in Sweden.
  • Macro-perspective: Globally, this means it is around €4-5B market, of which we're intending to penetrate Europe and Asia within five years.

Competitive landscape

Our main competitors are from USA: Marketo, Eloqua, Hubspot and Pardot.

Hubspot specializes in only Inbound Marketing (when the customer seeks out to the company), while we focus on both inbound and Outbound Marketing (when the company seeks out to the customer, for both business-to-business (B2B) and Business-to-Consumer (B2C) markets.

Eloqua was recently purchased by Oracle and Pardot by Salesforce for over 100MEUR.

Due to the great value of increased sales worldwide, the industry has attracted a large amount of niche players.

Unique differentiator from competitors

We respect, but don't fear, competition.

Only Otto® from Sonician have a complete solution:

  1. Customer Segmentation: Competition is weaker in Manufacturing & Consulting, industries which are both perfect client-fit for Sonician.
  2. Technology: After 50 man-years of development, Otto's Architecture gives most powerful programming interface (API) proven through having more connection points than competitors on Zapier - the most popular Web-service to connect applications.
  3. Innovation: Decision-Assistant® enables customers with complex products to increase online sales, and Volley Marketing™ gives you suggestions on which companies you should start to engage with (warm leads).

Company revenue streams

Average Total Lifetime Value (TLV) of a client exceeds €10 000.

The price of Otto® is €99 - €599 per month making it affordable to the client, while still leaving consulting money on the table which makes it attractive for partners to work with Otto® over competition.

Within 15 months of fine-tuning during expansion, we expect to carry all cost of sales well within a client's first invoice which will make it possible to grow even faster.

Profit margin for software like Otto® is 98-99%, and we expect to reach a profitability target over 50%.

Product/service distribution

The businesses is highly scaleable:
  • We sell and deliver directly online over our website.
  • The systems are installed automatically online in a matter of minutes.
  • We run weekly online training-sessions which can cope with all the new clients at the same time.

We have also started to build:
  • A network of partners who have the ability to sell their products directly through our website.
  • Our own direct sales-force for our high-value target segments.

Execution

Previous milestones/traction

• Exhibited in London at B2B Marketing & Sales Innovation Expo in 2017
• First international orders (Editorhelsinki, Deliporo, SMC) in 2016
• First public sector order in 2016 (Göteborgs kommun)
• First individual quarter with positive cash-flow (5 out of 12 months) in 2015
• Angel investment & loan 3+1Mkr in 2014-2015
• Best price/features in ProSales comparison in 2014
• First clients onboard (Chamber of Commerce, Bonnier and Teligent) in 2013
• Otto® launched commercially in 2013 (the predecessor of Otto first created for only one company in 2007)
• Sonician AB launched funded 2Mkr in 2013

Next key objectives

•    Expand our international outreach, adding targeted activities to new target countries under 2017
•    Gamify our own online onboarding process to make sales even faster and easier in 2017-2018.
•    There are some exciting and very useful new features on the product development road-map, including some that are likely patentable and therefore not yet possible to publicly disclose.
•    Have a go-to-partner in all major EU-countries 2018
•    We're aiming for going to the stock exchange as soon as possible and we're currently building our revenue and profit to the appropriate level. The target is 2019.

Previous Financing

We have previously been funded with 6 M SEK (€ 600,000):
  • 2 M SEK - Founders
  • 3 M SEK - Vidici VC fund and four private investors
  • 1 M SEK - Loan

With these funds - we built and launched the product Otto®, and made our first sales which generated positive cash flow in our day to day operations.

Partnerships

Sonician has partnered with Cognism, Bisnode, Vendemore and Webleads in order to be able to provide the Volley Marketing and other services.

Furthermore, Sonician has partnered with the City of Gothenburg to extend the use of Integra to other municipalities to help integration between newly arrived refugees and local residents.

Sonician has also newly initiated a couple of sales partnerships, in which the new agents have already added half-a-dozen of new deals.

Use of funds

The funds will go to:
  • Approx. 75% will go to expanding sales (including internationally)
  • Approx. 20% will go to gamifying the online onboarding of Otto and Decision-Assistant to further increase sales and to further ease the getting-started for our clients.
  • Approx. 5% will go to prepare Sonician for IPO

Industry Certifications/Awards

•    Listed as having most features and the best price by the ProSales Sales Research Institute in its Marketing Automation vendor comparison.

•    Documented good results from our customers is the best award we can imagine and we have many who have agreed to act as public references, e.g.: Nischad, Kompetensinstitutet, Adocto, Bonnier, Mindfulnesscenter, Teligent, Cellip, City of Gothenburg, Chamber of Commerce, Business-Sweden, Euromerger.

Articles and podcasts about Sonician, e.g.:

Return on Investment

Sonician believes that listing the company to the public is the best way forward.

We aim to have our stock listed within 2-3 years through an IPO on a recognized marketplace.

Until this time, we are aiming to provide our investors with a 4x Return on Investment. This can be deemed viable as long as we reach our goal of tripling turnover every year until IPO.

Join the pioneers in revolutionizing 3/4 of the B2B market with the purpose to make complex sales simpler for them as well.

Become a part of our growth! Join Sonician!

Risk Analysis

Since customers themselves have complex products, there is a risk they focus more on the product itself rather than customers, which means it partly will require educating the market.

We consider Sonician to still be a small company, and treat every individual as very importan customer. Therefore, the risk it impose we have made sure at least two persons know and manage every part of the business.