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    Date submitted
  • 23-Dec-2018

BizCatcher International

Abstract

BizCatcher International is a platform that automates the customized deal searching process with AI applications for small and lower middle market business acquirers/investors, business sellers, and financial intermediaries

Video

Additional Questions

Who is your customer?

BizCatcher International's customers are small and lower middle market size 1) business buyers who are looking for business acquisition targets for strategic expansion or asset diversification, 2) business owners who are looking for buyers of their businesses, and 3) financial intermediaries (small investment banks, business brokers, M&A consultants) who are looking for target business buyers or business sellers for their clients.

What problem does this idea/product solve or what market need does it serve?

BizCatcher International solves the problems of 1) customized deal searching services provided by financial intermediaries being too expensive, 2) screening, tracking, and following up required for successful deal searching are very time-consuming with existing solutions, and 3) identifying suitable target businesses is extremely difficult for boutique and lower middle market financial intermediaries

What attributes will make this idea/product successful? Why do you believe that those features will create success?

We believe the product will be successful due to the following attributes and reasons: 1) The product’s integration of financial services metrics and machine learning algorithms enables more effective deal searching mechanisms that cost users significantly less compared to comparable solutions 2) The time the product saved for users by automating the previously manual deal searching process (screening for deals, contacting potential targets, following up on potential targets, feedback and document tracking and sharing) generates significant amount of economic value for users (for whom time is scarcity good) which significantly raises their willingness to pay. 3) The problem is severe and prevalent based on our market research and the market is large enough (data suggested globally there are around 50 million small businesses looking for buying/selling businesses in the next five years but could not find suitable targets).

Explain how you (your team) will execute to make this idea/product successful? What gives you (your team) an advantage over others already in the market or new to this market?

The direct competitors are BizBuySell, BusinessForSale, and DealStream. They are also considered online marketplace for businesses. They allow both business buyers and business sellers to register and list their businesses on the website. Users can contact the opposite side through the websites. These competitors were founded in the mid-90s and had gradually built a customer base due to market needs, but there has not been any useful technology advancement throughout the years to make the process more effective. BizCatcher International is differentiated from its competitive set by providing recommendations to users on the target businesses that are suitable to the users and using machine learning model to automate the screening process. The recommendation model integrates the metrics BizCatcher International founder (and the experienced industry professionals she consulted) previously used in her investment management and private equity experiences into the machine learning algorithms made possible by the co-founders including a CMU Robotics System Development alumna and a CMU graduate student from Information Network Institute. With the increasing number of users generating more data, the model will continually be tested and improved through machine learning. This will allow BizCatcher International to build barriers to entry over time because the recommendation models have been advanced and should generate results that users found much more satisfiable than that of new entries. This will help BizCatcher International to gain credibility and over time authority in the field to protect itself from new entries. In addition, with more users onboard and store their data on the platform, the network effect will also create a barrier of entry for new entries.