Botlovers.com – ai chat support for enterprise.

Investment Ask:

Round: Seed

Amount: €1.25M - €1.75M

Use of Funds:

People (40%): Primarily for hiring across tech, product, and sales.

AI R&D + AI Tools (30%): For the innovation, development, and enhancement of their GenAI technology.

Services (30%): Likely for infrastructure, marketing, or other operational costs.

Team:

Key Personnel:

Andrés Pulgarín: CEO & Co-founder

Simón García: CPO & Co-founder

Andrés Soler: CRO & Partner

Advisors:

Dan Martell: Advisor

David Tomás: Investor & Advisor

Traction:

Headcount Growth: From 3 in 2019 to 9 in 2023.

Customer Growth: From 15 in 2019 to 60 in 2023.

Product:

Primary Offering: Creation and development of AI-powered chatbots, voice and text assistants aimed at
helping companies improve customer service, reduce costs, and automate processes.

Market:

BotsLovers operates within the wider chatbot market which is propelled by increasing customer
expectations, limited company resources, and a shift towards no-code/low-code solutions.
Business Model

Revenue Streams:

Subscription Fees from SaaS platform usage.

Set-Up Fees for new customer onboarding.

Gen AI Variable Fees from requests made to LLM providers on top of those included in monthly
subscription plans.

Financials:

Annual Recurring Revenue (ARR):

2019: 220k€

2020: 229k€

2021: 322k€

2022: 361k€

2023 (estimated): 450k€

Competitors:

Kore.ai, Inbenta, LivePerson, Landbot, Livechat, Crisp, intercom, drift, and Zendesk.

Market Strategy:

BotPlatform Enterprise: Targeting Retail & E-commerce sectors via direct sales.

BotPlatform Lite: Targeting SMBs via an online self-serve channel.

Financial Projection & Headcount:

Budget for People (€600K): Assuming a €1.5M raise, budgeting for a proposed headcount of 10
employees with an estimated annual salary of €70K per employee.

Strengths:

Diversified revenue model.

Clear market segmentation.

A structured plan for the use of funds.

Pros:

Market Alignment:

The company is situated in a growing market of AI and chatbots, propelled by increasing customer
expectations and a shift towards no-code/low-code solutions.

Focus on improving customer service, reducing costs, and automating processes aligns well with many
businesses' current needs.

Product Development:

Developed product with unique features like a No-Code SaaS platform, multi-language and multi-channel
support.

Advancing Generative AI technology keeps them competitive.

Financial Growth:

Positive trend in Annual Recurring Revenue (ARR) since 2019.

Experienced Team:

Founders and key personnel have significant experience in tech, AI, and SaaS industries.

Investor & Advisor Network:

Some investors and advisors on board.

Cons:

Funding Secrecy:

Lack of transparency regarding the latest funding round and only one known investor may raise
concerns.

Competitive Market:

Highly competitive AI and chatbot market.

Customer Growth Rate:

Slow customer growth rate from 2019 to 2023.

Small Team:

Relatively small team size for market expansion.

Lack of Detailed Financials:

Insufficient detailed financial information.

Advice to Investors:

Due Diligence:

Thorough due diligence needed for financial health, market potential, and competition.

Seek Transparency:

Request more transparency on financials, especially recent funding.

Consider Market Trends:

Evaluate AI adoption and chatbot trends against the competitive landscape in Europe. Long sales cycles
denote an issue with market penetration.

Areas of Consideration:

1. Sales Cycle Duration:

Impact on revenue realization and cash flow.

2. Tech vs Sales Hiring:

Balance between tech and sales for market capture and product relevance.

3. Client Support & Maintenance:

Create comprehensive support packages.

4. Marketing:

Enhance digital marketing efforts.

Address language barriers in marketing content.

Recommendations for BotsLovers:

Shorten Sales Cycle:

Investigate strategies to shorten the sales cycle.

Balanced Hiring:

Balance tech and sales hiring.

Enhanced Client Support:

Develop comprehensive support packages.

Boost Marketing Efforts:

Hire competent marketing personnel.

Create content in target market languages.

Transparency:

Provide more financial and operational metrics.

Additional Queries:

Marketing Content:

Request access to additional marketing content for better understanding.

Client Testimonials:

Acquire client testimonials or case studies for insights into customer satisfaction and impact.