jSpan Corporation is an Application Service Provider. (ASP) It provides Internet-based remote access services for independent professionals and small to mid-sized businesses. The Webtop interface, which is part of jSpan, allows users to merge legacy systems, web applications, and value-added solutions into one workspace. jSpan is able to distribute other application service providers through the Webtop interface, as well as infrastructure built at partner ISPs. jSpan capitalizes on the industry trend towards outsourcing IT applications and the rapid increase in remote access.
Private investors have given $500,000 to jSpan Corporation. The funds are being used to launch an initial test market deployment, complete the management team and license key technologies. The company is seeking additional $3.2million through Series A Preferred equity. These funds will enable the company to launch a full-scale product within six months of closing funding.
jSpan can provide remote access services by partnering with Internet Service Providers. Remote access is managed through an Internet based Webtop that aggregates applications from remote office networks and other Internet locations. The primary source of revenue is via a per-user monthly subscription. In the end, premium subscriptions and value-added services will increase the revenue stream and include transaction and syndication fees.
Co-marketing and revenue sharing agreements are key to customer acquisition. To increase customer awareness and strengthen the jSpan brand, direct end user marketing (advertising/promotions) will be used. Partnerships with Internet content providers, service provider, and product manufacturers will allow for content syndication to build a wider customer base.
Remote access to vital business information is increasingly demanded because of the flexible work environment and mobile workforce. According to forecasts, the US will have more than 47 million mobile workers within four years. Independent professionals and small- to medium-sized businesses need to adopt mobile computing devices in order to remain competitive. However, they lack the financial and technical resources to implement remote access solutions.
Professionals adopt a work style that requires multiple access to office applications. In the last year, around 23% of Internet users brought their office work home over weekends and 17% used them to run a home-based enterprise. The number of telecommuters is on the rise, with 9.7 million people now using the internet to work from home.
Access Media International reports that small businesses spent $138 billion last year on information and telecommunications technology. Businesses seek technology solutions that maximize the use of a smaller employee base while addressing a larger market. Increasingly, these companies are outsourcing technology services.
jSpan offers remote access from a universally accessible webtop. Virtual Private Networking is used to establish a secure link to remote target systems. These two technologies combined eliminate the need to create a custom remote access solution. You can access the Internet via xDSL, cable, or T1 modems. This secure Webtop offers functionality comparable to an office-based computer. Using the core technology available on the market will enable jSpan to reduce development time and quickly enter the market. Premium subscriptions and value addition services increase customer value over time.
Gross revenue is calculated on per-user revenue of $21.25 per monthly and is expected to surpass $422 million by year five. International Data Corporation estimates that the target market will be approximately 5% of the global mobile workforce. The potential market could be substantially increased by additional opportunities in the enterprise and consumer markets, as well as international expansion.
jSpan consolidates the fragmented market for independent businesses and professionals. This makes it a potential acquisition target to corporations offering goods and services in this market segment. Based on a $450 user acquisition cost, the management has estimated an acquisition value at $105 million by year three. It will increase to over $1B by year five.
Management teamjSpan has assembled a group of technical experts and managers. The founders, John Millar and Kim Niquette, have management experience in high growth technology companies and international entrepreneurial organizations. jSpan’s technical staff includes people who have had software development and operational experience with Raytheon Corporation, Sun Microsystems, Raytheon Corporation, as well as a range of start up ventures. Following a significant funding event, additional senior managers were identified and will join the team. jSpan has also assembled a strong advisory committee that includes both experienced entrepreneurs and leaders from the world of professional services.
John G. Millar Co-Founder and CEO
Kim Niquette is Co-Founder and Chief Financial Officer.
Norman Walters, COO.
Carlos Garcia, Technology Specialist.
Board of Advisors
Joseph Addison, co-founder and CFO at StartABusiness.com
James Smith is Vice President of Business Development, Exodus Networks.
Michael M. Rodgers, Partner, Watson, Sonoma, Goodson & Rodgers.
Peter J. Wilson Director of Business Development, Advanced Network Communications.
Additional biographical information on the Management Team and Board of Advisors may be found in topics 7.1 and 7.2 respectively.
1 “Where’s The Office?” U.S. U.S.
2 “’Online Nation: 1998 U.S. Internet User Survey ”â€™. International Data Corporation, 1998.
3 “Where’s the Office? U.S. U.S.