jSpan Corporation (jSpan) is an Application Service Provider (ASP) of Internet based remote access services to independent professionals and small to medium businesses. The jSpan user interface – the Webtop – serves to aggregate legacy systems, online applications, and value-added services into one work environment. The Webtop interface and infrastructure established at partner ISPs enable jSpan to serve as a distribution network for other application service providers. jSpan takes advantage of the rapid growth in demand for remote access and the industry trend towards outsourcing IT applications.
jSpan Corporation has raised $500,000 from private investors. The funds are being used to launch an initial test market deployment, complete the management team and license key technologies. The company is currently seeking an additional $3.2 million through the issuance of Series A Preferred equity. These funds will be used to support a full-scale product launch within six months from the closure of funding.
jSpan provides remote access services through partnerships with Internet Service Providers (ISP), broadband wholesalers, and other network service providers. Remote access is managed through an Internet based Webtop that aggregates applications from remote office networks and other Internet locations. The primary means of generating revenue is through a per user monthly subscription fee. Premium subscriptions and value added services eventually expand the revenue stream to include transaction and syndication fees.
Customer acquisition is driven by co-marketing and revenue sharing agreements with strategic network service providers. Direct end user marketing (advertising and promotions) will be used to build customer awareness and further solidify the jSpan brand. Content syndication through partnerships with Internet content providers, service providers, and product manufactures will build a broader customer base.
A flexible work environment and an increasingly mobile workforce are driving the demand for remote access to critical business information. Forecasts estimate the mobile workforce in the United States alone will exceed 47 million employees four years from now. To stay competitive, independent professionals and small to medium businesses are rapidly adopting mobile computing devices but lack the technical and economic resources to implement a comprehensive remote access solution.
Professionals are adopting a work style that requires access to office applications from multiple locations. As of last year, approximately 23% of home Internet users brought office work home on nights and weekends while another 17% used the Internet to run a home-based business. The number of telecommuters has shown rapid growth, exceeding 9.7 million this year.
According to Access Media International, small businesses invested $138 billion on information technology and telecommunications products last year. Businesses are seeking technology solutions that leverage a smaller number of employees over a larger market. Increasingly, these companies are outsourcing technology services.
jSpan provides remote access through a universally accessible Webtop using Virtual Private Networking (VPN) technology to establish a secure connection to the remote target system. The combination of these two technologies eliminates the expense and expertise needed to custom configure a typical remote access solution. Access can be provided over xDSL, T1, or cable modems, resulting in a secure Internet hosted Webtop that offers functionality similar to an office-based workstation. Taking advantage of core technology that is available in the market will allow jSpan to minimize development time and rapidly enter the market. Over time, premium subscriptions and value added services improve the customer value proposition.
Gross revenue is based on per user revenue of $21.25 per month and forecast to exceed $422 million by the end of year five of operations. The target market size is based on the projected mobile workforce as determined by International Data Corporation. Additional opportunities in the enterprise or consumer market segments, or international expansion, could substantially increase the potential market.
By consolidating the highly fragmented market for independent professionals and businesses, jSpan is a potential acquisition target for corporations that offer goods and services to this market segment. Based on a $450 per user acquisition cost, management conservatively estimates an acquisition value of $105 million at the end of year three, increasing to over $1 billion by the end of year five.
jSpan has assembled a team of experienced managers and technical specialists. The founders, John Millar and Kim Niquette, have management experience in high growth technology companies and international entrepreneurial organizations. Members of jSpan’s technical team have software development and operations experience with Sun Microsystems, Raytheon Corporation, and a number of start-up ventures. Additional senior managers have been identified and plan to join the team subsequent to a major funding event. jSpan has also assembled a strong advisory board that includes experienced entrepreneurs and leading professional services organizations.
John G. Millar, Co-Founder and CEO.
Kim Niquette, Co-Founder and CFO.
Norman Walters, COO.
Carlos Garcia, Technology Specialist.
Board of Advisors
Joseph Addison, Co-Founder and CFO of StartABusiness.com.
James Smith, Vice President of Business Development for Exodus Networks.
Michael M. Rodgers, Partner at Watson, Sonoma, Goodson & Rodgers.
Peter J. Wilson, Director of Business Development at 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. Remote and Mobile Worker Market Review and Forecast,” International Data Corporation, July 1999, p. 2.
2 “Online Nation: 1998 U.S. Internet User Survey”, International Data Corporation, 1998.
3 “Where’s the Office? U.S. Remote and Mobile Worker Market Review and Forecast,” International Data Corporation, July 1999, p. 2.