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COMPANY: MRGN
YEAR FOUNDED: 2020
INDUSTRY: B2C Saas
HQ: NYC
FOUNDER: Yoni Rubin, Vivek Elayidom
FEATURE
17 Oct 2023

Setting the Scene

  • Many small business owners, especially those running local mom-and-pop shops, lack a business degree.

  • While a business degree isn't necessary, it often helps in navigating areas like revenue forecasting, modeling, and predictive analytics.

  • However, due to this expertise gap, numerous business owners:

    • Rely on unsophisticated bookkeeping methods like pen and paper or cluttered Excel files.

    • Remain unaware of how data can empower their decision-making.

  • This week's company provides an automated platform that simplifies financials and uses machine learning to help small business owners make data-driven decisions.

In a Sentence

MRGN is an AI-powered platform designed for SMBs to simplify financial analytics and guide business decisions. 

  • SMBs: Target customers include small to medium-sized businesses such as retail stores, restaurants, and franchises.

  • Simplify: Input basic financial information, or connect your accounting software like Quickbooks, and MRGN generates budgets, intuitive charts, analytics, and predictions.

  • Guide: Utilizing internal and external data, MRGN puts together an operating plan for business owners to follow.

Bulleted Version

  • Think of MRGN as Google Translate for a companyโ€™s financial data, translating complex analytics into an easily understood and digestible format. ๐Ÿ’ฌ
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The Basics:

  • Headquarters: NYC
  • Employee Count: 11 FTEs
  • Investors:

    Singularity Capital, Ride Home Fund, DataPower Ventures

  • Funding amount: $250k pre-seed
  • Currently raising: $1.25M (round opens next week)
  • Business model: B2B SaaS (3 plans based on number of seats)
  • Early traction: On-boarded 1,000 SMBs in open beta, secured a deal with a large fast food chain, and in late-stage discussions with a large household name and two municipalities

Due Diligence

WHAT WE LIKE
  • โœ… Market opportunity: Although big businesses often steal the spotlight in the US, they make up a mere 0.01% of the landscape, while the vast majority of businesses are small.

  • ๐Ÿ‘ฉโ€๐Ÿ’ป Consumer demand: 80% of small businesses in the US aren't fully leveraging available tech tools, yet 65% of business owners are keen on investing in AI technology.

  • ๐Ÿ Competitive Pricing: With a pricing model that's accessible for small to medium-sized businesses, MRGN provides a cost-effective solution in a market where similar services can be expensive.

POTENTIAL RISKS
  • ๐Ÿค” Over-reliance: While MRGN aids decision-making, it's vital for business owners to use it as a guiding tool, not the sole source, as it may not cover all aspects of business operations.

  • ๐Ÿ”’ Security: Given MRGN's access to sensitive financial data, maintaining robust security measures is crucial to uphold consumer trust and comply with data protection regulations.

  • ๐ŸŒ Slow adoption: Established small businesses, especially those accustomed to traditional methods, may require convincing to transition to a new solution, which may slow down the platform's adoption rate.

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Founder Profile

Why MRGN

By simplifying financial data through a user-friendly interface and guiding small business owners to make data-driven decisions, we predict MRGNโ€™s success is imminent.

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